Creek Nation Plans To Gut Fountainhead Lodge, Build Casino

EUFAULA, Okla. (AP) -- The new owner of Fountainhead Lodge at Lake Eufaula is planning to gut the 185-room former resort and build a casino resort in its place.<br/><br/>The Creek Nation is planning an

Wednesday, August 2nd 2006, 9:04 am

By: News On 6

EUFAULA, Okla. (AP) -- The new owner of Fountainhead Lodge at Lake Eufaula is planning to gut the 185-room former resort and build a casino resort in its place.

The Creek Nation is planning an auction at the lodge next Thursday as the first step toward either renovating it or demolishing it and starting the new resort from scratch.

The property is not in federal trust which is necessary for opening a tribal casino. Tribal officials say they have support from surrounding towns to have the land placed in trust.

Fountainhead opened in 1965 after the state sold $9-million in bonds and used a more than $1-million federal grant to build it and its counterpart -- Arrowhead Lodge.

But occupancy rates at the two resorts were lower than projections and the state missed several interest payments.

The federal government took possession of the lodges in 1985 and sold them to private developers but projects there also failed.

The Creek Nation bought the lodge and 48 acres for $2-million at a sheriff's auction last year.