The construction of the Twin Arrows Casino and Resort east of the Twin Arrows exit on the north side of Interstate 40 is expected to begin later this month after delays due to reductions to the size of the project and a reprieve from a potential smoking ban by the Navajo Nation.

After a review of the project by engineers it was determined that the increase to construction costs require that the size of the casino be scaled back in order to stay within budget.

The result is a revised plan that will eliminate the second floor of the hotel, with amenities such as the “high-rollers” lounge, steakhouse and seafood bar to be brought down to the first floor. The hotel, which was originally to be 120 rooms, has been reduced to 90 in the first phase, but the 50,000-square-foot conference center will remain the same size in anticipation of future expansion.

In order to accommodate the changes, Navajo Gaming Enterprise CEO Bob Winter obtained an amendment to the loan agreement with the Navajo Nation last month that allowed for the payment of pre-construction costs and changed the completion date for the project from November 2012 to May 2013.

With the changes to the project, the total cost for the Twin Arrows Casino and Resort has been reduced from around $160 million to approximately $140 million.

Another concern for Winter is a ban on smoking in public places being sought by Navajo Nation President Ben Shelly. Winter estimates that a ban on smoking could reduce casino revenues by as much as 25 percent, indicating that the project could close down before completion.

The Navajo Nation Council passed the Navajo Nation Smoking Regulation Act of 2011 earlier this year, which stated that smoking would be banned in all public places with the exception of casinos until the tribe and the Navajo Tribal Utility Authority recoup the money spent building casinos and the infrastructure built for them.

In August, Shelly vetoed the bill, stating that the language of the bill was not sufficient to protect the health of Navajos working in public places. The Navajo Nation Council sought to override the president’s veto of the bill later in the month, but failed to do so by two votes. No further action has been taken on a potential smoking ban.