To Bypass Carcieri and Other Off-Reservation Casino Hurdles, Detroiters Plan Introduction of "Mandatory Acquisition Legislation" in Congress

Detroiters who stand to gain hundreds of million of dollars developing and operating Shinnecock Indian Nation gambling halls on Long Island and possibly Governor's Island in New York Harbor, are planning to introduce federal legislation to help them secure approvals and get around off-reservation stumbling blocks including the Carcieri ruling.

According to a timeline produced by the Detroiters' consultants, they are planning to carry out a PR campaign beginning in December 2011 that lays the groundwork for something they refer to as "Mandatory Acquisition Legislation."  That includes plans to "work closely with local governments, union, community groups to build and demonstrate support" for projects in Suffolk County and at Belmont Race Track in Nassau County.

From December 2011 - February 2012, the timeline indicates they will:

• Finalize Mandatory Acquisition Legislation for introduction to Congress.
• Finalize PR plans to support congressional introduction and promote passage of Mandatory Acquisition Legislation 

Then in March 2012 they plan to introduce the so-called "Mandatory Acquisition Legislation" to federal officials.

The timeline notes these "ongoing' activities relative to their "Mandatory Acquisition Legislation" strategy:

• Meet with Federal elected officials; Schumer and Gillibrand; Nassau County and Suffolk County Congressional delegation. Demonstrate local support for Project.
• Meet with key Federal and State elected officials needed to support Mandatory Acquisition Legislation. Prepare white papers and testimony for congressional committee hearings.
• Meet with key elected officials, committee chairs, key DOI officials, and present testimony at committee hearings; lobby- lobby- lobby

In addition to up to three casinos on Long Island, the Detroiters may also be eyeing the opportunity to develop a gambling/entertainment mecca on Governor's Island in New York Harbor. (See renderings)

See other materials obtained with the timeline.

Click on the “labels” below to see related posts, documents, resources or visit these any of these posts:

• Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock
• Al D'Amato retained to advance Detroiters Long Island Casino Schemes is also leading fight for online gaming
• Shinnecock and Ilitch affiliate Gateway Casino Resorts paid $1.5 million to New York Lobbyists
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Shinnecock Casino Backers have dropped $117,500 on top-ranking NY Politicians
• Detroit Casino Syndicators Organize Additional Gaming Affiliates in Decade Long Pursuit of CA & NY Gambling Halls
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans

Congressional Testimony Notes Transfer of Charlotte Beach Property to Michael Malik

The following was submitted as part of Congressional Testimony presented by Fred Cantu, Chief of the Saginaw Chippewa Indians:

"What makes this scam even more interesting is the fact that when Mr. Hadley passed away his estate deeded the Charlotte Beach property to a Mr. Michael J. Malik and his gaming business partner. This raises the question of whether Mr. Malik had an interest in the land deal from the get go -- and if so – did he try to disguise his ownership in the land deal? This also begs the question that was raised by the Sault Tribe -- whether this collusive lawsuit was a scam -- a set-up in order to make this land claim seem legitimate. As stated by the Sault Tribe, Mr. Hadley was clearly not an aggrieved landowner – he was a willing and active participant in this scam. That is why today we are asking the United States Department of Interior to investigate this matter and request this Committee refrain from taking any action until such investigation is completed.

"I would like to enter into the record the deeds that show that Mr. Malik received these lands from the Hadley estate.

"Today, Mr. Malik is the lead developer with the Bay Mills Tribe to build a casino in Port Huron. If this land claim was so legitimate, why does it appear that Bay Mills and their developer colluded to hide their identity in these transactions? We believe the answer is clear. They did not want anyone to know this was a scam from the outset"...

Congresswoman alleges collusion in off-reservation casino scheme

Excerpted from testimony provided 3.14.08 by Congresswoman Carolyn Cheeks Kilpatrick (D - MI13th) at a hearing before the House Judiciary Committee on H.R. 2176:

On October 10, 2002, in testimony before the Senate Committee on Indian Affairs, The Chairman of the Sault Ste. Marie Tribe, Bernard Boushor, said “ the Bay Mills case was a scam from the start.” In testimony and information provided to the House Natural Resources Committee in February of this year, Saginaw Chippewa Chief Fred Cantu cited Chairman Boushor’s testimony, stating that the original lawsuit on the land claim was a collusive lawsuit. I have provided Chairman Boushor’s statement to be included as part of today’s testimony.

I would strongly encourage the Committee to carefully read these documents on how this land claim actually began. The proponents of this legislation have repeatedly stated that these bills are simply to address the aggrieved landowners in Charlotte Beach. But according to the Sault Ste. Marie Tribe “the Charlotte Beach claim did not originate with Bay Mills. It was a product of a Detroit area attorney who developed it specifically as a vehicle to obtain an IGRA casino…the goal was never to recover the Charlotte Beach lands.”

How was this originally a collusive lawsuit? The Bay Mills Tribe sued Mr. James Hadley on October 18, 1996 who entered into a settlement in which he gave land to the Bay Mills Tribe 300 miles from their reservation to build a casino in Auburn Hills, Michigan. That plan was rejected by the Department of Interior. The point is that Mr. Hadley was not an aggrieved landowner, he was an active participant in what the Sault Tribe described as “a collusive lawsuit” and “a scam.”

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

Indianz.com: Listen to congressional testimony on off-reservation casinos in Michigan

Thanks to Indianz.com, you can listen to testimony provided at the February 6th hearing before the House Natural Resources Committee on the matters of H.R. 2176 and H.R. 4115.

INDIANZ.COM LISTENING LOUNGE
• Opening Statements
• John D. Dingell | Bart Stupak | Don Young | Carolyn C. Kilpatrick | Mike Rogers | Candice S. Miller | John Conyers, Jr. | Shelley Berkley | Bennie G. Thompson | Q&A
• Carl Artman | Q&A
• Panel 2 | Q&A
• Panel 3 | Q&A

Tribal land claims may be investigated

as posted 2.08.08 by Daniel Munson at C-MLife.com:

Saginaw Chippewa Indian Tribe Chief Fred Cantu Jr. questioned the motives of a rival tribe's attempts to gain land in the Port Huron area on Wednesday at Capitol Hill.

Cantu called two bills that would award land to the Bay Mills Indian Community for casinos a "scam from the start" and may have forced an investigation into the legality of its land claims.

Cantu testified in front of the House Committee of Natural Resources.

"In this case, I think what's being taken under advisement is for the committee recommendation to launch an investigation," said Joe Sowmick, Saginaw Chippewa's public relations director.

If approved, the two bills would settle land disputes among the state of Michigan, the Bay Mills Indian Community and the Sault Ste. Marie Tribe of Chippewa Indians.

Along with Cantu's testimony, representatives from the Bay Mills and Sault Ste. Marie tribes presented their positions.

Jeff Parker, president of the Bay Mills executive council, focused on the relocation of Bay Mills' 110-acre Upper Peninsula Charlotte Beach land claim promised by former Gov. John Engler.

"The governor insisted that we locate replacement lands in a community that was desirous of hosting us," Parker said during the hearing. "We have done that. That community affirmatively wishes our tribe to locate its replacement lands there."

Lawmakers in support of the bills included House Representative Candice Miller, R-Harrison Township and the two sponsors of the bills, state representatives Bart Stupak, D-Menomonee, and John Dingell, D-Dearborn.

Cantu said Port Huron is not an appropriate location for the settlement.

"The passage of this legislation will encourage tribes to create or exploit a land claim by seeking to replace lost lands with lands in profitable gaming markets, without regard to whether they are entering into the territory of another tribe," Cantu said.

Officials who lobbied against the bills included Detroit Mayor Kwame Kilpatrick, and House Representatives Carolyn C. Kilpatrick, D-Detroit; Mike Rogers, R-Clinton Township; John Conyers, D-Detroit; Shelley Berkley, D-Nevada; and Bennie Thompson, D-Mississippi.

"At the very least I think we were able to state our position rather well," Sowmick said. "It allowed us to meet with not only other congressional leaders but some of the other people in Washington to let them know that we firmly believe in reservation business on reservation lands."

Cantu said in a press release that Bay Mills' intentions became more clear at the hearing.

"What we now know is that these bills have nothing to do with protecting innocent landowners (at Charlotte Beach), but it was scam from the get-go so these tribes could get casinos 350 miles from their reservations," he said.

The House Natural Resources Committee could vote on the bill by next Wednesday, but Cantu said he would appeal to the U.S. Department of the Interior for an investigation into the two tribes claims.

http://media.www.cm-life.com/media/storage/paper906/news/2008/02/08/News/Tribal.Land.Claims.May.Be.Investigated-3197206.shtml

Sault Tribe changes its tune when it comes to Act of Congress allowing off-reservation gaming in Michigan

Compare what the Chairman of the Sault Ste Marie Tribe of Chippewa Indians had to say before a congressional committee on 10.10.02 about Charlotte Beach land claims with what the Chairman of the Sault Tribe had to say about those same claims at a hearing before the House Natural Resource Committee hearing 2.06.08.

• 2002 Testimony - Chair, Sault Ste Marie Tribe of Chippewa Indians
• 2008 Testimony - Chair, Sault Ste Marie Tribe of Chippewa Indians

In 2002, the tribal chairman said, "The Charlotte Beach claim did not originate with Bay Mills. It was the product of a Detroit area attorney who developed it specifically as a vehicle to obtain an IGRA casino. This attorney approached the Sault Tribe first with the claim, but we turned him the deal down. He then took the claim to Bay Mills, who joined him up on his scheme. This attorney, Robert Golden, then represented Bay Mills in both court cases. The goal never was to recover the Charlotte Beach lands...Bay Mills is apparently fronting for a group of non-Indian movers and shakers who have carried Bay Mills along on their casino quest."

He went on to say the deal was a "very bad idea. It accomplishes nothing that it purports to do and much that should not be done... It revives a claim Bay Mills has lost, rewarding shady dealings in the process. Indian policy should suffer no further distortion in favor of non-Indian interests lurking behind tribes like Bay Mills. If Congress sanctions this sham, the lines will grow long of those who will surely follow."

Just today the tribe's chairman said, "Federal, state and local officials — Democrats and Republicans — support the agreement with Bay Mills and the Sault Tribe as a fair way to address the Charlotte Beach land claim within the confines and spirit of the law...Quite frankly, the loudest arguments against H.R. 4115 and H.R. 2176 come from Las Vegas casino interests and gaming tribes that do not want competition to their own businesses. Our interest is that we are justly compensated for the illegal land taking from our tribe and that the titles are cleared for the many families who today own homes on Charlotte Beach lands."

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.

story also available at: http://www.chron.com/disp/story.mpl/ap/fn/5519744.html

Michigan delegation divided over off-reservation casinos

2.06.08

Hearing for 2 new Mich. casinos divides crowd
Some fear Detroit will be hurt, others seek job creation

By TODD SPANGLER
FREE PRESS WASHINGTON STAFF

WASHINGTON -- A proposal to allow two new Indian casinos in Michigan -- one in Romulus and one in Port Huron -- split the Michigan delegation in a congressional hearing today, with Detroit's representatives set against an idea they believe could hurt the city.

The hearing before the House Natural Resources Committee, which oversees American Indian affairs, attracted a wide range of witnesses, including much of the congressional delegation, officials from the tribes themselves and embattled Detroit Mayor Kwame Kilpatrick.

In his prepared remarks, the mayor said: "Clearly, this legislation would severely harm our city's ability to rebuild and revitalize. We have made great strides and will continue to do so. The investments and the revenues from our three hard-fought-after casinos are paramount to these efforts."

His mother, Rep. Carolyn Kilpatrick, and Rep. John Conyers, both Detroit Democrats, argued against the bills, saying they allow for off-reservation gambling in violation of state and federal laws and will damage competition in Detroit's casinos.

But others, including Rep. John Dingell, the longest-serving active member of the House, support the proposals, saying they are needed to create jobs in his district, which includes Romulus.

In his prepared remarks, the Dearborn Democrat said the Romulus project will bring 2,700 "well-paying, on-site union jobs" to the area, not to mention construction jobs.

He also noted the legislation would settle land claims brought by the Bay Mills Indian Community, which wants to build a casino in Port Huron, and the Sault Ste Marie Tribe of Chippewa, which would build the new casino near the Detroit airport in Romulus.

The hearing was expected to last for several hours with a long list of witnesses.

Witnesses set to testify at congressional hearing on off-reservation casinos proposed in Michigan

2.04.08

Kilpatrick to testify against Indian casinos

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- Detroit Mayor Kwame Kilpatrick will testify before the House Natural Resources Committee here Wednesday to oppose a bill to allow Indian casinos in Romulus and Port Huron, the committee announced Monday.

Two bills in Congress would allow Indian-run casinos to directly compete with Detroit's three casinos. Five Michigan lawmakers will testify on both sides of the issue.

Kilpatrick's mother, Rep. Carolyn Kilpatrick, D-Detroit, will testify in opposition as well, while three other Michigan lawmakers will support the proposed new casinos.

The event will mark Mayor Kilpatrick's first appearance outside Michigan since his public apology over the release of text messages suggesting he wasn't truthful when he denied having an affair with his then-chief of staff, Christine Beatty, in a civil lawsuit. Wayne County Prosecutor Kym Worthy is investigating whether the mayor or Beatty committed perjury.

Also testifying Wednesday at the House hearing are Rep. John Dingell, D-Dearborn, chairman of the Energy and Commerce Committee and Bart Stupak, D-Menominee, who supports locating a casino in Romulus in Port Huron, and two Republicans, Rep. Mike Rogers of Brighton and Candice Miller of Harrison Township.

Miller supports the plan to locate a casino in Port Huron, while Rogers opposes the new casinos and wants an assessment of the economic impact of two casinos on Metro Detroit before they are approved.

"These are not going to be a net winner," Rogers said Monday.

Jeff Parker, president of the executive council of the Bay Mills Indian Community in Brimley, Mich., and Aaron Payment, chairman, Sault Ste. Marie Tribe of Chippewa Indians, Sault Ste. Marie, Mich., are going to testify.

The two bills being considered would allow two new casinos in Port Huron and Romulus in exchange for resolving land claims around Charlotte Beach in the Upper Peninsula.

Also testifying at Wednesday's hearing are the mayors of Romulus, Alan R. Lambert; and Mark Neal, of Port Huron; along with Joe Conroy, director of government operations for the city of Flint.

You can reach David Shepardson at (202) 662 - 8735 or dshepardson@detnews.com.

Find this article at: http://www.detnews.com/apps/pbcs.dll/article?AID=/20080204/METRO/802040455

DOI Assistant Secretary testified against Bay Mills land claims settlement before Senate Committee

At a hearing before the U.S. Senate Committee on Indian Affairs, Deputy Assistant Secretary of Interior - Indian Affairs Aurene M. Martin testified that the Department did not support the Bay Mills Indian Community's land claims settlement as represented in the bill S. 2986 introduced by Michigan Senator Debbie Stabenow and backed by then Governor John Engler and his agent R. Lance Boldrey.

Among Assistant Secretary Martin's objections:

• the Act of Congress would "force a number of administrative actions without giving the Administration sufficient time to review the terms and there is no provision for obtaining the views of other interested parties, including other Tribes, prior to executing these significant actions."
  


• "The Settlement Agreement also contains other gaming-related provisions. It has been the policy of the Department to require that provisions such as these be part of the Class III gaming compact between a tribe and the State. In our view, the Indian Gaming Regulatory Act (IGRA) requires that all substantive provisions relating to the operation of gaming activities be included in the tribal/state compact. This bill arguably carves an exception to this requirement of IGRA, and may set a precedent for other parties to try to do the same."
  


• "Under statutory and regulatory provisions, the BIA is normally required to consult with local units of state government and other Tribes prior to taking land into trust. The mandatory nature of this trust acquisition, as well as the short time frame provided in the bill, precludes us from consulting with interested parties in this regard. The legislation also precludes the Department from evaluating the subject property to determine whether hazardous materials (such as lead paint, mercury, spilled fuel, other dangerous or toxic material), or other potential liabilities exist, and to work with the owner on a remediation plan if necessary. "

Stupak testified land claims are a cloud over Charlotte Beach property; Tribe's backers picking up devalued property

At a hearing on Capitol Hill before the House of Representatives Committee on Resources held 6.24.04 to consider HR 831; a bill to approve the settlement of land claims alleged by the Bay Mills Indian Community over property (110 acres) in the Charlotte Beach subdivision east of Barbeau, Michigan; Rep. Bart Stupak testified as follows,

"I first became involved in this land issue at the request of the property owners, not the tribes. With a "cloud" on their title the Charlotte Beach property owners have been sued, have a difficult time trying to secure real estate loans, and have experienced lost real estate sales as well as significantly lower property values."

The Bay Mills Indian scheme is being encouraged and financed by Michael J. Malik, Sr. and several enterprising lawyers who originally recognized the potential of land claims as leverage for an off-reservation casino. In essence they're responsible for the "cloud" that Rep. Stupak acknowledges.

So, it's rather ironic that Malik's primary business attorney, William Serwer ("Bill") filed documents forming several entities including CB Property Investments, LLC; and that since 2002, CB Property Investments has acquired several parcels in the Charlotte Beach subdivision.

If what Rep. Stupak suggests is true, it seems rather curious that the primary attorney for the casino syndicator financing, stiring up, the "cloud" may now be picking up property in the area at discounted rates or under other artificial circumstances favorable to the buyer.

See also:

• Where in the world is "Charlotte Beach?"
• The Bay Mills Land Claims Case Was a Scam from the Start
• Was it a law firm that first proposed Charlotte Beach land claims idea?
• Michigan Courts tossed out Bay Mills tribe's land claims to Charlotte Beach subdivision
• Seven attempts by tribe's backers to win congressional approval for off-reservation casino using IGRA loophole

Congressional Testimony: Team owners get rich off taxpayers subsidies; while taxpayers see little net return

From official testimony given in

the U.S. House of Representatives
Subcommittee on Domestic Policy,
Committee on Oversight and Government Reform

March 29, 2007

Frank D. Rashid

“…In selling these projects to the public, local officials made plenty of promises about the benefits they would bring: new jobs, economic spin-off from stadium-related activities, contracts for minority firms, increased city revenues for more police and city services.

Not one of these promises has been fulfilled.

In the last two years, the city has hosted major league baseball’s All-Star Game, the Super Bowl, and the World Series, but city residents have seen no lasting benefits from these highly touted events. The city faces a financial crisis, with two consecutive years of deficit and has had to cut police and fire protection, library hours, and trash pickup among other city services.

Comerica Park and Ford Field have been in operation for six and four seasons respectively, but the blessings of major league sports have yet to rain down upon the people of Detroit. The owners of the two teams, on the other hand, have been blessed with dramatically increased franchise value.

They have also taken advantage of the opportunity afforded by the new stadiums to raise ticket prices.

In effect, we gave hundreds of millions of dollars to two billionaires so they could charge higher prices and become even wealthier. This is called urban development...

Full Text of Prepared Testimony

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