La Crosse Tribune: Casino has long road to travel

If voters approve a referendum for a Ho-Chunk casino in November - and that's no sure bet - La Crosse city and county officials still will be a long way from the first jackpot.

"We're into the second year of this, and there's still no closure yet," said Kenosha County Executive Al Kehl, who negotiated a casino agreement with the. city of Kenosha and the Menominee Nation. "This has been the most unique and interesting experience we've had in county and city government.

But the Menominee have also made things interesting for Kenosha taxpayers. If the Bureau of Indiana Affafrs and Gov. Tommy Thompson approve the deal for the casino at Dairyland Greyhound Park, the tribe will pay approximately $164 million to the city and county over 10 years.

The tribe also has agreed to one-time payments of $1.3 million for youth sports facilities and $450,000 to upgrade the 911 emergency phone system. The Menominee also will pay $65,000 a year for seven years for activities for youth at risk.

Most of the money hasn't been earmarked yet, but county and city leaders have discussed using it to reduce public debt, which would cut property taxes, Kehl said.

The Menominee agreement is sitting at the Minneapolis regional office of the BIA. If approved there, it would go to Washington. Only then would Thompson consider approving it.

Based on his experience, Kehl offered this advice to IA Crosse officials who may have to negotiate a deal with the Ho-Chunk Nation: "Proceed cautiously."

Added Kenosha City Manager Nick Arnold: "Hire one of the best attorneys you can who has experience dealing with Native American tribes."

"Dealing with Native American tribes, which operate as sovereign nations, is an entirely different ball game than dealing with A private business," Arnold said. "The rules are totally different. There is no instruction manual. Some assembly is required. Batteries are not included."

La Crosse County Board Chairman James Ehrsam said he realizes the complexity of issues related to the nation's legal status. "Number one in my book is sovereign rights," Ehrsam said. "It has to be addressed."

Sovereign rights a are important because American Indian tribes do not pay property taxes on tribal lands held in trust by the federal government. Most state laws and local ordinances do not apply on tribal lands either.

However, many tribes have agreed to limited waivers of their immunity when they enter into casino agreements with state and local governments, said William Boulware, legislative counsel for the Ho-Chunk Nation.

"That is one of several issues that will come up between the city, the county and the tribe," he said.

It is likely the tribe and its business partner in any casino would form a limited liability corporation to operate the casino, Boulware said. That corporation could consent to be sued as part of the agreement with the city and county, he said.

In its other operations, the Ho-Chunk Nation has agreed, for example, to be covered by employment and ins urance laws, which involve a limited waiver of sovereign immunity, he said. As part of the Kenosha agreement, the Menominee Nation agreed to a waiver of sovereign immunity for its casino operating corporation but not for the tribe itself, said Arnold.

"In exchange for our support for a casino, we required the tribe to be subject to almost all city ordinances. They have to get building permits, but they do not have to pay for them," Arnold said. Given the millions they would pay the city, "we were not going to nickel and dime them.

"They will end up operating from the city's perspective like any other business," Arnold said. Police and other city departments will be able to enter the tribal land and take any action necessary, he said.

The tribe also agreed the casino corporation could be sued in state courts, Kehl said. "The city and county both insisted on it," he said.

Boulware said anyone who does business with the HoChunk Nation or any other tribe can negotiate details in the contract to protect themselves. "Those things are always on the table for suggestion," he said. "You have to make sure your rights are protected."