Gov. John Engler, who repeatedly had said he wouldn't approve any more casinos for the state, approved a deal that will allow an Indian tribe to open a casino on nontribal land here.
The Brimley-based Bay Mills Indian Community had claimed to own land in the eastern Upper Peninsula, property that had been given to it by the federal government, but that the state sold.
As part of the deal with the state, the tribe will drop its claims for the Upper Peninsula land in exchange for the Port Huron property.
If the deal is approved by Congress, the three-story casino proposed last year -- and embraced by 54 percent of city voters in an advisory election -- could become a reality.
Supporters said a casino should generate about $100 million a year in revenues, provide about 1,000 jobs and increase traffic for local businesses.
In addition, 2 percent of the slot-machine revenue would be split by local taxing entities, including county, city and schools.
The tribe has two casinos in the Upper Peninsula. If a casino is built in Port Huron, it would be a 120,000-square-foot addition to the Thomas Edison Inn beneath the Blue Water Bridge and would compete with the Point Edward Charity Casino across the St. Clair River in Ontario, the Times Herald reported.
U.S. Sen. Debbie Stabenow, D-Mich., on Friday introduced a bill that would allow Congress to"extinguish"the tribe's claim to Charlotte Beach lands in Chippewa County and provide for alternative land to be put in a trust for the tribe.
A nine-page settlement, signed by Engler and Bay Mills Executive Council President John Lufkins, includes information on the parcel of Port Huron land and the percentage of revenues that the tribe must pay state and local governments.
Michigan already is home to about 20 Indian casinos operated by a dozen tribes, but this would be the closest to Detroit's three commercial casinos, The Detroit News reported. Port Huron is about 55 miles north of the city.
Engler spokesman Matt Resch said the agreement prevents the tribe from further casino expansion by limiting it to one additional casino in Port Huron.
"This is a win-win for everybody,"Bay Mills spokesman Tom Shields said.
But Detroit Mayor Kwame Kilpatrick said the city opposes a Port Huron casino because it could take away business from the three Detroit casinos. He plans to take its concerns to Stabenow.
"We're going to fight it. We don't need another casino that close,"Kilpatrick said Monday.
Marci Fogal, president of the Blue Water Area Convention and Visitors Bureau, said she's been waiting for months to hear an update on the proposal.
"This is very, very exciting,"she said Monday.
Fogal was one of many who campaigned for the casino as a way to boost tourism. She said a casino would have helped entertain the 300 people who were in Port Huron on Monday when the cruise ship Columbus stopped in the city for the day.
"It's not just the casino that would bring money. The people who go to the casino might stay in our hotels, get gas at our stations, buy food in our restaurants,"Fogal said.
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