White Earth ups the stakes on its casino offer

Tribe offers state $400 million toward construction of a new stadium, if Minnesota partners with White Earth on a Twin Cities-area casino.

By jenbrooks

April 5, 2012 at 7:14PM
Erma Vizenor, chairwoman of the White Earth Tribe
In February, Erma Vizenor, chairwoman of the White Earth Tribe, appeared at a State Capitol press conference to propose a metro-area casino to fund a Vikings stadium. The tribe renewed the proposal on Thursday. (Star Tribune/The Minnesota Star Tribune)

The White Earth Nation just upped the stakes in its bid to open a Twin Cities-area casino, in partnership with the state.

Minnesota's largest and poorest Indian tribe is offering to cut the state a $400 million check to cover the state's share of construction costs for a new Vikings stadium. Tribal chairwoman Erma J. Vizenor made the offer at a Thursday press conference, flanked by House and Senate sponsors willing to try to push a White Earth casino proposal through the end-of-session gridlock of racino bills, pull tab proposals and other gridlocked stadium deals.

"We are shovel-ready," said Vizenor, who floated the idea earlier this session of partnering with the state on a metro casino, and splitting 50 percent of the net revenue. "Minnesota Wins is the only solution that meets the test of fairness, common sense and no new taxes, guaranteed."

White Earth first floated its proposal earlier this year, but got little encouragement from the state. Minnesota's other tribal casinos have been steadfastly opposed to the idea of a competing casino in the state's largest metro area, as well as the idea of the state getting involved in sovereign tribal gaming interests.

Even with a $400 million incentive, the leader of the Minnesota House did not embrace the plan.

"I don't know that it has the votes," said House Speaker Kurt Zellers, R-Maple Grove.

Zellers said he had doubts that White Earth, one of the poorest tribes in the state, could come up with the $400 million up-front payment.

Many Republicans historically have been cool to gambling expansion. Some object for moral reasons, saying new gambling will lead to more broken families and gambling addiction. Others object for financial reasons, arguing that the new gambling revenue leads to new programs and government spending the same way a tax increase would.

"We will stick with what works," said Zellers, who supports allowing electronic pulltabs, which will bring in tens of millions of dollars for charities and the state.

This time around, Vizenor further sweetened the pot by offering a new $12 million program to increase the size of purses at the Canterbury Park and Running Aces racetracks.

That caught the attention of Rep. Kent Eken, DFL-Twin Valley, who signed on as House cosponsor of the legislation. The fatter purses, he said Thursday, could be a real boon for the state's $1 billion horse industry.

Vizenor said the White Earth proposal would conflict with ongoing legislative proposals to fund the Vikings stadium with racinos or electronic pull-tabs in bars. That revenue, she said, could serve as a "backup" to the casino revenue.

Sen. Jeremy Miller, R-Winona, called the proposal he's cosponsoring, "very exciting." In his southeast Minnesota district, he said, constituents are more interested in stadium construction than any other issue.

"I can't tell you how many times I'm approached by constituents with the question, 'What's the deal with the Vikings stadium? Where's it at?'" he said.

After he updates citizens about the latest twists and turns and stadium deals, he said, "The answer that I get back from my constituent is, 'Well, I don't want to pay for it, but it's time to get something done.' And I absolutely agree."

Casino boosters say the proposal would generate between $726 million and almost $1 billion in gaming revenue for the state during its first five years. Vizenor said the tribe has the backing of Credit Suisse and Rock Gaming on its casino plans.

"The state's share can be used to start paying back schools, invest in job creation, repair this lovely Capitol or take on other priorities. These are decisions for legislators and the governor to make. Our proposal, though, creates opportunities for these decisions," Vizenor said.

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