CASINO UPDATE
Tribe Obtains Financing to Complete
Construction of Gun Lake Casino
Casino Project, Jobs Secure under $165 Million Loan
Bradley, Michigan – Today the Gun Lake Tribe (Tribe) announced it has finalized financing to
complete construction of the Gun Lake Casino (casino). The funds will enable construction activity to
reach full capacity. Jobs at the construction site have increased with hundreds more to be created upon
the casino’s opening.
“Securing this loan is another significant achievement in our tribal government’s effort to become
economically self-sufficient. This development ensures badly needed jobs and services for our tribal
citizens, and our neighbors in the local community,” said D.K. Sprague, Tribal Chairman.
The $165 million loan was arranged by Goldman Sachs. The loan interest rate is twelve-percent (12%)
and is for a term of five years. The Tribe does have the option to pay off the loan any time after the
third year.
“With this loan, we are confident we can quickly build a state-of-the-art facility that will be
competitive with any casino in Western Michigan. We look forward to providing a great entertainment
experience,” said Sprague.
The Tribe has already made considerable progress on building the casino. The facility is enclosed and
the on-site waste water treatment plant is under construction. Roadwork to enhance freeway access to
the site is nearly complete. This includes widening of 129th Avenue and exit lanes off U.S. 131.
Phase I of the Gun Lake Casino will create 600 direct jobs with a total average annual compensation
package of approximately $40,000; 1,000 indirect jobs; and $30 million per year in direct purchases of goods
and services. Seven hundred and fifty construction jobs will be created over the course of construction.
For more information visit www.mbpi.org or www.gunlakecasino.com.
Construction activity is operating at full capacity and will remain at this level until the project is
complete. The Tribe anticipates a grand opening by early 2011, and will publicly announce a
definitive opening date in the near future.
A total of 750 construction jobs will be created over the course of construction. Tradesmen currently
on site include plumbers and pipefitters, electricians, carpenters and sheet metal workers.
The Tribe has overcome many delays caused by well-funded opponents, and then a sharp downturn in
the economy. Despite numerous obstacles the Tribe has consistently achieved progress on opening the
casino in every arena whether legal, political or economic.
“Today we can say, once and for all, the Gun Lake Casino is coming to West Michigan,” said Sprague.
Phase I of the Gun Lake Casino will now feature 1,400 slot machines rather than 1,200 as originally
planned.
|
In Land We Trust
Federal Action Restores Tribal Land for Gun Lake Tribe
|
|
"Today we rejoice knowing that all our hard work has paid off and the sacrifices of our ancestors was not made in vain," said D.K. Sprague, Tribal Chairman. "Now it's official. Justice has been served to those who were motivated by greed and power to delay this project for nearly ten years." |
Today the casino land title was transferred to the United States government to be held in trust on behalf of the Tribe. The Department of the Interior authorized the title transfer, which is not open to a legal challenge. This action ends any legal ambiguity about the Tribe's ability to conduct gaming in accordance with federal law. |
Trust status was stalled by frivolous lawsuits for nearly four years by Michigan Gambling Opposition (MichGO) and its financiers in 23 is Enough. The last meritless legal motions were rejected by the U.S. Supreme Court and finally Federal District Judge Richard J. Leon. |
"We said from day one that we will prevail over these frivolous legal challenges, and we did. We also said that we will never do business with any person or group that opposed this project," said Sprague. |
Through many legal victories that were followed by long periods of delay, thousands of people stuck by the Tribe. The first of these groups was Friends of the Gun Lake Indians (FOGLI). Beginning with just a handful, FOGLI has grown to over 10,000 supporters. |
Local governments, business chambers, building trade unions, and civic groups followed to number over forty different organizations that support the casino. The casino proposal that started amongst public chaos caused by casino opponents ended up with editorial endorsements from newspapers in Detroit all the way to Holland. |
"One of our dearest friends was the late Bill Brown, the beloved editor of the Allegan County News, who once wrote an article titled 'In Land We Trust.' The Tribe is thankful for all our supporters, including the wonderful people who make up FOGLI," said Sprague. |
Throughout the entire process no unit of government or court of law was ever convinced to oppose the casino by anti-Gun Lake Tribe forces. |
"This is great news for area residents and business owners who have had to wait so many years. This tribal gaming project is going to create jobs and business opportunities for our community. Congratulations to the Tribe and the ten thousand-strong members of FOGLI. I am excited to work with the Tribe for years to come," said Roger VanVolkinburg, Wayland Township Supervisor. |
Soon the Tribe will hold a press conference to announce a groundbreaking date, provide information for those who want to apply for a casino job, and inform area business owners how they can bid on contracts for goods and services. |
The Gun Lake Casino will be operated by the Tribe's management partner, Station Casinos. |
|
Supreme Court Rejects MichGO Appeal
Decision Clears Path for Gun Lake Casino Construction
Bradley, Michigan – Today the U.S. Supreme Court declined to hear an appeal from Michigan
Gambling Opposition (MichGO), whose lawsuit had sought to prevent construction of the Gun Lake
Tribe’s proposed gaming facility. The Court’s decision brings the litigation to its end and clears the
way for construction of the Gun Lake Casino.
“We are very happy with the Supreme Court’s decision to reject MichGO’s appeal,” said D.K.
Sprague, Tribal Chairman. “It is, however, bittersweet because the Tribe and thousands of its
supporters were irrevocably harmed by this lawsuit.”
MichGO’s Supreme Court petition was based on the argument that Congress improperly delegated to
the Secretary of Interior the authority to take land into trust for Indian tribes. The same argument was
rejected by the Supreme Court in three other, separate cases, over the last two years.
MichGO also sought to subject the Gun Lake Tribe to a separate case currently pending before the
Supreme Court, wherein the State of Rhode Island argues that a tribe is not eligible to have trust lands
if it was not federally recognized and under federal jurisdiction in 1934. The Tribe’s founding
namesake, Chief Match-E-Be-Nash-She-Wish, signed his first treaty with the United States in 1795.
Additionally, the federal government previously determined that the Tribe has continuously existed as
an Indian Tribe for over 200 years.
After the trust acquisition process is complete the Tribe will begin to negotiate in good faith with the
State of Michigan to conclude a gaming compact that is beneficial for both respective governments.
At a later date the Tribe will release information pertinent to construction of the casino facility, hiring
of employees, and selection of vendor contracts.
The Gun Lake Casino will be operated by the Tribe’s management partner Station Casinos.
FORTUNE Magazine has listed Station Casinos as a “Top 100 Companies to Work For” each of the
last four years.
Electronic versions of this release, the Court’s decision, a historical timeline, and Gun Lake Casino
renderings are available at www.mbpi.org. |
