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March 5, 2003

Gambling may not be near at GT Resort

Read more:
MAIN STORY: GT Band, GT Resort deal looms
REACTION: News of deal spurs praise, some concern
TIMELINE: Key events in history of the GT Resort
CASINO: No casino for years
TAXES: Land won't come off local tax rolls
PLANS: New GM's focus will be dual marketing

By
Record-Eagle staff writer

      ACME - A wide variety of options would be available to the Grand Traverse Band of Ottawa and Chippewa Indians for future development of the Grand Traverse Resort and Spa, although that does not necessarily mean slot machines and dice tables will be moving in anytime soon.
      Whether the tribe would make significant changes to the resort operation - such as the addition of casino gaming or some other major expansion - may not be determined for several months or even years. Tribal officials will have to weigh several factors, ranging from the economy to its relations with local governments to various legal precedents, before any long-term plans for the resort are settled.
photo
Record-Eagle/Jim Bovin
The band could seek trust status for th resort, similar to where its base is in Leelanau County's Peshawbestown, the location of its Leelanau Sands Casino, shown here.
      Tribal officials have been unable to publicly discuss their possibilities for the resort because of a confidentiality agreement in place for several months surrounding the pending sale. But local officials have been following the on-again, off-again reports of the resort's sale to the tribe.
      "The rumors have gone around so many times that you hear them again and it's like 'whatever,' " said Acme Township planner Sherrin Hood.
      If the sale is completed, the band - as a federally recognized Indian tribe with state-like sovereignty - will be no ordinary landlord. It will have several potential development options.
      The band could seek federal trust status for the resort property, turning ownership of the land over to the federal Department of Interior for use by the tribe. That is what the band did with its property along M-72 in Whitewater Township back in 1989, prior to development of the Turtle Creek Casino seven years later.
      Gaining trust status for the site would essentially remove the land from the tax rolls and also eliminate local land-use control from the site.
      But tribal officials have acknowledged that gaining trust status for the land is no sure thing under the Bush administration's Department of Interior, particularly if there is staunch local opposition to such a move.
      Having that land held in federal trust also does not necessarily clear the way for casino gaming on the site. The tribe could have other legal options to make that happen, however, including its "restored lands" legal argument that was used to keep Turtle Creek operating despite claims by state and federal attorneys that it was illegal. The band successfully argued in U.S. District Court that Turtle Creek, in Grand Traverse County, was on land included in its historic reservation area as outlined in an 1836 treaty with the federal government.
      The band itself is based in Leelanau County's Peshawbestown, where its Leelanau Sands Casino is.
      The tribe could make a similar "restored lands" legal argument for the resort property, which is also within its historic reservation, but could risk political fallout that might result from another lengthy legal battle over casino gaming.
      Local governments have a keen interest in keeping the resort property - which includes restaurants, shops, a high-rise hotel and championship golf courses - on the local property tax rolls.
      The resort had a taxable valuation of slightly more than $11 million last year, ranking it as the seventh-highest generator of property tax revenue in Grand Traverse County. That includes almost $30,000 a year in township taxes, nearly $300,000 in school taxes and more than $58,000 to county coffers.
      "I certainly worry about it because they are one of our top 10 taxpayers," Grand Traverse County equalization director Laurie Spencer said. "You don't like to lose one of them."
     

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