01:00 AM EDT on Saturday, October 18, 2008

By Katie Mulvaney

Journal Staff Writer

The Charlestown Town Council yesterday agreed to purchase 81 acres some fear could become home to a Narragansett Indian casino.

The council announced after an almost two-hour closed meeting yesterday that it would enter into a purchase-and-sale agreement for the sloping property on Kings Factory Road, just north of Route 1 and next to 31 acres owned by the tribe. But the $5.5-million sale would be contingent upon voter approval at a local referendum in about 90 days, Town Solicitor Robert E. Craven said.

Concerns that the Narragansetts would buy the land and that it could then be placed in federal trust, freeing it from state and local laws, propelled the sales agreement, Councilwoman Harriet Allen said. “This is a parcel the town should control.”

The council approved the agreement, 3 to 1, in the closed session, with Councilman James Mageau dissenting.

On Oct. 1, developer Larry LeBlanc and his lawyer William Landry met with Craven, Town Administrator Edward M. Barrett and Public Works Director Alan Arsenault about a possible deal. LeBlanc, a part owner of the 81 acres through a trust, told the town that the tribe and casino interests had offered to pay $5.5 million for the land, which would be followed by “a kicker” of $15 million-plus if the U.S. Supreme Court upholds a ruling that the tribe’s neighboring property can be held in federal trust, Craven said.

The 81 acres are assessed at $1.1 million.

LeBlanc did not identify the casino interests, but he gave the town until Oct. 15 — Wednesday — to act based on possible tax savings for the landowners, Craven said. Asked for specifics this week, LeBlanc said he could not comment because members of the trust agreed not to talk to the media.

Narragansett Chief Sachem Matthew Thomas denied making an offer yesterday, though he said he had spoken with LeBlanc about the site awhile ago.

“We never talked price,” Thomas said, adding, “Whatever casino interests he’s talking to they’re not working with us.”

The town’s decision to pursue the land comes as no surprise, Thomas said. He speculated that LeBlanc used fears about the tribe’s intentions as leverage. “They’re just trying to land lock us,” he said.

Councilman Mageau said he opposed the purchase because of the economic downturn, saying it’s a bad deal.

“It’s a shakedown. That’s what it is,” he said. He attributed fears about the tribe controlling the land to racism.

The land is adjacent to 31 acres that are the subject of a U.S. Supreme Court appeal that could set precedent for Indian land disputes nationwide. In that case, the state and town are challenging the U.S. Department of Interior’s right to place the 31 acres in trust for the tribe. They have lost at each step in the lower courts.

State and local leaders worry that if the Narragansetts win that case, the tribe would then buy LeBlanc’s adjoining 81 acres and have enough space to develop a casino.

kmulvane@projo.com