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Will casino's odds change?

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BELOIT — The last days before a presidential election are long, anxious ones for anyone who follows politics.

But Beloit residents—indeed anyone living in Rock County—have one more reason to wonder how a new president could affect local issues: the long-awaited Beloit casino project.

Seventy-five percent of city of Beloit residents cast ballots in the November 2000 election. Along with the choice between presidential candidates George W. Bush and Al Gore, Beloit voters faced a referendum question.

And 61 percent of them said, "Yes," they would support a contract between the city and the Bad River and St. Croix Chippewa tribes to build a casino in Beloit.

Eight years later, on the eve of another presidential election, the project sits in Washington, D.C., still waiting federal approval.

What's kept it from being dismissed along with more than 20 other applications for off-reservation casinos is that it's in the middle of litigation with the federal government, project spokesman Joe Hunt said.

The northern Wisconsin tribes—and others across the country—have given up hope that federal officials in the current administration will move the project forward, Hunt said.

"We don't think that (Secretary of the Interior Dirk Kempthorne) made the processing of these applications a priority of the interior department," Hunt said.

The Bad River and St. Croix tribes don't plan to take drastic action like that taken in Kenosha, where the Menominee tribe requested their casino application be pulled from consideration until a new administration is in place. But the tribes working on the Beloit casino project have filed a lawsuit that claims the federal government has created policy that is unfair for tribes seeking off-reservation casinos.

Rep. Paul Ryan, R-Janesville, has supported the Kenosha project, Hunt said. In Beloit, Rep. Tammy Baldwin, Sen. Judy Robson and Rep. Chuck Benedict, all Democrats, have supported the casino project.

"This isn't about Democrats and Republicans. This is about jobs and helping the tribes," Hunt said.

Hunt said the casino project does not endorse a presidential candidate.

The city and the tribes are pitching a $300 million, two-phase project off Interstate 90/39 on Beloit's south side. The completed project would include a 100,000-square-foot casino, a convention center, restaurants, a gift shop and a childcare facility on 26 acres in trust.

The plans include a hotel, theater, indoor water park and parking facilities on 33 adjacent acres.

To compensate for taking the 26 acres off the tax roll and putting it into trust, the tribes would pay the city of Beloit $145 million. The city would pass 30 percent of that money on to Rock County government.

In January, the project got regional approval and moved to Washington, D.C., for national approval. In the meantime, the department of the interior created a policy that restricted the distance casinos may be located from their home reservations. In other words, the policy made it difficult to get approval for off-reservation casinos like the one pitched for Beloit, Hunt said.

The Bad River and St. Croix tribes, as well as other tribes in the United States, filed law suits against the policy.

The Beloit project's suit was dismissed, but the group appealed the dismissal. So the application is still in limbo in Washington, D.C.

Eight years

A lot has changed in Rock County in the last eight months, let alone eight years.

With the looming closure of the Janesville GM plant and the fallout of jobs at related companies, casino project proponents say the project is just as important as ever—if not more—to local economic diversity.

And tribe members in northern Wisconsin are feeling the crunch from a tough economy too, Hunt said.

"This GM shutdown is going to create an even greater challenge for Beloit," Hunt said. "The tribes' needs are increased. We still believe in the project."

Construction would mean jobs for 1,500 workers, Hunt said. And the facility, once operational, would create 3,000 jobs, he said.

An operating casino requires more than the familiar "front of the house" service jobs, Hunt said.

"What you don't see are hundreds and hundreds of support jobs in the financial industry. It's almost like running a small city," Hunt said. "You have issues with workers compensation, personnel and safety. You need auditors and financial people. You need everything it takes to run a 24/7 restaurant. There are a wide variety of jobs with a wide variety of skill levels."

But how much can be banked on an 8-year-old referendum?

Everything, as far as Beloit City Council President James Van De Bogart is concerned.

"I took the position that I will take any votes necessary to affect the will of the 60 percent that voted in favor of the project," Van De Bogart said.

He admitted that a new referendum—not that he was advocating one—might show a different result.

But he can't imagine anyone would not be in favor of continuing to diversify Beloit's economy, said Van De Bogart, who has served on the city council since 2004 and was elected president this past spring.

"Any development would be a good thing in the sense that it provides employment," Van De Bogart said. "That would be good at any time … but certainly now."

Know when to fold 'em

After eight years, it's hard to know how long the tribes' patience will hold, Van De Bogart said.

"The coalition of the two tribes that have been pushing for this is a difficult one to hold together forever," Van De Bogart said. "The city is a willing partner with these folks, but if it's not going to go, it's not going to go. We'll walk away from it."

If the project doesn't move forward, the city will move forward without it, Van De Bogart said. The area meant for the casino is much more developable than it was eight years ago, he said. In fact, the Gateway Business Park didn't exist when voters approved the casino project.

The city's economic diversity also is greater than it was eight years ago, Van De Bogart said.

Granted, the city has put a lot of time and money into the project. But Van De Bogart said the city won't dwell on the failed efforts if the project doesn't move forward.

"We have invested a lot of staff time from the city manager and the council creating development agreements," Van De Bogart said. "There was a lot of time involved, certainly. If it doesn't go, there's disappointment. But some of the best hitters strike out six out of 10 times, and they're considered heroes.

"You're out there, you're trying to promote the community and promote economic development. Some projects go, and some don't."

CASINO TIMELINE

Beloit voters approved a casino project in November 2000. But eight years later, the project is sitting in Washington, D.C., still waiting for approval.

1999—Representatives from the city of Beloit approach the Bad River Chippewa tribe with an interest in building a casino.

November 2000—Sixty-one percent of Beloit voters say, "Yes," to a casino. Nearly 75 percent of the cities voters cast ballots in the election.

2001—The Bad River and the St. Croix Tribes formally entered into an intergovernmental agreement with the city of Beloit.

January 2007—The casino application goes to Washington, D.C., for approval. If approved by the feds, the application still would need final approval from Gov. Jim Doyle.

November 2007—A New York-based Mohawk tribe files suit against the federal government because no action has been taken on the tribe's application. At the time, the New York application is the only pending application filed before the Beloit project.

December 2007—The tribes involved in the Beloit casino project file suit to prevent a change in federal policy that makes it harder to get approval of off-reservation casinos.

January 2008—The Interior Department and Bureau of Indian Affairs announce a policy change that takes into consideration the distance between a casino and its home reservation. More than 20 applications are dismissed. Because the Beloit casino project is in litigation, it stays on the table.

October 2008—A federal judge dismisses the Beloit casino project's suit that seeks changes in federal policy. The Beloit group appeals the ruling.

November 2008—The Beloit application is one of six waiting for approval. The application waits approval from George Skabine, acting head of the Department of Indian Affairs, and from Dirk Kempthore, secretary of the interior. That cabinet position could change when a new president takes office, so casino proponents wait for election results.

If the application gets federal approval, Gov. Jim Doyle would have the final say on the project, and he has not indicated what he would decide.