Ilitch Unlikely to get Taxpayer Subsidies for a New Detroit Hockey Arena

New Detroit hockey arena likely faces funding hurdles
Unlike Comerica Park, Ford Field, public money likely a tough sell this time around
10.22.2011

By Louis Aguilar

When Detroit Red Wings and Detroit Tigers owner Mike Ilitch recently pledged again to build a new arena in downtown Detroit, economic analysts said it was not an empty promise.

Despite an uncertain economy and a lack of public appetite for sports facility subsidies, building an arena in Detroit is still doable, but would require some creativity, they said.

"He's going to have to make a dramatic statement of faith in Detroit again to build a new hockey arena," said Scott Watkins, an economist for Anderson Economic Group in East Lansing, who has done analyses on building sports venues. A new hockey arena would cost an estimated $300 million to $400 million to construct.

"Mr. Ilitch and Red Wings fans see Hockeytown — a city and region very loyal to professional hockey," Watkins said. "What global lenders see is a risky investment. Their view is there would be no guarantee that for 10, 20, 30 years a hockey franchise can be supported in an area with declining population and declining income."

The hockey arena has been a long quest. Ilitch for five years has actively explored building a new arena downtown to replace the 35-year-old Joe Louis Arena and more recently said he wants to construct such a facility. The hockey team and city-owned Joe Louis Arena are still negotiating an extension of the lease.

"Like I've stated before, we're gonna have a new arena," Ilitch told The Detroit News last month during an exclusive interview. "That's the best thing I can say." On Friday, Ilitch Holdings announced that Eric Larson, an A-list real estate developer with a long track record of high-profile deals, is now in charge of all current and future real estate transactions for Olympia Development, the Ilitch entity that would play a big role in a new hockey arena deal.

There are bigger obstacles for Ilitch to clear on a new arena than he had to overcome to build Comerica Park, the home of his Tigers. The path of public and private financing Ilitch took to create the ballpark is likely unavailable to him now, several analysts contend.

Comerica Park opened in April 2000 and cost $300 million to build. Ilitch paid $185 million of the cost of the stadium, owned by the Detroit-Wayne County Stadium Authority, and subleased to the team. The rest was paid for by the city of Detroit, Wayne County and corporate investors. The state of Michigan provided infrastructure improvements.

The stadium authority issued $85 million in 30-year tourist tax bonds in 1997 for the baseball stadium and, with interest, will pay about $176 million by 2027, according to the stadium authority. The bonds are paid twice yearly with revenue from a 2 percent rental-car tax and 1 percent hotel tax in Wayne County. The tax needed Wayne County voter approval.

In this era of painful budget cutting, getting voter approval for another venue is a tough sell, said Bernie Porn, president of EPIC-MRA, an opinion research firm in Lansing that does polling on statewide issues.

"The Tigers could win the World Series, the Red Wings could win the Stanley Cup, and I still don't see how he (Ilitch) gets voter approval for an arena," Porn said.

"Not that I have done any polling about the issue, but in this climate, I think it would be seen as a billionaire is asking for a tax break," he said. "But if you are asking me if he gets it done, I think that answer is yes."

What Ilitch has is rock-solid support in Michigan's corporate community and plenty of his own resources. Mike Ilitch and his wife, Marian, owner of Detroit's second-largest gaming hall, MotorCity Casino, have a combined fortune of $2 billion, according to Forbes magazine. That includes their Little Caesar's pizza franchise empire headquartered in downtown Detroit.

He also could get major help from other Michigan businesses. In September, the Red Wings announced the organization signed a "presenting" sponsor agreement with Amway, the private Ada-based company owned by the DeVos and Van Andel families. Terms of the multiyear deal were not disclosed, but the deal includes Amway's logo being embedded in the ice and signage elsewhere at Joe Louis Arena, and community programs to help young people in Grand Rapids and Detroit.

What the Ilitch, DeVos and Van Andel families share are deep pockets and a love of professional sports.

Amway co-founder and billionaire Richard DeVos owns the National Basketball Association's Orlando Magic, and the team backed $100 million worth of bonds issued by the city of Orlando to build the $480 million Amway Center, which opened last year.

DeVos also supplied $50 million to help build it and $1 million in rent each year and $40 million to put the Amway name on the building.

"The resources are there for the arena to get done," Watkins said. "I'm looking forward to see what the formula will be."

Hawaii Lobbyist Confirms He Continues to Rep Detroit Casino Syndicators Malik & Ilitch

Further confirmation that Detroiters are behind renewed debate over gaming, gambling and casinos in Hawaii. And that John Radcliffe is still an agent of Detroit casino syndicators Michael Malik and Marian Ilitch.

Trademark filing spurs speculation about Ko Olina casino

10.25.2011

John Radcliffe, a well connected Honolulu lobbyist, confirmed Tuesday he’s been hired by Marketing Resource Group [Tom Shields] to try and persuade state lawmakers about the economic benefits of gambling. The Michigan based company represents MotorCity Casino, Gateway Casino Resorts and Barwest Gambling, L.L.C., according to its website.

HawaiiFreePress.com: Gaming Industry Lobbyist, Progressive activist screen Abercrombie cabinet picks

Why is Detroiter Mike Malik Dragging former Hawaii Governor Waihee around Long Island, NY?

The Long Island Herald is reporting that Detroit Casino Syndicator Michael Malik presented further details about his plans to develop a casino using a partnership with the Shinnecock Indian Nation at an appearance before the Elmont Chamber of Commerce on October 20th.

(lt-to-rt) lobbyist Michael McKeon, attorney Lance Boldrey,
 Gov. John Waihee & Detroit Syndicator Michael J. Malik

The Herald reports, "Malik's associates, Michael McKeon, Lance Boldrey and John Waihee also attended the meeting."

Michael McKeon is a partner with Mercury Public Affairs, a New York-based lobbying and communications firm that Malik/Ilitch (Gateway Casino Resorts) affiliates retain. Lobbying disclosures suggest that Malik/Ilitch have paid Mercury more than $1.5 million to lobby New York officials in support of their various Shinnecock casino schemes.

Lance Boldrey is an Indian law attorney at the Dykema law firm. He works near exclusively with Malik/Ilitch affiliates. His official bio indicates he is "primary counsel to Gateway Casino Resorts, the development and management partner of New York's Shinnecock Indian Nation."

John Waihee is the wildcard in this group. TVT has not previously seen his name associated with the Detroiters or their affiliates. John D. Waihee III is the former Governor of Hawaii (1986-1994) and previously served as Lieutenant Governor (1982-86). While Governor, Waihee opposed gambling in Hawaii and routinely threatened to veto any such bill that would pave the way for or establish gambling.

In 2006, American Express filed suit against Waihee attempting to collect $72,000 he owed on two credit cards. In November 2004, the Bank of Hawaii filed a foreclosure lawsuit against Waihee and his wife, Lynne, concerning the couple's Nu'uanu home. Their son, John D. Waihee IV, has been an elected trustee of the Office of Hawaiian Affairs since 2000 and the first son of a former Hawaii governor ever elected to state public office.  In 2007 he was arrested on DUI charges and plead no contest.

Governor Waihee is a Honolulu attorney who is reported to be close to Bill & Hillary Clinton. Gov. Waihee has been linked to various controversies since leaving office.  Most recently allegations surfaced regarding his role in the financial failure of RightStar Hawaii, the largest group of funeral homes in the state.

One existing connection is John Radcliffe, a Hawaii lobbyist and political operative (Radcliffe & Associates / Capitol Consultants of Hawaii, LLP) who has represented Malik/Ilitch gaming interests from 2001-2008 through an affiliation with Tom Shields' firm Marketing Resource Group.  Radcliffe has also included Gov. Waihee among his clients. In 2010, Radcliffe was one of those screening potential Cabinet Officers for Hawaii Gov. Abercrombie.

Shinnecock Advised to Submit Gateway Casino Resorts Agreements to NIGC for Approvals

NIGC Opinion | March 2011

On May 1, 2003, now-convicted felon Ivy Ong entered into an agreement with the Shinnecock Indians (Long Island, NY) to develop, construct, manage and operate gaming facilities for the tribe.  Mr. Ong and his affiliates were to be the exclusive manager responsible for hiring key employees; developing policies, procedures and internal controls; marketing and budgeting.

Ong transferred his exclusive rights under the Shinnecock agreement to Detroit-based Gateway Casino Resorts (Michael Malik & Marian Ilitch) on March 19, 2004.  It has been reported that Gateway paid $25 million to assume the agreement.  Collateral agreements are reported to include, but are not limited to, the March 2004 Assignment to Gateway, naming Gateway manager of the facility;  a March 2004 “Addendum” contemplating the acquisition and development of additional gaming sites; and a March 2004 consulting agreement which has Gateway developing internal controls and security and accounting systems for the casino.

On March 16, 2011, National Indian Gaming Commission (NIGC) counsel issued an opinion to Donna Collins Smith, Chairwoman of the Shinnecock Gaming Authority, advising that the Shinnecock/Gateway Agreement and associated agreements be submitted to the NIGC Chairwoman for approval under the Indian Gaming Regulatory Act (IGRA).  Counsel explained that such management contracts not approved by the Chairwoman are considered void.

If there has been a response from the Shinnecock or if the Shinnecock Gaming Authority has submitted the Agreement for approval, TVT is unaware of such.

Ilitch Hires Larson for Downtown Detroit Development

GlobeSt.com - Ilitch Hires Larson for Downtown Development

10.25.2011

By Robert Carr

Eric Larson | Olympia Development

DETROIT-Ilitch Holdings Inc. has hired Eric Larson, CEO of Bloomfield Hills, MI-based Larson Realty Group, as head of its property group. Mike Ilitch, the founder of the Little Caesars pizza franchise, holds one of the largest portfolios of downtown property through subsidiary Olympia Development.

Ilitch’s son Atanas stepped down as president of Olympia Development in mid-June to “focus on private outside business ventures.” Olympia is known for the redevelopment of the Fox Theatre, the Hockeytown Café and the development of Comerica Park, the Detroit Tigers baseball stadium.

Olympia also has the lease on the Joe Louis Arena, the Detroit Red Wings hockey arena downtown. There was talk this past year of Ilitch possibly building a new stadium downtown if the purchase of the Detroit Pistons basketball team went through, but the team was instead bought by Los Angeles-based billionaire Tom Gores. Olympia continues a short-term lease of the 32-year-old Joe Louis Arena, and Ilitch has been mum on future plans.

Larson will head the Olympia Development team, but he hires on only as an executive real estate consultant, and will maintain his private real estate firm. With more than 25 years experience, he previously worked for Hines and Bruce S. Brickman & Associates Inc. before joining his father, the late Robert Larson, a former CEO of Taubman Centers Inc...

Detroit Red Wings Generates Millions for Ilitch; Franchise can always be subsidized by other Ilitch Holdings enterprises

Wings can flex financial muscle

Team's below salary cap, can bulk up roster

10.23.2011

By Bill Shea

...Estimates for the 2009-10 season by Forbes show Detroit seventh in the 30-team NHL with $119 million in revenue and sixth in operating income at $15.3 million.

The team doesn't comment on its financials.

The salaries are offset by a deeply loyal fan base that keeps the Red Wings near the top of the NHL's attendance rankings every year.

Detroit has played two home games out of a slate of 41 this season, and both have been sold out at 20,066 each. That puts the Red Wings third in the 30-team NHL in per-game attendance average. It finished last season fourth in the league at 19,680 per game.

A single fan is worth $101.48 per game to the Red Wings, according to Chicago-based sports research firm Team Marketing Report's Fan Cost Index published last year. The National Hockey League's FCI average is $101.66.

The calculation is derived by a simple formula: A fan at Joe Louis buys a ticket at $51.73 (average price), a $6 beer, a $3.50 soft drink, a $3.25 hot dog, $20 for parking, a $7 program and a $10 hat.

A full season of sellouts at Joe Louis, based on the Fan Cost Index, would generate $83.4 million over the 41 home games. Part of that is handed over to the city in a form of a 10 percent ticket tax, 10 percent surcharge on concessions and 7 percent on suite sales.

The team once had 396 consecutive sellouts from 1996 through the start of the 2007-08 season -- which coincides with the economic collapse locally and nationally.

Detroit also picks up supplemental revenue from pricier tickets, suite rentals and advertising during the playoffs. And the deeper into the playoffs the Red Wings get, the more money the team collects.

The Red Wings also have made moves on the corporate sponsorship front. In September, the team inked a deal with Ada-based Amway Corp., the network-based direct-marketing giant, to become the team's first-ever presenting team sponsor. Financial terms were not disclosed, but that contract is thought to be a two-year, seven-figure deal.

The Amway logo now appears on all Wings-branded signage at Joe Louis, on tickets and elsewhere.

Detroit also extended a deal with Chrysler Group LLC in another relationship that it declined to discuss the financials.

Another line of revenue comes from broadcast rights: The Red Wings, Tigers and Detroit Pistons have separate 10-year broadcast deals, signed in 2008, with Fox Sports Detroit and collectively are worth about $1 billion.

And if there isn't enough revenue from the team and its various deals, owners Mike and Marin Ilitch can dip into their other businesses to subsidize it.

The family fortune comes from its $2.2 billion in annual sales from its Little Caesars pizza chain or the $446 million from Marian Ilitch's MotorCity Casino.

The Ilitches, who are planning to build a new downtown arena for the Wings in coming years, bought the then-moribund team for $8 million from Bruce Norris in 1982. Mike Ilitch also owns the Tigers.

His stewardship of the Wings has led to him be recognized as one of the top owners in pro sports by Sports Illustrated, ESPN and Haddonfield, N.J.-based Turnkey Sports & Entertainment Inc., which measures brand effectiveness and values of pro sports teams.

The Red Wings are the top team in The Hockey News' weekly power rankings.

"Another year, another spotless start for the NHL's model franchise," the magazine said. (Complete Story)

MotorCity Casino Workers will Vote on Tentative Labor Agreement Tuesday

Greektown Casino workers OK agreement

10.24.2011

By Joe Rossiter

Workers at Greektown Casino voted today to ratify a new, four-year agreement by a margin of 3-1, said Shawn Ellis, communications director for Teamsters Local 372.

The union vote was the first of three that will take place in the next several days. MotorCity Casino workers will vote on the tentative agreement Tuesday, and MGM Grand Detroit workers will vote Thursday. Voting will take place at the Teamsters facility at 2800 Trumbull Ave... (Complete Story)

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.

Hofstra University Says No to a Shinnecock Casino; Mayor Tells Conflicted Hofstra President Not Near Floral Park Either

Mayor Thomas J. Tweedy
Floral Park, New York

MAYOR'S MESSAGE
10.20.2011

Mayor’s Message Village of Floral Park: October 20, 2011

Hofstra University President Stuart Rabinowitz is being called upon by the Floral Park Task Force on the Development and Preservation of Belmont Park to immediately recuse himself from the Long Island Economic Development Council and to cease any further involvement with the group, especially concerning the potential location of a casino or moving the Nassau Veterans Memorial Coliseum from its present 77-acre site, which is adjacent to Hofstra’s 220-acre campus, to Belmont Park, which is owned by the State of New York. The Long Island Economic Development Council, which is co-chaired by Hofstra’s president, was launched this past July by New York Governor Andrew Cuomo, as one of 10 regional planning groups competing for $1 billion in state funding earmarked for local projects they determine to be part of their regional strategy. The Floral Park Task Force was formed as a result of the State of New York’s taking over control of Belmont Park from NYRA in 2008, and as a hosting neighboring community, Floral Park has been very concerned about the various plans that have been discussed concerning the future of Belmont Park.

Hofstra University President Stuart Rabinowitz has been the co-chairman of this important planning group that has been advising Governor Andrew Cuomo on Long Island’s regional priorities, including prioritizing the potential inclusion of Nassau County’s 77-acre site that is currently occupied by the Nassau Veterans Memorial Coliseum. This past summer, the taxpayers of Nassau County soundly defeated a referendum proposing that a new arena be built at its current site to replace the Coliseum, which was built in 1972. The New York Islanders have threatened to move if they are unable to play in a new arena when their current lease with Nassau County expires. There have been several proposals made concerning “the Hub,” including the Lighthouse Plan proposed by the New York Islanders’ owner Charles Wang, which was dramatically scaled back after a thorough review by the Town of Hempstead.

Representatives of the Shinnecock Indian Nation have also discussed having 40 acres of the Hub site set aside in order to build a casino. Hofstra President Rabinowitz has said, “We’re not only opposed to a casino [near] Hofstra University, but we have every intention of fighting it” according toNewsday [June 11, 2010]. Hofstra University President Rabinowitz has also told the New York Times ‘that the prospect of an adjacent casino would be “awful” and that scholars and researchers “would not be attracted to live in an area where there were busloads of New York City people coming to gamble.”’ New York Times [July 23, 2010].

While there are a host of projects in need of such funding on Long Island, under the leadership of Hofstra’s president, the planning group has apparently focused its initial attention on the 77-acre site, which is adjacent to Hofstra University’s 220-acre campus on Hempstead Turnpike. In the Long Island Regional Development Council’s submission of its 32-page report, less than 400 words are dedicated to the development and future of Belmont Park. Whatever the merits of redeveloping the 77-acre Hub site to fit nicely into the vision that not-for-profit landowner Hofstra University has for its own future, Hofstra’s president must not be the one leading the planning group making such decisions.

Floral Park has set forth its position. We support maintaining Belmont Park as a world-class thoroughbred racing facility, as it has been for over a century. Floral Park submitted its Statement of Principles to the State of New York in 2007, demanding that any discussions concerning the future of Belmont Park include its hosting communities in Western Nassau County. We respectfully, but unequivocally, call for Hofstra University President Stuart Rabinowitz to step aside and resign in order that the process leading to any proposed changes at Belmont Park are made transparently and fairly to ensure the communities surrounding Belmont Park are given the same consideration as Hofstra University has apparently been granted in determining the future of its neighboring 77-acre Coliseum site.

Motor City Casinos to Detail Deal to Workers

Casinos to detail deal to workers

10.21.2011

B y Louis Aguilar

laguilar@detnews.com

Detroit casino workers should get details of the tentative deal reached by five unions and the three gaming halls starting possibly as early as Saturday.

Union members will be briefed on the agreement this weekend, said Michelle Martin, spokeswoman for the United Auto Workers international union, whose Local 7777 was involved in the Detroit Casino Council talks with MGM Grand Detroit, MotorCity Casino-Hotel and Greektown Casino Hotel. A tentative deal was reached Wednesday.

On their websites and Facebook pages, the UAW local and UNITE HERE Local 24, which represents hospitality workers at the casinos, were not providing details of the tentative four-year agreement or even given a firm date and time when agreement briefings for members would be given. None of the casinos would reveal or confirm any details of the tentative contract.

The deal would cover the 7,090 licensed employees at the three casinos, and other workers who are not required to be licensed by the state's regulatory board.

Detroit has the country's fifth largest casino gaming market. Last year, the three casinos generated $1.38 billion in revenue, a 3 percent increase over 2009.

Some union workers have already declared they don't like the tentative deal. They have posted comments on the UAW Local 7777's Facebook page worrying that the four-year deal doesn't give them a sufficient pay hike and may increase health care premiums.

One worker identified as Carrie Williams said she worries that union families "cannot afford this contract." The casinos pushed for workers to pay for more of their health care coverage during this year's negotiations and in 2007.

Workers at all five unions authorized a strike if negotiations failed.

Group Backing Detroiters' Push for Casino Gambling in Hawaii Establishes YouTube Channel

Citizens for a Better Way | YouTube

So-called "Citizens for a Better Way," a third-party advocacy group manufactured to support Detroit gambling interests and their agenda to legalize commercial gaming and develop a casino in Honolulu, HI, has established a YouTube channel with videos featuring long-time Hawaii-based advocates for the Detroiters (Marian Ilitch, Michael Malik, etc.).

After one month, the number of views of the channel and its videos are minimal and most likely a result of visits by those who established the channel and uploaded the videos.

Bay Mills President Parker in Nov 2 General Election Run-Off; He's Controlled the Tribe for 20 Years

A Primary Election at the Bay Mills Indian Community was held Oct. 19. The following results have been announced and those in bold are headed to the General Election run-off Nov. 2:

Executive Council President: Jeff Parker* (208), Kurt Perron (189), Terry Carrick (94)

Vice President: Joseph LeBlanc  (181), Allyn Cameron (189), Corrine Cameron (119)

Secretary: Richard LeBlanc* (225), Sherri Schofield (118), Greg Parker (147)

Treasurer: John P. Lufkins* (252), Diane Teeple (126), Paula Carrick (110)

Councilperson: Dwight "Bucko" Teeple* (196), Jason A. LeBlanc, Sr. (70), Alexander Easton (144), Brenda Bjork (82)

Chief Judge: Shelly Deuman* (114), Leah M. Parish (84), Arthur J. LeBlanc (26), Levi D. Carrick, Sr. (226), Robert Passage (46)

Appellate Judge: Lynda Parrish-Pesola (172), Tim Kinney II (90), Randy Touchtone (116), Shannon Belk (281), Justin Teeple (214)

* incumbent

Terry Carrick,current Vice President, had challenged incumbent President Jeff Parker in the primary.

Further General Election details (early balloting requests, etc.) are available via Bay Mills News.

Jeffrey Parker: 20 year Grip on Bay Mills Council

Jeff Parker was first elected President of the Bay Mills Executive Council in 1989.  In 2001 he was defeated by L. John Lufkins but Parker won back the seat and has held onto the President’s office since 2003.  Parker and Malik had their grip on the Bay Mills Indian Community for 20 of the last 22 years!  Having Parker as president of the Council and Tribal Chair is critical to the business schemes of controversial Detroit Wheeler-Dealer Michael Malik.

For nearly two decades Mike Malik has been in cahoots with Parker, using Parker to front for his taxpayer funded schemes.  

It’s really Malik and his non-Native American cronies who have been spearheading and financing the decades long quest to establish a Bay Mills casino off-reservation – namely schemes for Port Huron (MI). The Michigan Gaming Commission rejected Malik's involvement in Detroit's MotorCity Casino in 1999. He can't get a license allowing any affiliation with a commercial casino which is his primary motivation behind the Bay Mills Indian schemes. Malik and his financial syndicates have spent millions on lawyers, capitol hill lobbying and political contributions trying to get special treatment that would lead to a casino but their numerous schemes have failed.  It’s predictable that each election season they resurrect their casino schemes and suggest to reporters and constituents that approvals are right around the corner. NOT! 

During the past decade Malik has used Parker’s Native American status to qualify for thousands, and perhaps millions, in federal grants and assistance.  Those schemes have funneled hundreds of thousands to questionable business ventures that Malik is secretly behind.  Most recently a supposed “plastics venture.” Malik and his pals have given thousands to Michigan Senator Debbie Stabenow; in 2006 she announced nearly $1 million in federal taxpayer funds would go to the plastics venture in which Malik owns at least  49%.

After TVT and others began raising questions about the plastics venture and Malik’s involvement in the scheme, any references to Malik, his casino entity Blue Water Resorts, International Composite Institute of Michigan, Polycomp, Inc., Integrated Composites, L.L.C. and other related entities were purged from the archives of the Bay Mills News. Before that we had learned that at a 2005 Bay Mills Council meeting, members raised questions about this venture and Malik’s involvement at the meeting, those questions and comments went ignored and unacknowledged by Parker.

It has been rumored the FBI is investigating the Parker/Malik ventures.

See these related posts:

• Jeff Parker, Bay Mills' plastics ventures rumored to be subject of FBI investigation
• Compendium of 12 past posts regarding Bay Mills Indian Community's plastics ventures
• Jeff Parker re-elected Bay Mills President; beats former President John Lufkins
• Another battle between Parker and Lufkins for presidency of Bay Mills Indian Community
• 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 Plastics venture
• Tribe's chair reported two members were hired for its plastics business
• UPDATED: Tribal leader admits lobbyists were trying to sneak casino plans through Congress without alerting opposition

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.

Casinos Fail to Produce Phony Revenue Claims They Promised

from Middleboro Remembers: "Casinos" Fail to Produce Phony Revenue Claims They Promised

"In fact, the last time voters trusted gambling interests, they were promised $500 million per year for schools from taxes on slot machines in Miami-Dade and Broward Counties. Promoters even signed a contract, saying that if the Legislature did not tax slot machines, they would cut a check directly to the school boards. So far, they have generated a paltry 20 percent of this figure – and recently they successfully lobbied the Legislature for a 30 percent reduction in their tax rate. Like the lottery, another promise broken."

In this fact-check, we're not going to wade into whether casino gambling generates enough new tax revenue to meet the state's needs. Instead, we'll check what No Casinos calls a fact: that machine proponents promised "$500 million per year" for schools and only delivered about 20 percent of that.

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.