Soo Tribe Layoffs

From Indianz:

The Sault Ste. Marie Tribe of Chippewa Indians plans to lay off about two percent of its workforce.

Chairman Joe McCoy said the tribe’s financial situation forced the reduction. “Unfortunately, over the years, millions in tribal reserves has been dwindled down to nothing. According to financial analysts, if changes are not made, the tribe will not recover,” he said in a press release. The layoffs affect employees of Kewadin Casinos and employees of the tribal government. Based on recent figures, it looks like about 80 people will lose their jobs. The tribe already laid off 89 people at the Greektown Casino in Detroit. The tribe has a majority stake in the commercial casino, which is undergoing a restructuring in federal bankruptcy court.

Get the Story:
Press Release: Soo Tribe and Kewadin Casino to restructure (SooToday 7/30)

Freep on BMIC and Sault Tribe Gaming Bills

From the Detroit Free Press:

A fight over proposed American Indian casinos in Romulus and Port Huron may reach the floor of Congress this week, where two Michigan political heavyweights find themselves on opposite sides of the issue.

The proposals — which could be on the floor as early as Wednesday — have a fair shot at passing, despite loud objections from Detroit politicians who fear new casinos could cut into the take of the city’s three gaming emporiums and undercut investments their owners have made.

Even if the House approves, however, the proposals face a big obstacle in the Senate — Majority Leader Harry Reid (D-Nev.), who is said to be opposed to the legislation that has been simmering in Washington for at least six years.

The difference now is the strong support for the Romulus casino from Rep. John Dingell, a Dearborn Democrat who is the longest-serving active member of the House and chairman of the powerful Energy and Commerce Committee.

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BMIC & Sault Tribe Gaming Bill Heads to House Floor

Never mind the Senate, this one’s going to be ugly. I wonder how many times Abramoff’s name gets mentioned. Here’s the report from The Hill:

House Democratic leaders have brokered a deal to bring to the floor next week a contentious Indian gaming bill that has pitted two powerful Democratic committee chairmen against one another.

For months, Judiciary Committee Chairman John Conyers Jr. (D-Mich.) and Energy and Commerce Committee Chairman John Dingell (D-Mich.) have been clashing over two bills that would settle tribal land disputes and allow two new Indian casinos to be built near Detroit. Next week, they will settle their differences on the House floor.

The deal would allow the two tribal land dispute bills that Dingell supports to be voted on on the floor, but would also give Conyers an amendment, according to sources tracking the measures. The amendment apparently would direct the Department of Justice (DoJ) and possibly the Department of the Interior to review the land claims — a difficult and likely unsuccessful process Dingell and other supporters have attempted to avoid by seeking congressional approval of the legislation.

House Speaker Nancy Pelosi (D-Calif.) and other Democratic leaders are in a politically difficult spot.

They have decided to allot precious floor time for measures that will pave the way for Indian casinos during the first election year after the fall of Jack Abramoff, whose lobbying practices involving tribes and gambling helped propel Democrats into power in 2006.

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Greektown Restructuring Very Costly

From Crain’s Detroit Business Report:

Restructuring of Greektown Casino L.L.C. finances will cost $13.5 million in professional fees this year and an estimated $20 million by the time the Detroit casino emerges from Chapter 11 bankruptcy reorganization in 2009, a workout consultant told the Michigan Gaming Control Board Thursday.

The board gave approval to Greektown securing a $51.3 million interim loan to pay past due and current bills owed contractors working on the $330 million casino expansion that includes a 400-room hotel.

The loan, which received preliminary approval Wednesday from U.S. Bankruptcy Court Judge Walter Shapero, is part of a $150 million two-part financing package, the rest of which also needs approval from the court and control board.

Charles Moore, senior managing director of Birmingham-based Conway MacKenzie & Dunleavy, told the board that coupling costs of the bankruptcy filed May 29 with loan interest payments that will run more than $51 million means the casino is projected to lose almost $16 million in 2008, compared with a reported profit of $2 million last year.

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Greektown Holdings Bankruptcy Materials

Here is the Sault Tribe’s news release on these materials.

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Greektown Casino Declares Bankruptcy

From Indianz:

The Sault Ste. Marie Tribe of Chippewa Indians announced that it has filed for Chapter 11 bankruptcy protection for its commercial casino in Detroit, Michigan.

The tribe has a majority stake in Greektown Casino, one of three gaming facilities in the city. The tribe was facing state deadlines to improve its financial standing. The tribe says the casino is not broke but that it needs $140 million in financing to complete work on a permanent casino.

Get the Story:
Greektown Casino falls into Chapter 11 (The Detroit Free Press 5/30)
Unpaid bills delay casino’s expansion (The Detroit Free Press 5/30)

Financial Pressure on Sault Tribe re: Greektown

From Indianz:

The Sault Ste. Marie Tribe of Chippewa Indians is facing pressure to make sure its commercial casino in Detroit complies with state law.

The tribe has fallen behind on construction of a permanent Greektown Casino. Revenues have dropped and the facility’s debt-to-earnings ratio isn’t meeting state requirements. In hopes of resolving the issue, the tribe last week announced that it landed a $100 million investment. The tribe would retain 60 percent ownership of the casino. But the Michigan Gaming Control Board is questioning whether the deal will resolve the tribe’s financial concerns. The board gave the tribe until June 10 to defend its future.

Get the Story:
Greektown Casino financing questioned (The Detroit News 5/14)

Impact of Michigan’s Smoking Ban on Indian Casinos

From the AP:

DETROIT (AP) — If smoking is banned in Detroit bars, restaurants and workplaces, Betty Gilbert says it will hurt the city’s casinos.

Gilbert, who was smoking a cigarette Friday with members of her bowling team on a sidewalk near Greektown Casino downtown, should know. The 69-year-old from Cape May County, N.J. — who said she usually gambles weekly in Atlantic City — plans to cut back when that city’s smoking law goes into effect.

“If they cut out the smoking, they should also cut out the drinking,” Gilbert said.

A ban passed by the Michigan Senate on Thursday now heads to the House, which passed a narrower bill five months ago. If the new bill becomes law, smokers could pass up the trip downtown to gamble and head instead to Indian casinos, which aren’t affected, industry observers said.

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Sault Tribe Finds Investors for Greektown

From the Detroit News (H/T Indianz):

Owners of the Greektown Casino may sidestep a potential state-ordered sale after a group of suburban businessmen announced Tuesday it will invest $100 million in the struggling downtown Detroit gambling operation.

The casino’s owners, Greektown Holdings LLC, already had missed an April deadline from the state to bring its financial performance up to required levels, and saw its debt downgraded in April by two major rating agencies over fears the state would force a sale by the end of June.

Now, Bloomfield Hills-based Entertainment Interests Group LLC, says it will buy a 40 percent stake in Greektown.

The deal needs approval by the Michigan Gaming Control Board.

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Nokomis Learning Center News Coverage in Indian Country Today

From ICT:

OKEMOS, Mich. – Chilly temperatures and gloomy skies didn’t darken the spirits of the more than 50 people who attended the inaugural spring feast and fundraiser at Nokomis Learning Center April 13.

The feast brought several members of the American Indian community together and helped to raise funds for the 19-year-old American Indian cultural learning center in Okemos.

”The truth is that [Nokomis Learning Center] is kind of poor right now,” said Theron Moore, who serves as president of the center’s board of directors and helps run a construction company in Holt. ”We need to raise money to make sure it keeps operating.”

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