Tribal official explains market protection plan

Observer Staff

7/5/2005 12:00:00 AM

The Tribe invested approximately $9.3 million in a plan that has and will continue to yield much greater benefits for the Tribe and its members by finally stopping the establishment of racinos in Michigan.

The Tribal Council decided that this was the best way to protect our weekly per-capita benefits, health benefits and funding for major projects such as the Senior Center, new school, Saganing Center, At-Large Program and the Saganing Community Center.

The reason for this investment was very obvious for the majority of the Tribal Council. The state of Michigan, the Lottery Commission and the horseracing industry had this elaborate plan to install video lottery games at nine horse racing tracks throughout the state.

Four of those tracks were in the heart of our market area and would have cost our Tribe, its members and its employees many more millions of dollars than the investment made by our Council to stop racino.

By the time our Council took office in December 2003, a bill had already been passed by the Michigan House of Representatives to allow video lottery games in Michigan race tracks and a similar bill was pending in the Michigan State Senate.

Our Council's action and leadership on Proposal 1 stopped this legislation and effectively prevented racinos in Michigan.

No opposition had been made by the Kahgegab Administration to stop this legislation.

In fact, they conceded the existence of racino in October of 2001 when they decided to pay Michael Scanlon $10 million to draft and gain support for a smoking-ban bill that would only prohibit smoking in bars and restaurants within the state.

The selling point to the Tribe was to draw all of the smokers to the Soaring Eagle Casino & Resort for their entertainment. There was no guarantee the bill would pass or that smokers would flock to our establishment for their dining and entertainment pleasures.

The $10 million price tag was just for the first six months work and-as we all found out-Mr. Scanlon's fees were not legitimate or valuable.

It was estimated that the Tribe would lose 40 percent of its annual income when the racetracks began operating their video slot machines. This amount would have a devastating effect on the Tribe and the members.

It would mean 40 percent less for per-capita, 40 percent less for health benefits and 40 percent less for future projects, programs and services that are currently provided to the membership.

This Tribal Council has been criticized by a few individuals for protecting the Tribe's market with this $9.3 million plan. When, in fact, all members' benefits were protected, the amendment to the state's constitution passed and the threat to our market has been eliminated.

So when someone tells you we squandered the Tribe's funds, ask them, what would have happened if we did not take the action that we did when we did?

Ask them if they supported Proposal 1. Did they vote? Did they volunteer their time for signature gathering or sign placement?

Did they attend any of the rallies, or did they stand on the corner of Broadway and Leaton roads with their signs encouraging members to vote no on Proposal 1, despite its obvious benefits to the Tribe?

If they were on the Tribal Council at the time, did they support the majority of the Council in their efforts? If they say no, then ask them why.

Do not accept, "I did not understand," as an answer. The question we all had to ask ourselves is, "Do I want to protect the Tribe's market for the present and future members of the Tribe?" Fortunately, the majority said yes.

If you read the minutes involving Proposal 1, you will see who took the stand for you and who took the stand for the state.

Our Council is committed to acting in the best interest of the Tribe and our members. There is no question that Proposal 1 is and will continue to be in the best interest of the Tribe.

Respectfully submitted,

Sub Chief Bernard Sprague