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March 6, 2003Land won't come off local tax rollsRead more:CASINO: No casino for years PLANS: New GM's focus will be dual marketing REACTION: News of deal spurs praise, some concern ANALYSIS: Gambling may not be near at GT Resort TIMELINE: Key events in history of the GT Resort By Record-Eagle staff writer ACME - Tribal leaders say the purchase of the Grand Traverse Resort and Spa will not reduce the nearly $500,000 a year in property taxes the resort contributes to schools and other local services. Representatives of the Grand Traverse Band of Ottawa and Chippewa Indians said Wednesday there are no plans to remove the resort from local property tax rolls and the resort will continue to pay other state and federal taxes at the business. The resort also will continue to be subject to Acme Township's current development plan for the 950-acre site, tribal officials said. Many of the tribe's facilities, including its casinos in Williamsburg in Grand Traverse County and Peshawbestown in Leelanau County, have been developed on land held in trust by the federal government. As such, they are exempt from taxation. Tribal officials say such will not be the case at the resort, at least in the near future. "Everybody understands we're not talking about trust status for the Grand Traverse Resort," tribal attorney William Rastetter said. Tribal officials said the resort will be owned by the Grand Traverse Band Economic Development Corp., a private corporation that is the business arm of the tribe. As a result, the resort will continue to be subject to the same state, federal and local taxes, both for the business and its employees, that currently exist. Other resort operators in the region feared the tribe could gain a significant business advantage if the tribe was able to avoid some taxes through its sovereign status. "All the taxes will be paid the same as they are right now," tribal chairman Robert Kewaygoshkum said. The resort had a taxable value last year of more than $11 million, according to Acme Township's tax records. That makes it the seventh-highest property taxpayer in all of Grand Traverse County, with an annual property tax bill of more than $480,000 based on a non-homestead tax rate of some 43.6 mills. Local governments already strapped for revenue do not want to see large parts of the resort's high-end land values shifted into tax-exempt status. "If they did a small portion, that's one thing," said Wayne Schmidt, vice chairman of the Grand Traverse County board. "If they do a large portion, then that's something that would be more difficult to deal with." In terms of local zoning rules, the band is taking ownership of the resort pursuant to the terms of the existing planned unit development agreement in place with Acme Township, meaning the township for now will retain land-use control over the property. The PUD agreement was last amended by the township two years ago. Township planner Sherrin Hood said the expansion plans for the resort under that pact mostly involve development of more housing. About 1,400 additional housing units could be developed under the present PUD, township officials said. The township zoning ordinance also provides for some recreational uses at the resort, including a water park or other amenities, although those are not included in the existing PUD. While it will be business as usual at the resort for now, tribal officials are less certain about the long-range plans for the facility. They eventually hope to bring in casino gaming to the resort, which could require putting some of the resort property into federal trust or pursuing other legal options in federal court to make that happen. Whether such a move would gain support or opposition from the local community remains to be seen. Grand Traverse County officials vigorously opposed the Turtle Creek Casino in its early stages, although that opposition eventually faded. County officials say relations between the tribe and local governments have improved considerably in recent years, as the tribe has become a major employer and contributor to the area's tourism industry. Relations also have improved as local officials have become more aware of the tribe's legal sovereignty as a federally recognized Indian tribe, which gives local and even state governments little if any oversight over tribal operations. "There are always going to be issues with other governments, whether it's with the state or the feds or with the tribe," Schmidt said. "But overall (the Grand Traverse Band has) certainly been a positive force in the community and has been working really hard to be even a better neighbor."
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