Potentially, though perhaps not likely, this is a huge issue. Assuming that the Greektown parcel is owned by the Secretary of Interior on behalf of the Sault Tribe, then an Act of Congress may be required. And if one is not forthcoming, there may be some very interesting litigation involving the interaction of federal bankrupcty laws and maybe the Quiet Title Act. If the land is not in trust, then we may still have a Non-Intercourse Act problem, but likely not. Apparently, according to the letter, the land is in trust.
Update: Via Indianz, here is Stupak’s letter.
WASHINGTON — U.S. Rep Bart Stupak wants to halt the bankruptcy reorganization of Greektown Casino at least until the federal government determines whether an act of Congress is needed to transfer the land the Detroit gaming hall sits on.
Earlier this year, a federal bankruptcy judge approved a reorganization plan allowing Greektown Casino’s bondholders — including several private equity and hedge funds — to take ownership. The Sault Ste. Marie Tribe of Chippewa Indians, based on Michigan’s Upper Peninsula, has a majority ownership stake in the casino.
The process needs the approval of the Michigan Gaming Control Board, with a court deadline of June 30 approaching.
But Stupak, D-Menominee, has asked U.S. Attorney General Eric Holder and Interior Secretary Ken Salazar to delay any change in ownership while they investigate whether land held by the federal government on behalf of the tribe — about three-fourths of an acre on Beaubien Street in Detroit — can be transferred without an act of Congress.
“The tribe stands to lose its entire investment in the business, including a portion of the real property underlying the casino,” Stupak said in the letter written Wednesday.
According to Stupak, 400 Monroe Associates — controlled by Greektown businessman Ted Gatzaros — deeded the land to the U.S. Department of Interior on behalf of the tribe in 1992.
Tribally owned lands cannot be sold without the consent of the federal government, and the Interior Department is not allowed to approve the sale of such land without direct congressional authorization, Stupak said.



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