City Pulse: Fletcher’s Four Barrier to the Lansing Casino Proposal (and Additional Commentary)

Andy more or less catches my drift (via Pechanga). A few quotes:

In his piece, Fletcher goes on to outline three potentially significant legal obstacles: the Bureau of Indian Affairs’ “trust acquisition hurdles”; language in the Land Claims Settlement Act provision that says the Interior Department “shall be held in trust” (the word “shall” may not mean “has to”); and a provision in the Indian Gaming Regulatory Act that would require the Sault Tribe to submit its application to the Interior Department after “a prior written agreement between the Tribe and the State’s other federally recognized Indian Tribes that provides for each of the other Tribes to share in the revenue of the off reservation gaming facility.” 

That last quote is actually from the 1993 gaming compacts.

And fourth:

A fourth hurdle, Fletcher wrote, is that the Sault Tribe “has to exercise governmental authority over the land, according to the Indian Gaming Regulatory Act. Sault Tribe has no history in this area, let alone a governmental presence.”

I haven’t really expounded on a possible fifth hurdle, which is really related to the mandatory trust acquisition language. I can assure you Congress would never have intended that the Sault Tribe would be able to use this provision to buy land for off-reservation gaming purposes (especially, way off-reservation gaming purposes. See the legislative history here (Judgment Funds Hearing), which is virtually silent as to gaming. [Although to be fair, Rep. Kildee says his grandfather from the Traverse City area remembers when Indians had more “mobility” than they do now.] Ultimately, legislative history doesn’t trump the plain language. Usually.

Sault Tribe has to worry that a court construing the Secretary’s authority under the so-called mandatory trust acquisition language is unlimited, and perhaps unconstitutional as applied to this circumstance. The judgment funds settle treaty claims related to the 1836 treaty signatories. The 1836 treaty ceded territories do not include Lansing. And frankly, the Sault Tribe and Bay Mills have only a tenuous claim to lower peninsula territory, given that they are located in the Upper Peninsula, and importantly, there are already three federally recognized Lower Peninsula tribes who are 1836 treaty signatories. I mentioned in yesterday’s post that Lansing is small potatoes compared to other metropolitan areas, like Chicago and Cleveland, that don’t have Indian casinos now. Nothing stops Sault Tribe from going there with their casino proposals, and that fact alone will make a court wary of allowing Sault Tribe, Lansing, and Interior (if Interior goes along with it) to set aside trust lands in Lansing.

I recall this comment from the Eighth Circuit in a different context (involving the Secretary’s authority under Section 5 of the Indian Reorganization Act) but it makes the point here as well:

By its literal terms, the statute permits the Secretary to purchase a factory, an office building, a residential subdivision, or a golf course intrust for an Indian tribe, thereby removing these properties from state and local tax rolls. Indeed, it would permit the Secretary to purchase the Empire State Building in trust for a tribal chieftain as a wedding present. There are no perceptible “boundaries,” no “intelligible principles,” within the four corners of the statutory language that constrain this delegated authority-except that the acquisition must be “for Indians.” It delegates unrestricted power to acquire land from private citizens for the private use and benefit of Indian tribes or individual Indians.

It’s on page 882 here (SD v DOI). I can easily see a court rejecting the plain language reading the Tribe will want them to make on these grounds. It would be a terrible precedent for all of Indian country. But tribes take risky actions in desperate times, I suppose.

Updated Commentary on Lansing Casino Proposal

We have additional detail on the proposal from both sides. Here’s the scoop. Sault Tribe claims they have a mandatory trust acquisition statute, Section 108(f) of the Michigan Indian Land Claims Settlement Act. Here is the text:

Any lands acquired using amounts from interest or other income of the Self-Sufficiency Fund shall be held in trust by the Secretary for the benefit of the tribe.

The statute is more complex, but if the Tribe’s theories pan out, that provision is the kicker. So, the land goes into trust and the Tribe starts gaming right away? Well, probably not. Pokagon Band has a mandatory trust acquisition statute. It took them nearly a decade to wade through the regulatory and legal thicket. They did still win, though (TOMAC v. Norton). So did Little Traverse — they have virtually the same statute and they eventually defeated Sault Tribe’s efforts to shut them down (SSM v. US and LTBB). (That was back when we referred to Sault Tribe as the Darth Vader of Michigan Indian Tribes — those days are long gone. The old Sault Tribe would have considered Lansing smallpotatoes, and gone to Chicago or Cleveland instead. Maybe they will anyway. Why not? Under this theory, there’s no limiting principle.).

They still have to run through BIA’s trust acquisitions hurdles, and there’s no guarantee, even with a mandatory trust acquisition. They better hope there’s no endangered species in Lansing.

Also, as Bryan Garner will tell you, every jurisdiction in the English speaking world has held at least once that “shall” is a term, in some circumstances, that does not mean “mandatory,” but instead means “discretionary.” Sounds crazy? Ask the CSKTs (CSKT).

Sault Tribe has another hurdle, and I have no idea how this will turn out. But Sault Tribe is a party to the 1993 gaming compacts. Section 9 reads:

An application to take land in trust for gaming purposes pursuant to § 20 of IGRA (25 U.S.c. § 2719) shall not be submitted to the Secretary of the Interior in the absence of a prior written agreement between the Tribe and the State’s other federally recognized Indian Tribes that provides for each of the other Tribes to share in the revenue of the off reservation gaming facility that is the subject of the § 20 application.

So, assuming Sault Tribe is going to apply to take the land into trust for gaming purposes using their mandatory trust acquisition statute, which is a land claims settlement, they’re doing so under Section 20 of IGRA. I’m almost certain Saginaw Chippewa, another party to the compact, isn’t going to agree to anything (I don’t know, unless they get 75 percent or something). That will probably kill it.

Moreover, trust land alone is insufficient. The Tribe has to exercise governmental authority over the land, too, according to the Indian Gaming Regulatory Act. Sault Tribe has no history in this area, let alone a governmental presence.

Incidentally, I misspoke on the “precedent” for a Tribe using a mandatory trust acquisition statute to force the Secretary to take land into trust for gaming purposes. I was talking about the Wyandotte Nation of Oklahoma’s effort to game in Kansas City, Kansas. They sued the Secretary last year for lagging on trust acquisitions. Their original trust application was 1992, and the suits are still going on 20 years later.

News Coverage on Proposed Lansing Casino

Interlochen Public Radio

Lansing Channel 10

Detroit Free Press

Lansing State Journal

State News

Battle Creek Enquirer

WKAR: East Lansing Public Broadcasting

WUOM: Michigan Public Radio

Commentary on Sault Tribe’s Proposed Lansing Casino

I can’t not say anything, since this proposed casino is in our own backyard. But seriously? The mayor says in 12-24 months he expects construction to start, and then another year or so after that there will be a fully functioning Indian casino in Lansing.

Wow.

We’re going to predict that it won’t happen. No chance.

Off-reservation Indian gaming is the most hotly-contested, politicized issue in American Indian affairs right now and maybe forever. Think of the interests arrayed against a Lansing casino, let alone one owned by an Indian tribe. The Detroit casinos will be opposed because it will cut into their bottom lines, and the entire City of Detroit, the Michigan Congressional delegation, the unions, everyone will throw their weight against this casino proposal.

More, up north just a few miles is another big problem for the mayor — the Saginaw Chippewa Indian Tribe. They’ll throw their weight against a Lansing casino, too, since a Lansing casino might destroy that tribe’s gaming market. They’ll have nothing to lose by fighting this every step of the way because they will be so severely injured by a Lansing casino that no lobbyist, no lawsuit, nothing will be too expensive to throw at it.

Finally, the law makes this difficult. Been saying this for months now. I suppose Sault Tribe believes, as I imagine the Bay Mills Indian Community does, that Bay Mills will eventually win on its legal theories relating to the Vanderbilt casino. it seems doubtful at best, given that Interior and the NIGC disagree. If that happens, then there will be 10-15 more Indian casinos in and around Lansing, Detroit, Grand Rapids, Muskegon, and so on in the next five years, especially if Bay Mills doesn’t comply with its revenue sharing obligations to the other tribes contained in the 1993 compacts (that’s right, even if they win, they only get one-seventh of the profit — go read section 9 of the 1993 compacts). Really hard to believe that will happen. Let’s set that aside for a minute.

The Sault Tribe will have to purchase land in Lansing, maybe the Lansing convention center or something. Then they’ll have to ask the Secretary of Interior to take the land into trust. And every trust acquisition application for gaming purposes requires an Environmental Impact Statement, and those take a few years to conclude. Once that’s done, the tribe will have to persuade Interior to take this land into trust. And that’s not so easy. The Indian Gaming Regulatory Act requires the governor to concur on any off-reservation gaming proposals. The Secretary has to then agree to take the land into trust, and even then someone in the Michigan Congressional could push through a rider preventing that action. It’s happened before.

And then, assuming the Secretary does take the land into trust, the lawsuits start. Trust acquisitions are governed by the Administrative Procedures Act. Anyone can sue, pretty much. The experiences of the three Potawatomi tribes in Michigan are instructive. The suits take years and years to conclude.

Of course, I’m no political scientist. Politics is money (see Citizens United) and anything can happen, including a backlash against Indian gaming that persuades Congress to ban off-reservation gaming. But the mayor’s three years is a dream, and kind of sick thing to promise to people in Lansing who might believe the mayor and see this as a real possibility for improving their lives.

Lansing Mayor Announces Sault Tribe Casino

Here.

 

DFP: Sault Tribe’s Proposed Lansing Casino Causes Saginaw Chippewas to Deploy Phil Hogen

Here.

Jensen Bros. Appeal Dismissed for Failure to File on Time

Here is the article, via Pechanga.

Delta Threatens to Stop Service the 24 Midwestern Cities — Disproportionate Impact on Indian Country

Here is the NYTs coverage. And the tiny, blurry map that accompanies the article seems to indicate towns near reservations in Michigan, Minnesota, North and South Dakota, and Montana. The Michigan towns affected are Alpena, Pellston (LTBB), Escanaba (Hannahville), Iron Mountain (LVD), and Sault Ste. Marie (SSM and Bay Mills) — none of these towns would have air service.

Sault Tribe Kids at Camp KinaMaage (UM Biological Station)

Here is the article.

From left, Sturgeon Bay Singers Gary Gibson, Joe Medicine, and Duane Gross participate in a feast and celebration at Camp KinoMaage. (Photo by Dana Sitzler)
Click here for more photos of the students during their week at Camp KinoMaage.

Confusion in Replacing Joe McCoy as Chair at Sault Tribe

Here is the release from saulttribe.com:

There will not be an election to fill the seat left vacant by Sault Tribe Chairman Darwin “Joe” McCoy, who announced his immediate resignation as the elected leader Tribe on Tuesday, May 10.

“After further review of our election ordinance and upon advice from our legal team and Tribal Election Committee, it has been determined that an advisory election to fill the vacant chairperson seat is prohibited under our Tribal Law,” said Lana Causley, Vice Chairperson. “Chapter 10 of the Tribal Code is the Tribe’s Election Ordinance. The relevant provisions are sections 10.107 (Notice of Election) and 10.203 (Date of Election) that state: “The date of the (special) election shall not be earlier than ninety (90) days after the Election Announcement. No Special Advisory Election shall be held if the election date shall be later than six (6) months prior to the posting of the Election Announcement for the next general election.’”

Under this Election Ordinance, the Tribe cannot hold a Special Advisory Election because, assuming the Board posted the announcement for the Special Advisory Election May 24, 2011, the earliest the Special Advisory Election could be held under section 10.203 would be August 22, 2011 (August 22 is ninety days from May 24, 2011), which is less than six months from the posting of the Election Announcement for the next general election, which is July 27, 2011.  In order to hold a Special Advisory Election, the Election Announcement would have had to been posted 90 days prior to July 27, 2011, which has already passed.  According to section 10.107 “The Notice of Election shall be sent to all Adult Members (at least one notice per household) by means of letter, and shall also be publicized in the tribal newspaper, on the Tribe’s official website, and posted at all Tribal Offices on the last Friday in January in the year in which a general election occurs”, which is 2012 in this case.

The board did consider a resolution which would allow them to have a special advisory election by changing tribal law eliminating the 6 months prohibition, and the resolution failed on a vote of six to five. Therefore, under the Election Ordinance, the Board may not authorize a Special Advisory Election to assist it in appointing a replacement to fill the unexpired term of former Chairman McCoy. There will not be a Special non binding Advisory Election.

Causley said the entire board apologizes to tribal members and other audiences about any confusion caused by reports that an advisory election could be held to fill the position. It is the first time the Tribe has had a chairman resign near the end of his term.

“Our goal is to make sure we are following our Constitution and Tribal Laws, which clearly state that calling a special election in this instance would be prohibited,” said Causley. “On behalf of the entire Board, I apologize for any confusion caused surrounding this issue.” Causley also cautioned to be aware of any notices surrounding this and other Tribal issues to be certain they are coming from the Tribe and not an outside source.  Continue reading