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Friday, August 29, 2008 | Archives

July 2, 2008

City ponders next step

After the decisive rejection of a House bill that would have allowed Indian casinos to open in Romulus and Port Huron, city officials are wondering: What’s the next step?

For officials who put resources into getting the bill through Congress after voters approved a ballot initiative to allow gaming in the city in 2003, either taking the issue to federal court, amending the bill, or finding a developer for an expansive parcel of land at Interstate I-94 and Vining Road earmarked for gaming appear to be the options.

“We will meet with the Indians sometime during the next two weeks to map out a plan,” said Romulus Mayor Alan Lambert. “As far as they’re concerned – and we’re concerned – the land claim is not settled. I do know that we’re not giving up.”

Looking ahead
The U.S. House of Representatives voted down the casinos bill 298-121 – a much higher margin that city leaders expected. The casino development could have brought anywhere from 3,000 to 6,000 jobs to the area, and a provide a dedicated revenue stream for the city of Romulus of $4 to $10 million annually.

But barring a court case, which could take years to wind through the legal system, the city will speak with other developers in an effort to utilize the land, which is close to major freeways and the Detroit Metropolitan Airport, Lambert said.

“We’re always talking to developers – we do have developers that are interested in locating in Romulus,” Lambert said.

But casinos – which are often located within a short distance from airports – are still the preferred developments for the site, Lambert said.

“I don’t know whether we can amend the bill and take it back for another vote,” he said.

Had it been approved, approval of the bill would have settled a long-standing land claim by the Sault Saint Marie band of Chippewa Indians. The casino would have brought with it a 200-room hotel and an additional restaurant and service businesses to cater to gamblers and travelers.

Lambert said the city and tribal attorneys are looking at what the next step should be for both groups.

“A lot of this will be ironed out once we have an opportunity to meet,” he said. “The tribe elected a new chairman, and he’s just getting his arms around this.”

Tribal chairman Aaron Payment said in statement that the tribe was prepared to move forward with the city of Romulus.

“We will continue to fight to resolve this illegal land taking and bring thousands of much-needed jobs to our state,” he said.

Another blow
The vote was the latest in a string of disappointments for the city when it comes luring new businesses – and jobs.

In 2007, Canada-based Magna Entertainment scrapped plans for a harness racing track after the group’s earnings dipped below expected levels. Another horse racing development – and the revenue it generates – is highly anticipated for neighboring Huron Township.

Also, the Pinnacle Aeropark – which is being pitched by Wayne County as the “Aerotropolis,” is also languishing.

The city has also lost two key employers: the bankrupt auto supplier Plastech, and Lear Corp., which chose to shut down operations in Romulus.

It’s unclear as of this time whether another Indian tribe could open a casino in Romulus or Port Huron.

One aspect of the situation is clear, at least to Lambert.

“Anything that we want to with this land in terms of development (that is not a casino) would likely happen after the economy improves, but not before,” he said.

http://www.journalgroup.com/Romulus/7967

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