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The proposed $245 million Kewadin Lansing Casino has been part of a legal dispute three Native American tribes have been a part of for over two years.(Photo: Courtesy photo)

LANSING -- A Native American tribe eager to build a $245 million casino in downtown Lansing says it has earned a victory that could help end its over five-year legal dispute with opposing tribes.

The Sault St. Marie Tribe of the Chippewa Indians cites a Jan. 19 letter from the U.S. Department of Interior that states the tribe's application for the Lansing casino is "mandatory" under the Michigan Indian Land Claims Settlement Act. The letter, obtained Wednesday by the Lansing State Journal, also states the Interior Department will keep the application open so the tribe "may present evidence of an enhancement."

Aaron Payment, the Sault St. Marie Tribe's chairperson, and Lansing Mayor Virg Bernero said Wednesday they believe this letter sent to Payment shows the Interior Department accepts the tribe's legal position and is willing to work with them.

"We are very encouraged by the Interior Department's statement on the tribe's trust application," Bernero wrote in a text message to the LSJ. "It is another step forward in what we knew would be a long, complicated process. We remain completely committed to the project and confident that the Lansing Kewadin Casino, and the Lansing Promise Scholarship it will fund, will come to fruition." Bernero said last year he expects the casino to create 1,500 permanent jobs and 700 construction jobs

Two tribes that oppose the Sault St. Marie tribe's casino project in Lansing interpret the letter much differently.

Chairpersons for the Nottawaseppi Huron Band of Potawatomi and Saginaw Chippewa Indian tribes cite an excerpt from the letter that states there is "insufficient evidence to allow us to proceed." They also said the Sault St. Marie tribe's failure to get its application for the Lansing casino approved under former President Barack Obama's administration also hurts its chances. The Interior Department's letter to Payment is dated a day before President Donald Trump's inauguration.

A joint statement from the Potawatomi's Jamie Stuck and Saginaw Chippewa's Frank Cloutier emailed to the LSJ said the Interior Department's letter adds the Sault St. Marie tribe's legal position has no merit.

"It's been five years since the (Sault) Tribe and Mayor Bernero promised the people of Lansing that a casino was only one to two years away," the statement said. "At the time we said that was a blatant attempt to mislead the public. The fact is, they are no closer to a casino today than five years ago.

"Furthermore, the incoming Secretary of Interior (nominated U.S. Rep. Ryan Zinke, a Montana Republican) has a record that is not nearly as favorable to off-reservation gaming as the previous administration."

John Wernet, the Sault St. Marie tribe's lawyer, argues that if the tribe's pursuit of a Lansing casino was doomed to fail, then its application would have been rejected years ago. Wernet also said his client's pursuit of a Lansing casino has taken so long because the opposing tribes tied the Sault St. Marie tribe up in over two years of litigation.

“If the answer was 'no', don’t you think Obama Administration would've said 'no'?" Wernet said. "We're not yet across the finish line."

The Sault St. Marie tribe filed its casino application to the Interior Department over two years ago. Payment said Wednesday he had a conference call with federal officials last week and was told exactly what the tribe needs to make sure the application process proceeds. He described the tribe's goal as "100% achievable" and said the evidence federal officials seek could be submitted to them in "a matter of weeks."

Plans for the Kewadin Lansing Casino call for up to 3,000 slot machines, 48 table games and several bars and restaurants. The project would also have two parking decks with about 2,900 spaces. (Photo: Courtesy image)

It's unclear how quickly the Interior Department could take another look at the Kewadin Lansing Casino once the Sault St. Marie circles back with it.

If a license is approved, the Sault St. Marie tribe should expect a bruising legal dispute to continue with the opposing tribes.

The opposing tribes claim the Lansing casino project violates the 1997 Michigan Indian Land Claims Settlement Act. They argue laws support their stance that the Sault St. Marie tribe doesn't have the right to build on the land needed for the project.

The Saginaw Chippewa tribe owns Soaring Eagle Casino & Resort in Mt. Pleasant; the Nottawaseppi Huron Band of Potawatomi owns FireKeepers Casino Hotel in Battle Creek.

Last fall, the Sault St. Marie tribe said it earned another victory after what it deemed was as a favorable ruling in federal court, where a judge blocked an attempt by Attorney General Bill Schuette to prevent the Sault St. Marie tribe from building the Lansing casino. The judge ruled the tribe did not violate any law when they submitted their application to federal officials.

The Sault St. Marie tribe already owns a portion of land it needs in downtown Lansing to move the casino forward.

In 2012, the city sold the tribe a parcel of land at Michigan Avenue and Cedar Street for about $287,000, Wernet said.

Under the agreement, Wernet said the city is leasing the land for a $1 and would buy the property back "at fair market value" if the project falls through. Wernet also said the land purchase includes an option to purchase a "showcase parcel" located north of the Lansing Center for $960,000. A copy of the tribe's development agreement with the city states the casino shall require a minimum capital investment of $135 million.

Under the casino proposal, the facility's annual revenue payments to Lansing would help fund four-year college scholarships for Lansing School District graduates. Plans for the casino would include up to 3,000 slot machines, 48 table games and several bars and restaurants. The project would also have two parking decks with about 2,900 spaces.

The Sault St. Marie tribe also has plans to build a casino in Huron Township, near Detroit Metro Airport. The Interior Department's Jan. 19 letter sent to Payment, the tribe's chairman, also mentions the Huron Township casino's application remains open.

Contact Eric Lacy at 517-377-1206 or  This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Follow him on Twitter @EricLacy.

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