Michigan congressional delegation not united behind off-reservation casino proposals

02.06.08

Michigan delegation splits on casinos

By KEN THOMAS
Associated Press Writer

WASHINGTON — A House panel considered legislation Wednesday that would clear the way for Indian casinos in Romulus and Port Huron, a plan that has divided Michigan's congressional delegation over the expansion of gambling.

Six Michigan House members testified on the measures to advance the two proposed off-reservation casinos, pitting the state's economic concerns against those who wish to halt additional gambling facilities.

The legislation before the House Natural Resources Committee would resolve a century-old dispute, providing land to house the two new casinos in exchange for the settling of 110 acres of land claims around Charlotte Beach in the Upper Peninsula.

"By ratifying these two settlements, Congress has an opportunity to right a wrong and bring an end to a land dispute that has been going on for over 100 years," said Rep. Bart Stupak, D-Menominee.

Stupak called the dispute a "food fight" among the delegation.

Supporters said the communities should have the opportunity to compete for the jobs and tax revenues that come from casinos in a state battered by the loss of manufacturing jobs and the nation's highest unemployment rate.

A Port Huron city official testified the city's unemployment rate was about three times the national average and the casino would help diversify its economy. In sum, the two casinos would "create thousands of well-paying, union jobs," said Rep. John Dingell, D-Dearborn.

But opponents said the planned casinos were 350 miles away from the tribes' Upper Peninsula reservations and said it was a backdoor way to approve new casinos. State voters, they said, approved a referendum in 2004 to limit the expansion of gambling unless there was a statewide referendum.

The state's gambling compact with Indian tribes prohibits off-reservation gambling unless all the tribes agree to a revenue sharing plan.

"These two bills are simply an attempt to circumvent both the will of the people of Michigan and the compact the Michigan State Legislature has made with the tribes in Michigan," said Rep. Carolyn Cheeks Kilpatrick, D-Detroit.

Rep. Mike Rogers, R-Brighton, said the casinos would bring some economic burdens to the area, cannibalizing local businesses and requiring local governments to deal with the societal ills of gambling. "We are going upset our apple cart in southeast Michigan," he said.

Detroit Mayor Kwame Kilpatrick, who has been embroiled in a sexy text-messaging scandal in his hometown, also testified in opposition to the new casinos. They would bring competition to Detroit's three state-licensed casinos, which took in $1.3 billion in revenue in 2007.

The mayor said the Detroit casinos were a key engine to the city's efforts to transform itself and adding more casinos to the region would "inhibit our ability to revitalize."

"We don't have a market for another casino. These casinos will take substantially away from the city of Detroit," Kilpatrick said.

Then-Gov. John Engler negotiated agreements in 2002 that would allow the Sault Ste. Marie Tribe of Chippewa Indians and the Bay Mills Indian Community to take land in Romulus and Port Huron, respectively, and build casinos. In return the tribes agreed to give up their claim to the property in the Upper Peninsula.

Voters in both cities have supported the agreement, but the deal needs congressional approval.

The House bills have created unusual alliances, with support coming from Stupak, Dingell, and Republican Rep. Candice Miller of Macomb County's Harrison Township. Opponents include Democratic Reps. John Conyers and Carolyn Cheeks Kilpatrick of Detroit and Republican Rogers.

Sens. Carl Levin and Debbie Stabenow, D-Mich., have expressed support for the Port Huron bill but have not taken a position on the Romulus proposal.

During the hearing, some lawmakers invoked the name of disgraced lobbyist Jack Abramoff, who worked on behalf of tribes with lucrative casinos to block competition. Miller waved a mailer that has been circulated in her district from a group called Gambling Watch, which she said was backed by a political consultant who has worked for gambling interests.

"It's all about greed," Miller said.

Abramoff was a prominent Washington lobbyist before allegations that he defrauded Indian tribes, including the Saginaw Chippewa of Michigan, led to his downfall and a prison sentence.

Saginaw Chippewa Chief Fred Cantu said the bills were "a scam from the get go so these tribes could get casinos 350 miles from their reservations."

Rep. Dale Kildee of Flint, a leading Democrat on the committee, said he had been troubled by the creation of offsite casinos in the past but said he would support the bills because of Gov. Jennifer Granholm's support of the bills and the economic problems in his hometown.

The Interior Department opposes the legislation because it would prevent proper consultation with neighboring tribes, and with local and state governments that might be affected by the land deal, said Carl Artman, assistant secretary for Indian affairs for the Interior Department's Bureau of Indian Affairs.

But the bills appeared to have key support in the committee, which is expected to consider the legislation on Feb. 13. Chairman Nick Rahall, D-W.Va., rejected arguments that the measures amounted to "casino-shopping," while Rep. Don Young, R-Alaska, said the added competition would boost "all the revenues of all the casinos" in the area.

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