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March 5, 2003

News of deal spurs praise, some concern

Read more:
MAIN STORY: GT Band, GT Resort deal looms
ANALYSIS: Gambling may not be near at GT Resort
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

      TRAVERSE CITY - A Grand Traverse Band of Ottawa and Chippewa Indians' purchase of the Grand Traverse Resort and Spa would present a host of benefits and problems for other hotel operators, regional tourism leaders say.
      A major benefit would be the band's likely decision to cancel plans to build a hotel at its Turtle Creek Casino just a few miles from the resort.
      "Our biggest concern was the possibility of (the band) adding another 355 rooms," said Chris MacInnis, senior vice president of the Crystal Mountain ski and golf resort in Thompsonville. "So from our vantage, there's advantages of them using an existing property rather than adding to the Traverse City bed base."
      Thomas LaVanway, chairman and chief executive officer of Shanty Creek in Bellaire, said the deal could mean the entire region will become a more competitive destination for attracting travelers.
      "Our competition is not the Grand Traverse Resort or Boyne or whatever, it's the cruise lines and other destinations around the country," he said. "We look forward to working with people who want to get more people up here."
      Douglas Luciani, president of the Traverse City Area Chamber of Commerce, said the band could be very good for the long-term prospects of the resort. If the band markets the gaming and resort together, it could give the resort a boost in its off-season.
      "Also, this type of amenity keeps Traverse City on the leading edge in the travel and tourism industry," he said. "That property needs someone with a commitment to do it right and the band has the ability to do it."
      There is a downside, however, said one resort operator.
      Stephen Kircher, general manager of Michigan operations for Boyne USA, which has two ski operations and several golf courses in the region, described the band's buying of the resort as "disconcerting." He sees the band with an unfair advantage should it put the resort under some form of sovereign-nation status.
      "Competition that doesn't pay taxes goes against the level playing field that we are supposed to have in a market economy," Kircher said.
     

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