Wow.
From the B.C. Enquirer (via Pechanga):
Besides its Aug. 5 opening, Friday was arguably the most important date in FireKeepers Casino’s short history, because the community got its share of the profits.
The Tribal Council of the Nottawaseppi Huron Band of Potawatomi, FireKeepers’ owners, on Friday morning presented a check for $1,933,683.41 to the FireKeepers Local Revenue Sharing Board. That money will reimburse local governments for increased costs attributable to the Emmett Township casino or the tribe’s Pine Creek Reservation in Athens Township, and also for revenue lost because tribal land is untaxable.
The money represents 2 percent of the casino’s slot revenue from its Aug. 5 opening to the Dec. 31 close of its fiscal year. The tribe is required to pay that money to local governments through a compact with the state.
The money is more than double what the tribe expected to pay the LRSB.
“We thought for a year we would be presenting $2 million,” said Laura Spurr, Tribal Council chairwoman. “This is for five months.”
“This money is to help us better the entire community,” said Mike Rae, the Calhoun County board chairman who on Friday was elected chairman of the LRSB. He spoke to the board via speakerphone from Florida.
But it will be some time before the community sees any of that money. The LRSB on Friday still was in the midst of finalizing the bylaws that will govern its operation. Only minutes before the tribe appeared with the check, the LRSB appointed Marshall City Councilman Jim Dyer treasurer of the LRSB and Athens Township resident Greg Moore its secretary. Board members instructed them to secure a bank account in the LRSB’s name for the $1.93 million to be deposited. Dyer and Moore still will have to obtain a post office box and a federal tax identification number. Dyer volunteered his wife to design an LRSB letterhead for the board.
The first dollars spent from that pot must reimburse governments near FireKeepers for increased costs attributable to the casino or the reservation. Governments within a roughly 5-mile elliptical circle near the casino and Pine Creek are eligible to apply for reimbursement of these costs. These governments still must make their case to the LRSB that the casino has had an effect on their expenses.
On Friday, the board still was finalizing exactly how it will pay out the lost tax revenue. According to the state-tribe compact, up to 80 percent of what’s left of the $1.93 million after reimbursements are made must go to these payments in lieu of taxes, or PILT. Any taxing entity that would collect taxes on FireKeepers or Pine Creek must receive the proportional amount of that 80 percent that they would receive if the tribal properties were taxable. The board on Friday was working on a formula that would determine how governments were paid their PILT share.
After the local reimbursements and the PILT payments, the remainder of the money can be paid as the board sees fit. On Friday, the board was working out how it might pay out that money. In New Buffalo Township, where Four Winds Casino Resort provides a similar 2 percent payout, this final tier of funds are paid to all governments in a 5-mile radius, based on how close each government is to the casino. The FireKeepers LRSB is considering using a similar formula.
The board, which was only formed officially in January, still has a lot of work to do before it can start spending money.
“I think it’ll be at least 90 days before we’ll be making any disbursements,” Dyer said.
Turtle Talk 