L&O turns thumbs down on Escalade

Posted by Krista Allen | Oct 13, 2016 | News |

Navajo Times | Krista Allen
Some Diné and other nearby tribes regard the confluence of the Colorado and Little Colorado rivers as sacred. The Confluence Partners LLC hopes to build a tramway that would allow visitors to descend 3,200 feet to a planned retail complex and food court overlooking the rivers.

BIDÁÁ’ HA’AZT’I’ and TWIN ARROWS, Ariz.

The five members of the Law and Order Committee on Monday unanimously opposed the Grand Canyon Escalade legislation, which requires the Navajo Nation to pay $65 million for off-site infrastructure costs. This amounts to more than one-third of the Escalade project’s total cost.

The Grand Canyon Escalade project is a highly disputed plan to develop tourist attractions on the eastern edge of the canyon. The plan proposes an aerial tram just outside the boundaries of Grand Canyon National Park. Visitors would be carried from the cliff tops to the confluence of the Colorado and Little Colorado rivers.

The plan also calls for building infrastructure, a riverside boardwalk, hotels, a cultural center, and places for Diné artisans to sell their goods.

At most, the Nation can receive only 18 percent of gross revenues, according to the project master agreement.

The portion of the gross revenues is predicated on the Nation’s spending $65 million for offsite infrastructure on the project. The agreement suggests that if paid customer admissions are less than 800,000 the Nation receives 8 percent of gross revenues. And if more than two million customers, the Nation receives 18 percent of gross revenues.

For example, on the lower end, the Nation would receive 8 percent of gross revenues. So if each visitor spends $100 that would equal $80 million. Eight percent of that would be $6.4 million, of which the Navajo Hospitality Enterprise would get a two percent cut, or $128,000, leaving the tribe with $6.27 million. The Confluence Partners LLC would receive 92 percent, $73.6 million.

The Confluence Partners would be required to secure at least $120 million for onsite infrastructure cost. And the Enterprise would have the responsibility to construct the offsite infrastructure in accordance with the requirements of the master agreement.