South Bend Tribune
Tribune Staff and Correspondent Reports
December 12, 2000
NEW BUFFALO — A new casino planned for New Buffalo Township has rolled into a $4.5 million deal for new water and sewer systems for the township and city of New Buffalo.
Agreements to extend existing water lines, provide new water towers in the township and city, and to expand the capacity of the municipal sewer system were announced Thursday.
"We know of no other similar water and sewer agreements between tribal governments and local governments in Michigan," tribal chairman John Miller said in a prepared statement. "We hope this communicates and demonstrates our desire to utilize our future casino as a means to benefit the township and the city of New Buffalo as well."
The Dowagiac-based band, which is planning a casino on a nearly 700-acre tract near Interstate 94 and Michigan 39, agreed to a $4.5 million financial package to:
Expand and increase the availability of utilities for township and city residents.
Provide any future water and sewer needs if township expansion is necessary.
Provide for the water and sewer needs of the casino.
The township's new water tower and water line extensions will help provide improved reliability and water quality, officials said. The band will pay for the improvements, and the township will become the facility's owner after the system is completed.
As part of its agreement with the city, the Pokagons plan to pay 150 percent of water and sewer rates as currently paid by city residents. That will allow the city to replace its water tower as part of the improvements.
The tribe is not seeking any financial assistance in the form of governmental loans, tax abatements or infrastructure as part of its agreements with the city and township, tribal spokesman Tom Shields said.
The agreement could put to rest fears from officials about footing a costly bill for extending water and sewer to the casino and having the casino and other possible new business growth spurred by it overburdening the existing utility system.
Shields said the agreement signifies what has been the tribe's goal from the beginning, "not to do anything to disrupt the community or provide a negative impact."
The agreements must still be approved by New Buffalo city and township officials, New Buffalo Township Supervisor Agnes Conway said. The agreements are the most recent in development pacts reached by the municipalities and the band.
In March, the band announced its Local Agreement with local governmental units as part of a land-in-trust application it filed with the U.S. Bureau of Indian Affairs.
That agreement calls for the city and township to receive a percentage of slot revenues in addition to payments required under the tribe's state compact. The percentage is to be 2 percent of slot income in the first two years of the casino's operation; 1 percent in the third and fourth years; and 0.75 percent in the fifth year, guaranteeing $5 million annually to local governmental units.
Shields said extension of the water and sewer lines and other improvements will occur while the casino is being constructed, which could begin as early as January or February.
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