"Last week, the chief judge of the federal courts in Grand Rapids ordered the Bay Mills Chippewa to close an unlicensed casino near Interstate 75 in Vanderbilt.

"Little Traverse Bay has clearly established a substantial likelihood of success on the merits," U.S. District Judge Paul L. Maloney wrote in granting relief to the Ottawa of Little Traverse, owners of a licensed casino on the outskirts of Petoskey.

Little Traverse's lawsuit against Bay Mills revolves around the Michigan Indian Claims Settlement Act, which President Bill Clinton signed into law 13 years ago.

At first glance, the passage seems clear. Bay Mills cannot use its earnings to pay for European junkets or a fleet of Cadillacs. The tribe can spend the money only for improving or expanding tribal lands.

The tribal chairman, Jeff Parker, said Bay Mills was doing just that last year with its investments in Vanderbilt and Port Huron. Both deals were made exclusively with so-called "restricted fee" dollars, or earnings from the trust fund.

Indeed, this constraint explains why Acheson Ventures sold 16.5 acres at Desmond Landing, including the old post office on Military Street, for the bargain-basement price of $100,000. Bay Mills could not afford to pay much more using trust funds alone.

Parker insists Bay Mills has followed the law scrupulously, an opinion not shared by the judge."

Get the Story:
Mike Connell: Port Huron needs line-drive singles (The Battle Creek Enquirer 4/3)

District Court Decision:
Michigan v. Bay Mills Indian Community (March 29, 2011)

Related Stories:
Column: Down but not out for a Bay Mills off-reservation casino (4/1)
Bay Mills Indian Community to appeal decision against casino (3/31)
Editorial: Don't give up on Bay Mills off-reservation casino bid (3/31)
Bay Mills Indian Community closes its off-reservation casino (3/30)
Judge orders Bay Mills to stop running off-reservation casino (3/29)