From the Soo Evening News:

The Sault Tribe of Chippewa Indians has gained a powerful ally in its bid to retain Greektown Casino as Congressman Bart Stupak (D-Menominee) has requested the U.S. Bankruptcy Court and the Michigan Gaming Control Board to postpone Chapter 11 reorganization.

In a three-page letter [20100609_GreektownCasino], Stupak urges the U.S. Department of the Interior and the U.S. Department of Justice to investigate if it is legally possible for the Sault Tribe to lose its real estate interest in Greektown Casino. Essentially, Stupak argued, that the 0.76 acre parcel located at 1010 Beaubien Street in the City of Detroit has been placed in federal trust and cannot be conveyed to another party without Congressional authorization.

“I seriously question the propriety and legality of a process in which the property conveyed to the United States in trust on behalf of the Tribe can be conveyed without authority from Congress and without full Tribal consent,” wrote Stupak, indicating it was his opinion that the parcel is owned by the federal government for the benefit and use of the Sault Ste. Marie Tribe of Chippewa Indians.

Stupak went on to write “that any further proceedings related to the reorganization of the Greektown Casino by the Michigan Gaming Control Board or other agencies be postponed” until a determination is made by federal authorities.
Stupak expressed his concerns regarding this matter following a meeting with Director D.J. Hoffman of the Sault Tribe Board of Directors last week.

“On June 4, 2010 myself, Director (Keith) Massaway and Chairman (Darwin “Joe”) McCoy met with Congressman Stupak to discuss Tribal issues, including Greektown,” said Hoffman. “I am extremely grateful that Congressman Stupak recognized the serious nature of this situation and immediately took action to call this issue into question.”
Chairman McCoy expressed similar sentiments.

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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.

From the Freep, via Pechanga:

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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