Showing posts with label Sault Chippewa. Show all posts
Showing posts with label Sault Chippewa. Show all posts

Tuesday, January 31, 2012

Blogger: Sault Tribe's Lansing Casino Won't Happen; Mayor Irresponsibly Dangles Economic Carrot

Turtle Talk

Commentary on Sault Tribe’s Proposed Lansing Casino
1.23.2012

I can’t not say anything, since this proposed casino is in our own backyard. But seriously? The mayor says in 12-24 months he expects construction to start, and then another year or so after that there will be a fully functioning Indian casino in Lansing.

Wow.

We’re going to predict that it won’t happen. No chance.

Off-reservation Indian gaming is the most hotly-contested, politicized issue in American Indian affairs right now and maybe forever. Think of the interests arrayed against a Lansing casino, let alone one owned by an Indian tribe. The Detroit casinos will be opposed because it will cut into their bottom lines, and the entire City of Detroit, the Michigan Congressional delegation, the unions,everyone will throw their weight against this casino proposal...

Of course, I’m no political scientist. Politics is money (see Citizens United) and anything can happen, including a backlash against Indian gaming that persuades Congress to ban off-reservation gaming. But the mayor’s three years is a dream, and kind of sick thing to promise to people in Lansing who might believe the mayor and see this as a real possibility for improving their lives. (Complete Blog Post)

Monday, January 30, 2012

Mayor Heralds Off-Reservation Casino Schemes in Lansing; Then Uses Racial Slurs to Attack Native American Opponents

Lansing Mayor Virg Bernero recently announced a plan to bring a $245 million tribal casino to downtown Lansing. The casino would be adjacent to the Lansing Center near Cedar Street and Michigan Avenue. However, there's nothing to suggest that the Sault Ste Marie tribe of Chippewa Indians has the necessary state and federal approvals to build any off-reservations casino.

In fact, the former chairman of the National Indian Gaming Commission has recently opined such would be illegal under current guidelines.

Bernero subsequently came under fire for what two Michigan tribes described as a string of anti-Indian racial slurs at a fund-raising speech last week, denied Monday that he directed his remarks toward Americans Indians, but apologized “to any and all who were offended by my choice of words.”
click arrow below to play video here
 

Wednesday, January 25, 2012

Editorial: Lansing casino would be a lousy bet for Michigan

By Editors, Detroit Free Press

As only the most recent arrivals in the long line of players looking for a piece of Michigan's casino gambling action, Lansing and Mayor Virg Bernero should know better.

Artist's Rendering: Proposed Kewadin Lansing Casino
Michigan voters made it quite clear (58%-42%) in 2004 that they did not want more gambling in the state unless any expansion was subject to a statewide vote. Ever since, casino dreamers have tried to build upon the constitutional amendment's only exemption, which allows tribal gambling over which the state has virtually no control anyway.

But tribal casinos are restricted to their own reservations. Every tribe that has tried to work around that restriction to date has come up empty-handed. The most recent attempt, a casino in Vanderbilt that the Bay Mills tribe opened in 2010, shut down after a federal court ruled against it. Earlier attempts included asking Congress to sign off on tribal casinos in Port Huron and Romulus, an effort that fell short.

Now Bernero is entering the same fray with the Sault Ste. Marie Tribe of Chippewa Indians at his side. They will either have to go to Congress or hope that the Bay Mills tribe eventually wins its court case in further hearings and sets a new precedent for defining reservation land. But neither the federal courts nor Congress should fall for the dubious logic involved.

Unless a casino can become a major destination for out-of-state travelers, it largely churns local money and removes much of it from the economy. Casinos rank as economic development tools only as part of a mix of entertainment options or, if properly promoted, as a lure for visitors. If Michigan were to develop a statewide casino strategy, Port Huron would probably better fit the development bill as the only border town without a casino.

Lansing residents -- and Michigan State students -- are already within an hour's drive of two of Michigan's 22 Indian casinos. They are hardly out of range of Detroit's casinos, either.

Presumably Bernero and the Sault tribe have marketing studies to back up their estimates of $250 million in annual revenue, with at least $5 million returned directly to the city. (By way of comparison, Detroit's casinos were estimated to have revenues of $1.4 billion in 2011 -- a figure they may never match again if a Toledo casino opens in April, as planned.) Certainly Lansing, like virtually every city in Michigan, would delight in the projected 1,500 new jobs.

But if Lansing succeeds, it will create a precedent not just for itself but for every other city that thinks a casino is the answer to its prayers. Michigan's voters have already said they don't want to go that route -- and praying for salvation via a casino is only a reminder of how desperate people become in tough economic times.

Related Links:

Blogger’s NOTE:  Odd that owners of Detroit’s MGM Grand Casino and Greektown Casino have expressed opposition to plans for a Lansing casino while Marian Ilitch, owner of Detroit’s MotorCity Casino, has remained silent?  Not really, since Ilitch and her family’s partner Michael J. Malik, Sr., have pursued plans for casinos in Port Huron and elsewhere for more than 20 years.  In fact, their plans for a Port Huron casino might be tied to plans by the Sault tribe proposal for Lansing.

Sunday, January 22, 2012

Former NIGC Chair Opines Sault Tribe's Plans for Lansing Casino are Illegal

In this letter below, Phil Hogen, former chair of the National Indian Gaming Commission (NIGC), opines on plans by the Sault St. Marie tribe of Chippewa Indians to develop an off-reservation casino in Lansing Michigan.

In conclusions, Hogen writes:
In view of my experience as the longest-serving Chairman of the National Indian Gaming Commission, I was asked to review this matter by the Saginaw Chippewa Indian Tribe of Michigan, whose concern for integrity in the Indian gaming industry I share. Unless it is first determined that lands where tribes conduct their gaming under the Indian Gaming Regulatory Act truly qualify as Indian Lands, that integrity is at peril, and all concerned need to observe and uphold the applicable laws.

Phil Hogen Letter Re Lansing Casino

Thursday, October 13, 2011

Like Bay Mills in Flint Township; Sault Ste Marie Chippewa seek Off-Reservation Casino






Legal experts say bringing a tribal casino to Lansing faces huge hurdles

Building a tribal casino in Lansing might be harder than you think — in fact, its almost impossible to bring a tribal casino to the city, legal experts say.

“I don’t see any possibility of a tribal casino being allowed to be constructed in the city of Lansing,” said Robert Stocker II, chairman of the gaming practice group at Dickinson Wright law firm in Lansing. The group deals with both Indian and commercial gaming issues and MGM Grand is listed on the firm’s client list on its website.

Stocker’s remarks should be taken in the context of the highly competitive nature of the $10 billion-a-year casino industry in Michigan, since his firm’s website says it represents Detroit’s MGM Grand Casino. Still his remarks are consistent with those of other experts who don’t have clear ties to other casinos.

Two weeks ago, Ted O’Dell of the Lansing Jobs Coalition, which led a petition drive seeking a referendum on whether voters want a casino, told City Pulse that the Sault Ste. Marie Chippewa Tribe was in negotiations with city officials to build a tribal casino in the city. The proposal would create 1,500 new jobs and 300 construction jobs, O’Dell said. The Lansing Jobs Coalition has been researching building a casino since January as a way to bring jobs to Lansing.

The Bernero administration has neither confirmed nor denied that such negotiations are under way, but Mayor Virg Bernero issued a statement strongly endorsing the idea of a casino in Lansing because of the “tremendous” economic benefit... (Complete Story)

Monday, January 26, 2009

MotorCity Casino and Greektown saddled with debt, falling revenues; investors making demands

1.25.09

MotorCity, Greektown deal with bad hands of debt

By Chad Halcom and Nancy Kaffer

Two Detroit casinos are rolling snake eyes in the debt market.

A top ratings service downgraded its outlook for MotorCity Casino's parent company, citing a host of financial concerns. Greektown Holdings L.L.C. has until the end of this week to submit a reorganization plan that can resolve its swelling debts without need for a sale.

An agreement entered in U.S. Bankruptcy Court last month between the troubled Greektown Casino owners and its creditors gives the parties until Feb. 1 to submit a “co-exclusive” plan to restructure and settle its debts.

In other words, if the casino company doesn't submit a plan — with the consent of as many bondholders and other litigants as possible — by the deadline, creditors can submit restructuring plans of their own.

The Detroit City Council expects to meet today in a closed session with its Law Department and Chicago-based law firm Shefsky & Froelich Ltd. to review confidential new documents in the ongoing bankruptcy case, in which Detroit is a party.

A deputy press secretary for Detroit Mayor Ken Cockrel Jr. said he believes Greektown will submit a plan by week's end, but an attorney for the casino's creditors said there it might be “difficult” to craft a complete plan with all parties' consent by the deadline.

As late as last week, involved parties were discussing the shape of a reorganization plan, said Robert Gordon of Detroit-based Clark Hill P.L.C. and attorney for Greektown's unsecured creditors' committee.

Greektown, majority-owned by the Sault Ste. Marie Tribe of Chippewa Indians, and the creditors have also had to discuss a few preliminary offers to buy the casino and its assets, which came in earlier this month as part of the proceedings, Gordon said.

“There still has to be some digestion of the proposals that have come in,” he said. “That's why I think there's going to be some possible difficulty or delay in crafting a full plan before the deadline.”

Marian Ilitch-owned MotorCity's fiscal woes were enumerated in a statement posted on Moody's Investors Services' Web site, announcing the downgrade of parent company CCM Merger Inc.'s outlook to negative.

Last fall, CCM owners contributed $25 million in cash equity to enable the business to meet its September debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio. Moody's analysts warn that another equity infusion might be required for CCM to meet its year-end debt-to-EBITDA ratio.

CCM's debt limit is currently seven times EBITDA, according to Moody's, but that ratio could increase in 2009 because of a drop in gaming revenue — down 11 percent in December — that could offset earnings from the casino's expansion and lead to negative cash flow.

CCM's owners would have to ask to amend its lending covenants to increase its debt-to-EBITDA ratio or risk becoming noncompliant, according to Moody's.

Greektown may have its work cut out in proving it can resolve debts as it faces falling revenue and lost market share. A 2008 revenue and tax collection report prepared by the Michigan Gaming Control Board shows that revenue fell for all three casinos in December, with Greektown's dropping 12 percent.

MotorCity ended 2008 with $464 million in revenue, compared with $480 million in 2007. Greektown finished with $316 million compared with $341 million last year.

“Nothing before us suggests the industry isn't still solvent. The casinos as a whole showed 1.8 percent revenue growth over the previous year,” said Rick Kalm, the Gaming Control Board's executive director.

Edward Gudeman, president and managing partner of bankruptcy law firm Weik & Associates P.C. in Royal Oak, said Greektown's ability to control its own future likely comes down to showing an ability to make a profit on operations — exclusive of debt.

“If they can't show that in the plan, or the plan fails to execute, the case could be converted to Chapter 7 and be forced to sell,” he said.

Greektown sought bankruptcy protection in May, citing at least $243 million in unsecured debt to 40 unsecured creditors, and has since gained regulatory approval from the Gaming Board to borrow another $100 million more.

A new hotel is expected to open in a newly built tower along Monroe Street next month.

Chad Halcom: (313) 446-6796, chalcom@crain.com
Nancy Kaffer: (313) 446-0412, nkaffer@crain.com

Sunday, July 06, 2008

More on lobbyist's relationship with Rep. Young

According to reports from the McClatchy Washington Bureau:

A-Team lobbyist Rick Alcalde (Richard Alcalde) was never a staffer to Rep. Don Young (R-AK). He lobbied for the 2005 earmark that shifted $10 million from a road-widening project in southwest Florida to a study of an interstate interchange (Coconut Road) that would benefit Daniel Aronoff, a Michigan developer who raised money for Young.

That earmark mushroomed into a national controversy in part because it was placed in the highway bill, by someone on Young's staff, after the House and Senate had voted on the bill but before it went to the president for his signature.

Young has said he supported the money because local residents and Florida Gulf Coast University requested money for the project. Alcalde has lobbied for both Florida Gulf Coast University and Aronoff's real estate firm, the Landon Companies. Lobbying disclosures show that in 2005, the Landon Companies paid Alcalde $80,000 specifically to lobby on Young's highway bill.

Now Alcalde finds himself at the heart of an official investigation into the Coconut Road earmark matter.

Mike Anderson, Young's chief of staff, said Young doesn't make decisions based on lobbying and his relationship with Alcalde is personal.

"If Rick Alcalde could talk to you on the phone he would tell you that when he was a youngster and so forth he was kind of a rabble-rouser and everything else. The Youngs looked out for him," Anderson said. "And that goes back to the relationship the Youngs have with Mr. Alcalde, with Hector, (Rick's) father and his mother. When Rick went through some tough times and so forth the Youngs were there to help him, to kind of give him some of that guidance he needed. ... Rick credits the Youngs with being a mentor."

Hector Alcalde, Rick's father, is a longtime, top-tier Washington, D.C., lobbyist.

Rick Alcalde represents Michael Malik's affiliates MJM Enterprises and Blue Water Resorts. He also represents Malik's partner the Shinnecock Indian Nation.

Prior to starting the lobbying firm Potomac Partners D.C. in 2005, Alcalde represented the Sault Ste. Marie Tribe of Chippewa Indians and Station Casinos as well as the Detroit International Bridge company. Malik has ties to all three of those entities.

Sunday, June 29, 2008

C-SPAN archived debate on bill for Michigan casinos which failed to win passage in U.S. House


An archive of video segments and corresponding transcripts that record the 6.25.08 floor debate in the U.S. House of Represenatives relative to H.R. 2176 are posted at C-SPAN's Congressional Chronicle.

Debate begins with introductory comments by Nick Rahall (D-WV), chair of the House Natural Resources Committee.

C-SPAN provides video recordings of the primary arguments delivered by:

Don Young (R-AK)
John Conyers (D-MI)
Steve King (R-IA)
Shelley Berkley (D-NV)
Dale Kildee (D-MI)
Carolyn Kilpatrick (D-MI)
John Dingell (D-MI)
Charles Dent (R-PA)
Bart Stupak (D-MI)
Candice Miller (R-MI)
Darrell Issa (R-CA)

Following floor debate, a formal vote of the full House of Representatives was ordered and H.R. 2176 failed passage by a significant margin, more than 2-to-1 (Yeas - 121: Nays - 298).

H.R. 2176 was intended to pave the way for two Michigan Indian tribes (Bay Mills Indian Community and Sault Ste. Marie Tribe of Chippewa Indians) to build casinos in the greater Detroit area (Port Huron and Romulus or Flint respectively).

Wednesday, June 25, 2008

House rules outlining today's floor debate on off-reservation casinos narrowly pass

An update posted at the Port Huron Times Herald regarding the status of today's anticipated vote on H.R. 2176 in the U.S House of Representatives:

The U.S. House has passed the rules outlining the debate about the casino bills [H.R. 2176 & H.R. 4115] up for vote today. The rules passed 207-204, and the legislation that would pave the way for casinos in Port Huron and Romulus is to be discussed this afternoon. Earlier reports on CSPAN that the legislation had been ratified were incorrect.

H.R. 2176 is a bill that paves the way for Michael Malik and the Bay Mills Indian Community to build an off-reservation Indian casino in Port Huron, Michigan. H.R. 4115 paves the way for the Sault Ste. Marie tribe (owners of Detroit's commercial Greektown Casino, a facility currently in bankruptcy) to build an off-reservation Indian casino in either Romulus or Flint, Michigan.

If passed in the House of Represenatives today the bills move to the Senate where the process starts all over. Senate Majority Leader Harry Reid (D-NV) opposes the bill. Previously GOP presidential candidate Senator John McCain (R-AZ) has opposed similar attempts by these tribes and their financial backers.

Tuesday, June 24, 2008

Controversial schemes for off-reservation casinos in Michigan set for vote on House floor

6.24.08

Pelosi to grant vote on Indian gaming bill benefiting Rep. Dingell’s district

By Susan Crabtree

House Speaker Nancy Pelosi (D-Calif.) is giving Rep. John Dingell (D-Mich.) a full House vote Wednesday on a nettlesome Indian gaming bill he’s been pushing for years as a surefire way to help out his cash-strapped district.

Dingell and his allies tried — albeit unsuccessfully — to insert it into various legislative vehicles despite an onslaught of complaints from high-profile opponents and others, such as convicted lobbyist Jack Abramoff, who were stalwartly against congressional intervention in the issue.

Sen. John McCain (R-Ariz.), then the chairman of the Senate Indian Affairs panel investigating Abramoff’s Indian gambling lobbying scandal, was infuriated by an effort to parachute the language into an early version of the 2005 highway bill. Rep. Don Young (R-Alaska), at Dingell’s urging, had placed the language deep within the massive transportation measure as early as 2003.

Rep. Richard Pombo (R-Calif.), the House Natural Resources chairman, also objected. Both he, and especially McCain, were incensed that Dingell and Young were bypassing their committees of jurisdiction, as well as what they regarded as the normal Department of the Interior approval of Indian issues involving casino interests.

In fact, to make the Indian land settlement claim language even less noticeable, Young and Dingell collaborated on language that would make it appear transportation-related.

According to draft language offered by Dingell, the provisions would appropriate $100,000 for two traffic studies to be conducted in Port Huron and Romulus, Mich., in connection with “economic development” that may result from the resolution of two tribes’ land-settlement claims. Language embedded in the provision approved them and directed the secretary of the Interior to take the land into trust.

Critics, including powerful Detroit Democratic Reps. John Conyers Jr. and Carolyn Kilpatrick, sniffed out the language, and drove their point home by arguing that the deals the bills cut for the Bay Mills and Sault Ste. Marie tribes would side step the careful federal consideration that is usually required and set a dangerous Congressional precedent for other tribes around the country. Conyers and Kilpatrick are concerned that the new nearby casinos would draw customers and revenue away from Detroit while generating no tax revenue for the state because Indian gaming operations aren’t taxed.

Casino developers negotiated with the tribes and lawmakers, and the cities of Romulus, in Dingell’s district, and Port Huron, in Rep. Candice Miller’s (R-Mich.), which were selected because they were close enough to Detroit to attract tourists and visitors.

The lawmakers welcomed the economic lift the gaming business would bring to the sagging rust-belt economies of their districts and went to work to get congressional approval. That was nearly a decade ago.

Pombo was the first to object publicly, and McCain stepped in when he heard a return to the earlier shenanigans could take place during the closed-door conference on the 2005 transportation bill.

“I have been informed that other conferees may seek to include in the conference report a provision relating to Indian gaming in Michigan,” McCain wrote in a 2005 letter to Sen. James Inhofe (R-Okla.), chairman of the Committee on Environment and Public Works, which was overseeing the highway bill. “I have been informed that other conferees may seek to include in the conference report a provision relating to Indian gaming in Michigan. Such inclusion would not only circumvent the normal administrative process by which Indian gaming operations are assessed, but also circumvent the regular legislative process for considering exceptions to this process.”

“I appreciate your assistance in keeping such a non-germane issue out of the highway bill,” he continued.

Even though it’s three years later and Democrats now control the majorities in both chambers of Congress, Young — now the ranking member of the Natural Resources Committee — and Dingell are continuing to work together to push the measure over a final finish line. Mike Malik, a casino developer, recently hired Rick Alcalde, one of Young’s “A-List” lobbyists whom interns were told to put through to aides whenever he called, according to a memo crafted by interns.

Even if it passes, however, Senate Majority Leader Harry Reid (D-Nev.), whose district is home to MGM and other Vegas money, strongly opposes the measure and could prevent it from ever making it to the floor.

MGM owns the largest casino in Detroit and its lobbying against the legislation has been fierce.

The Sault Ste. Marie tribe owns six casinos, one of which — Greektown — pulled in more than $341 million in 2007. The Bay Mills tribe also owns a casino, but it pulls in far less than the Sault Ste. Marie.

Earlier this week, House Natural Resources Chairman Nick Rahall (D-W.Va.) and Young, its ranking member, sent out a “Dear Colleague” letter promoting the measure and trying to poke holes in their critics’ arguments. Two governors specifically chose these sites to settle tribal claims that are more than a hundred years old, they wrote, and both Michigan senators also support it.

It’s difficult to figure out whether Pelosi’s allowance of a more transparent vote on the House floor will make a difference in whether the legislation passes. Both sides are whipping hard, although Pelosi and the rest of the Democratic leaders are staying out of the hunt. The leadership also offered Conyers an amendment, which he could fashion as a poison bill to the underlying bill.

The issue is even dividing the usually solid Congressional Black Caucus (CBC). Twenty-two CBC members had signed a previous letter Conyers had circulated opposing the legislation, while 11 members lent their names to a Dingell letter supporting it.

“We didn’t want there to be a perception that the CBC was of one mind on this,” said one Democratic aide.

Rep. John Conyers: No special deals for tribal casinos

6.24.08


No special deals for tribal casinos

I would like to add a few points concerning the upcoming vote in Congress on legalizing off-reservation casinos in Romulus and Port Huron ("Legislators, tribes divided over casinos; At issue: Romulus, Port Huron sites," June 22):

The validity of the land claims the bills purport to "settle" is questionable. The Bay Mills Indian Community filed its claim in federal and Michigan courts, and lost in both. The Sault Ste. Marie tribe has never bothered to pursue the established legal paths available for settling such claims.

The settlements are for land hundreds of miles from the tribes' reservations. Under the established procedures for considering permitting a tribe to build an off-reservation casino, distance from the reservation is a major factor weighing against approval, because the detriment to the tribe is more likely to outweigh any benefits.

Other important factors under the established procedure are the potential environmental problems and the potential detrimental effects on the surrounding community. The deals the bills cut for the Bay Mills and Sault Ste. Marie tribes would circumvent every part of the careful consideration that is usually required.

In 1993, the two tribes signed a compact with other Michigan tribes in which the signatories agreed to share revenues from any off-reservation gaming facility. The bills pending in Congress allow Bay Mills and Sault Ste. Marie to sidestep that compact.

Michigan voters approved a referendum in 2004 to limit the spread of casinos in their state. These bills would legalize new casinos in defiance of the express wishes of Michigan voters.

Opposition to the bills extends far beyond Detroit's local elected officials and its congressional representatives. It includes more than 60 Indian tribes in Michigan and across the country, all of whom have their own interest in being able to build casinos on their own lands, but who are unified in their opposition to this effort to circumvent the law and the free-for-all it could unleash.

The bills are also opposed by the NAACP, which is concerned that both these bills raise serious questions regarding procedural fairness, due process and respect for the role of states and local governments, as well the voters in our country.

The House Judiciary Committee, which shares jurisdiction over these bills with the Natural Resources Committee, voted unanimously to oppose them.

I believe that by passing the bills favoring the narrow interests of the Bay Mills and Sault Ste. Marie tribes and their private-sector allies, Congress would set a dangerous precedent for sidestepping the established review process for land claims and create a shortcut for the opening of casinos in any corner of the country. The tribes should be allowed to pursue their claims through the normal procedures, including approval by Michigan voters, but not by special deals in Lansing and Washington.

John Conyers Jr.
Chairman
U.S. House Judiciary Committee
Detroit

Sunday, June 22, 2008

UAW other labor organizations back off-reservation casino scheme

A press release distributed 6.20.08 by the Sault Ste. Marie Tribe of Chippewa Indians reads:

In a letter sent today to members of the U.S. House, the UAW said it "strongly supports" H.R. 4115 and H.R. 2176 because the legislation would create jobs, keep gaming revenues in the United States, and provide a much needed economic boost to the communities where the new casinos would open. The UAW also noted that the bills are consistent with state law in Michigan and with past land claim settlements approved by Congress for other tribes.

"For all of the foregoing reasons, the UAW strongly supports H.R. 2176 and H.R. 4115," the union said in its letter. "We urge you to vote for these bills when they are considered by the House and to oppose any weakening amendments."


H.R. 2176
H.R. 4115

Friday, June 06, 2008

Indianz.com: Michigan off-reservation casino bills set for House vote

as posted 06.06.08 at Indianz.com:

House Speaker Nancy Pelosi (D-California) will schedule a floor vote this month on bills that authorize off-reservation casinos for two Michigan tribes, according to The Journal Newspapers.

H.R. 2176 and H.R. 4115 settle land claims for the Bay Mills Indian Community and the Sault Ste. Marie Tribe of Chippewa Indians, respectively. The tribes will acquire new land, away from their existing reservations, and open casinos.

The bills have drawn opposition among members of Congress from the Detroit area. The three commercial casinos in Detroit -- of which the Sault Tribe owns one -- say the off-reservation casinos will hurt business.

Get the Story: Mayor: Casino vote to come (The Journal Newspapers 6/5)


Marian Ilitch's casino development partner Michael J. Malik, Sr., is behind the Bay Mills Indian Community's plans to build a casino on the site of the Thomas Edison Inn in Port Huron, Michigan. Ilitch and Malik have been behind plans for a Bay Mills Indian Community off-reservation casino since the mid-1990s.

Tuesday, May 13, 2008

MGCB may force Greektown Casino owners to sell gaming hall

5.13.08

Greektown Casino given until June 10 to avoid forced sale

Nathan Hurst / The Detroit News

DETROIT -- Just days after announcing a $100 million cash infusion from a new Metro Detroit investment group, Greektown Casino was told it has until June 10 to come up with a convincing argument why the Michigan Gaming Control Board should not force casino owners to sell the gaming hall.

The board's demands could threaten a deal announced last week by Entertainment Interests Group to invest some much-needed cash into Greektown. The group agreed to buy a 40 percent stake in the casino for $79 million, and invest another $21 million to pay off former minority investors. Sault Tribe of Chippewa would have a 60 percent stake in Greektown.

At the monthly meeting of the board Tuesday, Greektown officials requested that the board waive enforcement of requirements that the casino maintain a certain debt-to-earnings ratio. The casino hasn't met that requirement since November, and that failure allows the gaming board to force the casino's sale.

The board denied the waiver request, with Chairman Damian Kassab suggesting that Greektown revisit its deal with Entertainment Interests Group. Kassab noted the $100 million would satisfy the debt-to-equity requirements only through part of 2008.

Richard Zussman, a lawyer for Entertainment Interests Group, told the board that a denial of the waiver could jeopardize the transaction. The investment group is headed by Jerry D. Campbell, former chairman of Republic Bancorp and developer of Pinnacle Race Course in Huron Township.

"We are hesitant to continue spending time and money to close this deal," Zussman said. "We'd have to think seriously about moving forward."

The gaming board requires Greektown to maintain a debt-to-earnings ratio of 6.25 to 1 -- meaning that for every $6.25 in debt the casino must show $1 in equity. The casino has been in violation of that ratio late last year and had until April 30 to shore up their finances.

Zussman wouldn't elaborate on his comments following the close of the board's meeting, but Aaron Payment, chairman of the Sault Tribe, said Zussman's comments caught him off guard and shouldn't be taken as an indication that Campbell and his partners intend to pull their offer from the table.

"I am very confident that this deal will move forward," Payment said.

You can reach Nathan Hurst at (313) 222-2293 or nhurst@detnews.com.


Tuesday, April 15, 2008

MotorCity Casinos fall; Detroit area casinos troubled

4.09.08

Casinos in Detroit hit by ill economy
MGM is only gaming hall to report a slight jump; combined betting revenues flat for month.

Nathan Hurst / The Detroit News

DETROIT -- Detroit's three casinos are feeling the sting of the state's economic downturn, even with two new resort hotels and expanded floor space for gambling, according to a report Tuesday to the Michigan Gaming Control Board.

Combined, the casino revenues in March were flat, rising a meager .02 percent increase over the same period in 2007.

MGM Grand Detroit was the only one to report a revenue increase year over year, gaining 5.94 percent, from $47.4 million in March 2007 to $50.2 million this March.

In contrast, revenue dropped in March at MotorCity and Greektown casinos. MotorCity reported revenues of $41.3 million, down 3.7 percent, and Greektown showed revenues of $32.2 million, down 3.58 percent.

The casinos' report to the Gaming Control Board also revealed that gaming taxes paid by the three casinos in March totaled $11.8 million, down 21 percent from $14.97 million last March. The decline was attributed to an expected tax reduction for the MGM Grand Detroit and MotorCity casinos that followed last year's opening of their permanent complexes.

Eugene Christensen, CEO of gaming-analysis firm Christensen Capital Advisors in New York, said the paltry overall gain and downturns at MotorCity and Greektown were expected given Michigan's high jobless and foreclosure rates and consumers' worries about their financial futures.

"What you're seeing in Michigan is in line with other markets across the country," Christensen said. "Given the state of the economy, they're surviving pretty well."

The revenue declines at MotorCity and Greektown follow layoffs at the MGM Grand Detroit complex that began last month. A spokesman for the casino said the cuts would affect fewer than 100 workers, mostly people who worked in non-gaming operations.

Also decided at the Gaming Control Board's Tuesday meeting:

• Greektown Casino received approval to continue negotiating with potential equity partners that would help the Sault Ste. Marie Tribe of Chippewa Indians, the casino's owner, to comply with debt covenants imposed by the board last year. The requirements mandate the casino maintain an undisclosed debt-to-equity ratio, which it would need additional funding to maintain.

Greektown spokesman Brian Brown said the casino has been in active talks with a number of investors. The casino hopes to close on a deal that would transfer ownership of between 26.5 percent and 30.77 percent of Greektown to an investor, in exchange for cash to ensure the debt ratios are maintained. The Chippewa tribe, unlike MGM Grand Detroit and MotorCity, had to secure the majority of the financing for its hotel and expanded gaming facilities from outside investors, Brown said.

Those new facilities are expected to open in 2009.

• The board approved a request from Dubai World, the international investment arm of the United Arab Emirates, to increase its stake in MGM Mirage Inc., the parent of MGM Grand Detroit, from 9.4 percent to 14.75 percent. With that approval, Dubai World could purchase additional MGM shares on the open market. The request must be approved by regulators in states where MGM is licensed to operate.

You can reach Nathan Hurst at (313) 222-2293 or nhurst@detnews.com.

Find this article at:
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080409/BIZ/804090360

Wednesday, March 26, 2008

3.25.08

Conyers and Dingell face off over casinos
By Susan Crabtree

Rep. John Conyers Jr. (D-Mich.) is clashing with Energy and Commerce Committee Chairman John Dingell (D-Mich.) over the thorny issue of Indian gambling, setting up a standoff between two of the oldest bulls in Congress.

Conyers has stepped into an Indian gambling dispute that is dividing the Michigan delegation and the Democratic Caucus. After teaming up with Rep. Carolyn Kilpatrick (D-Mich.), who chairs the Congressional Black Caucus (CBC), the 22-term House veteran has used his position as chairman of the powerful Judiciary Committee to oppose two bills that would settle tribal land disputes and clear the way for new casinos to be built near both lawmakers’ Detroit-area districts.

Conyers argues that the bills would change the way casinos are approved by allowing Congress to get involved in land dispute claims that the U.S. Department of the Interior routinely determines. He also cites the concern that the casinos would be located more than 350 miles from the tribes’ reservations.

“Without these constraints, there would seem to be no limit to how far Indian gaming could spread, far beyond reasonable bounds,” Conyers said at a hearing he held on the issue the day before Congress left for its spring recess.

On the other side, Dingell, a 27-term veteran of the House and its longest-serving member, has joined forces with Natural Resources panel Chairman Nick Rahall (D-W.Va.), along with a bipartisan group of Michigan lawmakers, to push for the bills.

Dingell argues that the cities where the casinos will be built — Romulus and Port Huron — are in dire need of the new jobs and economic stimulation that the casinos would provide. Romulus lies in his district, while Port Huron must compete with jobs right across the border in Canada, where a casino already exists.

But Conyers and Kilpatrick worry that the new casinos will cut into profits of existing Detroit casinos, including one owned by MGM Mirage, which is lobbying furiously against the bills. If built, the new casinos could cut into revenue that Detroit receives from taxes on those profits because Indian gambling revenues are exempt from local, state and federal tax.

Conyers has until April 4 to either rewrite the measure or decide to hold a committee vote on the bills.

Many of the panel’s members oppose the bills and would vote against them. The Judiciary Committee’s stamp of disapproval could help stir opposition once it reaches the House floor for a full vote.

The intra-party feud also is shaping up as the first major test for Democrats on the thorny issue of Indian casinos after the fall of Jack Abramoff, whose corrupt lobbying practices involving tribes and gambling helped propel Democrats into power in 2006.

House Speaker Nancy Pelosi (D-Calif.) has been thrust into the middle of the gambling spat and has promised Dingell floor time for the bills, according to two sources tracking the measure. But the division runs so deep that the outcome of such a vote is unpredictable. MGM Mirage and the two tribes that stand to benefit, the Bay Mills Indian Community and the Sault Ste. Marie, have spent the last month ratcheting up their lobbying blitz.

The intense battle over Indian gaming pits many CBC members, who side with Kilpatrick and Conyers, against proponents of the measure, such as Reps. Bart Stupak (D-Mich.), as well as Dale Kildee (D-Mich.) and Patrick Kennedy (D-R.I.), who co-chair the Native American Caucus. Many conservative Blue Dog Coalition members oppose casinos on principle, arguing that they create more crime and dependency.

At the pre-recess Judiciary hearing, several members on both sides of the aisle expressed deep reservations about the legitimacy of the land deals. The hearing was held to counter a previous hearing in the Natural Resources Committee, where Dingell and Conyers testified, along with three other sitting lawmakers.

The Natural Resources panel overwhelmingly approved both bills. One would settle the land claim of the Sault Ste. Marie tribe of Chippewa Indians, and the other addresses the Bay Mills Community tribal land.

Dingell has said he is supporting the casinos because the residents of his district and the neighboring district of Rep. Candice Miller (R-Mich.) want them.

“I will say it again — the people of Romulus approved a referendum supporting the opening of a casino in their community,” Dingell said in February. “It would be the only casino in my district. It would be run by a Native American tribe that has a legitimate land claim issue and that also operates a casino in Detroit.”

He said the tribe is not concerned about the effect a Romulus casino would have on its Detroit operation. But the opponents of the Romulus casino say that the lack of concern stems from their belief that the casino in Detroit was hurt when MGM built a newer, more elaborate operation in the city.

Saturday, March 22, 2008

Malik, Payment contribute to Rep. Stupak's secret PAC

Federal Election Commission (FEC) documents report that a "Mike J. Malik" (MJM Enterprises) contributed $5,000 to "Bart's Bridge PAC" on 9.29.07. OpenSecrets.org indicates the PAC is a so-called leadership PAC affiliated with Rep. Bart Stupak.

Also contributing to Bart's Bridge PAC:
Sault Ste Marie Tribe of Chippewa Indians, c/o Aaron Payment, $5,000

Bart's Bridge PAC paid both Ann Barstow and Laurie Stupak $5,918.00 each.

Tuesday, March 18, 2008

Editorial: Questionable hearing rallies casinos' foes

3.17.08

Editorial
Questionable hearing rallies casinos’ foes
Committee’s purpose was to trash Port Huron, Romulus bills

If there was any doubt about the purpose of U.S. Rep. John Conyers’ hearing on the casino gambling bills for Port Huron and Romulus, Friday’s meeting should have dispelled it. Conyers, D-Detroit, used his position as chairman of the House Judiciary Committee to convene a forum for foes of the two bills.

The congressman’s casino opposition to the proposed casinos is no secret. Like most members of Detroit’s delegation, Conyers is against the prospect of any new gambling facilities relatively close to the city.

Detroit officials see the casinos’ proximity as threats to the city’s interests. With three casinos operating as cash cows, new competition might reduce that revenue.

Conyers said as much in his opening remarks at the committee hearing.

The two casinos would “unfairly disadvantage the city of Detroit, to put it mildly,” he said. The competition, he said, would take gamblers, tax revenue and jobs.

Given that introduction, the list of witnesses hardly was a surprise: it was stacked with opponents of the Port Huron and Romulus casinos.

Democrats Rep. Carolyn Cheeks Kilpatrick of Detroit and Shelley Berkley of Las Vegas both spoke against the legislation. Chief Fred Cantu of the Saginaw Chippewa tribe added his opposition. Carl Artman of the Department of Interior’s Bureau of Indian Affairs also expressed his objection.

Only attorneys Kathryn Tierney of the Bay Mills Community and Alice Walker, who represents the Sault Ste. Marie Chippewa, spoke in favor of the legislation.

The bills settle a long-standing eastern Upper Peninsula land dispute between the Sault and Bay Mills Chippewas. The Bay Mills Indian Community would drop its claim to 110 acres of land in Charlotte Beach in exchange for either 19.6 acres at Port Huron’s Desmond Landing or 16.5 acres at the Thomas Edison Inn. The Sault were given the choice of property in either Romulus or Flint.

The legislation also gives authority to the U.S. District Court for the Western District of Michigan to enforce the Charlotte Beach land swap for the proposed casino sites. Conyers used the provision to win temporary jurisdiction of the bills for his Judiciary Committee.

In the end, the hearing counted for little. With no real effort to present a fair discussion on the merits of the legislation or to allow representatives of Port Huron and Romulus to speak, the meeting essentially served as a chance for the bills’ opponents to vent.

Last month, the House Natural Resources Committee approved both bills for consideration by the full House. The Judiciary Committee’s jurisdiction is brief — it expires on April 5 . It also is secondary to that of the Natural Resources Committee.

The merits of both bills deserve a thorough hearing in the House and the Senate. The skewed Judiciary Committee hearing did nothing more than demonstrate the need for a fair discussion.

Saturday, March 15, 2008

House Judiciary Committee Chair Opposes Off-Reservation Casino Plans in Michigan

3.14.08


Conyers, Kilpatrick voice concerns anew over casino plans
Proposed gambling sites in Port Huron, Romulus at issue

By TODD SPANGLER • FREE PRESS WASHINGTON STAFF

WASHINGTON -- The Judiciary Committee held a hearing today on proposals that would clear the way for Indian casinos in Romulus and Port Huron.

Although the House Natural Resources Committee already approved it overwhelmingly, Judiciary Chairman John Conyers of Detroit -- an opponent of the bill -- claimed jurisdiction over part of the bill.

The legislation has been hotly contested, with Detroit's lawmakers saying it would threaten the casinos there. Meanwhile, some argue it would set a precedent for other tribes across the country to raise land claims as a way to get casinos far from their reservations.

Proponents say that's bunk -- that land claims are typically settled by Congress and this is no more than that.

Conyers, in his opening remarks, noted that MGM has spent $800 million on a new Detroit casino.

"Undoubtedly, MGM would never have made that kind of investment if it knew that Congress would be shoe-horning in additional casinos right outside the city borders," Conyers said.

Rep. Carolyn Cheeks Kilpatrick also testified against it, noting MGM's investment and the questions about whether the tribes are circumventing an established process for using lands for gaming.

"These are dangerous bills and a precedent I don't think Congress wants to set," she said.

But the Bay Mills and Sault Ste. Marie Chippewa tribes say the deals -- signed off on by Govs. John Engler and Jennifer Granholm -- settle claims on the Upper Peninsula going back more than 100 years.

Both Romulus and Port Huron desperately want the casinos as well.

But while MGM is clearly opposed, the feelings of the other two Detroit casinos are more complicated. The Sault tribe, which would build in Romulus, already owns the majority stake in Greektown Casino. And Marian Ilitch, the owner of MotorCity Casino, works closely with the developer proposing the Port Huron facility, though she is not directly involved. She hasn't raised any objections.


Find this article at:
http://www.freep.com/apps/pbcs.dll/article?AID=/20080314/NEWS06/80314029

Saturday, March 08, 2008

Tom Celani backs off bid to acquire 22% of Greektown Casino

3.07.08

Celani decides not to invest in Greektown Casino

By Robert Ankeny

Tom Celani, owner of MotorCity Harley Davidson and MotorCity Power Sports, has dropped plans to acquire a stake in Greektown Casino L.L.C.

Under a plan announced in January, Celani was to become president of casino operations and buy a 22 percent stake in the company from the majority owner, the Sault Ste. Marie Tribe of Chippewa Indians.

“The tribe has time sensitive issues, and we needed more time for due diligence,” said Celani, a former investor in MotorCity Casino, “so they’re exploring other possible investors. It’s a great project and we’re still interested.”

Celani’s plan to buy into Greektown was aimed at improving the casino’s management and bolstering its finances, Tom Miller, chair of the Greektown management board, said at the time.

Celani’s involvement with the casino industry goes back more than a dozen years and includes management roles with start-up Indian casinos in Michigan and other states through his companies called Luna Gaming and Luna Entertainment.

“We could not reach an agreement on terms,” said Roger Martin, a principal in Lansing-based Martin Waymire Advocacy Communications who is a spokesman for Greektown.

Ted Gatzaros, one of the founders of Greektown who sold his stake in 2000, is believed to be one of those talking about more investment. He is still owed $60 million from the casino, was recently licensed and acquired a 1 percent stake in the casi

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

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