Menominee Tribe Considering Options

The Menominee Indian Tribe has a new chair, renewed its option on Dairyland Greyhound Park, offered to contribute $220 million toward a new downtown Milwaukee stadium and is keeping its options open to make its $800 million Hard Rock Hotel & Casino in Kenosha a reality.

New developments keep coming up for the Menominee Tribe’s proposed 0 million off-reservation Hard Rock Hotel & Casino in Kenosha, Wisconsin, which Governor Scott Walker rejected on January 23.

First, at a recent reorganization meeting, former Menominee Tribal Gaming Authority Gary Besaw was named tribal chair, replacing Laurie Boivin. She was elected last year to succeed Craig Corn, and delivered the annual State of the Tribe address. It is not clear whether the change of chairs is related to Walker’s rejection of the Kenosha casino.

In addition, the tribe offered to pay $220 million—or even up to $300 million–to cover taxpayers’ share of a new downtown Milwaukee arena in exchange for approval of the proposed Kenosha casino. The money would be paid out over a 25-year period. “Our $220 million proposal eliminates a big political problem and creates a major advantage to state taxpayers. We want Wisconsin to stay big league.”

Combined with an estimated $1.2 billion in gaming revenue for the state, Besaw said the tribe’s proposed total contribution now totals $1.7 billion. Besaw also said the Menominees and prospective casino developer and manager Hard Rock International, owned by the Seminole Tribe of Florida, would increase from $250 million to $275 million the bond it would post to cover any potential state losses from the Potawatomi and Ho-Chunk casinos—the primary reason Walker stated for rejecting the Kenosha casino. Both tribes’ compacts stipulate the state must cover any losses due to a new competitor.

“This proposal eliminates the need for state taxpayer funds to build a new arena, increases protections and firmly and factually resolves other concerns. It shows the Kenosha casino is truly a win-win-win for Wisconsin. We encourage Governor Walker to give this new information and these new benefits fresh, reasoned and serious consideration, and meet with us at his earliest convenience upon returning to the state. There are now 1.7 billion good reasons to be a strong leader for Wisconsin and say yes.”

But within hours, Walker’s Administration Secretary Mike Huebsch said the governor would not reverse his decision. “We’re finding out through news releases. When you get to the point that you’re negotiating by news release, you realize that there isn’t any validity to these offers. On looking at it, I don’t believe these are genuine offers that they can fulfill. I believe the governor has made a decision and we have moved on,” Huebsch said.

However, officials with the U.S. Department of Interior’s Bureau of Indian Affairs told the tribe they would give full consideration to a second review and determination from the governor by the official February 19 deadline. “We’re not going to stop until February 19. We’ve put too much blood, sweat and tears into this. We’re trying, we’re really trying, but we’re going to need something more than just trying,” Besaw said. And that could include legal challenges to Walker’s decision, he noted.

Former Menominee Tribal Chairwoman Laurie Boivin and Hard Rock Chairman James Allen sent Walker a letter stating his rejection was based on erroneous information. They wrote, “It appears that you have received inaccurate information regarding the relative risks and reward of approval of the Kenosha project.” The letter said the state’s own lawyers claimed no provisions in the earlier agreement between the state and the Potawatomi require the state to refund prior gaming fees or revenue-sharing payments made to the state.

In addition, 10 bipartisan state lawmakers, most from the Kenosha and Racine area, also appealed to Walker to reconsider his casino decision. The lawmakers are: Senator Van Wanggaard, Assembly Speaker Rep. Robin Vos, Senator Bob Wirch, Rep. Samantha Kerkman, Rep. Peter Barca, Rep. Tod Ohnstad, Rep. Cory Mason, Rep. Dave Craig, Rep. Jeff Mursau and Rep. Tom Weatherston.

The proposed Kenosha casino would have included a 100,000 square foot gaming floor with 3,100 slot machines, 75 table games, a 5,000-seat multi-purpose entertainment venue, 50,000 square feet of retail space, restaurants and a 400-room hotel. It would have been a major economic development for the area and helped raise the Menominee tribe out of poverty.

Meanwhile Menominee officials said they renewed the option to buy land for the proposed casino at the former Dairyland Greyhound Park in for $60,000. If the Kenosha casino project is indeed dead, city officials said the 180 acres are considered a prime industrial development.