Saturday, January 13, 2007

Blogger reports Schwarzenegger abandoned the Los Coyotes and Big Lagoon casino agreements last summer when those two tribes attacked Aqua Caliente

** FLASH **


Blogger Books on Gambling Six.lv reports:

"The [latest] pact between the Agua Caliente and Governor Arnold Schwarzenegger is facing opposition from two other Indian tribes, the Big Lagoon Rancheria tribe and the Los Coyotes Band of Cahuilla and Cupeno Indians, that had previously applied to build casinos but were later rejected.

..."According to the pact, Agua Caliente will pay more than one billion dollars to the state for the next thirty years.

"However, two Indian tribes, the Big Lagoon Rancheria tribe and the Los Coyotes Band of Cahuilla and Cupeno Indians also tried to reach an agreement with Gov. Schwarzenegger in regards to the Barstow casinos.

"But the governor had rejected the proposal of the two Indian tribes last June."


Clearly the Detroit casino syndication behind Los Coyotes and Big Lagoon failed miserably in 2005--06 to generate even modest support in the legislature for their dual casino scheme; and then, embarrassed the Governor when the plans were outright rejected by Assembly Members in Committee.

Combine those circumstances with the fact they are attacking other plans negotiated by the Governor with Aqua Caliente that will yield more than $1 billion to the State of CAifornia and those would be compelling reasons for the Governor to back away.

The Detroit lobbying and PR team has stopped pimping the agreements signed by Schwarzenegger so frequently and instead appears to have gotten in bed with Labor which may be another sure sign things have soured between Schwarzenegger and the Ilitsch Family.

Watch for the DETROIT PR machine to deny this immediately regardless ...

Keep us posted Six.lv


Rep. Candice Miller introduced HR 813 on February 13, 2003 to approve settlement of unsubstantiated land claims and a casino for Port Huron

HON. CANDICE S. MILLER

OF MICHIGAN

IN THE HOUSE OF REPRESENTATIVES

THURSDAY, FEBRUARY 13, 2003

  • Mrs. MILLER of Michigan. Mr. Speaker, for more than 100 years, the Bay Mills Indian Community has sought justice for the illegal sale of over 110 acres of Chippewa County lands which, prior to the sale, had been homeland to a large group of the Tribe's ancestors. Today I am introducing legislation that finally brings relief to this group of Michigan's Native people.

  • The legislation I propose today also brings too-long awaited relief to the non-Indian citizens of Michigan who live within the Tribe's Chippewa county claim area. Because the Indian claim has remained unresolved for many years, innocent homeowners have watched their property values plummet to 90 percent below what that property would otherwise be worth on the open market. This legislation accomplishes these ends by ratifying the Land Settlement Agreement signed by the Bay Mills Indian Community and the State of Michigan on August 23, 2002.

  • This Land Settlement Agreement is the product of a long and careful negotiation process between the Tribe and the State. It calls for the extinguishment of all of the Tribe's title and right to the Chippewa County disputed lands and in return provides for the Tribe to receive replacement land in Port Huron that will be put into trust (and therefore protected by federal law from illegal sale) by the Secretary of the Interior. Further, the settlement is structured in such a way as to ensure that neither the taxpayers of Michigan nor the taxpayers of the United States will ever be saddled with the cost of paying a monetary damage award, which otherwise could be quite substantial, to the Tribe.

  • Finally, and of particular importance to my constituents in the 10th District, the settlement agreement will enable the City of Port Huron and the Tribe to engage in desperately needed and mutually beneficial economic development, of a casino. The people of Port Huron approved a June 2001 casino advisory referendum. This legislation is critical in allowing the residents of the Port Huron community to actively participate in its economic recovery through the establishment of a casino approved by the people. The Port Huron community has been brutalized by the loss of thousands of manufacturing jobs, a double-digit unemployment rate that doubles our state and federal average and a Canadian casino located just 500 yards from our border. That casino attracts more than 1 million American visitors per year, which is devastating to our tourism and entertainment business. A casino on the American side of the border would create 3,000 American jobs while providing competition to our Canadian neighbors at the only border crossing with Ontario where we have not responded by having a casino of our own.

  • Resolution of this land claim is long overdue. In sponsoring this legislation, I am proud to be part of a solution crafted to benefit the Tribe, residents of the claim area, and the taxpayers of Michigan.

  • I join with the members of the Bay Mills Indian Community, the Charlotte Beach landowners, my constituents in Port Huron, and my distinguished colleague Congressman DON YOUNG in support of this proposed settlement. This legislation provides a fair solution that is long overdue for many Native Americans.

http://thomas.loc.gov/cgi-bin/query/D?r108:2:./temp/~r108K593xa::

You may also want to review these posts:

* The Verifiable Truth: Port Huron struggles, is worthy of a break; but editor fails to recognize local casino plan has national shockwaves, which supersede local needs

* The Verifiable Truth: in Governor John Engler's opinion, "Michigan has enough casinos"

* The Verifiable Truth: Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then returned to private practice, retained by those who got the deal

* The Verifiable Truth: Bay Mills Settlement Agreement and Bill HR 831 on the Dykema Gossett Web site

* The Verifiable Truth: GOP Congresswoman received at least $74,000 in bundled funds from Ilitch Family sources after introducing bill for syndicator-backed Indian casino

* Candy Land: Calling for More Candy


Friday, January 12, 2007

Previously in Gambling News:

"As reported by the Detroit News: "Casino Windsor will begin offering sports betting next Friday (9.08.06) -- marking the first time Metro Detroiters will have access to live sports wagering. "Looking to tap the sports and gambling passions of its American neighbors, the riverfront casino is opening a multimillion-dollar, 170-seat sports lounge, where gamblers can wager on pro football, basketball, hockey and baseball games, as well as college football and basketball.".Gaming experts expect the Legends Sports Lounge, which took seven months to build, will be a major draw. ".While this is a first for Windsor, sports betting is available at casinos in other regions of Canada.".Casino Niagara in Niagara Falls, Ontario, recently opened a $10 million sports betting lounge. ".Casino Windsor's new lounge includes 36 video display terminals that will feature sporting events. It will offer a stadium-style menu featuring hamburgers, hot dogs and chicken wings."


"Lions and Tigers and sports book "Oh My!"... Before you know it, MotorCity, MGM Grand and Greektown will all be pursuing sports betting in Detroit on grounds they have to offer it to be competitive or they'll lose gamblers and revenue (tax money for the City) to Ontario.

Click pic to see larger view

Support for Barstow’s Indian Gaming Compacts Remains Stalled

Barstow Casino agreements negotiated by Gov. Schwarzenegger in 2005 were rejected by powerful Assembly Members in 2006; absent the significant sea change in Sacramento promised by proponents last year, the agreements are set to expire soon.

SACRAMENTO, Calif., Jan. 9 /PRNewswire-USNewswire/ -- Agreements for two Indian Casinos in Barstow given a greenlight by Governor Arnold Schwarzenegger in 2005 failed to generate interest in the Senate and were rejected by powerful members of the state Assembly in 2006.

Last year, a Detroit-based casino syndication team headed up by Marian Ilitch vowed to win approval of their scheme for dual Indian casinos in Barstow when the California Legislature reconvened this month in Sacramento. In reality they agreements remain stalled.

In lieu of anything substantive to signal true progress in the California Legislature for their Barstow scheme, Ilitch’s team has been issuing shallow press releases this week -- an attempt to convince reporters and others that they are committed and making progress; and also pose a veiled threat to the legislature. But no one new is independently backing up their claims or providing any other substantive “proof.”

As the 2007 legislative session gets underway, Ilitch and company find themselves at the same place they were a year ago – holding aging agreements, absent an author or the introduction of legislation to serve as the vehicle for approval of those agreements and without crucial public commitments from any additional Sacramento lawmakers to support their scheme.

Among other triggers, the agreements Schwarzenegger has autographed are of no value unless ratified by the legislature soon. Failing to win ratification last year, the Ilitch crew has just months to make it happen.

The Ilitch organization, its two tribal partners and three Sacramento lobbying firms all failed to make any substantive progress but they are successfully blocking any other parties from making progress on alternative plans for casino development in Barstow – the halfway point between Los Angeles and Las Vegas. The Ilitch organization or some related party funneled between $350,000 and $500,000 to the three lobbying firms this past year but major descrepancies in reporting make it difficult to tell exactly who and how much was paid.

Wes Chesbro, former state Senator, the author legislation to approve their Barstow scheme in the 2006 session. Chesbro’s term expired in 2006 and term limits prohibited him from seeking re-election. Ilitch and her Native American partners, the Big Lagoon Rancheria and Los Coyotes Bands of Indians, lost their only true legislative champion and were left without an author for legislation.

Including Chesbro, the Ilitch casino syndication had only won public commitments of support for their agreements from six legislators. Three of those were obligatory “co-authors” of Chesbro’s legislation because their districts, like Chesbro’s, include parties to the agreements (either the City of Barstow or Big Lagoon Rancheria). Two others indicated their support publicly after Chesbro and his original co-authors introduced the legislation.

The agreements were heard before the Senate Governmental Organization (GO) Committee last March. It was clear at the hearing Senators did not approve of the agreement but rather than take a public vote and sink the agreements at that time, the GO Committee concluded the hearing without any action or future direction.

The legislative time clock was ticking and absent any progress in the Senate, lobbyists for the Ilitch team worked with Chesbro to have legislation shepherding the agreements gutted and the agreements slipped into other legislation in the Assembly at the eleventh hour desperately hoping to find support their. The Assembly GO Committee scheduled a hearing on the agreements late in June and unlike their colleagues in the Senate, the Assembly committee members voted to reject the agreements. The agreements have made no progress since then despite the spin coming out of MotorCity.

Wednesday, January 10, 2007

Detroit syndications headed by Marian Ilitch and Michael Malik top $2.5 million lobbying for expansion opportunities on Capitol Hill

The various casino syndicates organized as Ilitch partnerships have placed their money on casinos in Southampton, New York and around Michigan; while lobbying activity for two casinos they proposed for Barstow, California takes a relative backseat.

According to The Center for Responsive Politics and confirmed in disclosure documents available from the U.S. Senate Office of Public Records, federal lobbying activity that could continue paving the way for expansion of the Ilitch Family’s gaming interests outside of Detroit has topped $2.5 million since 2002. Nearly all of that (85%) was spent backing efforts to support Indian casinos in Michigan and New York.

Priority funding of lobbyists by the various Ilitch backed syndicates was directed as follows:

  • Michigan - $1.27 million supporting the Bay Mills Indian Community attempt to develop a Port Huron casino and other ventures just an hour outside of Detroit on the Canadian border (entities include Blue Water Resorts LLC, Blue Water Resorts Manager Inc., MJM Enterprises & Development, MJM Bay Mills, etc.);

  • New York - $930,000 supporting efforts by the Shinnecock Indian Nation to develop a casino resort on New York’s Long Island, in “The Hamptons” playground that is home of people like Steven Spielberg, Jerry Seinfeld and P.Diddy (entities include Empire Associates LLC, Empire Ventures LLC, Gateway Funding Associates, Gateway Casino Resorts, MJM Enterprises Development, etc.).


News accounts suggest the Ilitch/Michael Malik partnership (Barwest LLC) has had a virtual monopoly on any gaming franchise in Barstow since 2001 by arrangement with the local Mayor but has faced numerous roadblocks and made only superficial progress in Sacramento and Washington D.C.; and while the struggling Barstow community is thirsty for casino development, the Ilitch partnership has often put that project on the back burner, directing resources and priorities to their endeavors in the east.

Governor Arnold Schwarzenegger signed agreements for Ilitch’s Barstow casinos in 2005, but since then, the Ilitch/Michael Malik partnership has failed in any lobbying efforts to generate even modest support for legislative ratification of its Schwarzenegger autographed agreements.

click for: Analysis of $2.8 million cummulative D.C. lobbying expenses

You may also want to view these posts:
The Verifiable Truth: Six bills introduced, in six years at a price tag of six figures ponied up by Mike & Marian Ilitch, Associate


NPR's Sacramento Bureau Chief says Barstow Casino deal on death watch




Previously posted by blogger John Myers @ KQED – Capital Notes:

08.21.06
Gaming Pact Advances, Wage Deal Struck

…One tribe's victory is hard to notice without also mentioning another tribe's problems... just outside the Capitol, members of the Los Coyotes Band of Mission Indians are continuing to protest the legislative blockade created against their gaming deal with the state. Los Coyotes, one of two tribes looking to set up casinos in Barstow, has seen their compact languish a slow death, after criticisms that the casinos would be too far from native lands-- and an example of what critics call "reservation shopping..." (Full Post)

Ironically Marian Ilitch has enlisted Labor to work on Propoganda, CA Legislature's Support for her Barstow Casinos

January 9, 2007


Support for Indian Gaming Compacts Remains Strong
Labor Desk

SACRAMENTO, Calif. -- Tribal representatives for the Los Coyotes Band of Cahuilla and Cupeno Indians and the Big Lagoon Rancheria vowed to continue their efforts to obtain approval of the Barstow gaming compacts as the 2007 session of the California legislature convened last week.

Labor and environmental organizations have been instrumental in leading efforts to ratify the compacts. These include: Hotel and Restaurant Employees Union (HERE), American Federation of State, County and Municipal Employees (AFSCME), California State Building and Construction Trades, Sierra Club, California League of Conservation Voters, State Parks Foundation, Save-the Redwoods League, Teamsters, California Coastal Commission, Department of Fish and Game, Department of Parks and Recreation and the Natural Resources Defense Council.

Only one gaming compact was approved before the 2006 legislative session ended last year on August 31. Despite receiving strong support from both the labor and environmental communities, the Big Lagoon and Los Coyotes compacts faced heavy opposition from well-heeled Southern California gaming tribes.

"The 500,000 Members of UNITEHERE, the international hotel and casino workers union, proudly stand with our friends in the Los Coyotes and Big Lagoon Tribes. We implore the State Legislature to ratify these Tribes' compacts with urgency, now that the State Legislature has reconvened for this year's session," said Jack Gribbon, California Political Director of UNITEHERE. "We applaud the Governor and the Tribes for including worker- friendly provisions and protections in the compacts, and we look forward to helping our tribal partners to advance their cause of economic self- sufficiency in the weeks and months ahead."

Gribbon continued: "The Los Coyotes Tribe is one of the largest and poorest of the tribes in California and the Big Lagoon Tribe has agreed to mitigate environmental issues beyond what any other Tribe in the nation has agreed to do. Their decision to work in concert with their host community, as well as their workforce, ensures that the larger community of California will benefit from their proposed development. The compacts with the Big Lagoon and Los Coyotes sovereign Indian Nations serve as a model for Indian compacts with the State of California. Importantly, these compacts have the overwhelming and passionate support of the local community of Barstow, as well as the enthusiastic support both of business and labor in that community. Additionally, these compacts serve significantly compelling state interests, in that precious coastal resources and truly endangered species will be saved for posterity, in the relocation of the casinos to the desert community of Barstow. These compacts bring together a 'perfect balance' in economic and environmental benefits, and deserve immediate ratification by our State's leaders in the Legislature."

(Full Story)

Tuesday, January 09, 2007

Big Lagoon Chairman, Marian Ilitch up to old tricks; but threats and dishonesty haven't made progess in the past.

Blah ... Blah ... Blah ...


Big Lagoon Rancheria

January 8, 2007
For Immediate Release!

Contact: Virgil Moorehead
(707) 826‐2079


BIG LAGOON ACQUIRES 16 ADDITIONAL ACRES IN HUMBOLDT CO., NEW PARCEL IS ADJACENT TO TRIBAL RANCHERIA

EUREKA – Big Lagoon Rancheria announced Monday the purchase of 16 additional acres along the majestic North Coast of California, adjacent to the tribe’s 20‐acre ancestral lands of Big Lagoon in Humboldt County.

According to Virgil Moorehead, Big Lagoon Tribal spokesman, the Tribe is considering various uses for the property, including the restoration of the original village where the Tribe istorically settled. The Tribe will consider filing a land into trust application with the U.S. Department of the Interior’s Bureau of Indian Affairs.

In September 2005, the Big Lagoon Rancheria signed a compact with Governor Arnold Schwarzenegger that allows the Tribe to build a casino in the City of Barstow (San Bernardino County) in partnership with the Los Coyotes Band. As part of the compact, the Big Lagoon Rancheria also signed a settlement agreement with the State of California that calls on the Tribe to forgo gaming development on the Tribe’s Ancestral land along the scenic Northern California coastline, in exchange for a gaming project in Barstow.

The Tribe narrowly lost its bid for the Barstow project in the California legislature during the 2006 legislative session. It plans to support the re‐introduction of enabling legislation this year to ratify its compact.

Under the terms of the compact, the California lawmakers must ratify the compact with legislation in 2007 or the settlement agreement with the state would be invalidated, forcing a court mandated settlement.

# # #



With this press release, Virgil Moorehead's proven once again that he'll say anything or do anything. Threats and dishonesty are hardly the way to re-open negotiations with a California Legislature you failed to develop credibility with in the last legislative session.

Moorehead's claims that his Tribe "narrowly" lost its bid to have a Barstow casino approved during the 2006 CA Legislative Session is outright dishonesty. By writing it in the press release and distributing it to reporters, he's hoping that they won't know any better and they'll reprint his Spin as the California Legislature reconvenes.

The truth is Moorhead, his partners at the Los Coyotes Reservation in San Diego, the Detroit casino syndicators driving Moorehead and three Sacramento lobbying firms who were paid at least $350,000 - $500,000 last year failed miserably and were only able to get public commitments on the record from 6 members out of the combined 120 legislators who make up the Senate and Assembly.

Yes, a year and a half after Governor Schwarzenegger signed the agreements, Marian Ilitch's team and Moorehead were only able to round up six votes on the record. Four of those were onboard when the legislation was introduced last year, only two members joined the bandwagon after the agreements started to get a public airing.

The most passionate and committed champion of Big Lagoon's plan, Senator Wes Chesbro (his district included Humboldt County), was termed out of the legislature in the Fall. Moorehead and Marian Ilitch's pack of lobbyists haven't indicated who, if anyone would shepherd their plan through the legislature now and they've had four months to figure it out. That's not a good sign. This is exactly where they were a year ago ... a signed compact sitting in limbo with no sponsors in the legislature and no legislators committed to moving it through committee.

Of the five committed members remaining in the legislature, it's unclear if they're still on board with Moorehead; although 4 of the 5 represent districts serving Barstow, Los Coyotes Reservation or Big Lagoon Rancheria as one might expect. The five who publicly committed their votes last year include:

1. Senator Roy Ashburn (R-18)
2. Assemblyman Bill Maze (R-34)
3. Assemblywoman Patty Berg (D-1)
4. Assemblyman Jay La Suer (R-77)
5. Assemblyman Leland Yee (D-12)

You may also want to review these posts:

The Verifiable Truth: Big Lagoon Rancheria purchases 16 acres
The Verifiable Truth: Big Lagoon Rancheria trust plan under fire
The Verifiable Truth: In a move right out of the Ilitch Bay Mills playbook, CA's Big Lagoon acquires 16 acres, increases leverage
The Verifiable Truth: Ilitch’s Barstow schemes failed to make any substantive progress in Sacramento since 2005; aging agreements with Gov. Schwarzenegger expire soon
The Verifiable Truth:Overview of Ilitch CA Lobbying Expenses

Big Lagoon Rancheria purchases 16 acres? So they say ... Really? or just another veiled threat, attempt create leverage for negotiating advantage



Big Lagoon Rancheria purchases 16 acres
Article Launched: 01/09/2007 04:15:31 AM PST

BIG LAGOON -- The Rancheria's property holdings have nearly doubled following the purchase of 16 acres adjacent to the tribe's ancestral lands.

Rancheria Tribal Spokesman Virgil Moorehead announced the purchase Monday and said the Tribal Council is considering a number of possible uses for the property, including restoration of the original village site.

The Rancheria is also considering filing an application with the U.S. Department of the Interior Bureau of Indian Affairs to bring the newly acquired land into trust status.

At this point, according to the Rancheria's announcement, the hope is that the state Legislature will ratify a gaming compact signed with Gov. Arnold Schwarzenegger in September 2005 allowing Big Lagoon Rancheria to build a casino in Barstow. The gaming compact was not ratified in the last state legislative session, but the Rancheria stated its intent to support legislation this year to ratify the compact.

As part of the compact, the Big Lagoon Rancheria signed a settlement agreement with the state in which they would not build a casino on their Northern California property in exchange for the Barstow casino project.


You may also want to review these posts:

The Verifiable Truth: Big Lagoon Chairman, Marian Ilitch up to old tricks; but threats and dishonesty haven't made progess in the past.

The Verifiable Truth: Big Lagoon Rancheria trust plan under fire

The Verifiable Truth: In a move right out of the Ilitch Bay Mills playbook, CA's Big Lagoon acquires 16 acres, increases leverage

In a move right out of the Ilitch Bay Mills playbook, CA's Big Lagoon acquires 16 acres, increases leverage

01.09.07


Big Lagoon acquires 16 acres

Big Lagoon Rancheria announced Monday in a news release the purchase of 16 additional acres along the North Coast of California, adjacent to the tribe’s 20-acre ancestral lands of Big Lagoon in Humboldt County.

Virgil Moorehead, Big Lagoon Tribal spokesman, stated in the release that the tribe is considering various uses for the property, including the restoration of the original village where the tribe historically settled.

The tribe will consider filing a land-into-trust application with the U.S. Department of the Interior’s Bureau of Indian Affairs.

In September 2005, the Big Lagoon Rancheria signed a compact with Gov. Arnold Schwarzenegger that allows the tribe to build a casino in the city of Barstow (San Bernardino County) in partnership with the Los Coyotes Band. As part of the compact, the Big Lagoon Rancheria also signed a settlement agreement with the state of California that calls on the tribe to forgo gaming development on the tribe’s ancestral land along the scenic Northern California coastline in exchange for a gaming project in Barstow.

The tribe narrowly ["narrowly" is a false representation made in Moorehead's press release since the Tribe only secured six votes total out of a combined membership of 120 total legislators in both houses] lost its bid for the Barstow project in the California Legislature during the 2006 legislative session. It plans to support the re-introduction of enabling legislation this year to ratify its compact.

Under the terms of the compact, California lawmakers must ratify the compact with legislation in 2007 or the settlement agreement with the state would be invalidated, forcing a court-mandated settlement.


You may also want to review these posts:
The Verifiable Truth: Big Lagoon Rancheria purchases 16 acres

The Verifiable Truth: Big Lagoon Rancheria trust plan under fire

The Verifiable Truth: Big Lagoon Chairman, Marian Ilitch up to old tricks; but threats and dishonesty haven't made progess in the past.

Ex-owner of MotorCity gets Nev. casino license

January 3, 2007


Ex-owner of MotorCity gets Nev. casino license
Celani led effort for Detroit gaming

BY MARGARITA BAUZA
FREE PRESS BUSINESS WRITER

Nevada gaming regulators have awarded veteran gaming figure Tom Celani -- who helped bring casinos to Detroit -- a license to run the Cal-Neva casino on Lake Tahoe's North Shore.

Frank Sinatra briefly owned the casino, once a fabled playground for Hollywood stars.

Celani, a former owner of the MotorCity Casino, takes over the resort today and will invest $35 million in renovations to the casino, its hotel and spa. He was awarded the license Dec. 21.

Dennis K. Neilander, chairman of the Nevada Gaming Control Board, said Luna Gaming Tahoe LLC, Celani's company, plans to lease the casino from the property's owner, Namwest LLC.

Neilander and Celani declined to disclose the lease amount.

Celani of Bloomfield Hills has held more than 20 licenses at casinos around the country. This is his first license in Nevada.

Celani helped spearhead the 1996 Michigan statewide referendum that led to casino gaming in Detroit.

His group was selected as one of the three companies to receive a casino license for MotorCity Casino, which opened to the public in December 1999.

Celani sold his interest in MotorCity Casino in April 2005.

"It took us 12 months to get licensed in Nevada," Celani said. "They have a very thorough process."

Celani will work with historians to restore the casino, which has a rich history as a hangout for the famous Rat Pack, a group of entertainers from the 1950s and 1960s that include Sinatra, Dean Martin and Sammy Davis Jr.

The original Cal-Neva was built in 1926. Sinatra owned it during the early 1960s, when its guest list included Marilyn Monroe as well as Sinatra's Rat Pack pals.

"I have two historians helping me put together the history of the casino. I want to bring back the nostalgia and the pictures from the '40s and '50s," Celani said.

Construction begins in April and is expected to take 12 months.

Contact MARGARITA BAUZA at 313-222-6823 or mbauza


@freepress.com.



You may also want to review these posts:

The Verifiable Truth: The Detroit Gaming Syndicators: Marian Ilitch, Michael Malik and Tom Celani

Monday, January 08, 2007

Voters & local officials questioned Gov. Engler's flip-flop on casino policy and the Port Huron casino deal he signed on his way out the door.

September 26, 2002


Vanderbilt residents voice casino opinions
- Some are unhappy, some are pleased that town may not get casino

By DAN SANDERSON
Record-Eagle staff writer

VANDERBILT - Vanderbilt officials and residents want some explanations from Gov. John Engler and the Bay Mills Indian Community on their recent pact that would allow the tribe to build a casino in Port Huron …

... The pact would settle a Bay Mills land claim to 110 acres of state and private land in the Charlotte Beach area in the Upper Peninsula's Chippewa County. In return, the tribe would be allowed to take land for a casino in Port Huron into trust through the federal Department of Interior.

Previously Gov. Engler wrote:
"...the Bay Mills Tribe in using the Charlotte Beach homeowners as political pawns. Make no mistake about it - Congressman Stupak's proposal is solely about trying to give the Bay Mills Tribe an otherwise illegal casino in Otsego County."

"...the state of Michigan has stood by these properly owners since day one, defended them in court, and won the dismissal of the Bay Mills lawsuit against the Charlotte Beach owners. I have no doubt that this dismissal will hold up on appeal..."


The pact hinges on congressional approval of a bill introduced by U.S. Sen. Debbie Stabenow, D-Lansing. Rep. David Bonior, D-Mt. Clemens is expected to introduce companion legislation in the House of Representatives.

Tom Shields, president of the Lansing-based Marketing Resource Group, confirmed Wednesday that the proposal to build in Vanderbilt is no longer on the table.

"The basic feeling is that they're still very interested in Vanderbilt and would like to do something there in the future, but the economics of the Port Huron location were too good to ignore," Shields said.

Note:
Shields is the long-time political/PR guru for the Ilitch Family and often spokesman for their various enterprises and front groups. At least
2/3rds of his Lansing PR firm's clients have some affiliation with the Ilitch Family.

His quote makes it clear that the Bay Mills Indians and their financial backers, The Ilitch Family & associates, were looking to leverage the land claims for the most lucrative highly trafficked urban location.

The agreement with Engler limits Bay Mills to three casinos in the state and does not permit more electronic gaming facilities besides the three in Detroit and 20 tribal casinos across the state. Bay Mills has two casinos in Brimley …

… "This is a unique opportunity that presented itself that would settle the land claim, bring years of litigation to a close and limit the Bay Mills tribe to three casinos in the state," said Susan Schafer, Engler's spokesperson.

Stupak said he would back Stabenow's bill "if she can move it."

"I appreciate the governor's help in resolving this issue," he said…

But Governor Enlger had previously written:
"...I find it remarkable that Congressman Stupak would step in at this late date and join with the Bay Mills Tribe in using the Charlotte Beach homeowners as political pawns. Make no mistake about it - Congressman Stupak's proposal is solely about trying to give the Bay Mills Tribe an otherwise illegal casino in Otsego County."

"...the state of Michigan ... won the dismissal of the Bay Mills lawsuit against the Charlotte Beach owners. I have no doubt that this dismissal will hold up on appeal..."

Gayle and Dave Embree, who operate a small grocery store, were split on their support of a Vanderbilt casino

Gayle said she hoped the casino would help the schools and village financially and questioned why Engler changed his stance on the expansion of casinos.

"He said he could not justify any more casinos and now that his term is up - boom - Port Huron gets one," Gayle said.

Meanwhile, Port Huron officials expressed surprise and disappointment over Detroit Mayor Kwame Kilpatrick's plan to fight their efforts to open a casino. And gaming experts said Port Huron has several hurdles to face, including Detroit's opposition.

Dennis Whittlesey, a Washington gaming expert, said Detroit lobbyists could make it tough to gain congressional approval for the casino agreement between Gov. John Engler and the Bay Mills Indian Community. (
FULL STORY)

http://www.gtherald.com/2002/sep/26reax.htm


You may also want to review these posts:
The Verifiable Truth:
Port Huron struggles, is worthy of a break; but editor fails to recognize local casino plan has national shockwaves, which supersede local needs
The Verifiable Truth:
in Governor John Engler's opinion, "Michigan has enough casinos"
The Verifiable Truth:
Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then returned to private practice, retained by those who got the deal

Candy Land: Calling for More Candy

Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then joined private practice, retained by those who got the deal

On Sunday, January 7th, the Port Huron Times Herald published an editorial, "Feds must come to aid of Port Huron," suggesting that a Bay Mills Indian Casino planned for that community might still be alive. At the very least, the following raises ethical questions and creates curious circumstances surrounding the proposed casino, deserving of investigation and disclosure.

R.
Lance Boldrey joined the staff of Michigan Governor John Engler sometime in 1999 as Deputy Legal Counsel and chief negotiator for Indian Affairs matters in the Governor's third and final term. Throughout most of Engler’s 12 years as Governor, Engler steadfastly opposed the expansion of Indian gaming... BUT in the final months, with Boldrey helming negotiations, something changed.

In September 2002, roughly three months before Engler's term would expire, the Governor was compelled to sign a
land claims settlement agreement Boldrey and others had negotiated the month before with the Bay Mills Indian Community. The agreement would pave the way for a third Bay Mills Indian Community casino to be developed in the urban border town of Port Huron, 350 miles away from its Brimley, MI reservation.

On December 20, 2002, with less than two weeks remaining on his term, Gov. Engler also signed a new
Tax Agreement with the Bay Mills Indian Community covering (or protecting) the Tribe, its proposed Port Huron casino and other commercial and trust properties. Presumably Boldrey played a lead role in those negtotiations as well.

Oddly enough, the so-called "land claims" made by the Bay Mills Tribe in 1996 (the threat driving any need for a Settlement Agreement at all) were never verified. Both state and federal courts tossed out the claims, at that time, on administrative grounds. This raises question about the rushed 11th hour change of policy by Engler and the need for any Settlement Agreement at all. Did the state trade a casino for land claims that weren't legitimate afterall? Were the circumstances surrounding the Settlement Agreement just a theatrical smokescreen to rationalize approval for a third Bay Mills Tribal casino in Port Huron?

But Engler knew the land claims weren't valid and that they were being used to leverage a casino because in a 1999 opinion letter published by the Record Eagle intended to set the record straight,
Engler wrote:


"... I find it remarkable that Congressman Stupak would step in at this late date and join with the Bay Mills Tribe in using the Charlotte Beach homeowners as political pawns. Make no mistake about it - Congressman Stupak's proposal is solely about trying to give the Bay Mills Tribe an otherwise illegal casino..."

"... the state of Michigan has stood by these properly owners since day one, defended them in court, and won the dismissal of the Bay Mills lawsuit against the Charlotte Beach owners. I have no doubt that this dismissal will hold up on appeal ..."

Within weeks of Engler approving the the Settlement Agreement, Boldrey flew to Washington D.C. and eagerly represented Governor Engler before a U.S. Senate Indian Affairs Committee hearing on Capitol Hill. Backers of the Bay Mills casino were attempting to railroad congressional approvals in the closing days of the 107th Congress needed to affect terms of the Engler negotiated Agreements.

Boldrey's eagerness might partially be explained in part by the fact that in
July 2002 the White House announced the President’s intention to nominate Boldrey to serve as a trustee of the Udall Foundation. The nomination wasn't sent to the Senate until January 2003 and Boldrey was confirmed in April 2003. During that 6-9 month period it was certainly in Boldrey’s interest to increase his profile in Washington D.C and exploit the credentials he’d developed during the short time he worked as Gov. Engler’s Indian Affairs agent.

With the help of people like Boldrey, first term Senator
Debbie Stabenow (D-MI) had drafted and introduced S. 2986 as a companion to the Settlement Agreement on September 20, 2002. Less than two weeks after its introduction (usually this takes months, sometimes even more than a year), the bill was scheduled to be heard before the full Senate Indian Affairs Committee. At the October 10, 2002 hearing, as the Governor's representative, Boldrey sat beside the Bay Mills Community's elected Council President John Lufkins and together they urged the committee’s swift endorsement. It wasn't to be; Senator Harry Reid (D-NV), a leading Democrat and member of the Committee stood in their way.

Time was ticking on the Engler Administration and on the friday before the 2002 Christmas holiday, with less than 5-6 full business days left on the calendar,
Governor Engler also signed a new Tax Agreement with the Bay Mills Tribe. Among other protections for the Tribe and its members, the Agreement exempted (page 9) hotel rooms, restaurant food and beverages sold as part of any casino and its adjoining resort properties from lodging taxes, sales taxes and use taxes.

Engler’s 12 year administraton came to an end on January 1, 2003 leaving Boldrey unemployed. But within weeks, Boldrey announced he was returning to private practice. He had decided to join the Lansing office of the Dykema Gossett law firm and was tasked with starting up an Indian Law Practice for the firm. A longtime Engler friend, confidant and political agent Richard D. McLellan was a senior partner in the Dykema office. The Dykema law firm had already been handling legal business matters for the MotorCity commercial casino partnership in Detroit. Ilitch, Malik and others who were founders of MotorCity Casino have been the driving force behind the third Bay Mills casino project for a decade or more.

So, Boldrey joined Dykema and before long, the Bay Mills Indian Community, its casino backers like Marian Ilitch and Michael Malik, and others whom previously had to negotiate across the table from Boldrey in his role as the Governor’s point man had retained Dykema Gossett (Boldrey & McLellan) to work on Indian law and gaming matters at prime corporate law firm rates. Boldrey's role now was to protect and advocate for their interests going forward.

What or who compelled the Governor's dramatic change of direction in the last months and days of his administration? Why this proposal instead of some other? Five years ago, those questions were swept under the carpet.

When had Boldrey decided to return to private practice? When did he open talks with Dykema? What role did Richard McLellan play in recruiting Boldrey? What involvement had McLellan had with the 11th hour negotiations with various tribes including Bay Mills? When did Boldrey's future clients learn of his career move? When did they first discuss a future working together? What relationships did he have with "Charlotte Beach" area land owners then or now? Who did he negotiate against as the Governor's representatives that paid him or Dykema after he joined Dykema?

Certainly an attorney whose credits included pulling-off a deal like this would be in high demand and command the highest of fees.

What relationships if any did Boldrey/McLellan have with attorneys Anthony Andary, Robert Golden?

With all of the other matters deserving greater urgency, why was there such a last minute push five years ago for a Settlement Agreement with Bay Mills Indians when they've yet to prove their land claims valid?

What's really at play in the "Charlotte Beach" (also referred to as "Hay Lake" by Bay Mills Tribal Council President) area referenced in the unverified land claims? The Hay Lake/Charlotte Beach locations are near impossible to find on maps in Chippewa County -- Atlas, Google, USGS, etc. or via governmental agency resources. It's only in old plat maps that one will find a reference to the "Charlotte Beach subdivision" east of the Barbeau community on Michigan's Upper Peninsula.

"Charlotte Beach" is a rather obscure place, not among those included in the USGS master place names data base nor referenced in resources available via the Department of Natural Resources at Michigan.gov; it is not noted as a town or community or any other place of significance in Michigan; other respective state and federal sources simply don't designate the 110- acre place. There are no obvious references noted by non-profit environmental or natural resource protection groups either. In fact, the only modern public documentation that references a place called "Charlotte Beach" in Michigan are documents related to the Bay Mills land claims. It is doubtful Governor Engler or anyone else for that matter had visited Charlotte Beach, Michigan to see for themselves what was going on there. One must wonder what sort of investigation was done to see who really owns land there or who has bought land since.

It just doesn't add up: a complete and documented reversal of a Governor's long held public policy stance opposing the expansion of gaming; no validated land claims, yet a signed Land Claims Settlement Agreement; two existing casinos already, just not in prime urban locations; an 11th hour Tax Agrement too; 110 acres of land in "Charlotte Beach," an area not designated on maps or by any public agencies or non-profit groups as significant or sensitive; and a lead negotiator who was later engaged by the very parties he once negotiated against. Before Congress or any other elected officials or public agencies take any further action, a complete investigation and full disclosures are warranted.

And what role or connections has political consultant Tom Shields (also an Engler insider, political advisor to Rep. Candice Miller, and longtime spin doctor to Mike & Marian Ilitch) played in these schemes?


You may also want to review these posts:

in Governor John Engler's opinion, "Michigan has enough casinos"

October 4, 1999

Michigan has enough casinos


By JOHN ENGLER

For some time now, the Bay Mills Indian Community has been claiming that it will build a casino near Vanderbilt.

Recently, the Sault Ste. Marie Tribe of Chippewa Indians has proposed a competing casino for Bagley Township.

With 16 tribal casinos currently operating in our state, two more authorized in southwest Michigan and three more authorized in the city of Detroit, the state of Michigan has more than enough casinos. Consequently, I will not permit the operation of the facilities proposed for Otsego County.

Although the federal Indian Gaming Regulatory Act, or IGRA, allows tribes to conduct casino gaming, tribes may not do so on off-reservation sites that were not held in trust in 1988 unless they have the governor's consent. This requirement applies to lands in Otsego County - and I will not consent to casino gaming there.

The Bay Mills Tribe, and perhaps the Sault Tribe as well, will argue that there is an exception to the requirement of gubernatorial consent for land taken in settlement of a land clam. They are correct. This exception does not apply, however, where the property "taken" in settlement lies many miles from the property claimed. Because the tribes do not have historical claims to any land in (or even near) Otsego County, there is no loophole in IGRA that would allow them to open the proposed casinos.

This fundamental flaw in the Bay Mills Tribe's theory applies even if Congressman Stupak's bill to "settle" tribal claims to the Upper Peninsula's Charlotte Beach passes in Congress. I find it remarkable that Congressman Stupak would step in at this late date and join with the Bay Mills Tribe in using the Charlotte Beach homeowners as political pawns. Make no mistake about it - Congressman Stupak's proposal is solely about trying to give the Bay Mills Tribe an otherwise illegal casino in Otsego County.

Although Congressman Stupak claims to be concerned about the rights of these property owners, the state of Michigan has stood by these properly owners since day one, defended them in court, and won the dismissal of the Bay Mills lawsuit against the Charlotte Beach owners. I have no doubt that this dismissal will hold up on appeal, largely because the Sault Tribe has acted responsibly and refused to join with the Bay Mills Tribe in suing their neighbors.

In short, without my consent, any tribal casinos in Otsego County would be illegal.

Local governments, businesses and residents should bear this in mind when listening to casino proposals from Indian tribes. Local government leaders should also be aware of a bill proposed by state Senator Mike Rogers that would require a local government supporting a gaming facility to reimburse other governments in the county for any increased costs attributable to that facility (Senate Bill 301). That bill would require the local government to forfeit revenue sharing funds.

Local businesses should know that I will be supporting legislation to penalize businesses that contract with gaming facilities that are not certified by the state of Michigan as operating within the law.

Finally, local residents should know that working in an illegal gaming facility is a crime.

I hope that this forum letter clarifies my position and serves to end fruitless discussions about casino gaming in Otsego County.


About the author:
John Engler is governor of the state of Michigan.

This was published as an opinion piece by the Traverse City Record Eagle, October 4, 1999.



You may also want to review these posts:
The Verifiable Truth: Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then returned to private practive, retained by those who got the deal
The Verifiable Truth: Port Huron struggles, is worthy of a break; but editor fails to recognize local casino plan has national shockwaves, which supersede local needs

Sunday, January 07, 2007

Port Huron struggles, is worthy of a break; but editor fails to recognize local casino plan has national shockwaves, which supersede local needs


01.07.07
Editorial: Feds must come to aid of Port Huron

Casino support would be welcome; help must come first.

Of the many challenges Port Huron faces in 2007, the most daunting clearly is the Blue Water Bridge Plaza expansion. The project, to bring the bridge plaza to ground level and reroute Pine Grove Avenue, is expected to take 131 homes, 36 businesses and about $32 million from the city's tax base.

As bad as that news unquestionably is, it also is worse because the expansion is an admission of poor planning. A second span was added to the bridge in 1999 to accommodate increased traffic. Although trucks comprise a principal component, the plaza wasn't adequately enlarged to handle truck inspections.

Expected to start next year and finish in 2011, the project promises to plague Port Huron for at least that long. For a city struggling with high unemployment and limited opportunities for economic growth, the sacrifices the plaza expansion demands couldn't come at a worse time.

On the other hand, the prospect of gambling couldn't come at a better time. Sought for years by gambling proponents, a Port Huron casino appeared to be a dead issue. Despite a public referendum that supported the gaming facility and clear evidence that Point Edward's casino draws more Americans than Canadians, the dream of a Port Huron casino at the Thomas Edison Inn never materialized.

Suddenly, though, the casino idea is seeing new life. The massive harm the plaza expansion will bring to the city requires the feds to do what they can to make Port Huron whole. Delivering a casino won't repair all the damage, but it could help.

Congressional approval, or more precisely, the failure to win it, is what killed Port Huron gambling. The Detroit delegation and its allies, such as U.S. Sen. Harry Reid, D-Nev., based their opposition on self interest. With gambling facilities in their own districts, allowing more casinos, even one in tiny Port Huron, apparently would be too much of a threat.

In talks with U.S. Sen. Debbie Stabenow, Port Huron City Manager Karl Tomion pushed for approval of the Edison Inn casino. Stabenow, a past supporter of Port Huron's gambling bid, reportedly favors the idea.

The city finally getting a casino is an intriguing possibility. It still is a long shot. The same forces in Congress that previously opposed the effort aren't likely to change their minds. Although the Democrats' newly-won control could improve Port Huron's chances, it still is very far from being a done deal.

Tomion also is pressing for federal aid, and that assistance must come with or without congressional support for a Port Huron casino.

Gambling was supposed to be a means of enhancing Port Huron's economy. The traditional ways of promoting economic growth simply would be strengthened.

Now a casino would become one of the ways to treat the city's economic losses.

That's an offer that shouldn't be refused, but it is one that must come in addition to the aid Port Huron desperately needs.

Roll the dice. Just make sure the feds meet their responsibility to help the city through this crisis.


http://www.thetimesherald.com/apps/pbcs.dll/article?AID=/20070107/OPINION01/701070343&template=printart


You may also want to review these posts:
* The Verifiable Truth: in Governor John Engler's opinion, "Michigan has enough casinos"
* The Verifiable Truth: Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then returned to private practice, retained by those who got the deal
* Candy Land: On the Same Page

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certainly must reads!

Ilitch has backed loosing sports teams and pizza, but casinos in Detroit? Forbes.com 10.09.06 ● Marian Ilitch #1 on "25 Most Powerful People" to Watch 2006” global gaming business o1.oo.o5 ● My Kingdom for a Casino Forbes 05.08.06 ● Big Lagoon’s casino dream awakens north coast journal 07.28.05 ● Shinnecocks launch legal claim to Hamptons land newsday.com 06.16.05 ● Ilitch Plans to Expand Casino Empire RGTonline.com 07.05.05 ● Ilitch outbids partners MichiganDaily.com 04.14.05 ● Ilitch enmeshed in NY casino dispute detnews.com 03.20.05 ● Marian Ilitch, high roller freep.com 03.20.05 ● MGM Mirage to Decide on Offer for Casino in Detroit rgtonline.com 04.16.05 ● Secret deal for MotorCity alleged freep.com 02.15.05 ● Los Coyotes get new developer desertdispatch.com 02.08.05 Detroit casino figure to finance Barstow project LasVegasSun.com 07.07.03 ● Indian Band trying to put casino in Barstow signonSanDiego.com 06.04.03 Pizza matriarch takes on casino roles detnews.com 10.23.02 ● Vanderbilt gets short straw in negotiations for a casino Lansing Journal 10.06.02 ● Indians aim to drive family from tribe in vicious dispute san diego union tribune 04.09.00 ●Malik owns 2000 Michigan Quarter Horse of the Year Michigan.gov 01.01.00 ● Detroit Team to run Michigan’s newest Indian casino detnews.com 05.23.99 Tiger ties tangle Marian Ilitch detnews.com 04.29.99 ● Three investors must sell their Detroit casino interests gamblingmagazine.com 04.25.99 ● Partners’ cash revived election; They say money was crucial to Prop-E detnews.com 04.25.99 Investors have troubled histories las vegas review journal 04.27.99 ● Investor served probation for domestic assault on 12 year old boy detnews.com 04.25.99 Can a pair win a jackpot?: local men hope to... crainsdetroit.com 03.17.97

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