Tribe Sues Feds To Get Casino Land Approved
Seeks Gaming Eligibility in Land Dispute
By Karen Gould

To get a portion of its new St. Ignace casino eligible for gaming, the Sault Ste. Marie Tribe of Chippewa Indians has filed a lawsuit in federal court seeking to settle a land dispute with the U.S. Department of Interior. The lawsuit was filed Wednesday, November 8, in U.S. District Court for the Western District of Michigan, following months of negotiations between tribal leaders and the Department of Interior.

Construction of the Kewadin Shores Casino and Hotel was completed earlier this year on land off Mackinac Trail in St. Ignace Township, and the tribe and Department of Interior disagree over whether a portion of the land used for the new facility can be used for gaming.

A gaming permit has not been issued by the National Indian Gaming Commission (NIGC),

which contends the facility does not meet federal gaming rules, while the tribe contends it made every effort to comply with federal law. It argues that federal law was interpreted by federal officials in a manner contrary to established legal precedents.

To allow gaming at the new facility, the tribe relocated the gaming area by adding a room to the complex in October, which is on land eligible for gaming. The new room is attached to the facility and has increased the tribe's investment at the site to more than $40 million.

During the litigation, the new gaming area will remain open.

Fred Paquin, Unit 3 Tribal Board Representative from St. Ignace, told The St. Ignace News Friday, November 10, that tribal leaders would like to reach an agreement on the matter and if an agreement is reached, the issue could be resolved in approximately a month, he said. If not, a resolution through litigation could take up to a year.

Tribal leaders acknowledge that part of the new St. Ignace casino was built on land that was never officially approved for gaming by the U.S. Department of Interior and the NIGC, calling it an "administrative oversight."

Construction of the complex began in May 2004.

Although the land already was owned by the tribe, the federal agencies and the tribe never completed the administrative process that would have declared the property eligible for gambling.

"We have made every attempt to work with the federal government to resolve an honest oversight made by former tribal leaders," said Tribe Chairman Aaron Payment. "We regret litigation has become necessary, but today's Sault Tribe leaders must protect our tribal rights and hundreds of jobs and significant gaming revenues for the tribe and the Upper Peninsula."

Two days after the lawsuit was filed, an official grand opening celebration was held at the facility. During the opening ceremonies, tribal leaders remained optimistic that the intended gaming room, which is now used for concerts, would be used for gaming in the future.

"We are confident we will eventually have slot machines on this side of the casino," Mr. Payment told the crowd.

Of the complex, which sits on Horseshoe Bay and includes 81 hotel rooms, an indoor swimming pool, bars, a restaurant, and deli, Mr. Paquin said, "This will become a jewel in this area."