Did Bay County & State Voters Give Exclusive Casino Franchise to Detroit?
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It is understandable that frustration with the sagging local economy would cause citizens and local commissioners to turn in desperation to a casino.
Before the City of Bay City spends any money on casino consultants, perhaps a good idea would be to have the staff do its own due diligence.
MyBayCity.com has contacted several state-level consultants with casino lobbying experience and they all state a similar conclusion:
Bay City would have seriously high, if not impossible, hurdles to jump to gain state approval for a gambling casino run either by private investors or a Native American tribe.
First, there is the Soaring Eagle Casino at Mt. Pleasant, 40 miles away, run by the Saginaw Chippewa tribe. It is one of the nation's most successful gaming enterprises, with revenues estimated at $600 million a year.
And a reported plan to open small Chippewa casino in Arenac County at Saganing, on Saginaw Bay only about 30 miles away is said by informed sources to be awaiting a water supply line from Standish and state legislative approval. (See MyBayCity.com "New Chippewa Casino Said Set to Open Dec. 1 at Saganing, Arenac County," Oct. 15, 2006 issue)
Proposal E, adopted by Michigan voters in November 1996, approved the establishment of three Native American casinos within the City of Detroit. To have more than three would require a change in the law.
Even more restrictive is Proposal 1 adopted by statewide voters Nov. 2, 2004. Anybody remember that? Most Bay County voters agreed that the following should be approved, amending the Michigan Constitution:
PROPOSAL 04-1
A PROPOSAL TO AMEND THE STATE CONSTITUTION TO REQUIRE VOTER APPROVAL OF ANY FORM OF GAMBLING AUTHORIZED BY LAW AND CERTAIN NEW STATE LOTTERY GAMES
The proposed constitutional amendment would:
· Require voter approval of any form of gambling authorized by law after January 1, 2004.
· Require voter approval of any new state lottery games utilizing table games or player operated mechanical or electronic devices introduced after January 1, 2004.
· Provide that when voter approval is required, both statewide voter approval and voter approval in the city or township where gambling will take place must be obtained.
· Specify that the voter approval requirement does not apply to Indian tribal gaming or gambling in up to three casinos located in the City of Detroit.
The proposal was passed statewide 2,689,448 "yes" to 1,926,721 "no" with the proposal passing in all 83 counties. Bay County voted 30,384 "yes" to 24,943 "no." Saginaw County totals were 50,133 "yes" to 47,063 "no," Midland County voted 24,557 "yes" to 17,733 "no" and Arenac County voters approved the plan 4,421 "yes" to 3,536 "no."
Another hurdle is a resolution against casino development by the City Commission, adopted a few years ago. Commissioners this week indicated they were responding to public demand and indicated they may reconsider the ban.
And, a casino apparently does not have the positive economic impact that many backers think it may produce, according to in-depth studies conducted in 2003 on a proposed Grand Rapids area casino.
Reports by informed sources are that Grand Rapids casino backers spent an estimated $200 million attempting to gain approval for a gaming facility, but came up only with empty pockets.
"Bay City certainly doesn't have that kind of money to spend on prospecting for such a futile cause, especially when we're considering closing bridges and libraries and cutting vital services such as police and fire departments," said a local business source, adding:
"It is understandable that frustration with the sagging local economy would cause citizens and local commissioners to turn in desperation to a casino, but the evidence does not support gambling as a positive benefit. This is reminiscent of 10 or 15 years ago when everybody thought the answer to economic woes was to have a prison nearby.
"What is wrong with selling the land, or doing a contract deal, with private business to develop the site for job producing enterprises? We need solid, good paying jobs more than anything else."
Even though the federal government regulates Native American gaming, the U.S. Supreme Court ruled in 1996 that a tribe's gaming operations couldn't be licensed unless both houses of a state's legislature approve a gaming compact with that tribe.
After the Michigan Senate blocked the Gun Lake Tribe from opening a casino at Wayland in Allegan County, legislators said Michigan voters had clearly stated in November by endorsing Proposal 1 that they didn't want any more gambling in Michigan.
"The people said we have enough casinos in Michigan," Sen. Patricia Birkholz said.
Proposal 1 requires that a majority of voters approve any more gambling in the state, although it exempts Native American casinos, which are regulated by the federal government.
"We've reached our tipping point with gambling," Sen. Wayne Kuipers said. "We've reached our saturation point. Because of the ... vote on Proposal 1, and a study that shows the job loss if the (Gun Lake) casino opens, I gladly voted to revoke the compact."
A study completed by the Anderson Economic Group for the Grand Rapids Area Chamber of Commerce in 2003 concluded that if the tribe's casino opened, it would result in a net economic loss to the state of $26.1 million in 2004 and a total of $317.6 million between 2004 and 2014. The study also projected a loss of 1,700 Michigan jobs in the first year.
See http://www.andersoneconomicgroup.com
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