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The long-standing conflict between Kewadin Casinos Gaming Authority and its former development partners has finally been resolved. Kewadin, the gaming division of Sault Ste. Marie Tribe of Chippewa Indians, has agreed to provide a settlement amount of $25 million to the two development partners. These partners had initially invested in the construction of casinos in New Boston and Lansing, which unfortunately never materialized.
Additionally, Kewadin has agreed to compensate a Colorado law firm, involved in the lengthy legal proceedings spanning over ten years, with a sum of up to $10 million. It is worth noting that Kewadin had previously received $9 million in 2011 from JLLJ Development LLC and Lansing Future Development II LLC, as payment for two prospective casinos in Michigan.
Kewadin had initially been ordered to pay $88.9 million
After Kewadin was unsuccessful in obtaining federal approval for the off-reservation projects, the development companies took legal action by filing individual lawsuits. Over the course of several years, numerous appeals and counter-suits took place. Finally, in January, Judge Joyce Draganchuk of Ingham County Circuit Court made a ruling that awarded the two development companies a combined sum of $88.9 million as compensation.
The tribe from Sault Ste. Marie formulated a plan to establish a casino/resort worth $245 million in Lansing, along with a smaller location near Romulus, specifically in New Boston.
In a statement, the Sault Ste. Marie Tribe of Chippewa Indians’ attorney expressed that the settlement sum signifies a significant decrease of approximately 75% from the $88 million in damages initially mandated by Ingham County Judge Joyce Draganchuk.
This agreement enables Kewadin to progress and concentrate all our efforts on delivering top-notch entertainment services to the communities we serve.
Cost of more appeals led to quick Kewadin settlement
Sault Tribe General Counsel Aaron Schlehuber addressed tribal members in an open letter, providing insight into the prompt resolution of the dispute and justifying the discreet approach adopted during negotiations.
Schlehuber expressed that in a situation as significant as this, it is usually preferable to provide sufficient chances for member input. However, the truth is that legal disputes and business concerns often hinder the objective of transparent governance and dialogue with constituents. Regrettably, this happens to be one of those times.
The tribe calculated the cost of pursuing additional appeals to be around $15-25 million. This financial consideration led them to opt for a settlement, despite their strong desire to address various concerns with the trial judge during the appeals process.
There are five Kewadin Casinos in the Upper Peninsula of Michigan, owned and operated by the Sault Ste. Marie Tribe of Chippewa Indians. These casinos can be found in Christmas, Hessell, Manistique, Sault Ste. Marie, and St. Ignace.
The UP of Michigan boasts the largest gaming operations, offering over 2,000 slot machines along with a variety of other games such as blackjack, roulette, craps, keno, and bingo.
