Indian Affairs OKs land-trust proposal for Michigan tribe

Wednesday, April 20, 2005 | 10:50 a.m.

SUN STAFF AND WIRE REPORTS

The U.S. Bureau of Indian Affairs has approved a land-trust proposal sought by the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians, bringing the tribe one step closer to building a casino in western Michigan.

The bureau, a part of the Interior Department, on Monday signed off on the Gun Lake tribe's request to acquire about 145 acres of land in trust in Allegan County for gaming.

The tribe still must obtain a signed compact from the Governor as well as management agreement approval from the National Indian Gaming Commission before it can build a casino with slot machines.

The Gun Lake tribe announced an agreement with Station Casinos Inc. in 2003 to develop and operate a casino at the Wayland Township site, about 20 miles south of Grand Rapids. It would feature up to 2,500 slot machines, 75 game tables, a buffet, specialty restaurants and an entertainment venue.

Station owns a 50 percent interest in MPM Enterprises LLC, a Michigan company that has an agreement with the tribe to develop and manage the casino.

Tom Shields, a spokesman for the tribe, said they would be making an announcement shortly on their future development plans. He said they also hoped to open negotiations with Gov. Jennifer Granholm to seek the signing of the compact.

The state House and Senate approved the tribe's compact in December 2002, but neither former Republican Gov. John Engler nor Granholm, a Democrat, have signed it.

In December, the state Senate voted to rescind its endorsement of the compact, with majority Republicans citing an economic study which found the proposed casino would cost the area 3,000 jobs and up to $26.1 million in lost revenues each year.

Deutsche Bank stock analyst Marc Falcone said the trust conveyance was "very good news" for Station but said lawsuits would likely be filed in its wake, further delaying the project.

In a research note to investors, Falcone said the Senate's action last year makes it "unclear if Gov. Granholm can even sign the compact."

Station and the tribe could still attempt to pursue a casino without traditional slots, which would not require a state compact, he said.

Station has been reluctant to say when the casino could open but analysts have projected a 2007 debut.

The Associated Press and Sun business writer Liz Benston contributed to this report.