Walker: Tribal Compacts Complicate Decision

Past tribal compacts with the Forest County Potawatomi are complicating Wisconsin Governor Scott Walker's decision regarding the Menominee Nation's proposed $810 million, off-reservation Hard Rock Hotel & Casino in Kenosha (l.). Walker said those compacts require the state to pay up to $100 million to cover losses at the Potawatomi's Milwaukee casino resulting from the Kenosha development.

Wisconsin Governor Scott Walker recently said he wants the thousands of construction and permanent jobs a proposed 0 million Menominee Nation’s Hard Rock Hotel & Casino would bring to Kenosha, but past gaming compacts, negotiated by then-Governor Jim Doyle, complicate the issue.

Walker said those compacts would require the state to reimburse the Forest County Potawatomi tribe, which operates a casino in Milwaukee, up to $100 million to make up for what the tribe said it would lose if the Kenosha casino opens. The tribe also said the compact requires the state to refund previous annual payments if the governor approves the new facility. The Potawatomi recently withheld its annual $25 million payment to the state. The money was placed in a reserve account, the tribe said, because it was concerned the state wouldn’t follow through on the refund. In response, Walker’s administration said the tribe could lose about 2,000 electronic slot machines at its Milwaukee casino if it continued to withhold the payment.

Regarding the Potawatomi, Walker said, “Right now they’ve got the upper hand because they’ve got a compact that Governor Doyle gave them. It’s not something I can trump. It’s not something I can go to court over.” The issue is part of an arbitration process, Walker noted, adding he would like to resolve the matter in a way that will create more jobs. He said special outside counsel is engaged in ongoing discussions with the Potawatomi.

Walker has until February 19 to make his decision on the Kenosha casino. “Politically, there’s people that tell me we’ve got to deal with it right away,” he said. However, he noted those people would not approve a deal that cost the state $100 million. Walker has been accused of delaying his decision in order to raise more money, but he stated his re-election campaign is not accepting contributions from the tribes involved.

Meanwhile, even though their casino has not been approved, the Menominee tribe is advertising jobs in management, engineering, technical support, food service and more at the complex that would be built at the former Dairyland Greyhound Park. A website has been created for the “likelihood of approval,” the tribe noted in a statement. “While negotiations continue on the proposed project, the Menominee and Hard Rock project team believe it is necessary to begin preparations for a gubernatorial approval. Eventually, up to 3,000 new associates could be employed at the Kenosha facility; therefore, business steps are being taken to prepare for the facility opening.”

The website is www.hardrockhotels.com/kenosha.htm.