New BMIC Chair Signals Tribe Won't Abandon Litigation that Shut-Down Vanderbilt Casino

New BMIC Chairman Kurt Perron

Kurt Perron, the new Chairman of the Bay Mills Indian Community signals to the Tribe and others that under his leadership, BMIC will not abandon litigation that has resulted in the tribe's Vanderbilt casino being locked up indefinitely and blocks any future casino development schemes the Tribe and its partner, controversial Detroit casino syndicator Michael J. Malik, Sr.,  had dreamed of for Port Huron & Flint Township.

No doubt, former BMIC Chair Jeff Parker had previously entered into Development Agreements with Malik or his affiliates protecting Malik's interests. Malik has indicated that his Blue Water Resorts syndicate and others have invested $15-25 million during the last two decades attempting to win approvals for his Bay Mills casino in Port Horn. Given that, it's not likely Malik will walk away from or be pushed away from BMIC.  He is known to be tenacious and a bully.

Those who've followed TVT regularly will recall several instances where leaders of the Los Coyotes Band of Indians attempted to part company with Malik or undertake business development strategies potentially in conflict with Malik's objectives; and in such instances, the Detroiter saw to it that those leaders were replaced and individuals loyal to him were installed in their place.

BayMillsNews.com


Tribe continues work on gaming issues
11.16.2011

BAY MILLS — Bay Mills Indian Community elected new tribal leaders on Nov. 2, but the commitment to the current litigation regarding the Vanderbilt Casino remains the same.

“Our first day in office, Nov. 7, we formally agreed as a council to continue working together on our gaming issues, including our properties in Vanderbilt, Flint, and Port Huron,” said newly elected Tribal Chairman Kurt Perron. He is joined by another new face on the council, Joe LeBlanc, serving as vice-chairman. The rest of the council remains the same, as incumbents John Paul Lufkins, Richard LeBlanc and Bucko Teeple held onto their seats in the election.

The council’s actions come on the heels of an Oct. 19 General Tribal Council meeting of the Bay Mills Indian Community membership. At that meeting, Perron made a motion before the prior council to continue moving forward with the litigation. The tribal membership unanimously approved Perron’s motion.

"I am committed to working aggressively and diligently with the entire council to advance this litigation and related pursuits,” said Perron.

The tribe has a July 2012 court date scheduled.

New Bay Mills Chairman Plans to Wrestle Charlotte Beach Land Claims from Soo Tribe; Evict Current Residents

A Letter To Bay Mills Tribal Members

2.12.2011

As posted on Facebook at Kurt Perron For Tribal Chairman

* I will resolve our Charlotte Beach Land Claim which has been handed over to the Soo Tribe to use to obtain casinoes with. I will file a lawsuit against the Soo Tribe in federal court to have them kicked off our Charlotte Beach land claim using the Supreme Courts recent Carcieri decison as precedent. Once Soo Tribe is kicked off our claim, I will then issue an eviction notice to the current residents of Charlotte Beach. We can then use our claim ourselves to obtain several more casinoes in key areas, including Vanderbilt, without spending our Elders Fund in the process. We should have never given our Charlotte Beach Claim to the Soo Tribe to use for a casino in Romulus and now Lansing, this was our land and it was taken from us, not the Soo Tribe. If a casino ever opens in these areas it will be owned by Bay Mills, not Soo Tribe.

See also:

• President/Chairman Parker, Longtime Crony of Detroit Gambling Promoter Michael Malik, Tossed Out by Bay Mills Indian Community Voters
• Same 20-Year-Old Story, Bay Mills Chairman Teasing Business Leaders with Hopeless Casino Plans
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Casino Plans
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator
• 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
• Michael Malik at epicenter; manufacturing behind the scenes drama in Michigan’s remote Charlotte Beach subdivision.
• Why would attorney for Tribe's Port Huron casino developer be acquiring property up north in Charlotte Beach?
• Is the Bay Mills Tribe using Charlotte Beach land claims solely to leverage developer's off-reservation casino plans?
• UPDATE: Posts set context and detail schemes, conflict$ behind Detroiters' off-reservation casino proposal
• Tribe to borrow $4 million to fund federal grant requirement, other investments in Malik’s Plastics venture 

President/Chairman Parker, Longtime Crony of Detroit Gambling Promoter Michael Malik, Tossed Out by Bay Mills Indian Community Voters

Jeff Parker held the Presidency of the Bay Mills Executive Committee for a total of 20 years coinciding with Detroit gambling promoter Michael Malik's influence over the Bay Mills Indian Community (Brimley, MI). In an election held today among Bay Mills voters, Parker was tossed out of office losing his re-election bid to newcomer Kurt Perron, 54% to 46%.

Parker and Malik had pursued failed schemes to develop an off-reservation casino in Port Huron (MI) for a generation. Malik's various syndicated affiliates (Blue Water Resorts, etc.) have spent millions lobbying in Lansing and Washington, D.C. and attempting to buy influence with key politicians.  Recently they opened a small slots casino in Vanderbilt (MI) which was subsequently ordered closed by court order.

They had announced an intent, albeit hollow, to similarly open a casino in Flint Township. Attempting to shore up credibility with Bay Mills voters, Parker had made several high-profile PR appearances in Flint Township suggesting he was on the verge of opening the casino there and as such, bringing increased economic prosperity to both Flint and the Bay Mills Indian Community.

Perron defeats Parker for chairman's seat

11.02.2011

BAY MILLS — A new face will head up Bay Mills Executive Council as a result of the Nov. 2 General Election. Kurt Perron defeated incumbent Jeff Parker 321 [54%] - 273 [46%]. Perron will be joined by another fresh face on the council, as Joe LeBlanc defeated Allyn Cameron 313-280 for the vice chairman's seat. Incumbents Richard LeBlanc, John Paul Lufkins, and Dwight "Bucko" Teeple will remain on the council.

Another upset this election was the seat of chief judge. Incumbent Shelly Deuman lost to Levi Carrick, Sr.

Taking seats as appellate judges will be Shannon (Lufkins) Belk and Justin Teeple.

See also:

• Bay Mills President Parker in Nov 2 General Election Run-Off; He's Controlled the Tribe for 20 Years
• It's an Election Year and Bay Mills Chairman Jeff Parker Wants Constituents to See Him as Good for the Economy both on and off Reservation
• Same 20-Year-Old Story, Bay Mills Chairman Teasing Business Leaders with Hopeless Casino Plans
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Casino Plans
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator
• Compendium of 12 past posts regarding Bay Mills Indian Community's plastics ventures
• UPDATE: Posts set context and detail schemes, conflict$ behind Detroiters' off-reservation casino proposal
• Tribe to borrow $4 million to fund federal grant requirement, other investments in Malik’s Plastics venture

Property Bay Mills Indians Acquired in 2010 not 'Indian Lands;' Not Sovereign or Tax Exempt

Because property is Indian “owned” does not automatically mean those lands are “Indian Lands,” a special and unique designation. Only Indian Lands are considered sovereign and as such exempt from the usual local taxes, fees, codes, regulations and laws. Property that is simply Indian owned is not considered sovereign and not exempt. 

In shutting down the Bay Mills Indian Community’s (BMIC) rogue off-reservation casino in Vanderbilt (MI) last March, the U.S. Federal Court (Judge Paul L. Maloney) ruled that the property the tribe acquired in Vanderbilt during 2010, located 100 miles away from the tribe’s Upper Peninsula reservation, are not Indian Lands. Specifically (from Judge Maloney’s ruling (pgs 10-11):

Section 107(a)(3) authorizes the earnings of the Land Trust to be used for two specific purposes: (1) improvements on tribal land and (2) the consolidation and enhancement of tribal landholdings. Bay Mills does not suggest or argue that the Vanderbilt Tract constitutes an “improvement on tribal land.” Bay Mills defends the purchase as authorized by the second purpose. In the context of this provision, the statutory language has a plain and obvious meaning. The word “consolidate” means “to bring together or unify.”9 The word “enhance” means “to improve or make greater” or “to augment.”10 Obviously, the purchase of the Vanderbilt Tract is an enhancement of tribal landholdings, as the additional land augmented, or made greater, the total land possessed by Bay Mills. However, the statute does not authorize every enhancement. The statute uses the conjunction “and” between the word “consolidation” and the word “enhancement.” The use of the word “and” cannot be ignored. See Williams v. Taylor, 529 U.S. 362, 404 (2000) (“It is, however, a cardinal principle of statutory construction that we must ‘give effect, if possible, to every clause and word of a statute.’”) (citations omitted). In order for the purchase of land to be an “enhancement” authorized by the § 107(a)(3), the purchase must also be a “consolidation.” The statute requires any land purchase to be both a consolidation and an enhancement. Under §107(a)(3), Bay Mills may use the earnings from the land trust to acquire additional land next to, or at least near, its existing tribal landholdings. The statute does not allow Bay Mills to create a patchwork of tribal landholdings across Michigan.

Prior to Judge Maloney’s ruling, both the National Indian Gaming Commission (NIGC) and the U.S. Department of Interior had issued similar opinions. From a memorandum provided to the NIGC Chairwoman, December 2010:

On Wednesday, November 3, the Bay Mills Indian Community opened an off-reservation gaming facility in Vanderbilt, Michigan. The considered opinion of the Department of the Interior Solicitor is that the land is not within a reservation, not held in trust, and not held in restricted fee. Accordingly, the Community’s new casino is not on Indian lands within the meaning of the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. §§ 2701- 2721, and the National Indian Gaming Commission lacks jurisdiction over it. We are obligated, therefore, to refer the matter to the appropriate law enforcement agencies.

 

Specifically by rulings and opinions issued by U.S. District Court, U.S. Department of Interior Solicitor and National Indian Gaming Commission, the Bay Mills Indian Community’s property in Vanderbilt are not Indian Lands.  And by implication, two other similarly acquired parcels BMIC controls in Flint Township (280 miles from its reservation) and Port Huron (350 miles away) are not Indian Lands.

Absent Indian Lands designation, those parcels are not presently sovereign lands, are not eligible for casinos under IGRA, and are not exempt from the usual taxes, fees, codes, regulations and laws. Or to put it another way, those properties should be taxed and fees collected timely as they would for any other such property owner. 

Despite representations, there is currently no need for any special agreements to provide for emergency services or to accept some negotiated fees in lieu of taxes over the Flint Township, Port Huron or Vanderbilt properties. Such would only serve to advantage the tribe's interests going forward not the interests of local taxpayers and citizens or the people of Michigan.

Bay Mills' Property in Flint Township not 'Indian Lands,' not Sovereign; Not Exempt from Taxes, Codes & Regulations

Flint Township shouldn’t fall under the spell of the The Bay Mills Indian Community (BMIC) – and certainly not yet. 

So why have BMIC officials launched a whirlwind public Romance with Flint Township? Beware, it doesn't benefit Flint Township.

BMIC Tribal Chair Jeffrey Parker | Not being honest with
Flint Township voters so he can get re-elected at Bay Mills.

Could the motivations be (1) political? You bet!  If BMIC Tribal Chair Jeff Parker could get an agreement or the suggestion of an imminent agreement with Flint Township, that might help him win re-election on Nov. 2.  Parker has had a firm grip on the tribe for a generation and now many are displeased with his schemes and promises.  He was challenged in the tribe’s primary where he got just 42% of the vote.  He eeked out another candidate by just 19 more votes and now he’s got to run against that candidate in the General Election next month.

But more importantly, could the motivations be (2) intended to give the tribe and its secret backers special and unnecessary financial advantages? Most likely. Could it be designed to (3) cheat the town out of rightful property taxes that fund not only emergency services but also local schools and other public services?  Most certainly!

There is no need to rush into an emergency services agreement that gives the tribe special treatment and accepts something less than the usual property taxes everyone else pay.  Despite representations by BMIC, Parker and other mouthpieces for the tribe’s developer, the property in Flint Township controlled by BMIC is not exempt from the usual property taxes today.

The property in Flint Township acquired by BMIC last year isn’t sovereign “Indian Lands” despite representations and therefore that property is not exempt from the usual taxes.  Indian “owned” does not necessarily mean “Indian Lands.”

In shutting down the Bay Mills rogue casino in Vanderbilt last Spring, the Court (Judge Maloney) ruled that the property in Vanderbilt, 100 miles away from the tribe’s Upper Penninsula reservation, does not qualify as “Indian Lands.” If that's the case in Vanderbilt, it's the case in Flint Township. Specifically from that ruling (pgs 10-11):

Section 107(a)(3) authorizes the earnings of the Land Trust to be used for two specific purposes: (1) improvements on tribal land and (2) the consolidation and enhancement of tribal landholdings. Bay Mills does not suggest or argue that the Vanderbilt Tract constitutes an “improvement on tribal land.” Bay Mills defends the purchase as authorized by the second purpose. In the context of this provision, the statutory language has a plain and obvious meaning. The word “consolidate” means “to bring together or unify.”9 The word “enhance” means “to improve or make greater” or “to augment.”10 Obviously, the purchase of the Vanderbilt Tract is an enhancement of tribal landholdings, as the additional land augmented, or made greater, the total land possessed by Bay Mills. However, the statute does not authorize every enhancement. The statute uses the conjunction “and” between the word “consolidation” and the word “enhancement.” The use of the word “and” cannot be ignored. See Williams v. Taylor, 529 U.S. 362, 404 (2000) (“It is, however, a cardinal principle of statutory construction that we must ‘give effect, if possible, to every clause and word of a statute.’”) (citations omitted). In order for the purchase of land to be an “enhancement” authorized by the § 107(a)(3), the purchase must also be a “consolidation.” The statute requires any land purchase to be both a consolidation and an enhancement. Under §107(a)(3), Bay Mills may use the earnings from the land trust to acquire additional land next to, or at least near, its existing tribal landholdings. The statute does not allow Bay Mills to create a patchwork of tribal landholdings across Michigan.

BMIC is cheating Flint Township if it doesn't pay the usual taxes. And this is no way to start a relationship.  Lying and cheating from the beginning.  Misrepresenting yourself.  If this is their way of business today, imagine what you can expect a year or two down the line when things get rocky. 

Given Judge Maloney’s ruling, it is reasonable that property taxes should be levied and collected on the BMIC property just like any other taxpayer.  Why give BMIC special treatment or defer payments today when there are too many unknowns?  But even more, why get locked into an agreement on property that might not be developed for ten years or more. Circumstances could change during that time. Consider that the people in Port Huron have been promised a BMIC casino time and time again, over the course of two decades, and still there’s nothing.

Why even spend time and money negotiating an agreement with BMIC right now?  Flint Township leaders should wait until the tribe resolves its related legal issues.  And since Parker is on record saying he wants to be the town’s good faith partner, then BMIC should start paying timely property taxes now and stay current with payments just like every other taxpayer is expected to do without seeking special treatment. And Parker should immediately stop misrepresenting his Flint Township property as sovereign land.  Represent the truth.

Flint Township residents, civic and business leaders shouldn’t get their hopes up for a BMIC windfall.  If history is any gauge you’ll only get your heartbroken time and time again. Ask the people of Vanderbilt now that payments have stopped.  Ask the people of Port Huron. And worse yet, expect you/ll get left standing alone at the alter and having to pay all the costs of a wedding and reception anyway.

It's an Election Year and Bay Mills Chairman Jeff Parker Wants Constituents to See Him as Good for the Economy both on and off Reservation

Bay Mills Indian Community official speaks to West Flint Business Association, fills in details about proposed development

10.19.2011

By Kayla Habermehl

FLINT TOWNSHIP, Michigan — Although still fighting a legal battle about whether a northern Michigan gaming facility is on "Indian land," the Bay Mills Indian Community chairman told a gathering of area businesses he believes a Flint Township casino will be a reality.

Jeff Parker, chairman of the executive committee for Bay Mills, spoke during the West Flint Business Association's monthly luncheon today in Flint Township. The potential facility is expected to be about 200,000 square feet, half of which would be gaming space, and could bring about 700 jobs to the area, Parker said.

Although the casino would be the "hub," Parker said Bay Mills planned to have the surrounding businesses by owned by area residents.

Many of the jobs would be minimum wage and the majority would be filled by area residents, he said.

Parker also said the tribe's attorneys were filing a motion today and three more Friday to dismiss a lawsuit that shut down Bay Mills' Vanderbilt facility earlier this year.

“We believe we’ve covered all the bases and we can go forward,” Parker said of the legality of the Vanderbilt facility.

Bay Mills purchased 28 acres in December at the northeast corner of Lennon and Dutcher roads in Flint Township.

Earlier this year, Bay Mills appealed a federal judge's ruling that forced the tribe to close a small casino in Vanderbilt, a slots-only gaming operation north of Gaylord, Mich. that opened without traditional approvals in place.

The lawsuit was filled by the state attorney general and the Little Traverse Bay Bands of Odawa Indians. They claimed the casino was illegal and running without necessary approvals.

Parker also planned to meet with township officials today to begin discussions about contracting for services such as police and fire. Called a payment in lieu of taxes, it would provide 2 percent of Bay Mills gross profits from the Flint Township facility to the township, Parker said.

He estimated it could result in between $2 million and $4 million for the township.

Same 20-Year-Old Story, Bay Mills Chairman Teasing Business Leaders with Hopeless Casino Plans

Some business owners are willing to take gamble on a new casino
WRJT-TV | ABC 12

FLINT TOWNSHIP (WJRT) - (10/19/11) - Some Genesee County business owners are willing to take a gamble when it comes to creating jobs.

For years, various groups have floated legalized gambling proposals in Genesee County.

Now, the Bay Mills Indian community is making a serious push to build a casino near Genesee Valley Mall. The proposed casino would go near Lennon and Dutcher Roads in Flint Township.

Jeff Parker says the tribe bought the property years ago through a land settlement act, but there are legal obstacles to clear. Bay Mills is trying to settle a lawsuit challenging whether an "off reservation casino" can be built in that area.

Wednesday, Parker answered questions from the West Flint business association about the proposed project. Some business owners are in favor of building a casino.



Blogger's Note:  For more than 20 years Parker and a controversial Detroit Wheeler Dealer Michael Malik, have been romancing residents of Vanderbilt, Port Huron and the Flint / Flint Township area with false plans for Indian casinos -- teasing them with jobs, millions in new funds for local government and more. In many cases these communities have been sidetracked by the schemes and that's had greater negative economic impacts. Everyone of their schemes has failed.  Last year, without necessary approvals, they opened a rogue 1,600 square foot slots casino in Vanderbilt and then in March the Courts closed it down and it sits shuttered, embroiled in a complex legal challenge.

Casino Effects on Business, Charities, Job Seekers & Host Towns

from Middleboro Remembers: Casino Effects on Business, Charities, Job Seekers & Host Towns:

Broken Promises To Local Business & Host Communities

Take it from Kenneth Ivins, Finance Commissioner for casino host city Saratoga Springs, New York. The casino has driven up the city's costs for police, water, sewer, roads, and schools. But, facing a budget crunch, the state just zeroed out the $3.9 million in state aid the city once received to cover the increased costs.

And there are no economic gains for local merchants. "People who come to the area to gamble rarely shop," said Ivins. "The money is not going to the local merchants or the sales tax base. It's really not supporting our economy."


Run the Numbers: No Net Permanent Jobs

The U.S. Department of Commerce estimates that, for every $1 million diverted from household spending in New Hampshire, the state loses nine existing jobs. The New Hampshire Gaming Study Commission (page 19) projects that a $500 million Salem or Hudson casino would produce 2,215 permanent direct and indirect new jobs. But because up to half of casino revenue will be displaced from current consumer spending, nearly 2,500 existing jobs will be lost. Apart from temporary casino construction jobs, there are no net job gains.

Note that the median pay including tips at US casinos is $11.25 per hour.

Vision for Bay Mills' Vanderbilt Casino

The Bay Mills Indian Community took a gamble and opened a very small casino in Vanderbilt (MI) last November (2010).  Shortly after opening the facility with 38 slot machines, the tribe began expansion of the facility.  After closing for a couple of days in early 2011 they opened a facility twice its original size.  The tribe followed a Court directive in March and closed its doors.

Should the tribe prevail in current court action and be allowed to re-open its Vanderbilt gambling site, the graphic below gives one an idea of what the next phase of their plans might look like.

This graphic was given to Vanderbilt village leaders

Tour the small Bay Mills' Vanderbilt Casino as it was Originally Opened

Here's a peek inside the Bay Mills Indian Community's Vanderbilt Casino the day after it first opened (11.04.11).  The very small facility opened with just 38 slot machines.  The tribe completed and expansion of the facility early in 2011 reportedly more than doubling the square footage of the facility.

click arrow below to view video here

Latest on Bay Mills Casino Schemes backed by Michael Malik and Detroit's Ilitch Family

The Bay Mills Indian Community owns  two casinos (Kings Club Casino and Bay Mills Resort & Casino) in Brimley (MI).

For nearly two decades, Bay Mills has attempted to get approvals to build a casino resort in Port Huron, 350 miles away from its Upper Peninsula Reservation.  Detroit casino syndicator Michael Malik (Blue Water Resorts), with support from Marian Ilitch – her family owns the Detroit Tiger (MLB) and Red Wings (NHL), MotorCity Casino and Little Caesars pizza – has been the driving force behind the Bay Mills schemes.  They’ve spent millions lobbying local, state and federal officials and benefiting the campaign coffers of politicians who they have leaned on for support.

In 1993, Port Huron voters rejected Malik’s plan to develop a Bay Mills casino in partnership with Harrah’s.

For the better part of the last decade, their schemes have centered on a Land Claims Settlement they had negotiated with former Governor John Engler in the final days of his administration.  Malik and cronies had acquired control of properties in Charlotte Beach (MI) where Bay Mills had made land claims.  Those properties were to be leveraged to gain the right to build in Port Huron.

During 2010 Bay Mills acquired properties in Flint, Vanderbilt and Port Huron (MI).

With little to lose and much to gain, the Bay Mills Indian Community opened a mini-casino in Vanderbilt (MI) on Nov 3, 2010. The 1,200 square foot facility, located 100 miles from the Bay Mills Reservation, had 38 slot machines. (Bay Mills Press Release)

On the same day, leaders of five other Michigan Tribes released a joint statement calling on the National Indian Gaming Commission, the U.S. Department of Justice, and the Department of the Interior to work together with  Michigan’s Governor and Attorney General to take swift and immediate action to close what they called an “illegal gaming operation.”

The National Indian Gaming Commission (NIGC Opinion) and U.S. Department of Interior (Solicitor's Opinion) have opined the Vanderbilt casino is not on Indian Lands and is therefore illegal.  

In December 2010, the Little Traverse Bay Band of Odawa Indians and Michigan’s Attorney General filed lawsuits seeking to shut down the Vanderbilt casino. (Petoskey News)

In January 2011, Bay Mills completed an expansion of the Vanderbilt casino more than doubling its size to 2,600 sq. ft.

On March 3, 2011, Bay Mills was ordered to shutter the Vanderbilt casino. In that ruling (Pgs 10-11), Judge Paul L. Maloney says the Vanderbilt property does not qualify as "Indian Lands" and as such is not exempt from the usual taxes, fees, codes and regulations.

A complicated and sure to be precedent setting legal challenge has ensued.  The blog Turtle Talk, Pechanga.net and Indianz.com are resources of details and updates on the court activity.

Bay Mills leaders are expected to make a presentation to the Flint Township Board on Monday, October 3rd at 7:00 PM.  It has been rumored they plan to reveal plans for another off-reservation casino on 28 acres they acquired in Flint last December. (10.03.11 | Agenda)

 Rep. Dale Kildee (D-Flint) says it is highly unlikely Bay Mills can get the approvals to open a Flint casino.

It has been reported that if the play in Vanderbilt succeeds, Bay Mills plans to convert the old Port Huron post office on Military Street into a temporary casino with 1,500 slot machines.

Eventually, Bay Mills intends to build a permanent casino and luxury hotel at Desmond Landing, where the tribe owns 16.5 acres.

Five Opposing Tribes: Grand Traverse Band of Ottawa and Chippewa Indians, the Gun Lake Tribe of Pottawatomi Indians, the Little Traverse Bay Bands of Odawa Indians, the Nottawaseppi Huron Band of Potawatomi Indians and the Saginaw Chippewa Indian Tribe.

Bay Mills Indian Community purchases 30 acres of land in Flint Township | WJRT-TV

WJRT-TV ABC-12

Bay Mills Indian Community purchases 30 acres of land in Flint Township | WJRT-TV

GENESEE COUNTY -- (12/30/10)--The Bay Mills Indian Community has purchased 30 acres of land in Flint Township but has not publicly said what it intends to do with it.

The property is located at the northeast corner of Lennon and Dutcher roads. The quit claim deed for the site was recently filed with the Genesee County Register of Deeds.

The speculation is a casino could be built at the site.

The Bay Mills Tribe already operates a small casino in the northern Michigan community of Vanderbilt.

Google Maps: Bay Mills Indian Community Current/Proposed Casino Sites

The Bay Mills Indian Community has its reservation in Brimley (MI) where it also operates two casinos.

The tribe acquired properties in Flint Township, Port Huron and Vanderbilt (MI) during 2010. It opened a small casino in Vanderbilt in November 2010 but that facility was ordered closed by Court Order in Spring 2011. The tribe has indicated it will open a casino with 1,500 slots on the Port Huron site (former Port Huron Post Office) in the next 12-18 months. Tribal leaders will appear before the Flint Township Board on Monday, Oct 3rd, where it is rumored they will unveil plans for a casino at that location.

This Google map plots the Bay Mills current/proposed casino locations:

View Bay Mills Indian Community Lands in a larger map

For more than two decades, Detroit casino syndicator Michael Malik (Blue Water Resorts), with support from Detroit's Ilitch family (namely Mrs. Marian Ilitch), has bankrolled and pushed various failed Bay Mills casino schemes for Port Huron. During that same time, Malik (Lucky 7 Development, Grande Pointe Development) has also failed to win approval for various schemes to develop a marina on Harsens Island.

Michigan Petition Drive could let voters approve expanded gaming in Detroit, Port Huron and elsewhere

Revamped petition drive seeks Port Huron casino
9.23.2011

by Cliff Schrader, WGRT-FM 102.3

…Our casino quest appears to be in limbo until the Bay Mills Indian Community's July 2012 federal court date. But the truth is there's a war going on.

The court case of Bay Mills vs. the State of Michigan and the Little Traverse Bay Bands of Odawa Indians regarding Bay Mills' Vanderbilt casino is understood to hold our future. What happens with Vanderbilt determines the fate of Port Huron's casino.

If Chief U.S. District Judge Paul Maloney, the same judge who closed the Vanderbilt casino in a preliminary injunction earlier this year, rules against Bay Mills, Port Huron's casino bid likely dies.

Just weeks ago, Bay Mills sued Michigan Gov. Rick Snyder, declaring the land in Vanderbilt is tribal land and the state has no say in their casino operation.

At the same time, the state appears to have upped the ante. It amended its complaint against Bay Mills by adding Bay Mill's tribal elected officials and gaming commissioners as defendants.

It appears state Attorney General Bill Schuette is putting individual tribal leaders' necks on the chopping block. I was told the state believes it will be able to criminally prosecute individual tribal leaders for violating Michigan's gaming laws.

So much for the secret deal local good old boys had this community believing was cut with the attorney general's office. After some minor push back, the attorney general was supposed to cut a deal to let Bay Mills have the Port Huron casino site as a settlement.

That proved to be nothing but smoke.

But Michigan Is Yours is back. The brainchild of the late Frank Stella, the campaign's aim is to jumpstart Michigan's economy.

In early 2010, Michigan Is Yours launched a petition drive to amend Michigan's Constitution to add seven new casinos. At first, Port Huron was on that list, but was bumped. Mount Clemens replaced us.

The drive needed 380,000 signatures by July 5, 2010, but failed. It was about 30,000 short, Billy said.

This time, Port Huron is back in the mix. Billy said new ballot language was approved last week by the Michigan's Bureau of Elections.

It reads: "An initiative petition to amend the Constitution of the State of Michigan by adding Section 43 Article IX to promote the economic development of the state; to authorize casino gaming at no more than seven casinos which shall be located in Grand Rapids, Lansing, Detroit, Romulus, Benton Harbor, Saginaw and Port Huron."

The new petition drive has until March 15 to collect 320,000 signatures -- 60,000 less than last time. Billy said Michigan Is Yours is well on its way to raising $20 million to make this happen.

While there is much in the fine print, the law will mandate at least 19% of adjusted revenues will go to Michigan ventures…

Read full column as originally posted

in Governor John Engler's opinion, "Michigan has enough casinos"

October 4, 1999

Michigan has enough casinos

By JOHN ENGLER

For some time now, the Bay Mills Indian Community has been claiming that it will build a casino near Vanderbilt.

Recently, the Sault Ste. Marie Tribe of Chippewa Indians has proposed a competing casino for Bagley Township.

With 16 tribal casinos currently operating in our state, two more authorized in southwest Michigan and three more authorized in the city of Detroit, the state of Michigan has more than enough casinos. Consequently, I will not permit the operation of the facilities proposed for Otsego County.

Although the federal Indian Gaming Regulatory Act, or IGRA, allows tribes to conduct casino gaming, tribes may not do so on off-reservation sites that were not held in trust in 1988 unless they have the governor's consent. This requirement applies to lands in Otsego County - and I will not consent to casino gaming there.

The Bay Mills Tribe, and perhaps the Sault Tribe as well, will argue that there is an exception to the requirement of gubernatorial consent for land taken in settlement of a land clam. They are correct. This exception does not apply, however, where the property "taken" in settlement lies many miles from the property claimed. Because the tribes do not have historical claims to any land in (or even near) Otsego County, there is no loophole in IGRA that would allow them to open the proposed casinos.

This fundamental flaw in the Bay Mills Tribe's theory applies even if Congressman Stupak's bill to "settle" tribal claims to the Upper Peninsula's Charlotte Beach passes in Congress. I find it remarkable that Congressman Stupak would step in at this late date and join with the Bay Mills Tribe in using the Charlotte Beach homeowners as political pawns. Make no mistake about it - Congressman Stupak's proposal is solely about trying to give the Bay Mills Tribe an otherwise illegal casino in Otsego County.

Although Congressman Stupak claims to be concerned about the rights of these property owners, the state of Michigan has stood by these properly owners since day one, defended them in court, and won the dismissal of the Bay Mills lawsuit against the Charlotte Beach owners. I have no doubt that this dismissal will hold up on appeal, largely because the Sault Tribe has acted responsibly and refused to join with the Bay Mills Tribe in suing their neighbors.

In short, without my consent, any tribal casinos in Otsego County would be illegal.

Local governments, businesses and residents should bear this in mind when listening to casino proposals from Indian tribes. Local government leaders should also be aware of a bill proposed by state Senator Mike Rogers that would require a local government supporting a gaming facility to reimburse other governments in the county for any increased costs attributable to that facility (Senate Bill 301). That bill would require the local government to forfeit revenue sharing funds.

Local businesses should know that I will be supporting legislation to penalize businesses that contract with gaming facilities that are not certified by the state of Michigan as operating within the law.

Finally, local residents should know that working in an illegal gaming facility is a crime.

I hope that this forum letter clarifies my position and serves to end fruitless discussions about casino gaming in Otsego County.

About the author:

John Engler is governor of the state of Michigan.

This was published as an opinion piece by the Traverse City Record Eagle, October 4, 1999.

http://www.record-eagle.com/1999/oct/04engler.htm

You may also want to review these posts:
The Verifiable Truth: Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then returned to private practive, retained by those who got the deal
The Verifiable Truth: Port Huron struggles, is worthy of a break; but editor fails to recognize local casino plan has national shockwaves, which supersede local needs

The Detroit Gaming Syndicators: Marian Ilitch, Michael Malik and Tom Celani

For almost 15 years, the trio of Detroit business leaders has been entangled in a web of casino syndication companies and affiliates. Together they bankrolled MotorCity Casino, The Little River Casino Resort in Manistee and various urban casino proposals with Harrah's and the Bay Mills Indian Community.

In 1993, Thomas Celani (a Bloomfield Hills, MI businessman; once president of his family's prized Detroit Miller Brewing distributorship; ventured into gaming as a major shareholder in slot machine manufacturer SODAK Gaming Inc.) first partnered with Michael J. Malik, Sr. (a Detroit area developer and self-identified entrepreneur) to form North American Gaming (NAG), a developer and operator of gaming facilities. Concurrently Celani formed TVC Enterprises Development Co. to represent his interests and at the same time Malik formed MJM Enterprises Development Co.

Their first big idea came together in 1994: a Bay Mills Indian casino in the Ilitch dominated Foxtown area of downtown Detroit in partnership with Harrah's; the casino would fund a new adjoining major league baseball park. While that plan made little progress, it was the start of an ongoing relationship between Celani, Malik, the Ilitch Family, the Bay Mills Indian Community and Las Vegas heavy-hitters like Harrah’s, Circus Circus and MGM Mirage.

North American Gaming backed and helped finance the 1994 casino ballot proposals in Detroit. Although approved by local voters, Governor Engler blocked the Detroit casinos from moving forward at that time.

In November 1996, Michigan voters statewide approved Proposal E, the creation of three Detroit casinos, by a 52-48 percent margin out of nearly 3.5 million votes cast. Z.R.X. L.L.C. (ZRX), a partnership that would include Celani, Ilitch and Malik bankrolled the campaign supporting Proposal E by contributing $5 million+ to fund an “11th hour” campaign advertising blitz. In recognition of their role in the success of Proposal E, Atwater Entertainment Associates a partnership of more than 100 Detroit area leaders who had originally contributed at least $25,000 each for membership in the LLC had agreed to form Atwater Casino Group (ACG) with ZRX and awarded Celani, Ilitch and Malik 85% ownership interest in ACG.

Within months of the Proposal E victory, Celani and Malik had brought in Circus Circus Enterprises and together with Atwater Casino Group formed Detroit Entertainment LLC, the company behind MotorCity Casino. Circus Circus agreed to provide the capital funding needed for the planning and development of MotorCity Casino and also reimburse Malik and Celani for the costs of the Proposal E campaign -- reimbursement of political contributions is generally not legal in states with post-Watergate political reform laws. Circus Circus would oversee MotorCity's management once it opened. And on November 20, 1997, Detroit Mayor Dennis Archer announced Detroit Entertainment would be one of two entities invited to negotiate casino development agreements with the City of Detroit.

In 1999, word leaked out of the Michigan Gaming Commission that several casino investors wouldn’t be qualified for gaming licenses. Malik was one of those individuals. Before facing disqualification and a reduction of share price, Malik sold his shares in MotorCity Casino to Marian Ilitch, moved into the offices of Ilitch Holdings, Inc. and then went into partnership with her on other gaming projects. Celani and Ilitch retained their collective 35% interest in MotorCity Casino.

Tom Celani was one of those Marian Ilitch bought-out in 2005 when she acquired 100% ownership of MotorCity Casino; however, not before Celani and other minority shareholders in MotorCity Casino sued Ilitch, seeking damages of more than $50 million, saying she violated the terms of their partnership when she negotiated the deal to buyout Mandalay Resort Group's 53.5% interest in MotorCity.

At the same time the trio pursued gaming opportunities in Detroit and plans to establish MotorCity Casino, their North American Gaming (Celani, Malik & Ilitch) began working with the Little River Band of Ottawa Indians on plans for a Manistee, MI, casino resort and the necessary gaming compact required from the State of Michigan. They were instrumental in gaining Compact approvals in 1998.

In July 1999 the Little River Band of Ottawa Indians signed a management services agreement with Celani, Malik, and Manistee Gaming LLC. Celani and Malik were the first in Michigan to be awarded such a contract by an Indian casino. The National Indian Gaming Commission (NIGC) permits such outside contracts for tribal casinos for the first five years of operation with payments up to 30% of profits. The tribe opened their temporary Little River Manistee Casino that same month.

1999 served to be a banner year for Tom Celani when he reportedly pocketed more than $30 million upon the sale of Sodak Gaming Inc. of Rapid City, S.D., to the world's biggest slot machine maker, International Game Technology (IGT) of Reno, Nev. Celani was flush with cashand poised to make some new significant investments.

Throughout the better part of the 1990s; Tom Celani, the Ilitch Family and Michael Malik, expended substantial resources pursuing opportunities in Michigan to expand commercial and Indian gaming. With a couple of big success stories under their belts, the trio decided to parlay their experience beyond Michigan but took different paths.

Starting in 2000, Ilitch and Malik pursued casinos in New York; Hawaii; Barstow, California; and with the Bay Mills Indian Community. It's unclear if Celani was also an investor in any of these projects. In fact, it's not known who if anyone else Ilitch and Malik have included in their various ventures.

Celani, working with attorney James D. “Jim” Oegema, headed west and partnered with the Smith River Rancheria (Smith River Gaming LLC); Paskenta Band of Nomlaki Indians (Luna Gaming –Corning LLC); and Ewiiaapaayp Band of Kumeyaay Indians (Luna Gaming-San Diego LLC). They acquired ownership in the commercial Red-Dolly Casino in Blackhawk, Colorado. Today Celani has consolidated his numerous business ventures under the “Luna” family of companies’ banners: Luna Gaming, Luna Properties and Luna Entertainment. Luna, among other assignments, will now manage the casino in the Cal Neva Resort at Lake Tahoe once owned by Frank Sinatra.

Ilitch bankrolling Bay Mills Indians for more than a decade

Team Ilitch has been bankrolling efforts by the Bay Mills Indian Community to build another casino in Port Huron, MI

A surrogate testified last month (November 2006) that more than $10 million has been spent in legal fees alone.

Previously, publicists for Detroit's Ilitch Family (Mike and Marian Ilitch and their seven children), founders of Little Caesars pizza carryouts and owners of the Detroit Tigers and Detroit Red Wings sports teams, have craftly denied any significant commitment to or stake in plans for another Bay Mills Indian Community casino -- this one in Port Huron, MI.

Documents filed with the Securities and Exchange Commission indicate in 1994 Michael Malik and Tom Celani, Ilitch business associates, introduced the Bay Mills Indian Community to the Ilitches when the pair proposed the Indians develop an off-reservation Harrah's managed casino in the Foxtown area of Detroit (the Ilitches have substantial real estate holdings in Foxtown). That proposal eventually died. But now, Marian Ilitch (through Ilitch Holdings, Inc. subsidiary IH Gaming, Inc.) owns 100% of MotorCity Casino, one of Detroit's three large commercial casinos.

Then there were reports of Ilitch and affiliates' involvement with Bay Mills Indians land swap proposals for Auburn Hills, Vanderbilt, Charlotte Beach and Port Huron:

06.16.05
NewsDay.com

". . . In the 1990s, both backed the Bay Mills Indian tribe in their ultimately failed bid to construct a casino in Port Huron, Mich. . ."

But now, there's been recent confirmation that the Ilitches and their casino syndication associate Michael J. Malik, Sr. remain invested in and active with the Bay Mills Indian Community in Port Huron:

11.20.06
Port Huron Times Herald

" . . . Mike Malik, a Clay Township native who has been working with the Ilitch family for six years to develop a casino at the Thomas Edison Inn, raised several questions at that March council meeting.

"He expressed doubt, for example, that all 11 of Michigan's recognized Indian tribes would endorse DeFeo's casino. A single tribe could block the project, including the Bay Mills band that's part of the Edison Inn proposal. . ."

". . . Dick Cummings, president of the Michigan Machinists Council and a strong supporter of the Malik-Ilitch casino, went even further.

"I'm no genius, but I can do the math," Cummings said. "If a person goes around asking $100,000 a point, that adds up to $10 million. Well, no one builds a casino for $10 million. You don't build the parking garage for that. (Malik and the Ilitches) have spent more than $10 million just in legal fees."

You may also want to review these posts:
The Verifiable Truth: Rep. Candice Miller introduced HR 813 on February 13, 2003 to approve settlement of unsubstantiated land claims and a casino for Port Huron

The Verifiable Truth: Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then returned to private practive, retained by those who got the deal

The Verifiable Truth: 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.