How Lance Boldrey Turned a Stint in the Governor's Office Into a 10+ Year Multi-Million Dollar Engagement with Detroit Casino Syndicators

Blogger's Note: We've received several inquiries about Michigan gaming attorney R. Lance Boldrey and note an increase in the number of people visiting TheVerifiableTruth.com as part of browser searches of Boldrey's name so we're republishing this 1.08.2007 post originally titled "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 ..."

R. Lance Boldrey parlayed stint in Governor's
Office into 10+ year million dollar engagement

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?


See also:

• The Dykema Law Firm: the legal team behind the Bay Mills, Los Coyotes & Shinnecock Indian casino schemes
• Boldrey negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then joined private practice, retained by those who got the deal
• Boldrey, McLellan, the Dykema Gossett law firm and their connection to John Engler and the Bay Mills Indian Community
• Michael Malik and partners funded Gov. Engler during gambling negotiations
• Boldrey apparently obtained a conflict-of-interest waiver from Governor Granholm allowing him to represent casino promoter
• Barstow official & Boldrey kept their knowledge of reported Chemehuevi campsite in City of Barstow hush-hush
• Boldrey and other may have mislead Schwarzenegger's negotiator to get approvals for twin casinos
• House Judiciary committee to probe Attorney Boldrey’s dual involvments in Port Huron casino deal
• Casino developer’s representations biased; consultants “specialization” challenged
• Ilitch/Malik said to have paid $10 million in legal fees advancing Port Huron Indian casino
• Dykema Lobbyists set up expense account for Oakland County Exec Brooks Patterson
• Ilitch team out in full force with New York Casino gambling partner
• Dykema lobbyists disclose they are behind Ilitch backed plans for Port Huron casino

2002 Article sheds light on Ilitch involvement with Port Huron Casino bid

An article originally published on 10.23.02 in the Detroit News sheds light on the Ilitch Family's involvement with plans to build a Bay Mills Indian Community Casino in Port Huron, Michigan:

Pizza matriarch takes on casino roles
Marian Ilitch lobbies to legalize gambling in Hawaii, helps Port Huron gaming effort

...Al Sebastian, a spokesman for Ilitch Holdings Inc., parent company of Little Caesar Enterprises Inc. and other family endeavors said, "She has been successful in Detroit, and she's looking to duplicate that success elsewhere."

Some Detroit casino interests are in a lather about the prospect of a Port Huron casino. But Ilitch, 69, has merely played matchmaker between members of the Bay Mills Indian Community -- with whom she has had a relationship for about 10 years -- and federal lawmakers who ultimately will vote on the St. Clair County project, Sebastian said.

"We would do that for any group, whether it concerns proposed casinos, entertainment efforts or sporting events," Sebastian said...

The Port Huron question
Back home, Ilitch assistance, however tangential, with the Port Huron casino proposal and the Bay Mills tribe could raise eyebrows. Some Detroit casino interests think Port Huron is too far away to significantly dent their business, but others like MotorCity investor Tom Celani and Detroit Mayor Kwame Kilpatrick contend the casino would take revenues from Detroit casinos -- and the city of Detroit.

Michigan Gov. John Engler and the Bay Mills tribe reached a settlement by which Bay Mills would drop a land claim in the Upper Peninsula if it were allowed to open a casino in Port Huron.

Sebastian confirmed that Marian and daughter Denise attended an Oct. 10 hearing called to discuss legislation allowing the Port Huron deal to proceed. But he said the main reason for the trip was to show off the Stanley Cup trophy won by the Red Wings to legislators.

"Marian and Denise Ilitch observed the hearings, but did not participate,"

Celani, a 10 percent shareholder in MotorCity, said a study by Detroit casinos showed that a Port Huron rival could cost the city of Detroit up to $20 million a year in tax revenues.

"We're disappointed," said Celani, who also co-owns a Harley-Davidson dealership in Farmington Hills. "Why should anybody in Detroit promote anything within a 150-mile radius? It doesn't make sense."

The city of Detroit could have a say, ultimately. Agreements with each of Detroit's three casinos prevent them from owning a piece of another casino within 150 miles.
Ilitch spokesman Sebastian said Celani's concerns are unfounded. "There is no ownership because there is no casino," Sebastian said of Ilitch's role. "It is not an issue."

But Ilitch believes that a Port Huron casino would help Metro Detroit.

"It's a good proposal that will help the tribe, Port Huron and the state if approved," Sebastian said.

"Members of our organization [Michael J. Malik, Sr.] have had a relationship with Bay Mills for 10 years," Sebastian said. "We had initial discussions about casinos before the Detroit casinos opened." At one time, Bay Mills wanted to build a casino near the Fox Theatre.

Recently "the tribe came to our organization to ask for our assistance to open doors for their proposed casino project in Port Huron," Sebastian said. "We introduced some of their members to a number of public officials in Washington, D.C."

In 2001, 54 percent of city voters approved a proposal to build a Port Huron casino.

Ilitch hasn't leaped at every casino opportunity, though. In 1999, she, along with Celani [and Michael Malik], was part of a group that would manage Little River Casino in Manistee. But Ilitch left the group. Ilitch and Celani are the two biggest local investors in Detroit casinos.

Other Detroiters are watching Port Huron developments.

The head of a group of about 100 Metro Detroiters owning 12 percent of MotorCity Casino has asked Ilitch about Port Huron. Ilitch has assured Vivian Carpenter, president of Atwater Entertainment Associates, that her children have no ownership interest in Port Huron, and that Marian Ilitch isn't violating a pact prohibiting the ownership of another casino within 150 miles...

Ilitch Family casino and development partner Michael J. Malik, Sr., and several entities he's affiliated with (Blue Water Resorts, MJM Enterprises, Blue Water Resorts Manager, Inc) are tied directly to the Bay Mills Indian casino scheme.

Has Rep. Stupak introduced yet another bill for a Bay Mills casino in Port Huron?

10.24.08

City's latest years have been among its most notorious and divisive

By Mike Connell

...Sears joined the exodus to the suburbs, and in 1993, developer Mike Malik proposed turning the vacant Sears building on Michigan Avenue into a $60 million casino.

Malik, a native of Clay Township, envisioned a casino owned by Bay Mills, a Chippewa band from the Sault Ste. Marie area, and managed by Harrah's Casino Hotels of Nevada. The proposal failed on July 13, 1993, when city voters rejected it, 5,120 to 4,751.

A year later, voters in Port Huron Township rejected a similar proposal for a casino off the Water Street interchange of the expressway.

Malik reappeared in 2002, a year after voters endorsed a casino proposal from Don Reynolds, one of the Edison Inn's owners. In August 2002, Gov. John Engler agreed to let Bay Mills create a reservation on the Edison Inn's 15-acre site if the tribe would drop its long-standing claim to a 110-acre parcel at Charlotte Beach on the St. Mary's River.

Numerous efforts to win congressional and presidential approval of the Engler-Bay Mills' deal have failed. A new bill was introduced in May by U.S. Rep. Bart Stupak, D-Menominee. As of last week, it remained in the House Natural Resources Committee... (Complete Article)

Michael Malik and partners funded Gov. Engler during gambling negotiations

According to reports made available via the Center for Public Integrity:

In 2002, Michael J. Malik, Sr., John Lufkins, the Dykema Gossett law firm and others associated with the unorthodox scheme to locate a Bay Mills Indian Community casino 350 miles from the tribe's reservation; contributed thousands of dollars to then-Michigan Governor John Engler -- the funds were directed to Engler's little known "leadership PAC." It was during 2002 that the parties lobbied Engler to reverse his long-held policy on gambling expansion and grant the Bay Mills Indian Community an agreement to establish a far-off gambling hall in Port Huron, MI.

Just months later, Engler's chief negotiator, R. Lance Boldrey would leave the Governor's office and join the Dykema Gossett law firm. Boldrey would include among his clients Malik and the Bay Mills Indian Community.

House Judiciary committee to probe matters surrounding Port Huron casino deal

Rep. John Conyers (D - MI 14th), Chairman of the House Judiciary Committee has scheduled a hearing of the committee to take up and investigate matters surrounding the so-called Land Setttlement Agreement between the Bay Mills Indian Community and the State of Michigan, H.R. 2176. Conyers opposes the bill which would allow the Bay Mills Indian Community and its financial backer Michael J. Malik, Sr. to build a casino located in Port Huron, Michigan, 350 miles away from the tribe's reservation.

Among other things, Conyers has expressed concern that Lance Boldrey, now an attorney with the Dykema Gossett law firm, had negotiated the unorthodox settlement as an aide to then-Michigan Governor John Engler; and then just months later was retained as a private practice attorney but the tribe's financial backer lead by Malik.

The hearing is scheduled for tomorrow, March 14, at 10:00 a.m. eastern time and will be Webcast live. Details at http://judiciary.house.gov/schedule.aspx

Time for an updated advisory vote on Port Huron casino schemes?

In a June 26, 2001 advisory vote, City of Port Huron voters said they supported plans for a casino to be developed on the site of the Thomas Edison Inn. Now Michigan's Governor Jennifer Granholm has renegotiated terms of an agreement -- previously negotiated by former Governor John Engler -- with the Bay Mills Indian Community regarding the tribe's proposed Port Huron casino resort. Among other changes, the agreement would give the tribe the option of building a casino on an alternative site in Port Huron. The Bay Mills Indian Community currently has two casinos on its Brimley, Michigan reservation.

Given that the last advisory vote was held nearly seven years ago and that the new plans would allow the Bay Mills Indian Community to develop a casino on an alternative site; wouldn't it be advisable for proponents of the casino to allow voters to weigh in on the modified plans in another advisory vote that could be added to one of Port Huron's upcoming 2008 ballots?

Further, does it might make sense to extend the advisory ballot measure to voters throughout St. Clair County who will be impacted by the proposed casino?

Boldrey apparently obtained a conflict-of-interest waiver from Governor Granholm allowing him to represent casino promoter

When did Lance Boldrey, a Michigan attorney with the firm Dykema Gossett and one-time counselor for Indian affairs matters in the administration of former Governor John Engler receive the conflict-of-interest waiver noted in today's Port Huron Times Herald article, "Casino fight turns fierce, ugly?"

...lawyer Lance Boldrey drafted the original Bay Mills land-settlement agreement as a legal adviser to Gov. John Engler. After Engler left office, Boldrey took a job with Dykema-Gossett, a prominent Detroit law firm.

In his new role, Boldrey is advising casino developer Mike Malik, who's positioned to make tens of millions of dollars in management fees if Bay Mills opens a Port Huron casino.

Under the Michigan Bar's code of ethics, Boldrey would be allowed to advise Malik only if he first obtained a waiver from Engler's successor, Gov. Jennifer Granholm.

Liz Boyd, the governor's press secretary, confirmed that Boldrey indeed has obtained such a waiver.

Granholm backs Port Huron casino; congressional hearing set for Feb. 6

1.24.08

Gambling on Port Huron
Granholm's support improves the odds for a riverfront casino

By MIKE CONNELL
Times Herald

The long-stalled effort to open an Indian-owned casino in Port Huron has received a major boost from Michigan's governor, who has thrown her support behind the project.

In exchange for her endorsement, Gov. Jennifer Granholm modified the state's 5½-year-old agreement with an Upper Peninsula tribe.

The new deal would increase the state's share of gaming revenues by as much as $30 million a year. It also opens the door for building the casino at Desmond Landing rather than at the Thomas Edison Inn.

"I strongly encourage you to support this legislation," the governor wrote in a letter to Rep. Nick Rahall, D-W.Va., and Rep. Don Young, R-Alaska, the leaders of the House Committee on Natural Resources.

The committee has scheduled a Feb. 6 hearing on H.R. 2176, a bill introduced eight months ago by Rep. Bart Stupak, D-Menominee. The measure would pave the way for a Port Huron casino by providing congressional approval of a land-settlement deal originally made in August 2002 by former Gov. John Engler and the Bay Mills Indian Community of Chippewa County, which is in Stupak's district.

Jeff Parker, the president of the tribe's executive council, said the agreement he and Granholm quietly signed on Nov. 13 was a crucial step.

"It's very important to have her support," he said.

Leaders back casino
Significantly, the governor's endorsement means the proposed casino has the backing of the political leaders who represent Port Huron in Lansing and Washington.

Along with Granholm, a Democrat, and Engler, a Republican, the proposal has been endorsed by Michigan's two senators, Democrats Carl Levin and Debbie Stabenow. Rep. Candice Miller, R-Harrison Township, whose district includes the city, co-sponsored Stupak's bill, as did Rep. Patrick Kennedy, D-R.I., co-chairman of the Congressional Native American Caucus.

The casino also has the backing of the local legislative delegation, the Port Huron City Council and the St. Clair County Board of Commissioners. City voters gave their blessing in a 2001 referendum.

A final step - congressional and presidential approval of the land settlement - has proven elusive. Several bills have gone nowhere. There have been hearings in both the Senate and the House, but the issue has yet to come up for a vote before a congressional committee.

Hearing set for Feb. 6
That could change next month when the House Natural Resources Committee is scheduled to debate Stupak's bill.

Allyson Groff, the committee's communications director, said a specific date has not been finalized, but Larry Rosenthal of Ietan Consulting said the hearing will be Feb. 6.

Rosenthal, a former aide to Rep. Dale Kildee, D-Flint, is a lobbyist for the Saginaw Chippewa, whose casino in Mount Pleasant is Michigan's largest. The tribe is a vigorous opponent of the Port Huron proposal.

Rosenthal described the land-settlement deal as a ruse meant to circumvent a 15-year-old compact between Michigan's federally recognized tribes, which agreed they would not engage in off-reservation gaming unless all 12 tribes agreed. At least nine of the 12 tribes oppose the Port Huron proposal.

The Saginaw tribe includes descendants of the Blackwater River band, which had a 1,287-acre reservation from 1807 to 1836 in the frontier settlement that would become Port Huron.

"Those are the ancestral lands where the Saginaw Chippewa lived and died," Rosenthal said. "This is a scurrilous attempt to undermine the Michigan gaming compact and to undermine the Indian Gaming Regulatory Act."

MGM, Detroit oppose deal
Along with the Saginaw Chippewa, other powerful foes of the Port Huron proposal include gaming giant MGM Mirage, which operates a casino in Detroit, and the political delegations of both Detroit and Nevada.

Detroit Mayor Kwame Kilpatrick said his city's three casinos have created nearly 10,000 jobs.

"These jobs meet the original goal that the people of the state of Michigan endorsed (in 1994) when the casinos were approved - economic self-sufficiency for Detroit," the mayor wrote in a letter to the congressional committee. "Any expansion of off-reservation gaming will not only compromise the economic strides that we've made, but will also contradict the will and intent of Michigan voters."

The mayor reportedly will be the first witness called at the Feb. 6 hearing, although Groff said she could not confirm that.

Two months ago, the 48-member House Natural Resources Committee was scheduled to debate and vote on casino proposals for Port Huron and Romulus. At the last moment, those votes were delayed, reportedly at the request of Rep. Carolyn Cheeks Kilpatrick, D-Detroit.

She is the mayor's mother and chairwoman of the influential Congressional Black Caucus. MGM Mirage is one of her most generous campaign supporters.

'Fair playing field'
Proponents describe the casino as a life buoy for Port Huron, which has experienced double-digit unemployment for several years. The city is one of the most economically depressed communities in Michigan, the state with the nation's highest jobless rate.

Port Huron also is the only community on the U.S.-Canadian border where a casino exists on the Canadian side without competition on the American shore.

In fact, there are two casinos across the St. Clair River. The Point Edward Charity Casino sits directly across from the Edison Inn, while Hiawatha Slots is part of a harness-racing complex in Sarnia.

The two Canadian casinos are operated by the Ontario Lottery and Gaming Commission, which last week shared quarterly payments of $451,282 with Point Edward and $390,840 with Sarnia. The two communities have split about $40 million in gaming revenues in the past eight years.

"Our studies show that about 77% of that is American money," said Richard Cummings, president of the Michigan Machinists and a founding member of the Thomas Edison Casino Advisory Committee. "All we're asking for is a chance to compete on a fair playing field."

State's share rises
In a letter to the congressional committee, Granholm described the Port Huron casino as "a win-win for everyone involved."

Elaborating on that point, she added: "Approval of this settlement will resolve outstanding land claims potentially affecting 200 families in the eastern Upper Peninsula, provide thousands of new jobs in the struggling border community of Port Huron, provide revenue sources to assist the Bay Mills Indian Community in its efforts to become economically self-sufficient and provide much-needed funds to state and local governments."

Liz Boyd, the governor's press secretary, said Granholm would not have endorsed a Port Huron casino without the modifications to the 2002 agreement.

The new deal raises the state's share of so-called "net win" revenues from a flat 8% to a sliding scale of 9% to 13%, depending on how much business the casino does. "Net win" refers to the amount the casino takes in from slot machines and other electronic games, minus the amount paid out in winnings.

If the casino opens, the governor said her cash-strapped state would see its share of annual revenues increase by $20 million to $30 million, depending on how successful the facility is.

Local share is 2%
Boyd said payments also would be more stable than under the Engler deal, which subjected the state's share to possible termination if new gaming was allowed elsewhere. The agreement also provides the state with a share of revenues from Bay Mills' two existing casinos in Brimley, a resort town on Lake Superior.

Bay Mills also would be required to pay 2% of its net win to local governments. The tribe also could be asked to make other concessions.

St. Clair County's administrator, Shaun Groden, and Port Huron's city manager, Karl Tomion, said they are awaiting congressional action before negotiating with Bay Mills.

Both men have argued that congressional approval of a casino would be one way to offset the damage that seems inevitable if Homeland Security levels dozens of Port Huron homes and businesses to expand the border-inspection plaza.

Boyd said local governments have the option of creating a revenue-sharing board to receive and disburse casino funds, which are intended in part to compensate for lost property taxes.

Dispute dates to 1850s
The land-settlement deal resolves a dispute that dates to the 1850s, when Michigan Gov. Kinsley Bingham promised the Chippewas a 110-acre parcel on the St. Mary River. Despite that pledge, the property was seized by local officials for back taxes and sold off.

Today, dozens of families own property at Charlotte Beach, the disputed parcel. Under the terms of the settlement, the Indians are to surrender their claims to the 110 acres, giving clear title to the current property owners.

In exchange, the Chippewas are to receive reservations - land that will be held in trust for them by the Interior Department - in southeastern Michigan.

A complicating factor is that the Bay Mills band split from Michigan's largest tribe, the Sault Chippewa, in the late 1940s. Both tribes have claims to Charlotte Beach, and both agreed to settlements in exchange for casinos hundreds of miles from their reservations.

The Sault's deal with Engler, which also has been restructured by Granholm, allows the tribe to open a casino at one of three locations - Romulus, Flint or in Monroe County south of the River Raisin. The Sault's preference is a site near Metro Airport in Romulus.

2nd site is option
Under the 2002 deal, Bay Mills could build its casino only at the Thomas Edison Inn, a 12½-acre parcel adjacent to the Blue Water Bridge.

The new deal gives the tribe an alternative site - a 19.6-acre parcel at Desmond Landing. It amounts to about one-third of the acreage put together in the past decade by philanthropist James Acheson, who owns a mile of waterfront property on the St. Clair River between the mouth of the Black River and the Seaway Terminal

Casino developer Mike Malik said the Edison Inn remains the preferred site. He said he has an option to buy the inn and has made payments for several months to help keep its doors open.

"I have a considerable investment in the Edison Inn," he said.

Malik said Bay Mills asked the governor for an alternative site because of concerns that Homeland Security might oppose the construction of a high-rise hotel beside the bridge, one of the busiest crossings on the Canadian border.

A proposed $433 million expansion of the border-inspection plaza is expected to come up for final approval later this year. If the project goes forward as expected, it would mean five years of construction near the Edison Inn.

"We all have questions about what the federal government intends to do," Malik said.

'Nice, safe, fun city'
Malik is a Detroit native whose family moved to Clay Township when he was a youngster. He is a former Algonac city councilman and a business partner of billionaire Marian Ilitch, who owns the MotorCity Casino in Detroit. Her family holdings also include the Detroit Tigers, the Red Wings and Little Caesar's Pizza.

Ilitch supports the Port Huron casino but has said she is playing no role in its development.

If the casino opens, Malik stands to receive 30% of its revenues for seven years through a management contract with Bay Mills. In part, the money would reimburse him for start-up costs as well as the millions he already has invested in lobbying, legal, architectural and other expenses.

"Our biggest job is to get it up and running, and to pay the debts," Malik said. "I see Port Huron as a tourist destination, a great place to come for two or three hours to see the river and the boats. This is a nice, safe, fun city."

Doug Austin, executive vice president of Acheson Ventures, said negotiations with Bay Mills and Malik are ongoing.

"We still have questions," he said. "Nothing is resolved."

He said a promenade will be built from the Military Street drawbridge to the Seaway Terminal, a distance of more than a mile, to guarantee public access to the waterfront.

Austin also said any proceeds Acheson receives from the casino "will be pumped back into the community. ... The money will be used to pursue what our original stakeholders, the people who live on the south side (of the Black River), told us they wanted."

Bay Mills tribe's 'false land claim' in Charlotte Beach

as excerpted from a story published in the Port Huron Times Herald 11.16.07:

'A false land claim'
Larry Rosenthal, a Flint native and a consultant for the Saginaw Chippewa, noted the tribal land claims in Charlotte Beach have been rejected in both federal and state courts.

"The legislation is predicated by a false land claim," he said. "They're using it simply to circumvent the 1993 gaming compact for Michigan."

As part of the 1993 compact, Michigan's 12 federally recognized tribes agreed they would not participate in off-reservation gaming. A tribe cannot legally open a casino outside its ancestral lands without approval from the other 11 tribes. That's one reason why skeptics question the legitimacy of a casino proposal in Kimball Township.

Rosenthal criticized the Sault for hypocrisy. When Bay Mills made its deal with Engler in August 2002, the Sault derided the land swap as patently illegal. The tribe then turned around and made its own deal with Engler on Dec. 30, 2002, the day before he left office.

"Even the Sault tribe has opined in the past that a land claim doesn't exist," Rosenthal said.

The back story on the Port Huron casino proposal

11.14.07

Casino gets hearing in Congress
U.S. representatives spar over plans for Port Huron

By MIKE CONNELL
Times Herald

The 15-year effort to bring an Indian-owned casino to Port Huron faces a major test in Congress this week.

On Thursday, the House Natural Resources Committee is scheduled to debate a bill that eventually would turn the Edison Inn property into a 15-acre reservation owned by the Bay Mills Indian Community, a Chippewa tribe based in the eastern Upper Peninsula. (Full Story)

Saginaw Chippewa tribe and others oppose off-reservation casinos in Port Huron & Romulus

11.10.07

Casino legislation resurfaces
Tribes are seeking land for gambling houses

BY TODD SPANGLER
FREE PRESS WASHINGTON STAFF

WASHINGTON -- Two proposed American Indian casinos -- one in Romulus, the other in Port Huron -- got new life Friday with federal legislation providing land for both suddenly reappearing in Congress.

They are sure to stir controversy.

With word Friday that the proposals were added to the list of legislation the House Natural Resources Committee is to consider next Thursday, a rival Indian tribe, the Saginaw Chippewa tribe that owns Soaring Eagle in Mt. Pleasant, was already knocking the plans down as illegal under federal law.

At the same time, at least one official in Romulus praised the economic help gambling houses might bring to the city.

"It's no secret the city has been interested in developing large-scale entertainment," said Tim Keyes, Romulus' economic development director.

In the past, the proposals -- which grew out of land-claim settlements made with the two tribes by then-Michigan Gov. John Engler in 2002 -- have seen plenty of opposition, Detroit Mayor Kwame Kilpatrick among them. His position hasn't changed, a spokesman said.

The proposals were last seen three years ago when they died in the House committee.

Engler signed the deals to settle land claims made by the Sault Ste. Marie Tribe of Chippewa and Bay Mills Indian Community on land in the Upper Peninsula, but they must be approved by Congress.

The deal described in the bill sponsored by Rep. John Dingell, a Dearborn Democrat whose district includes Romulus, calls for the Sault Ste. Marie tribe to be given land there. Other legislation sponsored by Rep. Bart Stupak, a Menominee Democrat, and cosponsored by Rep. Candice Miller, a Harrison Township Republican whose district includes Port Huron, calls for the Bay Mills tribe to be given land in that city.

Both tribes run other casinos in Michigan and the Sault Ste. Marie tribe is a part owner of Detroit's Greektown Casino.

"This is encouraging news," Jeff Parker, tribal chairman for Bay Mills, said Friday.

Contact TODD SPANGLER at 202-906-8203 or at tspangler@freepress.com

Find this article at: http://www.freep.com/apps/pbcs.dll/article?AID=/20071110/NEWS07/711100312

Sen. Stabenow's ally Patrick Kennedy announces support for Port Huron casino

11.05.07

Lawmaker throws support behind casino
Land-transfer bill had sat idle in Congress for six months

By MIKE CONNELL
Times Herald

A bill that would pave the way for a casino in Port Huron picked up a third sponsor last week when a Rhode Island congressman endorsed it.

Rep. Patrick Kennedy, a Democrat, has signed on as a co-sponsor of H.R. 2176, which calls for federal approval of a 2002 land swap between the state of Michigan and the Bay Mills Indian Community of the Upper Peninsula.

The bill was introduced May 3 by Rep. Bart Stupak, D-Menominee, and co-sponsored by Rep. Candice Miller, R-Harrison Township. It was referred to the House Committee on Natural Resources, where it has languished for six months.

"In approving this settlement, Congress can do right by the Bay Mills tribe and recognize what the people of Michigan already know: That the settlement is both fair and in the best interests of all parties involved," Kennedy said in a statement issued Friday.

Kennedy, 40, who is in his seventh term in Congress, is the youngest of Massachusetts Sen. Edward Kennedy's three children.

Stupak's bill is the latest of several attempts to win congressional and presidential approval of the Aug. 23, 2002, land swap approved by then-Gov. John Engler and Bay Mills, a Chippewa band based at Brimley in the eastern Upper Peninsula.

The tribe gave up its long-standing claim to 110 acres of property at Charlotte Beach, a community on the St. Marys River, in exchange for a reservation on the 15-acre Thomas Edison Inn property in Port Huron.

The agreement has been bitterly opposed by Detroit Mayor Kwame Kilpatrick, who contends it could take business from the three casinos in his city. It also is opposed by most of Michigan's other Indian tribes, particularly the Saginaw Chippewas.

The Saginaw Chippewas own the state's largest casino at Mount Pleasant and have historic ties to Port Huron. From 1807 to 1836, one the tribe's subdivisions, known as the "people of the Blackwater River," had a 1,287-acre reservation in what is now Port Huron.

Mike Malik, a Detroit developer, has been working with Bay Mills to replace the Edison Inn with a casino and resort hotel with at least 150 rooms and suites. The development also would include several restaurants, a nightclub, a comedy club and an enclosed mall with specialty shops.

Architectural drawings for the proposed casino-hotel show a sleek, ship-like building that towers above the neighboring Blue Water Bridge and follows the curve of the south span. A dominant feature is a glass-enclosed elevator shaft that would resemble the nearby Fort Gratiot Lighthouse.

Malik, a Clay Township native and former Algonac councilman, has been trying to develop a casino in Port Huron since 1993 when city voters narrowly rejected a proposal to use the downtown Sears store for a Bay Mills/Harrah's casino. The Sears store eventually was demolished to make room for St. Clair County's administrative offices.

In recent years, Malik has worked closely with Detroit billionaire Marian Ilitch on casino projects in several states. Ilitch, whose holdings include the MotorCity Casino in Detroit, has said she supports a Port Huron casino but is playing no role in developing it.

Engler, a staunch opponent of casino gambling, reversed his long-time stance when he approved the land swap.

At the time, Engler said he was swayed by then-Rep. David Bonior, D-Mount Clemens, and other supporters of the casino, who described it as a fair-trade issue. Bonior argued that Port Huron should be allowed to compete on an equal footing with two casinos on the Canadian side of the St. Clair River - the Point Edward Charity Casino and Hiawatha Slots in Sarnia.

Homeland Security Questions raised about proposed Port Huron casino

10.20.07

Plaza project draws queries

By MIKE CONNELL
Times Herald

The deadline for public comments on the proposed $433 million expansion of the Blue Water Bridge Plaza has been extended to Dec. 10. Here's a look at some of the issues in a question-and-answer format:

Question: If Homeland Security is behind the plaza for safety reasons, then how can a casino be approved directly next to the bridge? That would seem to be contradictory.

Answer: In August 2002, just a month before the plaza study began, Gov. John Engler signed off on a deal with the Bay Mills Indian Community. The tribe gave up its claim to 110 acres at Charlotte Beach on the St. Mary River in exchange for 15 acres at the Edison Inn in Port Huron. The casino cannot be moved elsewhere in Port Huron without Gov. Jennifer Granholm's approval.

Architectural drawing for the casino-hotel show it rising high above the bridge. Suites on the upper floors, as well as a rooftop dining room, would look down on the bridge. Presumably, U.S. Customs and Border Protection is well aware of these plans. No objections have been raised publicly.

(Complete Q&A)

Brief synopsis of Mike Malik's 14-year scheme to site an off-reservation casino in Port Huron

as published 10.04.07 in the Port Huron Times Herald:

By MIKE CONNELL Times Herald

...Sears joined the exodus to the suburbs, and in 1993, developer Mike Malik proposed turning the vacant Sears building on Michigan Avenue into a $60 million casino.

Malik, a native of Clay Township, envisioned a casino owned by Bay Mills, a Chippewa band from the Sault Ste. Marie area, and managed by Harrah's Casino Hotels of Nevada. The proposal failed on July 13, 1993, when city voters rejected it, 5,120 to 4,751.

A year later, voters in Port Huron Township rejected a similar proposal for a casino off the Water Street interchange of the expressway.

Malik reappeared in 2002, a year after voters endorsed a casino proposal from Don Reynolds, one of the Edison Inn's owners. In August 2002, Gov. John Engler agreed to let Bay Mills create a reservation on the Edison Inn's 15-acre site if the tribe would drop its long-standing claim to a 110-acre parcel at Charlotte Beach on the St. Mary's River.

Numerous efforts to win congressional and presidential approval of the Engler-Bay Mills' deal have failed. A new bill was introduced in May by U.S. Rep. Bart Stupak, D-Menominee. As of last week, it remained in the House Natural Resources Committee...

2002 AP Article highlights details of the Bay Mills Casino proposal for Port Huron

from the associated press archives 9.24.02

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.

Michael Malik at epicenter manufacturing behind the scenes drama in Michigan’s remote Charlotte Beach subdivision.

Michael J. Malik, Sr. has been at the center of various plans to site a Bay Mills Indian Community off-reservation casino in a lucrative urban market for at least 15 years. Sites have included, downtown Port Horon, downtown Detroit’s Foxtown neighborhood; Port Huron Township; Auburn Hills; several other places, and back to Port Huron and the Thomas Edison Inn site. The tribe already has two casinos on its existing reservation lands in Brimley, Michigan.

The following six paragraphs are excerpted from Testimony previously prepared for and presented to the United States Congress, at a hearing of the Senate Committee on Indian Affairs:

"From its inception, the federal [Charlotte Beach land claims] case had the air of a collusive suit. The federal complaint was filed on October 18, 1996.

"On October 10, 1996 – barely a week before suit was filed – one James F. Hadley purchased land within the Charlotte Beach claim area [specifically 3819 S. 1 Cottage Rd., Barbeau, MI 49710]...

"A few months later, on March 19, 1997, Hadley, representing himself, entered into a settlement agreement with Bay Mills...

"Mr. Hadley just happened to own some land in Auburn Hills, a Detroit suburb that he was willing to give Bay Mills in return for clearing his title to the Charlotte Beach lands, and he was also willing to sell Bay Mills land adjacent to that Auburn Hills parcel. The settlement was conditioned upon the Secretary of the Interior taking the Auburn Hills land into trust. The district court entered a consent judgment incorporating the settlement terms on March 28, 1997…

"When it became apparent that the trust approval was not forthcoming, Bay Mills moved on to pursue a different casino site, and the consent judgment with Hadley was set aside on August 16, 1999…

"The district court dismissed the federal case on December 11, 1998. The 6th Circuit affirmed this decision."

Fast forward five years …

In August 2004, Michael J. Malik, Sr. and his attorney William Serwer organize MJM Charlotte Beach, LLC with Malik as the entity’s manager.

In early November 2004, MJM Charlotte Beach acquires the Hadley/Charlotte Beach lands quietly via quit claim from the Toledo, Ohio estate of James F. Hadley for the sum of $121,301.38. It's unclear what relationship Malik or Serwer had with Mr. Hadley or his family prior to this; but understanding Malik's longterm involvement with various Bay Mills casino proposals and Hadleys role in the proposed Auburn Hills casino site, it's likely they had some prior association.

Sometime the during the year following Malik/MJM Charlotte Beach acquisition of the Hadley/Charlotte Beach properties, the parties discovered an error in the 2004 deed transfer documents regarding future division of the property and in November 2005 the parties re-executed the deed transfer documents with corrections allowing for "six divisions" of the former Hadley/Charlotte Beach property.

Two months later, January 2006, Malik signs documents on behalf of MJM Charlotte Beach, LLC transferring ownership of the former Hadley/Charlotte Beach properties to James M. Reed and Beth E. Reed of Tulsa, Oklahoma for the simple sum of $1.00 (recall that a approximately 14 months earlier, Malik/MJM Charlotte Beach paid Hadley's estate $121,301.38 for the property).

As it turns out, James M. Reed is a partner in the Hall Estill law firm’s Tulsa office and his specialties include Antitrust & Trade Regulation, Real Estate and Class Action lawsuits among others. Previously Reed acted as lead counsel for an interstate gas transmission and supply company in the successful defense of claims brought against it by the City of Detroit in the U.S. District Court for the Eastern District of Michigan, resulting in a verdict and recovery for his client TXU Energy Retail Co. in the amount of $9.4 million.

The Hall Estill law firm has approximately 113 attorneys, in four offices (Tulsa & Oklahoma City, Oklahoma; Fayetteville, Arkansas; Washington, D.C.). The firms experitse includes Antitrust, Banking & Finance, Energy and Natural Resources, Indian Law, Oil & Gas, Real Estate and others.

Prior to forming MJM Charlotte Beach, Serwer and Malik also formed another entity, CB Property Investments, LLC in May 2002 which acquired and retains ownership of two additional parcels in the Charlotte Beach Subdivision; both with a site address at 3915 S. 1 Cottage Rd., Barbeau, MI 49710.

It is not clear what strategic advantage, game of leverage or other true purpose these acquisitions are intended to serve today or sometime down the road but you can be sure they aren't your routine specualtive real estate investments nor the place Malik plans to build his retirement home.

Given there's been some suggestion that the Bay Mills claims are no longer admissable in cout and that only the Saginaw Chippewa have retained the right to future court claims actions, perhaps it's as simple as being a troublesome property owner if and when the Saginaw Chippewa ever did attempt to exercise their legal rights to any land claims.

Or perhaps much like Mr. Hadley, Mr. Reed or CB Property Investments LLC will find a way to resolve some other land claims matter with the Bay Mills tribe that is admissable in Court by transferring land they own somewhere else (say, Port Huron perhaps) in exchange for resolving the Charlotte Beach dispute -- land the Tribe could take into trust for the purpose of gaming? Or perhaps there's some certain precious natural resource or long term development prospects associated with the Charlotte Beach property to which only a few today are privy.

Only time will tell. But given the players invovled, you can be sure it's some sort of complex scheme to create leverage, advantage and wealth.

Note: The preceding details about land titles come from documents obtained through various public records acquisitions. (You may request copies by contacting TVT at allverifiable@gmail.com)

Lawyers.com: Hall Estill Law Firm

List of Charlotte Beach Property Owners

Click on the 'labels' below to see a selection of earlier relavent posts.

Boldrey, McLellan, the Dykema Gossett law firm and their connection to John Engler and the Bay Mills Indian Community

R. Lance Boldrey was chief counsel for Indian affairs matters to Governor John Engler in 2002 and negotiated the 11th hour land claims settlement agreement Engler signed with the Bay Mills Indian Community (Tribe). He even represented Engler (with just 90 days left in Engler’s term) before the U.S. Senate Indian Affairs Committee on October 10, 2002 at a hurried hearing on a bill (S. 2986) introduced by Michigan’s junior Senator Debbie Stabenow and intended to win Congressional approval of the Engler Settlement Agreement and pave the way for an off-reservation Indian casino in Port Huron, Michigan. (The Dykema law firm would end up being the third largest contributor to Sen. Stabenow’s re-election campaign)

As part of the Engler Settlement Agreement (a document now available at the Dykema Web site), the tribe agreed to give up its so-called claims to 110 acres of land in the Charlotte Beach subdivision east of Barbeau, Michigan; in exchange, the tribe would be granted the right to develop and run a third casino which would be located in Port Huron, Michigan; more than 350 miles away from its existing Reservation. The move on Engler’s part represented a flip-flop of a long held policy opposing off-reservation gaming and was also rather suspect given that among other things both state and federal courts had recently tossed out the Tribe’s same land claims. Shortly after Engler left office, Boldrey went to work in the Lansing office of the Dykema Gossett law firm in which Richard D. McLellan was a senior member and head of the firm's Government Policy practice group responsible for the firm's public policy, administrative law and lobbying practices in Lansing and Washington, D.C. And shortly there after, Dykema Gossett was representing the Bay Mills Indian Tribe and its partners.

Richard D. McLellan, at one time was even manager of the law firms Lansing offices. And after Boldrey joined the firm in 2003, they would form two new practice groups: Indian Law and Gaming. In 2005 they would represent Marian Ilitch in her acquisition of MotorCity Casino’s majority interest from Mandalay Resort Group/MGM Mirage and oversee acquisition of more than $1.1 billion in funding used to finance the Ilitch deal.

McLellan as it turns out was an old friend, confidant and political agent for John Engler. In fact, McClellan had helped Engler form the Corner Stone Foundation in 1987 which would later be known as Mackinac Center for Public Policy; the groups were funded heavily by insurance companies and pharmaceuticals. McLellan served in a leadership capacity for Engler’s campaign in 1990 and then was transition director for the Governor-elect assisting in the formation of Governor Engler's Administration; and McLellan would be appointed to various positions by Engler throughout his 12 years as Governor of Michigan including as a member and secretary of the Michigan International Trade Authority, a member of the Michigan Jobs Commission, member of the Library of Michigan Board, and chairman of the Michigan Corrections Commission, among others. McLellan was also instrumental in planning an amendment to the state constitution that would allow public funding of religious schools.

McLellan retired from day to day practice with Dykmea Gossett in April 2007. McLellan’s Biography.

Port Huron Columnist provides measured Q&A on Bay Mills casino circumstances

7.08.07

New attempt at casino bill is perseverance at its best

By MIKE CONNELL
Times Herald

Seven hundred years ago, the king of Scotland was on the run, his army routed by the English for a sixth time.

The king, if legend is to be believed, took shelter in a shanty on an island off the coast of Ireland, where he watched a spider try to cast its web from one beam to another. Six times the spider tried, and six times it failed. Then, on the seventh try, it succeeded.

Robert the Bruce, as the king was known, took heart, resumed the fight and won freedom for Scotland in a seventh battle.

Fable or fact, it's a wonderful tale of patience and perseverance. I was reminded of it last week when I learned that U.S. Rep. Bart Stupak, D-Menominee, has introduced yet another bill to allow the Bay Mills Indian Community develop a casino at the Thomas Edison Inn.

Six past bills - five in the House and one in the Senate - have failed for a variety of reasons. The question now is whether the casino developers, like the Scottish king, will be rewarded for their patience and perseverance, not to mention millions of dollars in legal and lobbying costs.

Here's a look at the issue in question-and-answer format:

Question: What is the status of the latest measure?
Answer: Stupak's bill (H.R. 2176) was introduced May 3 without fanfare and referred to the House Natural Resources Committee, which has taken no action. The measure is co-sponsored by U.S. Rep. Candice Miller, R-Harrison Township, whose district includes Port Huron.

Q: Are congressional hearings likely?
A: No requests for a hearing had been made as of midday Friday. There may not be much left to say. On June 24, 2004, the same committee held a hearing on a similar bill introduced by Miller.

Q: What happened then?
A: The bill ultimately was blocked by House Majority Leader Tom Delay, R-Texas, a close friend of lobbyist Jack Abramoff. The Saginaw Chippewas, who strongly oppose a Bay Mills casino in Port Huron, earlier had paid Abramoff about $14 million.

Q: Who supports the casino?
A: Mike Malik, a Detroit-based casino syndicator, is orchestrating the effort. The Bay Mills Indian Community of the Upper Peninsula would own it. Port Huron City Council has signed off on the idea, and city voters gave their blessings in an advisory vote six years ago. The measure passed, 3,111 to 2,628.

Q: What's in it for Port Huron?
A: Money and jobs. The city's unemployment rate was 12.1% in April, and that statistic doesn't count jobless workers whose benefits have run out. Promoters say the casino and an adjoining 300-room resort hotel would provide 2,000 to 3,000 jobs. In 2001, voters were promised those jobs would pay union wages.

Voters also were assured the casino would share 5% of its net revenues with the city and 3% with the United Way. If net revenues are $100 million a year, which seems conservative based on revenues at Point Edward, that's $5 million for the city and $3 million for the United Way. Reportedly, the county has been promised a 2% share.

It's interesting to look at literature distributed to voters by pro-casino forces six years ago. They predicted the city would desperately need the additional $5 million a year to pay for its $185 million sewer project. They also predicted McMorran Place would need $12 million in renovations by 2011. Those predictions have come to pass.

Q: Are these shares guaranteed in writing?
A: I don't believe so. Lansing's agreement with Bay Mills does guarantee the state 8% of proceeds from slot machines and other electronic gaming devices.

Q: What is Bay Mills?
A: It's a Chippewa (or Ojibwa) band of about 1,500 people based in Brimley, a town near Sault Ste. Marie. The band tried unsuccessfully to develop a casino at the old Sears building in downtown Port Huron in 1993.

Q: What is the state's agreement with Bay Mills?
A: In 2002, three months before he left office, Gov. John Engler approved a deal letting the tribe develop a casino in Port Huron in exchange for dropping its long-standing claim to 110 acres at Charlotte Beach about 15 miles south of Sault Ste. Marie.

The Soo, a much larger Chippewa band with about 31,000 members, also claimed title to the property. On the day he left office, Engler signed off on a deal giving the Soo (or Sault) the right to develop a casino in Flint, Monroe or Romulus. The Soo chose a site near Metro Airport in the latter city.

Q: Didn't Engler oppose casino gambling?
A: Yes. For years, he was outspoken in his opposition.

Q: Then why would he allow a casino in Port Huron?
A: Former U.S. Rep. David Bonior, a Democrat who represented Port Huron during the Engler years, said the governor was persuaded by fair-trade arguments.

Testifying at a Senate hearing in 2002, Bonior explained: "Port Huron, I would note, is the only U.S-Canadian border crossing in Michigan without a casino to compete. Residents in Port Huron have for years watched as residents of Michigan, about about 5,000 a day, simply cross the Blue Water Bridge with their money to the gaming facility which is located right across the bridge on the river."

Q: Who is Mike Malik and what is his role?
A: He is a Clay Township native who has become wealthy as a close associate of the Ilitch family. In fact, he works out of the Ilitches' offices at the Fox Theatre complex in Detroit.

Malik is the fellow who makes things happen, whether it's hiring lobbyists and lawyers or drumming up local support. He also guided the unsuccessful 1993 effort to place a Bay Mills/Harrah's casino in Port Huron.

For at least 15 years, he has sought to develop a huge marina on Harsens Island. His latest proposal appears to be coordinated with efforts by Matty Moroun, the billionaire owner of the Ambassador Bridge, to build a toll bridge connecting the island and Algonac. Malik and Moroun are next-door neighbors on the lakefront in posh Grosse Pointe Shores.

Q: Who opposes the casino?
A: They tend to fall in three camps - those who oppose gambling in general, those who fear a Port Huron casino would set a bad legal precedent and those who benefit from rival casinos.

Q: And who benefits?
A: You might start with Detroit Mayor Kwame Kilpatrick, whose city is home to three casinos just 60 miles from Port Huron. He has been a fierce and tenacious opponent. The Saginaw Chippewas, who own a casino in Mount Pleasant, and the Grand Traverse Band, who operate a casino near Traverse City, also have been outspoken foes. In fact, nine of Michigan's 12 federally recognized Indian bands are on record as opposing the Bay Mills/Port Huron project.

As an aside, that's why developer Tony DeFeo's proposal for a casino in Kimball Township seems so far-fetched. His plan requires the approval of all 12 tribes. It's difficult to imagine that happening, although quite a few investors have placed $100,000 bets that it will.

Q: What is the concern about a legal precedent?
A: The Port Huron casino involves the settlement of a land claim. The deal was approved at the state level by Engler. If it's approved by Congress and President Bush, construction could begin within weeks. It circumvents the usual process outlined in the Indian Gaming Regulatory Act, which requires an environmental review and other approvals by the Interior Department.

Also, critics say it's absurd for the Bay Mills band to establish a tribal reserve in Port Huron, which is more than 300 miles from Brimley.

Q: But wasn't there a Chippewa reservation in Port Huron at one time?
A: Yes, 200 years ago - in November 1807 - area tribes agreed to sell their lands south of White Rock in Huron County. As part of the treaty, the Mekadewagamitigweyawininiwak - or "people of the black water river" - were given title to 1,287 acres on the south bank of the Black River in what is now Port Huron. The band sold its reservation about 30 years later.

Today, the descendants of the Indians who lived here are part of the Saginaw band, which opposes the casino.

A bit of trivia: Mekadewagamitigweyawininiwak - a 28-letter tongue-twister - is the longest Indian word recorded in the Handbook of American Indians: North of Mexico, a definitive study of Native Americans compiled a century ago by anthropologist Frederick Webb Hodge of the Smithsonian Institute.

Q: Won't a casino bring crime with it?
A: U.S. Rep. Mike Rogers, R-Brighton, a retired FBI agent who in April 2004 blocked an amendment for casinos in Romulus and Port Huron, is among those who believe it will. Others disagree and argue a casino is more likely to reduce crime by creating jobs and bolstering the local economy.

In a 2001 memo, Sarnia Mayor Mike Bradley reported only 13 police calls in the previous six months at Hiawatha Horse Park and Entertainment Centre. Point Edward's casino, directly across the river from the Edison Inn, has reported no major problems with crime.

Sarnia and Point Edward have vibrant economies, and gambling seems to have generated jobs and revenues as promised with no adverse effect on crime rates.

Q: Why not develop a casino downtown or on the Acheson property instead of at the Edison Inn?
A: Port Huron voters approved locating the casino anywhere within the city limits, but the agreement made with Engler in August 2002 limits Bay Mills to the Edison Inn parcel. Changing the site would require the tribe to negotiate with Gov. Jennifer Granholm, a former Wayne County administrator with close ties to Mayor Kilpatrick and his family. That seems neither prudent nor likely.

Q: What happens next with the bill?
A: It's hard to say with certainty. It could be attached to a larger piece of legislation. From Port Huron's perspective, it helps that the leaders of the Natural Resources Committee - Rep. Nick Joe Rahall, D-W.Va., and Rep. Don Young, R-Alaska - strongly support it.

Q: Why is that?
A: They argue it's a local issue. In the 2004 hearing, Rahall and Young made it clear that outsiders should not be allowed to overrule Congresswoman Miller in deciding what is best for her district.

At one point, Young told Rogers: "It appears to me, with 20 casinos in Michigan, it is those that have the casinos now (who) are ganging up against those that do not have and saying this in an inappropriate thing to do. And to me, that is really not quite cricket."

Q: What is the prospect of Senate approval?
A: U.S. Sen. Debbie Stabenow, D-Lansing, has been a strong supporter. She has said a casino might help compensate the city for the tax base and population losses likely from the proposed half-billion-dollar expansion of the bridge customs plaza.

U.S. Sen. Carl Levin, D-Detroit, one of the most influential figures on Capital Hill, has not opposed the casino, but he has not agreed to sponsor the measure either. To Washington insiders, that suggests his support is lukewarm at best.

Larry Thornton, a retired official with the railroad carmen's union, recently wrote Levin and asked the senator to help get the bill to the president's desk. Thornton argued St. Clair County desperately needs the jobs.

In his response, Levin seemed ambivalent. His letter closed with this passage:

"I believe decisions regarding gaming should be made at the local level, through city or county resolutions where the voices of those who would be directly affected by the final decision can be heard. At the same time, lawmakers at both the state and federal level must not overlook the fact that Michigan has the second largest number of casinos in the U.S. Should this rate persist, the market in Michigan will become so saturated that the economic benefits which result from tribal gaming initiatives will be lost."


Mike Connell is a columnist for the Times Herald. He can be reached at (810) 989-6259 or mconnell@gannett.com