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Wednesday, September 11, 2013

Tribe's casino compact advances



Tribe's casino compact advances
 
SPRINGFIELD — A legislative committee on Tuesday approved a casino compact between the Mashpee Wampanoag Tribe and Gov. Deval Patrick, setting the stage for the state's full House and Senate to consider the deal.
 
After a hearing on a dozen unrelated bills at Western New England University's School of Law, the Joint Committee on Economic Development and Emerging Technologies voted 8-1 in favor of moving the compact forward.
 
Tuesday's vote marks the first time in four months that there's been movement in the tribe's plans to build a $500 million casino in Taunton.
 
"We thank the committee members for supporting this revised compact, which brings us another step closer to breaking ground on Project First Light," tribal council Chairman Cedric Cromwell said.
 
Only state Rep. Robert Koczera, D-New Bedford, voted against it.
 
"If we approve this, it's unnecessary because it's inoperable," Koczera said during the brief discussion of the compact legislation.
 
Koczera cited a U.S. Supreme Court ruling, known as the Carcieri decision, that calls into question the federal Department of the Interior's ability to take land into trust for tribes recognized after 1934.
 
The Mashpee tribe gained federal recognition in 2007.
 
"The Supreme Court decision effectively puts up a roadblock," he said.
 
The tribe has filed paperwork with the federal government showing why it believes the high court ruling does not apply. The tribe argued that it was under federal jurisdiction in 1934.
 
That position has been challenged by casino critics, and the federal Bureau of Indian Affairs has yet to rule on that key question, despite issuing a letter to the tribe earlier this year saying a decision would be coming by "early 2013."
 
After the hearing, Koczera said he's fearful that the committee's vote will be seen as a positive movement by the Legislature and potentially hurt prospects for commercial casino companies to consider applying for a license in Southeastern Massachusetts, known as Region C in the casino legislation.
 
"I think it tends to dampen investors wanting to go into the area somewhat, but we'll see how that plays out," he said.
 
As he has said previously, Koczera said he is worried about his city losing out on jobs and revenue a casino could bring.
 
"I don't see how tribal gaming by any measure of reasonableness can expect to be up and running in the same time as a commercial casino, and they were given a head start," he said.
 
The Massachusetts Gaming Commission opened up the region to commercial bids and set a deadline of Sept. 30 for the initial phase of applications, plus a $400,000 nonrefundable check.
 
To date, only KG Urban Enterprises, a company that wants to build a casino on the New Bedford waterfront, has announced its intentions to apply.
 
Andrew Stern, managing director of KG Urban, which sued the state over the tribe's head start in Region C, also noted that if a commercial casino is licensed and the tribe clears its hurdles, the Mashpee Wampanoag won't have to pay the state anything under the terms of the compact.
 
"The governor has placed the interests of one group ahead of the interests of the rest of southeast Massachusetts men and women," he said. "That's just wrong. We hope sincerely that the Legislature is wiser than the governor on this issue and does not approve the compact."
 
The Patrick administration declined comment on the committee vote through spokeswoman Emily Fitzmaurice.
 
State Rep. Antonio Cabral, D-New Bedford, who was in the audience Tuesday, said after the vote that he's hopeful the Gaming Commission will press forward with the commercial process.
 
"I believe a commercial license will be issued in Region C before the tribe can get going," Cabral said. "I'm not opposed to a tribal casino, but it should not be exclusive to a commercial casino. One of the dangers is we are left without the ability to compete on a level playing field with the other two regions."
 
In its press release, the Mashpee Wampanoag predicted the compact will provide $2.1 billion in revenue to the state over 20 years. The compact will also provide $300 million to Southeastern Massachusetts for transportation, education, tourism and funding for surrounding communities, according to the tribe.
 
"We live here, we work here, we want to grow here, and we will reinvest here," Cromwell said. "We are the hometown team."
 
The committee held off on voting on the compact for months. The bill was filed in April by Patrick and the committee held its public hearing in mid-May, but delayed the vote.
 
"Although it took longer than anticipated, it's good to see this agreement be reported out of committee with overwhelming support, which is also a hopeful sign for the future of gaming in Southeastern Massachusetts," state Sen. Marc Pacheco, D-Taunton, said.
 
In April, the Gaming Commission moved ahead with plans to seek commercial bids in the region, in part, because it could not predict how long the tribal process would take.
 
The compact, which was renegotiated after an initial compact was rejected by the Bureau of Indian Affairs last October, will now go to the full House where it faces an up or down vote. The Legislature is not allowed to amend the terms of the deal between the tribe and Patrick.
 
Seth Gitell, a spokesman for House Speaker Robert DeLeo, could not immediately say when the House will schedule a compact vote.
 
After the House considers it, the compact will move on to the Senate.
 
Under the proposal, the tribe would pay the state anywhere from zero to 21 percent of gross gambling revenue based on the level of competition. If the state has two other casinos and a slot parlor outside the region, the tribe would pay 17 percent.
 
That could make it a tough sell in the House and Senate, because the first deal they approved would have paid the state 21.5 percent of gross gambling revenue, no matter the level of competition in Region C.
 
That deal was rejected as being too lucrative to the state with not enough concessions for the tribe.
Even if the Legislature approves the compact, the bureau will have 45 days to consider if the new deal protects the tribe's financial interests.
 
 
 

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