Tribe wants a tax break

By Dave Olson

The Forum

      A plan by the White Earth Tribal Council to make the Shooting Star Casino exempt from property taxes could cost government entities in Mahnomen County nearly $1 million a year.

      As a precaution, the Mahnomen County Commission has tabled plans for a $3.2 million jail until the financial picture becomes clearer, board Chairman John Peterick said.

      The tribe is asking the federal Bureau of Indian Affairs to grant the casino trust status, which would exempt it from property taxes.

      At the same time, tribal officials have invited county officials to discuss alternative ways the tribe might pay for services.

      No meeting has yet been held, though Peterick said he expects the talks will be cordial.

      "We are very willing to meet with them as soon as possible. They realize the bills have to be paid," Peterick said, referring to tribal officials.

      The tribe always intended to seek trust status for the casino as soon as the mortgage was paid off, which has now been done, said Erma Vizenor, chairwoman of the White Earth Band of Ojibwe.

      She said tribal officials realize the county relies on tax revenue from the casino and the tribe intends to remain a good neighbor.

      However, she added, "we have been overpaying our fair share."

      She declined to talk about how much the tribe is willing to pay.

      Last year, $988,000 in casino property taxes went to the county, state, city and school district, Peterick said.

      The largest share, $489,000, went to the county, with the city of Mahnomen receiving $150,000, and the Mahnomen School District $86,000, he said.

      About $229,000 in property taxes went to the state of Minnesota.

      If the casino land is given trust status, it would seriously limit the amount of bonds the county can issue, Peterick said, adding the current bonding ceiling is $3 million.

      That's why the county's proposed $3.2 million jail is in limbo until the revenue issue is resolved, Peterick said.

      Mahnomen County averages about 20 prisoners a day, though it can house only four in the county.

      The rest typically are held in the Pennington County Jail in Thief River Falls.

      Mahnomen County Sheriff Brad Athmann said in addition to the cost of shuttling prisoners between counties - which ranges between $400,000 and $500,000 a year - there is a safety factor to consider.

      Many other county services could be adversely affected if the casino is given trust status, Athmann said Friday.

      He said he was encouraged when a tribal official expressed support for making payments in lieu of taxes.

      "This can be a positive experience for both governments," he said.

      Brent Gish, superintendent of the Mahnomen County School District, said he hasn't explored the financial ramifications for the district if there is a change in the casino's status.

      He said he hopes the tribe will feel a financial obligation to help the district if the casino no longer has to pay property taxes.

      The BIA will have the final say on trust status, said Mahnomen County Attorney Julie Bruggeman.

      She has started researching laws governing trust lands and said if the tribe's application is approved the county may appeal the decision.

      A challenge could take several years to resolve and break new legal ground, Bruggeman said.

      "It could be a test case," she said.

      Vizenor said the tribe has a duty to protect its resources, adding that seeking trust status for the casino is a tribal right protected by federal law.

      The original mortgage on the Shooting Star was about $26 million, but the tribe has invested about $40 million in the casino, Vizenor said.