Records show tribe pitched Charlestown casino

By Chris Keegan
The Sun Staff
CHARLESTOWN — Documents filed in a civil lawsuit against the Narragansett Indians show that the tribe’s Historic Preservation Office solicited bids for a local casino project last fall.
In an effort to bring a casi­no to the area, court records reveal that a consultant, EAC Capital Partners LLC of New York City, drafted a pitch to potential backers that envi­sioned a 300,000-square-foot gaming facility, potentially built in tandem with another regional destination venture, such as a beach resort or theme park.
EAC’s request for bids reportedly received interest from only one group of investors — Shel Higgens of Aeon Corporate Development Company LLC, Brian Pogue and Bernie Thomas. All bids required a refundable, $2­million deposit wired to an escrow account in Bridgeport, by Nov. 12, 2007, though it is unclear at press time whether any such payment was issued.
The confidential documents surfaced earlier this year in an ongoing state Superior Court lawsuit filed by Capital Gaming International, which alleges that the tribe violated the terms of a $10-million promissory agreement that required the Narragansetts to keep the company apprised of any casino projects [or related legislation] in Rhode Island.
The tribe partnered with the now­defunct Capital Development Gaming Corporation in the early 1990s to bring a casino to Rhode Island, though a dispute arose between CDGC and the tribe over the Narragansett’s obligation to repay the com­pany when their business relationship ended.
The tribe has subsequently partnered with Boyd Gaming Corporation and Harrah’s Entertainment to bring casino projects to Rhode Island since the late 1990s, though efforts have been unsuccess­ful.
“The Narragansetts are the only federal­ly recognized Indian tribe in the country that have expressed a desire to conduct gaming [and] have been prevented from doing so by the politicians in their state,” EAC’s proposal reads. “Governors, U.S. senators, and even the judi­ciary have attempted to pre­vent Narragansett gaming by assaulting tribal sover­eignty to an extent unmatched elsewhere.”
“Furthermore, the exis­tence of casino gaming else­where in the state is proof that their opposition is not about philosophical opposi­tion to gaming, but rather an exercise of political power for the benefit of special interests.”
Nevertheless, the proposal notes that the tribe is “poised to become a major player in the New England casino market by meeting [an] unmet need of the New England gaming market.”
“In order to compete with Mohegan Sun and Foxwoods, the tribe believes that a facility of approxi­mately 300,000-square-feet, with 1,500 hotel rooms, 6,000 slot machines and 300 gaming tables will be neces­sary,” it indicates. “To achieve the tribe’s desired result, a successful gaming operation in Rhode Island that rivals the best gaming destinations in the world will require a significant investment.”
Overall, the total cost of a local casino project is projected to rise “in excess of a billion dollars,” though only an estimated $5 million to $10 million would be required initially for legal, lobbying and other con­tract expenses, plus any costs associated with the acquisition of land.
“The opportunity to establish a gaming facility with the Narragansett Indian Tribe in Rhode Island is an unparalleled finan­cial opportunity for the right investor,” the proposal notes. “The tribe’s southern New England location offers affluent demo­graphics, a proven track record of casino success and the opportunity to reap excep­tional returns on investment.”
The project, however, centers on the via­bility of a 31-acre parcel off King’s Factory Road that the federal Department of Interior has agreed to take into trust on behalf of the tribe. Trust lands fall outside of a federal law that requires state approval for a casino on 1,800 acres of trib­al land in Charlestown.
“The recent [appeals court] decision in Carcieri vs. Kempthorne affirmed the tribe’s right to acquire new land, place that land in trust and have authority over that land,” the proposal notes. “Now the tribe can purchase land, and have it placed into trust for the purpose of building the resort­casino. The trust process is administered by the federal Bureau of Indian Affairs, without state approval.”
Both the state and the town of Charlestown have filed a U.S. Supreme Court appeal in the case, which the high court has agreed to hear in Washington, D.C. this fall.
EAC’s proposal also notes that the Historic Preservation Office is an inde­pendent political subdivision of the tribe, and has a “governmental authority distinct from the Narragansett Indian Chief Sachem and Tribal Council.” The office has been traditionally charged with preserving and protect­ing important tribal cultural and religious customs, tradi­tions and history and is responsible for the reclama­tion of ancestral lands.
“The tribal council has del­egated to [the Historic Preservation Office] its authority for development relating to the establish­ment of on-reservation gam­ing,” the proposal indicates.
Tribal Councilor John Brown, who serves as the Narragansett’s medicine man in-training and over­sees historic preservation efforts, said EAC’s solicita­tion for bids is no longer active. The parties who released the confidential documents face a civil law­suit of their own for violat­ing a confidentiality agree­ment, he said. Because the Historic Preservation Office is a sep­arate entity, Brown said it is not a party to Capital Gaming’s civil lawsuit. The office has worked independ­ently on economic develop­ment projects since 2001, including efforts to investi­gate the plausibility of for­eign trade sub-zones and banking ventures, he said.
“We’re not the tribe,” Brown said. “This office is within its capacity to protect the tribe and tribal people, and we did that. There are things that I do on a given day that I don’t talk to the tribal council about, and there are things they do on a given day that they don’t talk to me about.”
“I protect the Narragansett Indian peo­ple, and I protect their well being,” he added. “I’ll do that through whatever legal means I can do it. We have broken no laws here. I don’t see why the economic situa­tion of the Narragansett people can’t be bettered.”
A full copy of the tribe’s solicitation for investment bids is available online at www.thewesterlysun.com.