Court halts casino projects on behalf of tribe

FROM THE ARCHIVE

Facebook Twitter Email
FRIDAY, SEPTEMBER 13, 2002

A federal appeals court on Thursday handed another victory to a small Michigan tribe seeking to bring fairness to a casino-bidding process it was excluded from.

The 6th Circuit Court of Appeals, in an unpublished opinion, ordered the city of Detroit to immediately halt plans for three new casinos. Private developers were also told to stop construction pending further review of the Lac Vieux Desert Tribe's constitutional rights.

The tribe, which operates a casino on its reservation, was delighted with the latest move. "In order to grant our injunction, the court was required to find that the tribe is likely to succeed on the merits of its appeal," said Lac Vieux attorney Conly Schulte.

"The writing is on the wall," he added. "A new bidding process is likely."

Detroit mayor Kwame Kilpatrick, however, didn't think the decision was all that significant. "This ruling doesn't impact the city's time line at all," he said in a statement.

But Detroit, the largest city in the U.S. with gaming, could stand to lose greatly if the tribe can successfully force rebids. The three casino-hotel developments represent a $525 million investment to the local economy and are slated to employ nearly 8,000.

And since the appeals court said it couldn't hear oral arguments until early next year, there is doubt over the future of the developments. Currently, there are two "temporary" facilities, with the final waiting to open. Permanent structures are to be built.

The tribe wasn't allowed a shot at either facility. The 6th Circuit in January said the denial violated the tribe's rights.

When the case was returned to a lower court, U.S. District Judge Robert Holmes Bell in July said there wasn't anything he could to do correct the situation. It was this ruling that the tribe appealed.

Although the tribe anticipates a new bidding process, a court could instead award damages.

The Lac Vieux Desert Band of Lake Superior Chippewa Indians reside in upper Michigan. The tribe, which was federally recognized by Congress in 1988, has about 500 members.

The three casinos affected are Greektown Casino, which is 90-percent owned by the Sault Ste. Marie Chippewa Tribe, MGM Grand Casino and MotorCity Casino.

Relevant Links:
Lac Vieux Desert Band of Lake Superior Chippewa Indians - http://www.lacvieuxdesert.com