According to OpenSecrets.org, Detroit casino syndicator Michael J. Malik, Sr. contributed $30,400 to the Democratic Senatorial Campaign Committee on 6.19.09.
Previously such contributions by Malik and his casino gaming partners Mike and Marian Ilitch flowed to committees to re-elect Michigan Senators Debbie Stabenow and Carl Levin -- two who have spearheaded Congressional activity that would pave the way for Malik and his partners to develop an off-reservation Indian casino (Bay Mills Indian Community) in Port Huron, MI.
For more than a decade Malik has failed to win such Congressional approvals despite raising hundreds of thousands of dollars for those who have carried his water including Stabenow, Levin, Michigan Representative Candice Miller, Alaska's Representative Don Young and several others that have been key to Malik's schemes.
Malik and Ilitch are also behind similar off-reservation Indian casinos proposed in Barstow, CA (Los Coyotes Band of Cahuilla and Cupeno Indians) and Hampton Bays, NY (Shinnecock Indian Nation).
In December 2008, Malik was found guilty on firearms charges in Arizona. As a result he was forced to pay a nearly $15,000 fine and stripped of his right to hunt in a majority of U.S. states for a period of five years.
In February 2009, Malik was found to have violated California campaign finance laws and was also fined. Malik has a history of repeating such violations in California.
In April 2009, Fifth Third Bank filed a complaint in Oakland County (MI) Circuit Court claiming Malik had defaulted on a $1 million line of credit.
In May 2009, Malik entered into a settlement agreement in Florida Federal Court acknowledging that he had previously accepted at least $620,000 in fraudulent transfers (Goldberg v. Malik) as part of a Ponzi scheme. That case stemmed from a $300 million Ponzi scheme case brought by the Securities & Exchange Commission against Jack Utsick and others. Utsick has subsequently taken asylum in Brazil.
Showing posts with label Debbie Stabenow. Show all posts
Showing posts with label Debbie Stabenow. Show all posts
Monday, November 09, 2009
Wednesday, July 16, 2008
Ilitch partner fronted more than $50,000 in travel, etc. for key Members of Congress
During the 2006 election cycle Michael Malik and his affiliates (Barwest LLC and MJM Manistee, Inc.) fronted more than $52,668 in travel, catering, gifts & entertainment for Sen. Debbie Stabenow (D-MI) and Reps. Don Young (R-AK), Richard Pombo (R-CA) and Bart Stupack (D-MI). And that's what got reported!More than 78 percent of those dollars went to pay for the expenses of Young and Pombo.
During the '04 & '06 election cycles, members of the Ilitch family and Malik also contributed more than $510,00 to these elected officials and other federal political committees. They were among top donors to Stabenow, Pombo and Young.
Each of these Members of Congress sponsored key bills granting approvals for Malik (and his partner Marian Ilitch) to build off-reservation Indian casinos.
Date (linked: OpenSecrets.org) – Recipient – Donor – Amount – Description
2005.01.25 – Don Young - Barwest LLC - $5,817 – Air travel expense
2005.07.11 – RICH PAC - Malik, Michael Sr. - $5,000 – Inkind
2005.07.11 - America’s Leadership PAC (Stabenow) - Malik, Michael - $4,000 - Reimbursement - Event Tickets
2005.07.12 – America’s Leadership PAC (Stabenow) - MJM Manistee, Inc. - $1,400 -Catering
2005.07.12 - America’s Leadership PAC (Stabenow) - Malik, Michael - $5,000 - Event Tickets & Site Rental
2005.07.15 - America’s Leadership PAC (Stabenow) - Malik, Michael - $500 - Reimbursement - Gifts for Donors
2005.09.14 – RICH PAC - Malik, Michael Sr. - $16,064 - PAC fundraiser-event rental/transportation
2005.09.14 – RICH PAC - MJM Manistee, Inc. - $10,469 PAC fundraiser-catering/hotel 09/14/05
2005.10.07 – Don Young - Malik, Michael - $3,978 – Air travel
2006.10.16 – Bart Stupak - MJM Manistee Inc. - $440 – Tailgate Event
Tuesday, April 15, 2008
Stabenow's husband caught in prostitution sting
4.02.08
Report: Stabenow's husband paid prostitute in sting
By KORIE WILKINS AND TODD SPANGLER
FREE PRESS STAFF WRITERS
WASHINGTON -- Speaking for the first time about her husband's acknowledgment that he paid for sex with an alleged prostitute, U.S. Sen. Debbie Stabenow told the Free Press this afternoon she's going through a "very difficult and personal" time and will continue to work through it with her family.
The senator from Lansing did not want to talk about whether she and her husband are still together or how she learned of his being stopped by Troy police in February. According to a police report obtained this morning by the Free Press, Tom Athans -- a liberal radio talk-show executive -- told Troy detectives he paid a prostitute he contacted via the Internet $150 for sex at a Residence Inn in the metro Detroit suburb.
He was not charged with solicitation after being stopped as part of a police sting -- only cited for driving with a suspended license. He was stopped on I-75 driving a car registered to him and Stabenow, whom he married in 2003.
Stabenow spoke to the Free Press a few minutes after delivering a speech on the Senate floor on the need to help Michigan families fighting foreclosure and lost jobs -- a theme she has been pounding on for months, repeating her call for an extension of unemployment benefits.
Her demeanor showed none of the stress she acknowledged she's under now.
"I have a job to do and I'm continuing to be focused on the things that matter most to Michgian families," she told the Free Press.
Athans, 46, issued a statement through a Royal Oak law firm representing him, saying, "No words can fully express how sorry I am. At the time this incident occurred, I took responsibility for my actions and fully cooperated with law enforcement. My family and I are dealing with this matter in a personal and private way."
Without being specific, Stabenow, 57, said her colleagues have been showing their support for her. "I'm very grateful for the prayers and support I'm receiving," she said.
Find this article at:
http://www.freep.com/apps/pbcs.dll/article?AID=/20080402/NEWS06/80402038
WASHINGTON -- Speaking for the first time about her husband's acknowledgment that he paid for sex with an alleged prostitute, U.S. Sen. Debbie Stabenow told the Free Press this afternoon she's going through a "very difficult and personal" time and will continue to work through it with her family.
The senator from Lansing did not want to talk about whether she and her husband are still together or how she learned of his being stopped by Troy police in February. According to a police report obtained this morning by the Free Press, Tom Athans -- a liberal radio talk-show executive -- told Troy detectives he paid a prostitute he contacted via the Internet $150 for sex at a Residence Inn in the metro Detroit suburb.
He was not charged with solicitation after being stopped as part of a police sting -- only cited for driving with a suspended license. He was stopped on I-75 driving a car registered to him and Stabenow, whom he married in 2003.
Stabenow spoke to the Free Press a few minutes after delivering a speech on the Senate floor on the need to help Michigan families fighting foreclosure and lost jobs -- a theme she has been pounding on for months, repeating her call for an extension of unemployment benefits.
Her demeanor showed none of the stress she acknowledged she's under now.
"I have a job to do and I'm continuing to be focused on the things that matter most to Michgian families," she told the Free Press.
Athans, 46, issued a statement through a Royal Oak law firm representing him, saying, "No words can fully express how sorry I am. At the time this incident occurred, I took responsibility for my actions and fully cooperated with law enforcement. My family and I are dealing with this matter in a personal and private way."
Without being specific, Stabenow, 57, said her colleagues have been showing their support for her. "I'm very grateful for the prayers and support I'm receiving," she said.
Find this article at:
http://www.freep.com/apps/pbcs.dll/article?AID=/20080402/NEWS06/80402038
Wednesday, February 06, 2008
EDITORIAL: Gambling facility alone won't solve Port Huron's economic fortunes
2.06.08
City's casino bid deserves a fair shot
Foes' motivation questionable
The quest for a Port Huron casino should never be viewed as the answer to the city's problems. A gambling facility alone won't solve unemployment or reverse the city's failing economic fortunes.
A Port Huron casino still could be a valuable asset. Its supporters insist it could create thousands of jobs and bring new visitors to Port Huron. Most important, the casino could compete against Canadian gambling facilities across the St. Clair River in Point Edward and Sarnia - two destinations for American gamblers.
Port Huron deserves its own casino. City residents said so in a 2001 advisory vote, but Port Huron's bid for a gambling facility remains an uphill struggle.
A variety of forces, gambling foes and those who represent communities that already have casinos and see more as unwanted competition, stand in the way of Port Huron. The Bay Mills Indian Community wants to establish a casino in the city. To do so, it must win congressional approval - something that promises to see the project's opponents in full play.
Today, the Natural Resources Committee of the U.S. House of Representatives begins hearings on legislation that proposes to give Port Huron its casino. U.S. Rep. Bart Stupak, D-Menominee, introduced H.R. 2176, a bill that would settle a land claim with Bay Mills by according it land in Port Huron for a casino. A bill introduced by Rep. John Dingell, D-Dearborn, would settle a similar claim with the Sault Chippewa, who want to build a casino near Metro Airport in Romulus.
Detroit officials, including Rep. Carolyn Cheeks Kilpatrick, D-Detroit, are dead set against either casino. Kilpatrick and her son, Detroit Mayor Kwame Kilpatrick, among others, are scheduled to testify in opposition. Despite Detroit's three casinos, the prospect of competing facilities apparently poses too great a threat to the city's narrow self-interest.
Worse is the campaign of Gambling Watch, a new organization that opposes the two casinos. Created two weeks ago by Lansing public relations expert Lori Wortz, Gambling Watch is employing a direct-mail effort to block the casinos' approval through fliers to Michigan households. They urge recipients to defeat the casino proposals and urge them to contact five elected officials - Sen. Carl Levin, D-Detroit; Sen. Debbie Stabenow, D-Lansing; Rep. Dingell; Rep. Stupak; and Rep. Candice Miller, R-Harrison Township.
Miller has consistently supported Port Huron's casino bid. Levin and Stabenow also favor the proposal.
Wortz has admitted working for MGM Mirage, which spent at least $160,000 in lobbying efforts against the Port Huron casino in the first half of 2007, according to federal disclosure forms. Although she insists Gambling Watch is her own initiative, her past practice and the campaign's timing are suspect.
Miller will testify in favor of the casino bills. We wish her well.
Port Huron has waited long enough. This ought to be the year the city finally gets its casino.
Foes' motivation questionable
The quest for a Port Huron casino should never be viewed as the answer to the city's problems. A gambling facility alone won't solve unemployment or reverse the city's failing economic fortunes.
A Port Huron casino still could be a valuable asset. Its supporters insist it could create thousands of jobs and bring new visitors to Port Huron. Most important, the casino could compete against Canadian gambling facilities across the St. Clair River in Point Edward and Sarnia - two destinations for American gamblers.
Port Huron deserves its own casino. City residents said so in a 2001 advisory vote, but Port Huron's bid for a gambling facility remains an uphill struggle.
A variety of forces, gambling foes and those who represent communities that already have casinos and see more as unwanted competition, stand in the way of Port Huron. The Bay Mills Indian Community wants to establish a casino in the city. To do so, it must win congressional approval - something that promises to see the project's opponents in full play.
Today, the Natural Resources Committee of the U.S. House of Representatives begins hearings on legislation that proposes to give Port Huron its casino. U.S. Rep. Bart Stupak, D-Menominee, introduced H.R. 2176, a bill that would settle a land claim with Bay Mills by according it land in Port Huron for a casino. A bill introduced by Rep. John Dingell, D-Dearborn, would settle a similar claim with the Sault Chippewa, who want to build a casino near Metro Airport in Romulus.
Detroit officials, including Rep. Carolyn Cheeks Kilpatrick, D-Detroit, are dead set against either casino. Kilpatrick and her son, Detroit Mayor Kwame Kilpatrick, among others, are scheduled to testify in opposition. Despite Detroit's three casinos, the prospect of competing facilities apparently poses too great a threat to the city's narrow self-interest.
Worse is the campaign of Gambling Watch, a new organization that opposes the two casinos. Created two weeks ago by Lansing public relations expert Lori Wortz, Gambling Watch is employing a direct-mail effort to block the casinos' approval through fliers to Michigan households. They urge recipients to defeat the casino proposals and urge them to contact five elected officials - Sen. Carl Levin, D-Detroit; Sen. Debbie Stabenow, D-Lansing; Rep. Dingell; Rep. Stupak; and Rep. Candice Miller, R-Harrison Township.
Miller has consistently supported Port Huron's casino bid. Levin and Stabenow also favor the proposal.
Wortz has admitted working for MGM Mirage, which spent at least $160,000 in lobbying efforts against the Port Huron casino in the first half of 2007, according to federal disclosure forms. Although she insists Gambling Watch is her own initiative, her past practice and the campaign's timing are suspect.
Miller will testify in favor of the casino bills. We wish her well.
Port Huron has waited long enough. This ought to be the year the city finally gets its casino.
Tuesday, February 05, 2008
Michael Malik and the Ilitch family have contributed more than $533,000 to "supporters" of the Port Huron casino proposal
An article published 1.24.08 in the Port Huron Times Herald indicates the following are backers of the Michael Malik/Ilitch family plan for a Port Huron casino:
Collectively Michael J. Malik, Mike Ilitch, Marian Ilitich and other members of the Ilitch family have contributed more than $533,000 to the committees controlled by or supporting these politicians (source: Newsmeat.com). Detailed accounting
In addition, Malik and members of the Ilitch family have raised tens of thousands more for these politicians by hosting events at their homes, offices and business locations in order to leverage friends, vendors, consultants and business associates with whom they're associated. The Ilitch jet has been used to fly some of these politicians around the country.
To learn more about the relationships between Malik/Ilitch family and these politicans click on the names in the list above.
Collectively Michael J. Malik, Mike Ilitch, Marian Ilitich and other members of the Ilitch family have contributed more than $533,000 to the committees controlled by or supporting these politicians (source: Newsmeat.com). Detailed accounting
In addition, Malik and members of the Ilitch family have raised tens of thousands more for these politicians by hosting events at their homes, offices and business locations in order to leverage friends, vendors, consultants and business associates with whom they're associated. The Ilitch jet has been used to fly some of these politicians around the country.
To learn more about the relationships between Malik/Ilitch family and these politicans click on the names in the list above.
Friday, February 01, 2008
UPDATE: Posts set context and detail schemes, conflict$ behind Detroiters' off-reservation casino proposal
This compendium of relevant posts was compiled to help set context and detail scheming, conflicts, etc. behind Ilitch/Malik backed casino plans for the Bay Mills tribe over the last decade:
Background
- Where in the world is "Charlotte Beach?"
- DISCOVERY: Historic Plat Maps for Charlotte Beach subdivision on Michigan's Upper Peninsula
- TIMELINE: Port Huron Casino
- Port Huron Columnist provides measured Q&A on Bay Mills casino circumstances
- Saginaw Chippewa tribe and others oppose off-reservation casinos in Port Huron & Romulus
Developer/Casino Interests not Indian’s driving casino scheme
- Michael Malik at epicenter; manufacturing behind the scenes drama in Michigan’s remote Charlotte Beach subdivision.
- Bay Mills renews casino contract with Mike Malik through 2010
- Bay Mills tribe modifies casino agreement with Blue Water Resorts LLC
- Detroit Free Press exposes Malik/Ilitch casino enterprises
- Four Charlotte Beach parcels purchased by Michael Malik or his associates since 2002
- Charlotte Beach real estate transactions involving Michael Malik haven't been impacted by any so-called "cloud" over title
- Developer's been chasing Tribe's off-reservation casino schemes for more than 15 years
- Why would attorney for Tribe's Port Huron casino developer be acquiring property up north in Charlotte Beach?
- Senators told Attorney proposed exploiting Charlotte Beach land claim not tribe
- Was it a law firm that first proposed Charlotte Beach land claims idea?
- Is the Bay Mills Tribe using Charlotte Beach land claims solely to leverage developer's off-reservation casino plans?
- Port Huron casino promoter fined for breaking California's political reform laws; denied a casino license in Michigan
Courts Denied Land Claims
- Courts Denied Bay Mills Indian Community's Charlotte Beach Land Claims
- Michigan Courts tossed out Bay Mills tribe's land claims to Charlotte Beach subdivision
- Federal Courts tossed out the Bay Mills Indians' Charlotte Beach land claims
- Bay Mills Indian Community v. Western United Life Assurance Co.; Federal court rejects Charlotte Beach land claims
- Bay Mills tribe's 'false land claim' in Charlotte Beach
- Bay Mills Indian Community is located 350+ miles from Port Huron, MI
Road to Port Huron
- Plans were to establish an Indian Reservation in Foxtown
- Boldrey, McLellan, the Dykema Gossett law firm and their connection to John Engler and the Bay Mills Indian Community
- Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then joined private practice, retained by those who got the deal
- Voters & local officials questioned Gov. Engler's flip-flop on casino policy and the Port Huron casino deal he signed on his way out the door
- In Governor John Engler's opinion, "Michigan has enough casinos"
- Signficant set backs for Detroit casino syndicators Mike Malik & Marian Ilitch in 2007
- Time for an updated advisory vote on Port Huron casino schemes?
- Boldrey apparently obtained a conflict-of-interest waiver from Governor Granholm allowing him to represent casino promoter
- Port Huron casino fight turns fierce, ugly
- The back story on the Port Huron casino proposal
Congressional goings on
- House Natural Resources Committee hearing scheduled Feb. 6 for two Michigan casino schemes
- Rahall pulls off-reservation casino bills from agenda for today's Natural Resources Committee hearing
- Speaker Pelosi asks that Port Huron casino bill be pulled
- Former partners Mike Malik and Tom Celani tied to tribes pushing off-reservation casino proposals in Congress next week
- Seven attempts by tribe's backers to win congressional approval for off-reservation casino using IGRA loophole
- Bay Mills' Charlotte Beach land claims dispute stalled, still needs Act of Congress
- Rep. Stupak again introduces bill for off-reservation casino; developer's 7th attempt at Port Huron casino scheme approvals
- Tribe hoped language slipped into 2004 Transportation Bill would grant approvals for Port Huron casino
- UPDATED: Tribal leader admits lobbyists were trying to sneak casino plans through Congress without alerting opposition
- DOI Assistant Secretary testified against Bay Mills land claims settlement before Senate Committee
- Tom Shields was spreading rumors about Sen. Harry Reid; now his team blames Reid
- Jeff Parker, Bay Mills' plastics ventures rumored to be subject of FBI investigation
- Compendium of posts regarding Bay Mills Indian Community's plastics ventures
- Sen. Reid says Bay Mills casino sets a very "dangerous" precedent
Political Ca$h and Lobbying Fee$
- Michael Malik and the Ilitch family have contributed more than $533,000 to "supporters" of the Port Huron casino proposal
- Ilitch Family, associate increased political campaign contributions 2000% in four year quest to expand their gambling empire
- $933,000 in Political Contributions
- $3,530,000 in Lobbying Fees
- Do these people really believe Marian Ilitch is a "homemaker" or are they playing along with the game?
- Foes of the Port Huron Casino?
- Granholm backs Port Huron casino; congressional hearing set for Feb. 6
Debbie Stabenow
- Publicist shines spotlight on Senator Stabenow & Rep. Miller after his clients invested $200,000 in their campaigns
- Sen. Stabenow restates her support for third Bay Mills casino, after Ilitch Family contributes $114,000 toward her re-election
- Dykema Gossett PLLC (Ilitch law firm) third largest contributor to Senator Stabenow’s re-election committee.
- UPDATE: More money (post election) to Sen. Stabenow brings total to $117,200 from Malik & the Ilitch Family
Candice Miller
- Rep. Candice Miller introduced HR 813 on February 13, 2003 to approve settlement of unsubstantiated land claims and a casino for Port Huron
- Bay Mills Indian Casino backers behind first fundraiser for Rep. Candice Miller
- GOP Congresswoman received at least $74,000 in bundled funds from Ilitch Family sources after introducing bill for syndicator-backed Indian casino
- "Candice Miller for Congress" failed to provide appropriate donor records for near-anonymous casino related contributions
- Michigan’s Political Ménage à Trois
- PR firm for Ilitch Holdings & Casinos loaned to Rep. Candice Miller’s re-election campaigns
- UPDATED: Donor's alleged mistress also gave $10,000 to two of his favorite candidates -- Rep. Candice Miller & Sen. Debbie Stabenow
- Ilitch administrative aide gives $5000 to Rep. Candice Miller
- The ties that bind Rep. Candice Miller to Mike & Marian Ilitch and their associated casino syndicator Michael Malik
- Mike & Marian Ilitch help Rep. Candice Miller by hosting Giuliani fundraiser at Detroit Tigers game
Carl Levin
- Port Huron Casino backers help raise nearly $100,000 for Sen. Carl Levin
- Sen. Levin announces support for Port Huron off-reservation casino in letter to city's Mayor
- Sen. Levin's decision to publicly support a Port Huron Casino is financially motivated
- UPDATE: Malik & Ilitch Family attempting to romance Senator Carl Levin up their anti doling out $18,400 on one day
- Casino backers deny thousands in contributions intended to influence U.S. Senator
- Why did Sen. Carl Levin's political committee return $4,600 from Mike Ilitch?
Harry Reid
- Ilitch Team's political contributions & influence helped Nevada's Sen. Harry Reid become Majority Leader
- Senate Majority Leader Harry Reid reportedly drops opposition to "off-reservation" casino
- Reid's previous position on third Bay Mills Casino plan for Port Huron
Michigan Resource Links - Gaming, Ilitch, MotorCity Casino, Mike Malik, Bay Mills Tribe
originally posted 8.04.07
updated 8.08.07; 8.18.07; 2.01.08
Sunday, January 27, 2008
Who's behind the off-reservation casino proposed for Port Huron?
1.27.08
Casino support includes regional political leaders
People of Port Huron
In a referendum 6½ years ago, 54.2% of Port Huron voters approved the idea of locating a tribal casino within the city limits. The advisory vote had been urged by Don Reynolds, co- owner of the Thomas Edison Inn, and Richard Cummings, then the president of the local AFL-CIO labor council. They saw a casino as a way to create jobs in a struggling city with a double-digit unemployment rate. They also observed that Port Huron remains the only community on the U.S.-Canadian border where a casino exists on the Canadian side without competition on the American shore.
Following the 2001 referendum, the casino won the endorsement of the Port Huron City Council, the St. Clair County Board of Commissioners and the local legislative delegation. No organized local opposition has emerged.
Bay Mills Indian Community
Although it is one of Michigan's oldest federally recognized tribes, Bay Mills has only about 1,300 members. Many of its original members broke away in the 1970s to form the Sault Chippewa, now Michigan's largest tribe with about 31,000 members. Bay Mills is based at Brimley, a town in Chippewa County in the eastern Upper Peninsula. The tribe operates two casinos near Lake Superior.
In August 2002, Bay Mills and Republican Gov. John Engler agreed to settle a dispute that dates to the 1850s when Michigan Gov. Kinsley Bingham promised the tribe a 110-acre parcel at Charlotte Beach on the St. Mary River. Despite that pledge, the property was seized by local officials for back taxes and sold off.
The deal with Engler called for Bay Mills to abandon its claim to the 110 acres, where dozens of families own homes, in exchange for the 12½-acre Edison Inn property in Port Huron. The Edison parcel in effect would become a mini-reservation, land held in trust for the tribe by the Interior Department. The land-settlement agreement still requires congressional approval. A bill that would do that sits in the House Natural Resources Committee, where a vote is scheduled for Feb. 6.
Blue Water Resorts
Blue Water Resorts LLC is led by casino developer Mike Malik, a former Algonac city councilman. He first tried to develop a casino in Port Huron in 1993, when city voters narrowly rejected his plan to convert the old Sears store on Michigan Avenue into a gaming facility that would have been owned by Bay Mills and operated by Harrah's.
In 1995, Malik and Tom Celani bankrolled the campaign in support of Proposal E, the statewide ballot proposal that led to three commercial casinos in Detroit. Malik and another partner, billionaire Marian Ilitch, won the rights to develop one of those casinos. When Malik was disqualified from being licensed as a casino proprietor, reportedly because of tax problems, he sold his interest in the MotorCity Casino to Ilitch.
Malik and Ilitch have worked together on other casino proposals in the Upper Peninsula, Hawaii, California and Long Island. Ilitch has said she supports the Port Huron casino but has no financial interest in it.
Thus far, Malik has spent millions of dollars in lobbying, legal, architectural and other fees. It's a roll of the dice. If the Port Huron proposal fails, he loses the money. If the casino opens, Blue Water Resorts stands to receive 30% of net-win revenues for seven years through a management contract with Bay Mills. Depending on how successful the casino is, Malik's seven-year share could be in the neighborhood of a half-billion dollars.
Lobbyist Alan Wheat
The lobbying firm founded a decade ago by Alan Wheat, a former Missouri congressman, leads a large team hired by Bay Mills and Malik to secure a Port Huron casino. Wheat, who served as deputy director of President Clinton's re-election campaign in 1996, is well-connected in Washington. Federal lobbying reports indicate his firm has been paid more than $1 million since 2002 to lobby for the casino.
Congressional supporters
In 2002, the original legislation to allow a Port Huron casino was introduced in the Senate by Debbie Stabenow, D-Lansing, and in the House by David Bonior, D-Mount Clemens. Stabenow has remained a staunch ally of the Port Huron proposal, while Bonior gave up his position as the No. 2 Democrat in the House to make an unsuccessful run for governor in the 2002 elections.
Bonior's seat was claimed by Candice Miller, R-Harrison Township, who has championed the Port Huron proposal even though she is not a fan of casino gambling. Echoing Bonior, she justifies the project using economic and fair-trade arguments: Gambling already exists in the larger community, and Port Huron should be allowed to compete with the two gaming facilities on the Canadian side of the St. Clair River.
Sen. Carl Levin, a former Detroit city councilman, took no position on the Port Huron casino for many years. Last July, he came out in support of the project. Levin, D-Detroit, chairman of the Senate Armed Services Committee, is one of the most powerful figures on Capitol Hill. Without his endorsement, the project had virtually no chance of success.
The bill that would allow a Port Huron casino was introduced eight months ago by Rep. Bart Stupak, D-Menominee, whose Upper Peninsula district include Bay Mills' tribal lands. Miller and Rep. Patrick Kennedy, D-R.I., co-sponsored Stupak bill. Kennedy's support is seen as critical because he and Rep. Dale Kildee of Flint are co-chairmen of the 99-member Congressional Native American Caucus.
Others who have spoken in favor of a Port Huron casino are Rep. Nick Rahall, D-W.Va., and Rep. Don Young, R-Alaska, the leaders of the House Natural Resources Committee. Their position has been that Miller knows what is best for her district.
Gov. Jennifer Granholm
Until two months ago, it was widely assumed that the governor would not endorse the Port Huron casino.
From 1994 until 1998, when she was elected attorney general, Granholm worked as the top legal adviser to Wayne County Executive Ed McNamara, the boss of Michigan's most powerful political machine. In that role, she worked closely with Bernard Kilpatrick, who was McNamara's chief of staff. His wife and son, Rep. Carolyn Cheeks Kilpatrick and Detroit Mayor Kwame Kilpatrick, are outspoken opponents of the Port Huron casino.
Granholm came out in favor of the Port Huron casino after modifying the Engler agreement. Aides said her support is based on two factors - the millions a casino would pump into the coffers of the cash-strapped state government and her desire to use tourism as an engine to drive Port Huron's moribund economy. The new deal also gives Bay Mills the option of locating the casino at a 19.6-acre site at the foot of Court Street in Desmond Landing.
Sault Chippewa
When Engler and Bay Mills struck their agreement in August 2002, the Sault immediately condemned the deal as reservation shopping. The tribe also noted its own claim to Charlotte Beach.
The Sault changed its position four months later. On his final day in office, Engler reached a similar settlement with the tribe, which owns the Greektown Casino in Detroit. The Sault agreed to give up its Charlotte Beach claim in exchange for a casino in either Romulus, Flint or southern Monroe County.
The Sault chose a site near Metro Airport in Romulus. Rep. John Dingell, D-Dearborn, a powerful lawmaker who has served in Congress since 1955, is sponsoring legislation for the Romulus casino. His bill also is scheduled for a Feb. 6 vote.
It is widely believed that MGM Mirage and Detroit lobbyists are far more worried about the prospect of a casino in Romulus than in Port Huron.
- Compiled by Mike Connell
People of Port Huron
In a referendum 6½ years ago, 54.2% of Port Huron voters approved the idea of locating a tribal casino within the city limits. The advisory vote had been urged by Don Reynolds, co- owner of the Thomas Edison Inn, and Richard Cummings, then the president of the local AFL-CIO labor council. They saw a casino as a way to create jobs in a struggling city with a double-digit unemployment rate. They also observed that Port Huron remains the only community on the U.S.-Canadian border where a casino exists on the Canadian side without competition on the American shore.
Following the 2001 referendum, the casino won the endorsement of the Port Huron City Council, the St. Clair County Board of Commissioners and the local legislative delegation. No organized local opposition has emerged.
Bay Mills Indian Community
Although it is one of Michigan's oldest federally recognized tribes, Bay Mills has only about 1,300 members. Many of its original members broke away in the 1970s to form the Sault Chippewa, now Michigan's largest tribe with about 31,000 members. Bay Mills is based at Brimley, a town in Chippewa County in the eastern Upper Peninsula. The tribe operates two casinos near Lake Superior.
In August 2002, Bay Mills and Republican Gov. John Engler agreed to settle a dispute that dates to the 1850s when Michigan Gov. Kinsley Bingham promised the tribe a 110-acre parcel at Charlotte Beach on the St. Mary River. Despite that pledge, the property was seized by local officials for back taxes and sold off.
The deal with Engler called for Bay Mills to abandon its claim to the 110 acres, where dozens of families own homes, in exchange for the 12½-acre Edison Inn property in Port Huron. The Edison parcel in effect would become a mini-reservation, land held in trust for the tribe by the Interior Department. The land-settlement agreement still requires congressional approval. A bill that would do that sits in the House Natural Resources Committee, where a vote is scheduled for Feb. 6.
Blue Water Resorts
Blue Water Resorts LLC is led by casino developer Mike Malik, a former Algonac city councilman. He first tried to develop a casino in Port Huron in 1993, when city voters narrowly rejected his plan to convert the old Sears store on Michigan Avenue into a gaming facility that would have been owned by Bay Mills and operated by Harrah's.
In 1995, Malik and Tom Celani bankrolled the campaign in support of Proposal E, the statewide ballot proposal that led to three commercial casinos in Detroit. Malik and another partner, billionaire Marian Ilitch, won the rights to develop one of those casinos. When Malik was disqualified from being licensed as a casino proprietor, reportedly because of tax problems, he sold his interest in the MotorCity Casino to Ilitch.
Malik and Ilitch have worked together on other casino proposals in the Upper Peninsula, Hawaii, California and Long Island. Ilitch has said she supports the Port Huron casino but has no financial interest in it.
Thus far, Malik has spent millions of dollars in lobbying, legal, architectural and other fees. It's a roll of the dice. If the Port Huron proposal fails, he loses the money. If the casino opens, Blue Water Resorts stands to receive 30% of net-win revenues for seven years through a management contract with Bay Mills. Depending on how successful the casino is, Malik's seven-year share could be in the neighborhood of a half-billion dollars.
Lobbyist Alan Wheat
The lobbying firm founded a decade ago by Alan Wheat, a former Missouri congressman, leads a large team hired by Bay Mills and Malik to secure a Port Huron casino. Wheat, who served as deputy director of President Clinton's re-election campaign in 1996, is well-connected in Washington. Federal lobbying reports indicate his firm has been paid more than $1 million since 2002 to lobby for the casino.
Congressional supporters
In 2002, the original legislation to allow a Port Huron casino was introduced in the Senate by Debbie Stabenow, D-Lansing, and in the House by David Bonior, D-Mount Clemens. Stabenow has remained a staunch ally of the Port Huron proposal, while Bonior gave up his position as the No. 2 Democrat in the House to make an unsuccessful run for governor in the 2002 elections.
Bonior's seat was claimed by Candice Miller, R-Harrison Township, who has championed the Port Huron proposal even though she is not a fan of casino gambling. Echoing Bonior, she justifies the project using economic and fair-trade arguments: Gambling already exists in the larger community, and Port Huron should be allowed to compete with the two gaming facilities on the Canadian side of the St. Clair River.
Sen. Carl Levin, a former Detroit city councilman, took no position on the Port Huron casino for many years. Last July, he came out in support of the project. Levin, D-Detroit, chairman of the Senate Armed Services Committee, is one of the most powerful figures on Capitol Hill. Without his endorsement, the project had virtually no chance of success.
The bill that would allow a Port Huron casino was introduced eight months ago by Rep. Bart Stupak, D-Menominee, whose Upper Peninsula district include Bay Mills' tribal lands. Miller and Rep. Patrick Kennedy, D-R.I., co-sponsored Stupak bill. Kennedy's support is seen as critical because he and Rep. Dale Kildee of Flint are co-chairmen of the 99-member Congressional Native American Caucus.
Others who have spoken in favor of a Port Huron casino are Rep. Nick Rahall, D-W.Va., and Rep. Don Young, R-Alaska, the leaders of the House Natural Resources Committee. Their position has been that Miller knows what is best for her district.
Gov. Jennifer Granholm
Until two months ago, it was widely assumed that the governor would not endorse the Port Huron casino.
From 1994 until 1998, when she was elected attorney general, Granholm worked as the top legal adviser to Wayne County Executive Ed McNamara, the boss of Michigan's most powerful political machine. In that role, she worked closely with Bernard Kilpatrick, who was McNamara's chief of staff. His wife and son, Rep. Carolyn Cheeks Kilpatrick and Detroit Mayor Kwame Kilpatrick, are outspoken opponents of the Port Huron casino.
Granholm came out in favor of the Port Huron casino after modifying the Engler agreement. Aides said her support is based on two factors - the millions a casino would pump into the coffers of the cash-strapped state government and her desire to use tourism as an engine to drive Port Huron's moribund economy. The new deal also gives Bay Mills the option of locating the casino at a 19.6-acre site at the foot of Court Street in Desmond Landing.
Sault Chippewa
When Engler and Bay Mills struck their agreement in August 2002, the Sault immediately condemned the deal as reservation shopping. The tribe also noted its own claim to Charlotte Beach.
The Sault changed its position four months later. On his final day in office, Engler reached a similar settlement with the tribe, which owns the Greektown Casino in Detroit. The Sault agreed to give up its Charlotte Beach claim in exchange for a casino in either Romulus, Flint or southern Monroe County.
The Sault chose a site near Metro Airport in Romulus. Rep. John Dingell, D-Dearborn, a powerful lawmaker who has served in Congress since 1955, is sponsoring legislation for the Romulus casino. His bill also is scheduled for a Feb. 6 vote.
It is widely believed that MGM Mirage and Detroit lobbyists are far more worried about the prospect of a casino in Romulus than in Port Huron.
- Compiled by Mike Connell
Friday, January 25, 2008
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."
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."
Thursday, November 15, 2007
Bay Mills renews casino contract with Mike Malik through 2010
10.03.07 Tribe inks new deal with Blue Water Resorts, LLC
By Kalvin Perron
Staff Reporter
BAY MILLS - According to Bay Mills Indian Community Tribal Chairman Jeffrey Parker, the tribe and Blue Water Resorts, LLC have renewed their contract for a casino in Port Huron. The Bay Mills Executive Council approved the new arrangement on Monday, Sept. 24. The new contract will expire in 2010.
Parker said that the new contract is a consulting arrangement, whereas the previous one had been a management contract for five-years. Blue Water has been paying the monthly option on the property in Port Huron, the location of the Thomas Edison Inn, since 2002. Under the terms of the new contract Parker said the tribe would be able to pay back any money borrowed for the development of a casino in Port Huron in a 20 to 30 year time frame. Under the previous contract, the tribe would have had to pay back any money borrowed in five years, he added.
"Based on the compact we have, this could result in up to 48 million dollars for the tribe," Parker said. "There is a big difference between five years and 20 to 30."
Although the tribe recently signed a new contract, Parker is quick to point out that it does not mean a Port Huron casino is in the immediate future for Bay Mills. Because of the U.S. Trade and Intercourse Act, which states that tribes cannot dispose of property without an act of Congress, Parker said that Bay Mills would still need a settlement agreement with their land claim to Charlotte Beach to go through Congress.
But even though the odds of a settlement agreement making it through Congress unscathed may seem farfetched to some, Parker said recent developments have given him, and the tribe hope that it will happen soon.
"Senator Carl Levin has publicly supported our project," he said. "Levin, by virtue of his years of experience, gives some impetus to getting this done. We've now got both Senators from Michigan and both Congresspeople supporting this. That's something we've never had before."
And although he is excited that the tribe now has both Michigan Senators in Levin and Stabenow publicly supporting their project, Parker said Bay Mills would have never gotten this close to developing a casino in Port Huron had they not had the support of one certain member of the U.S. House of Representatives.
"Bart (Stupak) has been our champion all along," Parker said. "He has been very supportive, not just to the people in our tribe, but for the people in his district, for the benefit of everyone."
Tuesday, November 13, 2007
Jeff Parker, Bay Mills' plastics ventures rumored to be subject of FBI investigation
Several sources have contacted TheVerifiableTruth.com (TVT) to indicate that Mr. Jeff Parker, president of the Bay Mills Indian Community is under investigation by the FBI for white collar crimes associated with the various federally subsidized Bay Mills plastics enterprises.
Last year Senator Debbie Stabenow and Senator Carl Levin both annouced federal grants for the plastics enterprises totalling nearly $1 million. Both Stabenow and Levin are beneficiaries of political campaign funds contributed by Mr. Michael J. Malik and his frequent gaming partners Mike & Marian Ilitch. Malik reportedly "owns" 49% of the Bay Mills plastics enterprises.
For more than 15 years, Malik and members of the Ilitch Family have also backed plans for an off-reservation Bay Mills Indian casino 350 miles from the reservation in Port Huron, Michigan. The casino proposal is to be heard by the House of Representatives' Natural Resources Committee this coming Thursday (11/15). The tribe has two casinos on its Brimley, Michigan reservation.
It has been reported to TVT that during the recent Bay Mills Indian Community election cycle, Mr. Parker's opponents circulated flyers with details about the FBI investigation but TVT has not received copies of any such flyers.
Anyone with additional knowledge of this rumored FBI investigation, or possessing documents related to the investigation, or which can confirm or verify the investigation, is encouraged to contact TVT confidentially at allverifiable@gmail.com.
Last year Senator Debbie Stabenow and Senator Carl Levin both annouced federal grants for the plastics enterprises totalling nearly $1 million. Both Stabenow and Levin are beneficiaries of political campaign funds contributed by Mr. Michael J. Malik and his frequent gaming partners Mike & Marian Ilitch. Malik reportedly "owns" 49% of the Bay Mills plastics enterprises.
For more than 15 years, Malik and members of the Ilitch Family have also backed plans for an off-reservation Bay Mills Indian casino 350 miles from the reservation in Port Huron, Michigan. The casino proposal is to be heard by the House of Representatives' Natural Resources Committee this coming Thursday (11/15). The tribe has two casinos on its Brimley, Michigan reservation.
It has been reported to TVT that during the recent Bay Mills Indian Community election cycle, Mr. Parker's opponents circulated flyers with details about the FBI investigation but TVT has not received copies of any such flyers.
Anyone with additional knowledge of this rumored FBI investigation, or possessing documents related to the investigation, or which can confirm or verify the investigation, is encouraged to contact TVT confidentially at allverifiable@gmail.com.
Compendium of posts regarding Bay Mills Indian Community's plastics ventures
The following are posts made previously to TVT related to the various plastics business enterprises (Integrated Composites LLC, Polycom Inc., Great Lakes Composite Institute, International Composites Institute of Michigan, etc.) involving Anthony Andary, the Bay Mills Indian Community, Jeff Parker and Michael J. Malik, Sr.:
- Jeff Parker, Bay Mills' plastics ventures rumored to be subject of FBI investigation
- BIA approves Bay Mills land-in-trust application for plastics venture
- Tribe to borrow $4 million to fund federal grant requirement, other investments in Plastics venture
- Tribe's chair reported two members were hired for its plastics business
- International Composite Institute of Michigan pitched to EUP Workforce Development Board
- Bay Mills plastics venture awarded $906k U.S. Commerce Dept. grant
- Bay Mills GTC ignored tribe members request for investigation into structure of plastics venture
- Gaming Tribe seeks to diversify while developer still pushing off-reservation casino
- Concerns raised about Malik & Bay Mills Tribe's Plastics Business long before $900k federal grant awarded
- Bay Mills & Malik get into Plastics; Senator Stabenow announces they'll get $900,000 federal jumpstart
- UPDATE: More Money (post election) to Sen. Stabenow brings total to $117,200 from Malik & the Ilitch Family
- Bay Mills Indians have received more than $35 million in federal grants since 2000
Monday, November 12, 2007
Sen. Reid says Bay Mills casino sets a very "dangerous" precedent
Media Matters for America presented a post 2.09.06 on Senator Harry Reid's previous opposition to the proposal for an off-reservation casino promoted by Michigan's Bay Mills Indian Community and its Detroit-casino syndicator partners Michael Malik and the Ilitch Family.
The post at Media matters followed an AP story published February 9, 2006 reported:
The post at Media matters followed an AP story published February 9, 2006 reported:
...Reid [Sen. Harry Reid]...went to the Senate floor to oppose fellow Democratic Sen. Debbie Stabenow's effort to win congressional approval for a Michigan casino for the Bay Mills Indians...In fact, Reid said the legislation was flawed because it would allow the Bay Mills tribe to build an off-reservation casino "under the guise of settling a land claim." Reid's remarks from the 11.19.02 Congressional Record:
"The legislation is fundamentally flawed," Reid argued, successfully leading the opposition to Stabenow's proposal.
REID: [A]llowing a tribe to settle a land claim and receive trust land hundreds of miles from their reservation for the express purpose of establishing a gaming facility sets a very dangerous precedent.This position was entirely consistent with Reid's longtime opposition to off-reservation gambling. As early as 1988, Reid supported the Indian Gaming Regulatory Act, which generally prohibited Indian gaming on non-tribal lands. He proposed separate legislation in 1993 "prohibit[ing] states from opening gaming operations on off-reservation land" [AP, 5/28/93].
This pursuit of off-reservation gaming operations should continue to follow the procedures outlined in the Indian Gaming Regulatory Act, Public Law 100-497, which authorizes tribal gaming operations on off-reservation ''after-acquired lands'' where the land to be acquired has no relationship to the land upon which the claim was based.
Let me say that the first gaming compact ever approved with an Indian tribe in the history of the country was done in Nevada. So it is not as if Nevada is here opposing this request. The first compact ever approved in the country was in Nevada. That is still an ongoing operation and a very successful one.
The proposed casino would be located just north of Detroit on a major link to Ontario that is in the lower corner of the lower peninsula. Bay Mills is located in the upper peninsula. The legislation is fundamentally flawed because it allows Bay Mills to establish gaming facilities under the guise of settling a land claim.
The land claim is simply -- and everybody knows this -- an excuse to take land into trust for off-reservation gaming. I object.
Monday, October 01, 2007
So far Ilitch Family and Mike Malik have contributed $143,300 to federal campaign committees in 2007
Since January 1, 2007, Mike & Marian Ilitch and their children have contributed almost $90,000 to three federal campaign committees:
- $57,000 to the National Republican Senatorial Committee*
- $23,000 to the re-election campaign of Senator Carl Levin (D-MI)
- $9,200 to the campaign committee of Rep. Candice Miller (D-MI 10th)
- $28,500 to the Democratic Senatorial Campaign Committee
- $10,000 to the National Republican Congressional Campaign Committee
- $4,600 to the campaign committee of Rep. Joe Knollenberger (D-MI 9th)
- $4,600 to the campaign committee of Rep. Candice Miller (D-MI 10th)
- $4,600 to the re-election campaign of Senator Carl Levin (D-MI)
- $1,000 to the leadership PAC of Senator Debbie Stabenow (D-MI)
The Ilitches and Malik contributed $27,600 to Senator Carl Levin's re-election committee this spring; and then in July the Ilitches turned around and contributed $57,000 to the NRSC which the GOP could use trying to unseat Senator Levin in 2008.
*Senator John Ensign (R-NV) is the chairman of the NRSC. The Michigan senate seat held by Democratic Sen. Carl Levin is on the ballot in 2008. AZ, CA, FL, NV, NY are among states that do not have any senate seats up for election in 2008.
Sunday, September 23, 2007
Authors of Port Huron casino bill are among the least powerful in Michigan's congressional delegation
The co-authors of a bill, H.R. 2176, to grant, by Act of Congress, approval of a Bay Mills Indian Community off-reservation casino in Port Huron, Michigan are Rep. Bart Stupak and Rep. Candice Miller.
According to Congress.org, Stupak is the least powerful among Michigan's six-member delegation of House Democrats; and there is only one other Republican that ranks lower than Miller in Michigan's nine-member GOP House delegation.
Here are the latest rankings for the Michigan delegation:
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| State Delegation Average Score: 18.08 | State Rank: 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Tuesday, August 07, 2007
2002 AP Article highlights details of the Bay Mills Casino proposal for Port Huron
from the associated press archives 9.24.02Gov. 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.
Saturday, August 04, 2007
Sen. Stabenow, Rep. Miller help bring more powerful colleagues on board off-reservation casino bandwagon
Congress.org rates each current Member of Congress on various criteria that demonstrates power and the ability to be effective in Congress in 2007. This results in a Power Score that ranks members for overall power in each chamber of Congress.
Visit Congress.org to see a complete ranking. In the meantime, here's how a few of the congressional players stack up who are said to be involved on one side or the other of the Ilitch/Malik backed plans for an off-reservation casino in Port Huron, Michigan.
Senate
#1 Senator Harry Reid - said to be for
#8 Senator Carl Levin - for
#42 Senator Debbie Stabenow - for
House
#22 Rep. Nick Rahall - said to be for
#91 Rep. Bart Stupack - for
#118 Rep. Jerry Lewis - supportive of Bay Mills
#140 Rep. Don Young - for
#274 Rep. Mike Rogers - against
#401 Rep. Candice Miller - for
Although Stabenow and Miller appear to rank lowest within their respective chambers; they were easier marks for the Ilitch/Malik team (recipients/beneficiaries themselves of more than $200,000 in direct political contributions) and reportedly have been effective advocates introducing bills and bringing higher ranking members on board.
Ilitch Team's political contributions & influence helped Nevada's Sen. Harry Reid become Majority Leader
In 2002, Sen. Debbie Stabenow (D-MI) hurriedly introduced S. 2986 after Michigan's Governor John Engler did an about-face and signed a controversial agreement that would pave the way for the Bay Mills Indian Community (Brimley, MI) to build an off-reservation casino more than 300 miles away in Port Huron. While S. 2986 had a hearing before the Senate Indian Affairs Committee on October 10, 2002, the bill was never moved out of the committee and died. It was reported at the time that Sen. Harry Reid (D-NV) now the Senate's majority leader, was responsible for blocking the bill in 2002. It was suggested that Nevada gaming interests motivated Sen. Reid to stop the bill from making any progress.
During the next four years, the powerful Detroit billionaires behind the Port Huron casino schemes set to work trying to influence congressional leaders to support their plans.
From 2003-2006 members of Detroit's poweful Ilitch Family and their associate Michael J. Malik, the people behind the Port Huron scheme and various other off-reservation Indian casino proposals from coast to coast, ramped up their federal political contributions possibly as much as 2000% and invested several million in Capitol Hill Lobbyists.
From 2003-2006 members of Detroit's poweful Ilitch Family and their associate Michael J. Malik, the people behind the Port Huron scheme and various other off-reservation Indian casino proposals from coast to coast, ramped up their federal political contributions possibly as much as 2000% and invested several million in Capitol Hill Lobbyists.
In 2004, they gave a combined total of $22,000 in first-time contributions to two of Sen. Reid's politcal committees. And in 2006 they contributed $26,600 to the Democratic Senatorial Campaign Committee which helps elect Democrats to the U.S. Senate.
More significantly, they personally contributed a total of $117,200 -- and encouraged others to do the same -- to efforts to re-elect Democratic Senator Stabenow whose seat was considered extremely vulnerable heading into the 2006 election cycle. Stabenow's re-election helped the Democrats narrowly take control of the U.S. Senate in the 110th Congress; Senator Reid became Majority Leader and the most powerful member of the U.S. Senate.
The Ilitch's and their associate also contributed heavily -- $75,000 -- and provided other political resources to the re-election campaign of Rep. Candice Miller (R- MI 10th); at the time considered to have been one of the best possible candidates to defeat Sen. Stabenow. (Neither the Ilitches nor Malik live or have their primary offices in Michigan's 10th District). Rep. Miller had been asked by President Bush to run against Sen. Stabenow early in the 2006 campaign cycle but she eventually was pursuaded not to run for the Senate seat, and turned down the President's request.
On Valentine's Day shortly after the 110th Congress covened, the Port Huron Times Herald reported the following in an article updating the progress of the Ilitch/Malik backed Port Huron casino proposal:
On Valentine's Day shortly after the 110th Congress covened, the Port Huron Times Herald reported the following in an article updating the progress of the Ilitch/Malik backed Port Huron casino proposal:
"The deal still requires congressional approval, but several attempts to obtain it have been blocked. Stabenow introduced a measure five years ago that was stymied by U.S. Sen. Harry Reid, D-Nev.
"Tom Shields, a spokesman for casino developer Mike Malik, said he has been told Reid, who became Senate majority leader last month, has dropped his opposition. Shields also noted Stabenow, who won a second term in 2006, has gained political clout with the Democratic takeover of Congress."
Thursday, August 02, 2007
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:
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
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