From the K’zoo Gazette:
Plans for the Gun Lake Casino are quietly edging forward, despite what appears to be an impending bankruptcy filing by Station Casinos Inc., the company hired to manage its construction and operation.
The Gun Lake Band of Pottawatomi is on track to release a schedule for groundbreaking, construction and hiring sometime this spring, according to those familiar with the situation.
The tribe declined to comment this week when asked about the status of the $200 million project, but it has said Las Vegas-based Station Casinos’ problems are not hindering the project.
Station is considering a “prepackaged” bankruptcy as early as next week in an effort to quickly restructure its debt, according to Associated Press reports. Station officials have not returned calls seeking comment.
Station’s woes, however, could play a factor as the tribe tries to secure construction financing, especially because banks have tightened lending standards and other Michigan casinos are grappling with a downturn in tourism.
Detroit’s Greektown Casino is attempting to restructure under Chapter 11 bankruptcy. Little River Casino, near Manistee, blamed a downturn in business for the decision to lay off 100 workers in November. Soaring Eagle Casino & Resort, in Mount Pleasant, had 132 employees accept buyout offers in October to help it avoid layoffs.
There also could be concerns about market saturation with the $300 million Firekeepers Casino nearing completion in Battle Creek and Four Winds Casino in New Buffalo nearing its second birthday.
Then there’s the lawsuit the tribe hasn’t managed to shake, which could be enough to cause lenders to pause. A suit filed by former Wayland Township Trustee David Patchak last year is still active in federal Circuit Court in Washington, D.C., despite the tribe’s statements that legal hurdles are now in its past.
The case may be moot, however, since Patchak’s main purpose was to prevent the land from being taken into trust for the tribe — a difficult-to-reverse action that has already been taken. The judge is expected to rule within a few weeks on whether the case should continue.
The federal government took the former Ampro Products land off U.S. 131 into trust on Jan. 30, and the Michigan House and Senate confirmed a revenue-sharing agreement with the tribe in February. Since then, however, the tribe has made few public statements about its plans.
It’s not all bad news in the state’s gaming environment. Gross revenue for Detroit’s three casinos was up 4 percent in February compared with the same month in 2008. In January revenue had been down almost 6 percent.
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