Mashpee tribe could lose casino bid
BOSTON — The state gaming commission could open up a Southeastern Massachusetts casino license to commercial bidders, potential competition to the $500 million Mashpee Wampanoag casino proposed in Taunton.
Citing at least four significant hurdles still facing the tribe's efforts, commission members said they want to respect the tribe's federal rights but don't want Southeastern Massachusetts to fall too far behind in the licensing process should the Mashpee Wampanoag not receive federal approvals.
Over the next week, Commissioner James McHugh will consider options, including possibly accepting applications from commercial bidders in a parallel process while the tribe seeks its approvals. The commission plans to discuss the ideas next week and could make a decision later this month, Chairman Stephen Crosby said.
Commissioners want to make sure Southeastern Massachusetts, known as Region C in the 2011 legislation that authorized three casinos and a single slot parlor, isn't "behind the 8-ball," Crosby said.
The decision came after McHugh outlined several significant obstacles facing the tribe — among them the tribal-state compact rejected by the federal Bureau of Indian Affairs and a 2009 U.S. Supreme Court ruling known as the Carcieri decision that calls into question the tribe's ability to have land taken into federal trust. Congressional legislation to fix that issue has stalled, McHugh said.
Further delaying bids for commercial casinos in Southeastern Massachusetts could "put the region a year or more behind everyone else," McHugh said.
Tribe leaders could not be reached for comment Tuesday.
In a letter to the commission dated Monday, tribal council Chairman Cedric Cromwell said the tribe "continues to make great progress on all fronts towards having the secretary of the Interior take land into federal trust for our tribe."
Cromwell wrote that it's the tribe's position that the state's Expanded Gaming Act gives it exclusive rights to the region's casino license.
McHugh and Crosby disputed that claim. It was a compact reached between the tribe and Gov. Deval Patrick that promised exclusivity, McHugh said. That deal was rejected by the federal Bureau of Indian Affairs as too rich for the state and, thus, the tribe has no assurance of exclusivity at this point, he said.
The legislation gives the commission the ability to put the region's license out to competitive bid and puts no restrictions on it, Crosby said.
"That was not an accident. I'm sure of that," he said.
The Patrick administration did not respond to a request for comment through spokesman Jason Lefferts. Patrick has been a vocal advocate for the tribe and is in the process of renegotiating a compact to resubmit to the Bureau of Indian Affairs.
KG Urban Enterprises, a casino developer interested in building on the New Bedford waterfront, sued in federal court challenging the state law as a race-based set-aside for the tribe. That case is pending.
On Tuesday, the developer's attorney issued a statement saying the company is seeking a level playing field.
"If the commission were to move forward with a fair and equitable commercial application and licensing process in the southeast that mirrors the process already in place for the other regions, then KG stands ready to compete on a level playing field with any and all other gaming license aspirants," Andrew Stern, managing director for KG Urban, added in a separate statement.
State Rep. Robert Koczera, D-New Bedford, an outspoken critic of the lack of a deadline for the tribe, said he's encouraged by the proposal, but is worried that developers won't bid if they think the Mashpee Wampanoag plans can trump them.
"It's movement, and it's positive movement," he said. "I think commercial developers are going to want more certainty."
Crosby pointed out that between five and seven developers will spend the $400,000 to be prequalified to bid on a license in the state's other two regions by the Jan. 15 deadline with no guarantee that their investments will result in a casino.
"Everyone is taking calculated risks," he said. "That's the nature of the business."
1 comment:
No surprise...even with all the big wigs running to DC this week, trying for a back door deal!
So how are you going to pay back everyone Cedric?
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