White House, Colorado governor blast casino proposal

Friday, Sept. 10, 2004 | 11 a.m.

WASHINGTON -- The Bush administration rejected a proposal for an Indian casino on the outskirts of Denver on Wednesday, the same day Colorado Gov. Bill Owens lashed out at the casino developer at a Washington briefing, accusing him of "blackmail."

The Cheyenne-Arapaho Tribe of Oklahoma has claimed it is the rightful owner of 27 million acres in Colorado, including all of Denver and Colorado Springs. The tribe and its financial backer, Longmont venture capitalist Steve Hillard, offered to give up the claim in exchange for permission to build a casino on 500 acres near Denver International Airport.

But the Interior Department's top lawyer for Indian matters, Matt McKeown, told the developers that the tribe's claim was re-opened and settled in 1965.

According to McKeown's letter, dated Tuesday and obtained by The Denver Post on Wednesday, the Interior Department "lacks authority to undo the final judgment."

Hillard could not be reached for comment on the Interior Department's decision.

The events Wednesday are a setback for casino proponents but don't put the matter to rest.

McKeown said the tribe could still try to put a casino in Colorado using a process that would require the approval of Owens, who has emerged as the casino proposal's chief critic. The tribe also can sue in federal court, or Congress could grant the tribe permission to build a casino in Colorado.

Owens tried to head off congressional action earlier in the day in a briefing before the staff of the Senate Indian Affairs Committee. Owens cited the same logic as the Bush administration in dismissing the land claim.

But he also upbraided "investor groups" pushing tribal casinos nationwide. The trend, Owens said, leaves states to "face the unwelcome challenge of handing out casinos as blackmail payoffs."

Asked about the remark later, he said it applied to Hillard's proposal. Hillard called it "insensitive" and said it merited an apology.

But he said Owens' forceful attack on the casino proposal shows the claim is valid and Owens is worried.

"The seeds of settlement are sown in his discomfort," he said.

Hillard said the project would create 10,000 jobs and deliver $1 billion over 10 years to Colorado for education programs. Another $100 million a year would go to the impoverished Oklahoma tribe, where unemployment is above 50 percent. He said the federal government needs to compensate the tribe for what he says was a campaign of genocide.