Wednesday, January 03, 2007

Michigan Senator's re-election realizes $113,000 from Detroit syndicators after she introduces plans for their Port Huron Indian Casino

Background on the financial entanglements between Senator Debbie Stabenow (D-MI), the Bay Mills Indian Community and the Detroit casino syndicators bankrolling the tribe's proposed Port Huron casino and other business ventures.

Throughout the 1990s, the Bay Mills Indian Community, already with two casinos on its existing trust lands in Brimley, MI, has attempted to win approvals to build a casino in more lucrative markets including Detroit, Pontiac and Auburn Hills.

Then, Gov. John Engler (R-MI), who once vowed to oppose any additional casinos in Michigan, cut a deal in late September 2002 to allow the Bay Mills Indian Community to open a gambling parlor on non-tribal land in Port Huron as a way of settling a longtime land dispute with the tribe. The tribe had claimed to own land in Michigan's eastern Upper Peninsula Charlotte Beach community; property that had been given to them by the federal government, but that the state subsequently sold.

Following on Governor Engler's intentions, on September 20, 2002 Senator Debbie Stabenow (D-MI) introduced S. 2986, a bill to approve the Governor's land claims settlement. If approved the bill was intended to allow the Bay Mills Indians to construct a casino in Port Huron, Michigan on the grounds of the existing Thomas Edison Inn at the Blue Water Bridge international crossing. The site is located 350 miles from the Bay Mills reservation but just one hour from Detroit.

A hearing before the Senate Indian Affairs Committee was swiftly organized for October 10, 2002, less than two weeks after S. 2986 was introduced. In introducing S. 2986, Stabenow, the Junior Senator from Michigan, found herself at odds with one of the senior leaders of her party, Senator Harry Reid (D-NV), who has remained opposed to any casino outside a tribe's ancestral territories.

Before September 2002 Senator Stabenow’s previous campaigns for public office had not been backed by the Ilitch Family of Detroit or their casino syndication partners including Michael J. Malik, Sr. (including her first campaign for the U.S. Senate nor several previous terms in the House representing Michigan’s 8th District); however, after introducing S. 2986, records filed with the Federal Election Commission indicate the Ilitch Family and Malik (primarily registered Republicans with a history of giving strategically to some Democrats) directed at least $113,000 toward Stabenow’s 2006 re-election:

  • $54,400 Michigan Senate 2006 – Democrat
  • $32,000 Stabenow for U.S. Senate – Democrat
  • $26,700 Democratic Senatorial Campaign Committee

The Ilitch Family/Malik also contributed to the following leadership PACs, and possibly others, which in turn supported Stabenow's re-election as well:

  • $22,000 Friends for Harry Reid/Searchlight Leadership Fund contributed $10,000 on 2/2/05
  • $10,100 Friends of Hillary/HILL PAC contributed $10,000; $5,000 each on 6/24/05 & 3/15/06

Although S. 2986 was never brought to the floor of the Senate for a vote, recently, in an apparent re-direction of cash flow, Senator Stabenow announced on December 20, 2006 that the Bay Mills Indian Community would receive a $900,000 grant from the U.S. Department of Commerce to further a plastics business venture. According to The Bay Mills News, March 24, 2005, one of the same Detroit casino syndicators behind the Bay Mills casino in Port Huron, Michael Malik, owns 49% of the plastics venture that is the beneficiary of this recent grant.

This $900,000 grant is a small consolation prize for the Port Huron casino if that’s the intention; unless of course, there’s more to come.

12.20.06
the blog, Great Lakes Politics
post from fnemecek 02:31 PM

$900,000 Coming to Chippewa County
U.S. Senators Debbie Stabenow (D-MI) and Carl Levin (D-MI) today announced that the Bay Mills Indian Community and Community College will receive $906,000 to construct a plastics technology research, testing, manufacturing and training center. The funds were awarded through the Economic Development Administration (EDA) of the U.S. Department of Commerce.

“This investment is great news for the economy of Northern Michigan,” insists Ms. Stabenow. “These funds will create good paying jobs in Chippewa County and help bolster economic development throughout the community.”

“This is great news for the eastern Upper Peninsula,” insists Mr. Levin. “This federal funding will bring jobs and investment dollars to the U.P. and help make Michigan a leader in plastics technology.”

This funding will create fifty five new jobs and generate over $2.8 million in private investments, according to the EDA. It is the goal of the EDA to enhance regional competitiveness and promote long-term development in regions experiencing economic hardship.


As reported in the Bay Mills News coverage referenced earlier, during the General Tribal Council (GTC) meeting March 14, 2005 matters involving the tribe’s plastics ventures were questioned by the Bay Mills general membership including the involvement of Michael Malik.

Skirting around the matter, Council leaders avoided any such disclosures and denied a motion that would have required a written report on the plastics venture matter be prepared for discussion at the next Council meeting . Immediately thereafter, the GTC approved a motion to allow the tribe’s executive council to enter into a joint venture agreement regarding the plastics venture presumably involving Michael Malik.

03.24.05
Bay Mills News
Bay Mills GTC “PLASTICS BUSINESS”

… Parker said that Mike Malik is involved in the plastics business because the tribe did not want to expend any tribal funds on the project. He said the initial concept
is to have the business in Kinross until the planned creation of an industrial park on tribal properties at I-75 and M-28…

Another member said that it was his understanding that Malik would invest $1.3 million into the company and would own 49 percent of it, while Bay Mills would own 51 percent. He also recommended a committee be put together to investigate some of these allegations and report back to the GTC with their findings. Parker said he would like to have the tribe do the venture on their own, but said that they did it this way so they would not be out any money.

A motion to have the council report back with paperwork at the next GTC meeting on all of the legal issues presented failed to pass.

A motion to have the Executive Council enter into a joint venture for the Plastics Business carried.

One way or another, it appears the unprecedented “investment” of $113,000 by the Ilitch Family/Malik, channeled to Senator Stabenow’s ’06 re-election campaign, will “pay off” for all involved; what remains to be seen is the ultimate size of the virtual “jackpot.”



You may also want to review these posts:
Great Lakes Politics: Bay Mills & Malik get into Plastics; Senator Stabenow announces they'll get $900,000 federal jumpstart
Candy Land:
Calling for More Candy
The Verifiable Truth:
Ilitch Family, Associate increased political contributions 2000%
The Verifiable Truth:
Six bills in Congress, over six years & political gifts in the six figures: That's what Ilitch Family has invested in Port Huron Casino deal

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