May 10 2025.
SAULT STE. MARIE, Mich. – The Kewadin Casinos Gaming Authority and Sault Ste. Marie Tribe of Chippewa Indians announced on May 8 that they have approved in principle an amendment to the 2023 settlement agreement they had reached with the former development partners for its proposed Lansing and Romulus casinos.
Under the previous agreement, Kewadin Casinos was obligated to pay its former partners, JLLJ Development and Lansing Future Development II, a total of up to $35 million, of which $30 million was guaranteed. Of the total amount due, $25 million was paid in 2023. An additional $5 million was due beginning May 1, 2025, and the final $5 million would be due from the proceeds of Kewadin’s malpractice claim against its former legal counsel, Patterson, Earnhart, Real Bird & Wilson LLP.
Unfortunately, staff failed to make the required May 1 payment, which resulted in a default causing the tribe to quickly work toward an amended settlement. An internal investigation will occur to determine culpability for the missed settlement payment, and those responsible will be held accountable.
The original settlement represented an approximate 75% reduction from the $88 million plus interest in damages Ingham County Judge Joyce Draganchuk had previously ordered. If an agreement to amend the settlement had not been reached, the tribe would have been liable for $60 million minus the $25 million that had already been paid out through the 2023 settlement.
The amended agreement announced today is pending JLLJ approval and will see Kewadin Casinos pay $7 million. This fee includes the $5 million already owed under the 2023 settlement agreement plus an additional $2 million. The tribe will also transfer the land it had been working to put into trust for the proposed Romulus casino, known as the Sibley parcel, to its former partners. However, it will no longer be required to pay any proceeds obtained from the Patterson lawsuit under this amended agreement.
While board members are extremely disappointed to be forced into this situation, they remain hopeful that some costs will be recovered through the Patterson lawsuit. They also note the transfer of the Sibley parcel will save the tribe $100,000 per year in taxes and other expenses for a property that could not be used after the Supreme Court ended the tribe’s efforts to force the United States to place the land into trust when it declined to hear the case.
While the Kewadin Casinos Gaming Authority and the Board of Directors voted in favor of the amended settlement on May 7, they will meet again on Tuesday, May 13, to reaffirm their votes and address a procedural error before the amended settlement can be finalized.
