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.

Reservations Rebuffed: Off-Reservation Gaming Policy

3.23.08

Reservations Rebuffed

By Shawn Zeller, CQ Staff

Tribal casinos, which have bulked into a multibillion-dollar industry since Congress first gave them its blessing two decades ago, now possess all sorts of economic and political clout — but not enough, it seems, for them to go off the reservation.

American Indians marooned on reservations far from population centers have long pressed the Interior Department to grant them the authority to launch gambling operations closer to where the people willing to risk their money live — and rake in the sort of revenues that the more fortuitously situated tribes have enjoyed.

These tribes argue that the mass repatriation of Indians onto federal reservations in the 19th century was originally an unjust process driven by little more than federal fiat and so shouldn’t form any basis for sound policy now. What’s more, they argue, tribes now flush with gambling money, such as Connecticut’s Mashantucket Pequot Tribal Nation, came into possession of optimally sited reservation land via controversial treaties that often had little or nothing to do with the location of ancestral land.

But in January top Interior officials wrote to rebuff 11 tribes that were waiting on applications to acquire new land for casinos. (Eleven others were told their applications were incomplete.) At the same time Interior made public a new policy that, in the tribes’ view, makes it nearly impossible for them to win approval for any desirable off-reservation site.

Their letters contended that siting casinos too far from existing reservations would not produce meaningful employment opportunities to tribe members — a claim the petitioning tribes hotly dispute.

“When I received the notice, I hit the roof,” says Lorraine White, chief of New York’s St. Regis Mohawks. “It is completely contrary to our belief about the law.” The Mohawks, whose reservation is on the Canadian border, have plans with Empire Resorts Inc. to construct a 125-table, 3,500-slot-machine casino 350 miles to the south in the Catskill Mountains — less than a two-hour drive from Manhattan — and had secured the backing of local leaders and the state of New York.

What usually does off-reservation casinos in is opposition from local communities, as opposed to policy judgment calls from Washington. But the sweep of this year’s rejections by Interior suggests the federal consensus is hardening further against off-reservation gambling. And Interior’s new policy “makes impossible what was already nearly impossible,” says I. Nelson Rose, a law professor at California’s Whittier Law School who specializes in gambling.

In setting the policy, Interior cited a 1934 law intended to promote reservations as economic hubs for tribes. Under that law, the department says, it must subject off-reservation sites to greater critical scrutiny — the more so if they’re far removed from a tribe’s reservation. Applying that reasoning to the pending casino operations, Interior ruled that gaming facilities that are not within commuting distance of a reservation, apparently about 75 miles, could undermine reservation life.

“Interior essentially said they know better what’s good for the tribe than the tribe does,” says Tom Shields, a spokesman for California’s Los Coyotes Band of Mission Indians, who have been seeking for years to build a casino in Barstow, 150 miles north of their reservation and a couple of hours by car from Los Angeles. That tribe’s plan has overwhelming local support, Shields contends, but it was among the 22 nixed in January.

Interior spokesman Shane Wolfe said he could not comment on the policy change because of pending litigation. Wisconsin’s St. Croix Chippewa filed suit in federal district court in Washington in December charging Interior with violating Congress’ intent in the 1988 law sanctioning Indian gambling.

The Mohawks also filed suit in January but have since dropped the case, White says, in order to step up efforts to lobby Congress on the issue. West Virginia Democrat Nick J. Rahall II , the chairman of the House Natural Resources Committee, introduced a bill this month that would mandate a consultative process with Indian tribes before Interior could adopt further changes.

The federal government has “a moral obligation” to consult with the tribes, Rahall says; the Bush administration’s handling of the issue, he adds, evinces “a clear disregard for that legal, political and moral responsibility.”

Mike Malik's contributed more than a quarter million dollars to federal political campaigns

OpenSecrets.org reports that Michael Malik has contributed more than $250,000 to federal candidates and campaigns since 2002.

OpenSecrets.org also reports that Michael Malik contributed more than $10,000 to seven committees during 2004 and reported to each that his employer was Ilitch Holdings, Inc., formed by Mike Ilitch and Marian Ilitch as the parent company of the Detroit Tigers, Detroit Red Wings, Little Caesars Pizza, IH Gaming, Olympia Development, Olympia Entertainment and various other Ilitch-family owned entities. Marian Ilitch owns MotorCity Casino. The Michigan Gaming Control Board (MGCB) denied Michael Malik a license in 1999 prohibiting him from ownership of MotorCity Casino.

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.

Marian Ilitch: Homemaker or 'Nation's Top Businesswoman"

When contributing to federal political candidates and campaign committees Marian Ilitch (Mrs. Mike Ilitch) routinely lists her occupation on Federal Election Commission (FEC) documents as "homemaker;" although, her biography on the Ilitch Holdings, Inc. Web site refers to Mrs. Ilitch as the "Nation's Top Businesswoman:"

Nation’s Top Businesswoman

Marian has earned a reputation as a dynamic force in the restaurant and entertainment industry. She continues to blaze new trails and respond to the changing needs of the marketplace. Marian Ilitch has received many awards including:

• Named one of Detroit’s Enterprising Women by the Detroit Historical Society in partnership with the Women’s Economic Club, National Association of Women Business Owners, Greater Detroit Chapter and Crain’s Detroit Business. (2004)


• Inducted into the Michigan Women’s Hall of Fame (2001)


• Named Michigan Executive of the Year by the Wayne State School of Business Administration (1999)


• Hospice of Southeastern Michigan Council Crystal Rose Award for leadership, compassion and dedication to the community (1997)


• American Red Cross of Southeastern Michigan for aiding emergency services and the work of the Red Cross friends (1996)


• Working Women Magazine - recognized as the number one women business owner in the nation (1994)


• Greater Detroit Chapter of the National Association of Women Business Owners - recognized as one of Michigan’s Top 25 women business owners (1994)


• Roundtable for Women in Foodservice Pacesetter Award in recognition of lasting and outstanding contributions made by women in foodservice (1988)


• Crain’s Detroit Business Top Women in Business Honoree (2005)

Congresswoman alleges collusion in off-reservation casino scheme

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

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

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

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

Michael Malik's multi-million dollar home is on the block; take a virtual tour

Multi-million dollar homes owned by Detroit-based casino syndicator Michael J. Malik, Sr. and his ex-wife (at least one of which has been in foreclosure and the subject of a Sheriff's Deed) are now on the block:

MLS#30576785
$3,950,000 GROSSE POINTE SHORES

591 LAKESHORE RD

5 bedrooms 4.1 bathrooms

Square Footage: 9091

School District: Grosse Pointe

Virtual Tour

More Details

Map

MLS#27197320
$3,800,000 GROSSE POINTE SHORES

583 LAKE SHORE RD

4 bedrooms 5.1 bathrooms

Square Footage: 6016

School District: Grosse Pointe

More Photos

More Details

Map

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.

Presidential candidates and the future of off-reservation casinos

3.18.08

Casino no done deal for tribal leaders
Wampanoag bid faces US hurdles

By Matt Viser
Globe Staff

Governor Deval Patrick has repeatedly argued that the state should license casinos because, with or without state approval, the Mashpee Wampanoag tribe will inevitably build one under federal rules. But, in reality, Wampanoag tribal leaders have embarked on a venture that is fraught with uncertainty, their hopes for gambling riches by no means guaranteed.

Daniel O'Connell, the state secretary of economic development and Patrick's chief gaming adviser, recently expressed confidence.

Casino's chances
Most immediately, the fate of the tribe's casino proposal could hinge on the outcome of the 2008 presidential election. A victory by Senator John McCain, who strongly opposes so-called off-reservation Indian casinos, could derail the Wampanoags' effort because they are seeking to build 25 miles from their headquarters on Cape Cod. Even a victory by Democrats Hillary Clinton or Barack Obama, who have murkier positions on tribal gaming, would not make a tribal casino a foregone conclusion. (Complete Original Story)

MotorCity Casino loses PR Team to Detroit's Wright Museum

A story published 3.18.08 in the Detroit News reported that Juanita Moore, president and CEO of Detroit's Charles H. Wright Museum of African American History, has hired not only:

"a full-time archivist and the museum's first group-sales coordinator, but also a new public-relations team that she lured away from MotorCity Casino."

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

MGM Detroit Casino revenues up nearly 30%; while MotorCity Casino revenues fall

3.12.08

Glitzy MGM beats the competition
Revenue at Detroit casino jumps, but dips at others

BY MARGARITA BAUZA

Joan and Richard Booth of Erie drive to Detroit three times a month to visit the MGM Grand Detroit, their pick of the metro area's casino competition.

They play slots, eat at one of MGM's restaurants, visit with their son who lives in Detroit, and then drive 50 miles home.

"This is so nice," said Joan Booth, 66, as she prepared to enter the gaming floor Tuesday with her husband.

With February revenue of $47 million, up 27.9% from the same month a year ago, the glitzy entertainment mecca appears to be immune to the area's sagging economy.

Revenue for the MotorCity and Greektown casinos dipped 2.25% and 6.89%, respectively, this February when compared with a year ago. MotorCity took in $38.3 million and Greektown took in nearly $27 million...

...MotorCity spokeswoman Jennifer Kulczycki said construction has had an impact on its performance.

"We've been aggressively advertising that we're open and here," she added. "The general economy is a concern for us."

MotorCity casino's permanent facilities are not fully open yet. The gaming area, hotel and fine-dining restaurant are open. Still to open are a full-service spa, to open in the hotel in April. An ultra lounge is to open shortly thereafter. A convention center and 1,800-seat theater for live entertainment, musicals and comedy are to open in the spring or summer... (Original Story)

House Judiciary committee to probe matters surrounding Port Huron casino deal

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

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

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

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

Was Michael Malik involved with Rep. Renzi's land schemes?

2.23.08

Renzi and Republicans

Extortion and money laundering are usually the province of gangsters, not Western Congressmen. That changed yesterday with the indictment of GOP Representative Rick Renzi of Arizona on charges that he used his seat on the House Natural Resources Committee to enrich himself through a trail of payoffs on land deals.

Prosecutors allege that Mr. Renzi used his clout to push land sales that could then be traded for other property owned by the federal government. Companies that wanted to trade acreage in exchange for federal land they considered promising for mining opportunities were encouraged to buy property belonging to one of Mr. Renzi's business partners. In return, they were promised a smooth ride with the committee on the land swaps. When the sales went through, the Congressman allegedly got a cut of the proceeds from his pal, at least $733,000.

Mr. Renzi has already said he isn't seeking re-election this year, and his lawyer said yesterday that "We will fight these charges until he is vindicated." But the indictment alone will remind many voters of the kind of corruption and arrogance that contributed to the GOP's defeat in 2006. Other Republicans are still under investigation for misusing Congressional power, and further indictments can't be ruled out.

The Renzi episode is the residue of what might be called the Tom DeLay era of Congressional rule, when keeping power for its own sake became the GOP goal. Current Republican leaders, now and perhaps for years to come in the minority, tell us they resent our antiearmarking editorials. But Republicans aren't going to win back voter trust if they don't once again become the party of reform and modest government, instead of dubious land swaps.

Rep. Renzi's committee, donor may have falsified disclosure records

You can tell a lot about a Capitol Hill lobbyist by the company they keep