Payment Ousted But Michigan Casino Proposal Endures

The Sault St. Marie Tribal Board recently stripped authority from the position of chairperson, leaving Chairperson Aaron Payment without the power to negotiate a casino deal. Meanwhile the Michigan tribe still awaits approval of its land-trust application for the proposed $245 million Kewadin Lansing Casino.

The Sault St. Marie Tribe of the Chippewa Indians in Michigan said its four-year-old Kewadin Lansing Casino proposal still is a possibility, but internal drama and external challenges still remain.

The Tribal Board of Directors recently removed authority from the role of Tribal Chairperson, leaving Chairperson Aaron Payment without the power to negotiate, sign and execute contracts on behalf of the tribe. As a result, Payment said, it’s not clear who within the tribe would have the authority to sign off on the casino deal. He said the “political coup” forced him to vacate his Sault St. Marie-based office. He also held a rally to start a petition drive to regain his delegated authority. “They have the authority to strip me of my authority. We as a people have the authority as the people when the board goes too far to overturn their decision,” he told the crowd.

The tribal board posted a statement noting their goal “has been and is to try to get more accountability within the tribal government, adhere to the tribe’s constitutional requirements and ensure long-term prosperity of the tribe.” The statement adds that Payment remains the chairperson at the local, state and national level “on behalf of the tribe.”

Additionally, the tribe still is waiting to hear from the Bureau of Indian Affairs regarding its land-trust application, filed in June 2014, for two parcels totaling 2.7 acres near the Lansing Center. First proposed by the tribe and Lansing Mayor Virg Bernero in January 2012, the tribe plans to build a $245 million gaming resort there.

Tribal attorney John Wernet said the tribe’s internal issues would not have any impact on project if the BIA approves the application. He added he hopes the application will be approved before President-elect Donald Trump takes office. In addition to Payment, Wernet said the tribe’s entire 12-member board also supports the casino project. “We remain completely determined and convinced that our legal position is sound. And we’re convinced that no matter what obstacles are thrown our way we will ultimately prevail,” Wernet said.

Department of Interior spokesperson Nedra Darling said the tribe’s application is “still in the review process.”

Lansing officials recently expressed their continued support for the casino project. Randy Hannan, executive assistant to the mayor, said the city remains “fully committed” to the casino project and is “presently in discussions” with the tribe to extend an existing development agreement scheduled to expire this month. “We are hopeful that Interior Department approval of the tribe’s trust application will come soon, but we will leave speculation about the future to others,” Hannan stated.

Attorney James Nye, representing the Saginaw Chippewa tribe, owners of Soaring Eagle Casino & Resort in Mt. Pleasant and the Nottawaseppi Huron Band of Potawatomi, owners of FireKeepers Casino Hotel in Battle Creek, said he’s carefully watching the BIA’s review of the Sault tribe’s land-trust application. Regarding the tribe’s internal issues with Payment, Nye said, “We want to know who’s in charge. I think it’s relevant for all interested parties to know that.” He stated if the application is approved, the Sault tribe could face legal challenges from his clients.

In September 2015, U.S. District Judge Robert Jonker ruled against the state of Michigan in its attempt to stop the Lansing tribal casino. Previously the courts also rejected Michigan’s claim against individual members of the board of directors of the tribe.

The 125,000 square foot Lansing casino would create 700 construction jobs and 1,500 permanent jobs. It would offer 3,000 slots, 48 table games, several restaurants and bars and parking for 2,900 vehicles. A portion of revenue would be directed to the city to use for the Lansing Promise Scholarships.