Menominee Tribe, state sign compact amendment ahead of looming Kenosha casino decision deadline
KENOSHA (WITI) -- The Menominee Tribe announced on Tuesday evening, January 20th that a compact amendment has been signed ahead of the February 19th decision deadline for a proposed Kenosha casino -- a move the tribe is celebrating.
"This is great for Menominee. "This is something we are celebrating. This will be a very good thing for Wisconsin," Gary Besaw, the chairman of the Menominee-Kenosha Gaming Authority said.
In a statement, the Menominee Tribe said:
"Today, Governor Walker and the Menominee Indian Tribe of Wisconsin executed an amendment to the Menominee Tribe's gaming compact regarding the proposed Hard Rock Hotel & Casino in Kenosha."
The amendment has been sent to the Bureau of Indian Affairs for approval.
Menominee tribal leaders say the compact eliminates the risks that the Kenosha casino could ultimately cost the state millions of dollars.
It is important to note, the agreement does not finalize the approval of the casino -- but the Menominee Tribe considers this a big step towards that approval.
“We are grateful for the tireless efforts made by Governor Walker and his team in reaching a mutual compact amendment which answers the concerns of the state. Governor Walker now has a clear path to approve the Kenosha project and reap the benefits of $1 billion in revenue share for the state budget while generating 10,600 new jobs and unleashing a capital investment of $1.6 billion in the state’s future," Laurie Boivin, Menominee Chairwoman said in a statement.
The land and shell of the former Dairyland Greyhound Track is the site for a proposed casino.
The Potawatomi Tribe, which operates a casino in Milwaukee, is opposed to the project — citing unfair competition that would result in economic and job losses in Milwaukee.
The Potawatomi hoped the Bureau of Indian Affairs would approve a compact amendment that would require state taxpayers to refund $100 million in potential lost revenue to the Potawatomi Tribe. That amendment was rejected. If the amendment had been approved, it may have put the state on the hook to make up any money the Potawatomi Tribe lost if the Kenosha casino comes to fruition -- a risk that would likely caused Governor Walker to kill the plan.
The Menominee Tribe said this in a statement to FOX6 News Tuesday evening, January 20th:
"The compact amendment addresses perceived risks to the state, provides the state with increased revenues, covers the state’s cost associated with the concurrence and ensures the Governor’s concurrence will not result in a reduction in associated state gaming revenues. The compact amendment provides certainty for Governor Walker that when he approves the Kenosha casino it will result in the win-win-win he has sought since the BIA approved the Menominee’s proposal in 2013."
The Menominee Tribe says the following are highlights from the latest compact amendment:
"Over a 25-year period, we are looking at over a billion dollars that we will be making in revenue share payments to the state," Besaw said.
Besaw says the compact eliminates risks the state would be on the hook for millions of dollars in lost revenue for the Potawatomi casino in Milwaukee.
"Any of the perceived risks that you might be hearing, Menominee has taken those obligations on itself, and will indemnify the state, so it wouldn't be the state having to pay," Besaw said.
READ IT: Menominee compact amendment.
Mike Huebsch, the state's treasurer, has issued a "Memo" to Governor Walker -- warning of actions that have been taken or could be taken by the Potawatomi Tribe -- saying in part:
"The Forest County Potawatomi Community has filed or will file several lawsuits that could have significant consequences to the State if the Menominee Indian Tribe of Wisconsin's proposed Kenosha casino is approved. While the specific relief sought by Potawatomi varies depending on the specific legal challenge, the exposure to the State remains the same. Overall, the potential exists for the State to lose hundreds of millions of dollars if the Potawatomi successfully challenges approval of the proposed Kenosha casino. We believe the State has strong defenses to these challenges and others that may arise. However, any challenge to the approval impacts the profitability of the proposed Kenosha casino and reduces the ability of the Menominee to cover losses to the State."
READ IT: Secretary Mike Huebsch's Memo to Governor Walker.
The Potawatomi Tribe has issued this statement to FOX6 News on the Menominee Tribe's compact amendment:
“The Potawatomi are reviewing the proposed compact amendment from the State and Menominee. However, it’s clear that this compact amendment does not remove the risk that a Kenosha casino could put a substantial hole in Wisconsin’s budget, and it does nothing to stop the hundreds of millions of dollars that will be sent to the Florida Seminole Tribe who will develop and operate it.”
Brian Nemoir, Executive Director of "Enough Already!" -- a coalition opposed to the expansion of off-reservation gaming issued this statement:
“Today’s announcement of a compact amendment with the Menominee Tribe reaffirms the inherent risk the proposed Kenosha Casino presents to the state’s taxpayers. Enough Already! WI applauds Gov. Walker’s efforts to place the interests of the state’s taxpayers at the forefront, and his continued emphasis on weighing the legal exposure and potential negative budgetary implications as he nears February 19th deadline for final consideration.”
Again -- Governor Walker has until February 19th to make a decision.
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