John M. Vincent/The Oregonian

One of Oregon’s biggest resorts is set to close this summer, and 146 employees will go with it.

Kah-Nee-Ta Resort and Spa, which operates on the Warm Springs Indian Reservation in central Oregon, announced Friday that it will close all operations on Sept. 5, laying off 146 employees.



The decision came as the “the resort cannot continue operating below a self-sustaining level,” according to an announcement sent to employees from interim general manager Marie Kay Williams. Closing the resort is necessary to protect the Confederated Tribes of Warm Springs from further financial risk, she wrote.

With the closing of the resort, 146 employees will be laid off, according to the notice sent out Friday. That includes spa, restaurant, maintenance, room service and administrative workers.

Williams did not return calls for comment on the decision.

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Terry Richard/The Oregonian

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The confederation built the resort in stages over the 1960s and '70s, after a special act of Congress allowed the tribes to buy back natural hot springs on the reservation, using money negotiated for the loss of Celilo Falls. Today, the resort features 139 rooms, an 18-hole golf course, soaking pools, an RV park and ample meeting space.



The Kah-Nee-Ta Resort used to include a casino, but in 2012 the tribe closed and reopened it as the Indian Head Casino on a more accessible spot along U.S. 26. At the time, an economic study predicted the casino would bring in between $2 million and $4 million in profits, and could rise as high as $29 million a year after construction costs.

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Bruce Ely/The Oregonian

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Despite the potential windfall, the Confederated Tribes of Warm Springs found themselves in a financial bind only three years later. In 2015, the confederation asked federal regulators to investigate possible financial mismanagement within its tribal government, after the tribes allegedly overspent more than $100 million over 10 years.



At the resort, accommodations skew toward luxury, with the nicest lodge rooms starting at $389 per night. It was also known for its tepee rentals and RV park, which offered guests more affordable options.

The resort will continue taking reservations through Sept. 5.

--Jamie Hale | jhale@oregonian.com | @HaleJamesB

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