Duluth, Minnesota Mayor Emily Larson and Fond du Lac Band of Lake Superior Chippewa Chairman Wally Dupuis recently announced a settlement in their years-long battle. Under the proposed 10-year agreement, the tribe would provide the city with 0,000 per year as a payment in lieu of taxes on its Fond-du-Luth Casino. The casino is located on property that has been designated sovereign land and therefore is not subject to taxation.
Larson said, “This amount is not randomly assigned. It’s equivalent to property taxes, food and beverage sales and other municipal costs of doing business.” Dupuis added, “The band has always said that we are willing to pay our fair share for services we receive from the city, like any other business. The band is also willing to adopt and enforce as band law, the city planning and zoning requirements for trust land we have in the city.”
The $150,000 annual payment could change if the tribe develops the Carter Hotel property next to the casino or makes changes at the casino itself. “Should, in the future, Fond du Lac choose to build a hotel or motel, the agreement stipulates that they will make an additional financial contribution to the city equivalent to that of taxes paid by other operating hotels and motels,” Larson said. Dupuis said the tribe plans to tear down the derelict structure but added, “We have not made a plan as of yet.”
The Fond du Lac Reservation Business Committee, the tribe’s governing body, and the Duluth city council have approved the agreement
The battle began in 2009 when tribal leaders decided to stop paying $6 million a year as it had under a 1994 revenue-sharing agreement. Duluth sued the tribe, alleging breach of contract. Following a series of suits and countersuits, the tribe prevailed after the National Indian Gaming Commission determined its revenue-sharing agreement with Duluth violated the National Indian Gaming Act.
More legal disputes arose after the tribe bought the abandoned Carter Hotel, which it sought to have designated as Indian land and therefore not subject to property taxes. The tribe again prevailed in a decision by the Bureau of Indian Affairs. Now the city will drop its appeal in that case.
Larson said, “For seven years, the city of Duluth and the Fond du Lac Band have been engaged in a series of litigations. Today, after five months of conversations, meetings and negotiations, we announce a settlement that allows us to put this chapter behind us and begin writing a new story, together. Our communities gain by putting a contentious and painful litigation-based relationship to rest. And together, Duluth and Fond du Lac gain by pressing restart. Already, we have met and reviewed options for a skywalk connection. Our economic development teams have started meeting. Lines of communication are now open, and I am hopeful that is a reflection of what is to come,” she said.
Dupuis noted relations between the tribe and the city are “off to a good start, but it will take a little while.”
