City of Milwaukee - File #: 981393

• File #: 981393
• Version: 2
• Type: Resolution
• Status: Passed
• File created: 12/18/1998
• In control: STEERING & RULES COMMITTEE
• Final action: 3/2/1999
• Title: Substitute resolution removing existing limitations on Class III games that the Potawatomi Tribe may operate on the Menomonee Valley land, under a new 5-year compact amendment signed with the State of Wisconsin on December 3, 1998, and authorizing and directing the City Clerk to execute the agreement between the City, the County and the Potawatomi Tribe under which the Potawatomi will provide funding for City and County initiatives.
• Sponsors: THE CHAIR
• Indexes: AGREEMENTS, GAMBLING, INDIAN TRUST STATUS, VETOES

Date	Ver.	Action By	Action	Result	Tally
3/2/1999	2	COMMON COUNCIL	VETO OVERRIDDEN; Minutes note: Alderman Nardelli moved to dispense with the reading of the Mayor's veto message. The motion prevailed.	Pass	12:5
2/17/1999	2	MAYOR	VETOED; Minutes note: February 17, 1999 Common Council of the City of Milwaukee City Hall 200 East Wells Street Milwaukee, Wisconsin 53202 Dear Common Council Members: Today I am vetoing file number 981393, a resolution eliminating the limits on casino gambling at the Potawatomi Casino in Milwaukee. I have reviewed the debate over this resolution that took place at the Common Council on February 9, 1999, and I have also had to opportunity to discuss this file with a number of you. On balance, this proposal is a bad deal for Milwaukee. The harm to our society and our economy far outweigh any suggested benefits. In my earlier communications with you (December 17, 1998, February 5, 1999, and February 15, 1999) I detailed much of my concern regarding the Potawatomi's expanded gambling proposal. Significant economic problems are inevitable with expanded gambling. Gambling sucks enormous amounts of money out of the local economy. In this case, the proposed expansion would transfer hundreds of millions of dollars per year out of Milwaukee to the Forest County Potawatomi headquarters in Crandon. In contrast to the tradition of Milwaukee's economy, gambling creates no product of value. More importantly, it directly displaces other economic activity at restaurants, local retailers, and entertainment venues. Despite claims to the contrary, there is scant evidence that visitors will be attracted to this city by a larger casino. In fact, the vast majority of the "take" from expanded gambling is derived from local gamblers, virtually all of whom have modest incomes. I am convinced that any increase in employment at an expanded casino would be more than offset by jobs lost at other businesses in the city. In recent weeks, Milwaukee has received some great economic news. A multi-national company is moving its headquarters here; a major insurance company is moving hundreds of jobs here; and a respected manufacturer is building a new plant here. That's the kind of economic development that adds value to our economy and creates wealth among our residents. Expanded gambling would, unfortunately, subtract value from our economy and create additional poverty. The social costs, particularly from the inevitable growth of problem gambling, will also outpace any possible benefit. The list of crimes stemming from gambling addiction at the current Potawatomi Casino gets longer and longer. In addition to the compilation of newspaper stories on gambling crimes submitted along with my February 5th correspondence, there was yet another case reported in Sunday's Journal Sentinel. A fifty-two year old woman was convicted of embezzling more than $300,000 from her local employer to pay gambling debts that she began incurring at Potawatomi Casino. The cost of crime is just one of the social costs associated with addicted gamblers. Lost employment, civil court actions, bad debts, public assistance and mental health costs all add to the price we would pay for expanded gambling. Conservative estimates place a price tag of hundreds of millions of dollars per year on the social costs to the Milwaukee area. There are other incalculable costs. Documented increases in divorce, and ties between homelessness and gambling have been presented to you. Also, there is an alarming disparity in the suicide rates between cities that have gambling and those that don't. Burdensome social costs, alone, justify strict restrictions on the scale and scope of gambling in Milwaukee. Even if you disagree and reject those policy arguments, there is another fatal flaw in the resolution that, on its own, cries out for reconsideration. The resolution has a provision that was never revealed or discussed during the Common Council debate. That provision throws open the floodgates for unlimited future gambling expansion without any review by the city. The tribal chairman has indicated the tribe has every intention of expanding as they see fit. My job as mayor, and yours as aldermen, is to protect the public interest from unbridled special interests. This is the city's last chance to limit the size and scope of the casino. It was clear from the debate among Council members that many believed this resolution gives city approval to a limited expansion of casino gambling to 1,000 slot machines and 25 blackjack tables at the Potawatomi facility in Milwaukee. That is not the case. What Resolution 981393 does is endorse the removal of all restrictions on casino gambling at the Potawatomi Casino. This would, in effect, preclude the city of Milwaukee from opposing future expansions of gambling that might be agreed to between the state and the tribe. In the incorporated "Intergovernmental Cooperation Agreement" it's clear that the city is entering into an agreement with no termination date. Renewals and extensions of the compact would not be subject to any review or comment from the city. Whether it was intentional or not, it would be a serious mistake to approve a resolution that fails to expressly limit the expansion of the Potawatomi Casino. Surrendering all local oversight of the Potawatomi Casino is not in the best interest of the people of Milwaukee. There is nothing in this agreement to protect our city from unfettered expansion of gambling at the Menomonee Valley site. I appreciate the thoughtful consideration all Common Council members have given this issue. I encourage you to, again, review the arguments. You will find a strong case for sustaining this veto. Sincerely, John O. Norquist Mayor
2/9/1999	2	COMMON COUNCIL	ADOPTED	Pass	10:6
1/28/1999	2	STEERING & RULES COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: Speakers: In Favor Asst. City Atty. Pat McDonnell Mr. Philip Shopodock - Potawtomi Nation Linda Elmer - LRB Atty. General Crawford - Potowatomi Nation Atty. Dahlstrom Frank Busalacchi Mr. William Hanbury Gary Grunau Lyle Balistrieri, Milw. Bldg. & Const. Trades Council Rich Abelson, Dist. Council #48 Matt Robinson Fred Bistricky Gary Whitley Ann Remosier Joyce Moravec Janson Bald Fred Standingbear Speakers: Opposed E. Michael McCann, Dist. Atty. Dorothy Seely Diane Finco Geraldine Sharp Cindy Nix Edlump Frank Zeidler Casey Lapinka Steven X. Xiong Arden C. Degner Laurie M. Gans Scott Winter Speakers: No opinion Sharon Chamberlin Roger Brooks Piedro Romantieo Ald. Frank moves to make all documents a part of record. Prevailed.	Pass	5:2
1/25/1999	0	STEERING & RULES COMMITTEE	HEARING NOTICES SENT
1/22/1999	2	CITY CLERK	DRAFT SUBMITTED
1/21/1999	1	CITY CLERK	DRAFT SUBMITTED
1/20/1999	0	STEERING & RULES COMMITTEE	HEARING NOTICES SENT
12/18/1998	0	COMMON COUNCIL	ASSIGNED TO

NUMB:

981393

VERS:

SUBSTITUTE 2

REF:

XXBY:

THE CHAIR

TITL:

Substitute resolution removing existing limitations on Class III games that the Potawatomi Tribe may operate on the Menomonee Valley land, under a new 5-year compact amendment signed with the State of Wisconsin on December 3, 1998, and authorizing and directing the City Clerk to execute the agreement between the City, the County and the Potawatomi Tribe under which the Potawatomi will provide funding for City and County initiatives.

ANLS:

- Analysis -

This resolution provides City approval for the expansion of Class III gaming under a new 5-year compact signed with the State of Wisconsin on December 3, 1998, and authorizes and directs the City Clerk to execute the attached agreement between the City, the County and the Potawatomi Tribe under which the Potawatomi will provide funding for City and County initiatives.

BODY:

Whereas, An amendment to the Initial 1992 Compact between the Potawatomi Tribe and the State of Wisconsin was signed on December 3, 1998 which increased the limit on gaming machines the Tribe may operate from the 200 slot machines authorized under the 1992 Compact to up to 1,000 slot machines and 25 blackjack tables at the Menomonee Valley Site, considerably less than the Tribe had requested; and

Whereas, The State of Wisconsin does not limit the number of gaming machines of any of the other 10 tribes in Wisconsin operating 15 casinos, except that the Ho-Chunk nation can only offer blackjack in 2 of its 3 casinos; and

Whereas, Marquette Advisors has estimated that $634 million flows annually out of Milwaukee to casino venues in other areas including Green Bay, the Wisconsin Dells, the Minneapolis area, riverboats in Illinois and Iowa, Las Vegas and Atlantic City, only to mention a few; and

Whereas, The City of Kenosha has begun the first phase of formal negotiations with the Menomonee Tribe over a proposed casino at Dairyland Greyhound Park which project, if implemented, would further add to the outflow of money out of Milwaukee for gaming and related purposes; and

Whereas, The Metropolitan Milwaukee Association of Commerce has gone on record requesting that the Governor remove restrictions on the number of gaming machines the Tribe may operate at the Menomonee Valley Site so as to achieve a measure of parity with other tribes in the State; and

Whereas, Organized labor, including the Milwaukee Building and Construction Trades Council, Teamsters Local 200, Teamsters Local 234, Steamfitters Local 601 and the Milwaukee Police Association all publicly support expansion of Indian gaming in the City of Milwaukee; and

Whereas, The Tribe, Milwaukee Building and Construction Trades Council and Grunau Project Development have reached an agreement that ensures that the proposed $74.4 million expansion of the Potawatomi Bingo Casino will be constructed with union labor, a recognition by the Potawatomi that union work is quality work and that the project reflects the confidence of the Potawatomi in the Milwaukee community; and

Whereas, The Potawatomi currently provide $20 million a year to the Indian Community School, a self-governed, self-operated, separate entity from the Potawatomi and, beginning in 1999 through the year 2009 will contribute approximately $27 million per year, with a final contribution of $45 million a year in 2010 to the school, for a total of $336 million, if expanded gaming is approved; and

Whereas, The removal of limitations on Class III gaming and expansion of such gaming would enhance and diversify the Milwaukee economy by creating 500,000 construction worker hours and hundreds of permanent job opportunities for Milwaukee residents, thereby helping to improve their overall quality of life; and

Whereas, Under the Compact Amendment, if City and County resolutions supporting the Class III gaming expansion authorized under the Amendment are not adopted within a 120-day period starting on December 3, 1998, the State and the Tribe have 30 days to negotiate another agreement; and

Whereas, If another compact amendment is not agreed to by the Tribe and the State within that 30 day period, the dispute could lead to federal court litigation between the Tribe and the State; and if the court found that the State failed to negotiate in good faith, the court could order "last best offer" mediation, with no guarantee as to what the final result of the mediation might be; now, therefore, be it

Resolved, By the Common Council of the City of Milwaukee, that subject to the execution of the agreement attached to this file by the Tribe and Milwaukee County, the Common Council approves the removal of existing limitations on Class III games the Tribe may operate on the Menomonee Valley Site; and, be it

Further Resolved, That the City Clerk is authorized and directed to execute the attached agreement with the Tribe, the City of Milwaukee and Milwaukee County for funding of City and County initiatives.

ZDPT:

DFTR:

98493-7

lme

1/22/99