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. |