A six-acre parcel in Clinton, Oklahoma—including two acres that were the center of a scandal involving the Cheyenne and Arapaho Tribes—recently was listed for sale for 0,000. Last May, following an investigation, the National Indian Gaming Commission declared the Cheyenne and Arapaho Tribes’ Lucky Star Casino paid more than .2 million over 18 months to lease those two acres for a parking lot–about 10 times the fair market value of the land.
The lot’s owner, Tom Fox, leased the land to the tribes for $25,000 per month plus 1 percent of the casino’s gross gaming revenue. He said he charged that rate because older casino patrons preferred the lot’s proximity to the casino. He further claimed the parking lot helped the casino take in more gaming revenue. “I know the lease payments sound like they are excessive, but the fact is, $50,000 a month compared to what the Cheyenne and Arapahos were making is trivial,” Fox said at the time. Fox added he would have been willing to negotiate with the Cheyenne and Arapaho to purchase the land, but the tribes never approached him.
The NIGC determined the parking lot contract was in “clear violation” of federal Indian gaming laws meant to protect gaming as a means of generating revenue for Indian tribes, Jonodev O. Chaudhuri, National Indian Gaming Commission chairman, said in a statement. Fox blocked access to the lot after the tribes stopped making lease payments. He said as a result of the NIGC ruling he was forced to resign from his job with the Red Rock-based Otoe-Missouria Tribe.
Records indicate when Fox purchased the acreage including the parking lot in 2012, Brian Foster, former director of gaming for the Cheyenne and Arapaho Tribes, provided a $150,000 down payment on the land from his personal bank account. According to settlement files, Foster allegedly schemed to purchase the land to “keep the National Indian Gaming Commission out of the picture.” Foster stated he provided money for the down payment to protect the land from being purchased by others who might not have been willing to lease it to the tribe. “I never made a penny off that land,” he said.
In total, over the course of 18 months, the casino paid $1,257,342.44 for the parking lot, far more than the land was worth, according to the settlement.
As a result of the NIGC investigation, the casino fired its chief executive officer, general manager and director of gaming operations.
The Sky Land Real Estate Company listing points out the acreage is located near a major interstate with “high traffic volume.” It states, “Endless possibilities including hotel facility, quick shop, travel plaza, restaurant or special purpose.” However, the settlement bars the Cheyenne and Arapaho Tribes from purchasing the land.
