CGI Chicago: Economic future of tribal nations is blowing in the wind

Tribal leaders stood on stage last week in Chicago, where the announcement of first-ever, historic wind energy initiative on Tribal land is expected to bring new life and livlihoods to chronicly impoverished reservations in South Dakota.
Tribal leaders stood on stage last week in Chicago, where the announcement of first-ever, historic wind energy initiative on Tribal land is expected to bring new life and livlihoods to chronicly impoverished reservations in South Dakota.

John Michael Spinelli, All Voices

Last week at the 2013 Clinton Global Initiative, hosted by the City of Chicago, former President Bill Clinton and leaders from six Sioux Indian tribes announced a new wind-power initiative that will harness South Dakota’s greatest natural resource and spur long-term development in the economically depressed region.

Clinton Global Initiative America is an annual event that brings together leaders from the business, foundation and government sectors in an effort to promote economic growth in the United States. The tribes’ initiative comes at a time when renewable energy investment is increasingly a national priority. Through the project, the tribes stand to infuse up to $3 billion directly into the South Dakota economy, an amount roughly equal to the impact of the entire manufacturing sector in South Dakota in a given year.

The planned project could generate 1-2 Gigawatts of power annually. Measured conservatively, that’s more than enough power to electrify the homes in Denver, Colo., for the next 20 years, the typical useful life span of the wind turbines.

The majority of the project’s funding will come through the sale of bonds by a multi-tribal power authority. The bonds are expected to be available to investors in about two years, following a critical planning and preparation stage.

In separate but related news, Deputy Secretary David J. Hayes of the Interior for the Obama administration discussed efforts under way to implement a tribal land buy-back program with reporters on a conference call Tuesday afternoon.

Hayes was joined on the call by Assistant Secretary – Indian Affairs Kevin Washburn, who provided details on the next phase of the Land Buy-Back Program for Tribal Nations (Buy-Back Program or BBP), including launching pilot efforts to establish cooperative agreements with tribal governments.

The buy-back program implements the land consolidation provisions of the $3.4 billion Cobell Settlement, which will funnel $1.9 billion into a trust land consolidation fund to consolidate fractional land interests across American Indian property. Background information from the Department of the Interior (DOI) said allotments of land provided individual American Indians in the 19th and early 20th centuries have grown to hundreds and even thousands of individual owners, which makes leasing or developing the parcels difficult.

The result, as former US Sen. Byron Dorgan of South Dakota confirmed in an exclusive interview with Allvoices following DOI’s earlier announcement, is that highly-fractionated allotments lie idle, unable to be used for any economically beneficial purpose.

As Dorgan, who now co-chairs the Arent Fox Government Relations practice and who helped negotiate the Cobell Settlement said, when one person in 2,000 or even 10,000 people can disagree, thereby killing any hope of affiliating land for purposes of economic development, moving forward is hard.

Hayes, who will be leaving DOI soon and said he was proud of his role in helping settle and implement the Cobell Settlement, told reporters that all legal questions have concluded as of last November and that opening the door to implementation now of the $1.5 billion of settlement funds for the BBP itself will be used to purchase fractionated interest so land is available for tribal use.

Historical problems caused the land to be locked up and unusable, but Hayes said 220,000 individual owners on 150 reservations will be impacted by Tuesday’s announcement. Based on fair compensation on a “willing seller basis,” Hayes said the federal government will turn land back over to the tribal nations.

From “government to government” is how Hayes phrased the new relationship between the US government and the six Native American tribes covered by the settlement, a level of respect tribal leaders have waited a long time to realize.

It will take 10 years to spend down the $1.9 billion in settlement funds, Hayes said, adding that it’s his expectation to initiate purchase offers by end of the year. Within the next three years or by the end of the Obama presidency, Hayes believes the BBP will be well on its way to spending down and returning millions of acres of land to tribal control.

The lawsuit and its settlement resolves claims that the federal government violated its trust duties to individual Indian trust beneficiaries, including not providing a proper historical accounting relating to IIM accounts and other trust assets, mismanaging individual Indian trust funds and violating its trust responsibilities for management of land, oil, natural gas, mineral, timber, grazing, and other resources.

Agreements with tribes for program administration has already begun, he said, adding that “we have heard Indian county and we must have support for tribal leaders” as we formalize agreements tribe by tribe. Part of the checks and balances system is providing an oversight board for the BBP to be chaired by DOI Secretary Sally Jewell, who Obama appointed to guide the agency during his second term.

Jewell replaces Ken Salazar, a former US Senator from Colorado, who guided DOI during Obama’s first term starting in 2009.

Hayes said regular meetings at the highest levels can be expected.

A feature of the Cobell Settlement was directed toward higher education scholarships. The settlement authorizes up to $60 million in scholarships for Indian students, to be administered by The American Indian College Fund. The money can be used at tribal colleges, vocational institutions and public and private universities. Twenty percent of the annual scholarships can be used for graduate studies.

The Cobell Settlement requires a board of trustees to oversee the scholarship fund. The Interior Department and the Cobell plaintiffs will each choose two members. The American Indian College Fund will choose one member.

Washburn said that if the systems are set up right from the beginning, there will be upfront advantages from advance planning and behind-the-scenes computer programs that will enable the effort to “move out methodically through a number of reservations.”

Giving a taste of the flavor, he said, shows how the program is gearing for the BBP. Washburn said staffing is up and that outside experts have been retained to assure we have the best program of appraising property as the basis for an offer. Third party groups, he said, are reviewing methodologies and making valid recommendations.

“Were a bunch of suits in Washington,” Washburn said. “We need tribal leaders” to engage when negotiating different agreement with each tribe to factor in their needs. He looked to having 10-12 tribes “on board, moving out from the train station” by the end of the year. Washburn likened the tribes to guinea pigs as sovereignty is returned the tribal nations.

Dorgan, who chaired the Senate Committee on Indian Affairs and the Senate Subcommittee on Energy and Water Development, believes that while the wind energy project is not dependent on Tuesday’s announcement, it can only help it along.

He said in a phone conversation with Allvoices that it’s not needed for the Sioux Tribes of South Dakota’s wind power initiative. Helping to negotiate the Cobell Settlement, Dorgan said that while there is enough Tribal land available for the wind power initiative, the real resource of value isn’t buried below the ground, but blows above it.

“The government may own the minerals below the land, but the wind above it belongs to the tribes,” he said.

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Spoils of the Sea Elude Many in an Alaska Antipoverty Plan

“You eat from one bowl,” said Ivan M. Ivan, 67, a tribal leader in Akiak, quoting the Yup’ik Eskimo cultural adage about sharing resources, in good times and bad. “That didn’t happen.”
“You eat from one bowl,” said Ivan M. Ivan, 67, a tribal leader in Akiak, quoting the Yup’ik Eskimo cultural adage about sharing resources, in good times and bad. “That didn’t happen.”

Kirk Johnson and Lee Van Der Voo, The New York Times

AKIAK, Alaska — The humble pollock, great cash fish of the north, conquered the world through the flaky bland hegemony of a fish stick. At more than $1 billion a year, there is no bigger fishery for human consumption on the planet.

But pollock was also meant to be a savior, part of a Washington-backed antipoverty plan aimed at residents here on Alaska’s mostly undeveloped west coast. A generation ago, organizers envisioned federally guaranteed shares of the pollock catch that would create a rising tide of funds to lift up poor, isolated villages where jobs and hope are scarce.

Pollock did succeed, wildly. The dollars that flowed into the Community Development Quota Program, as the catch-share system was called, created a hydra-headed nonprofit money machine. Six nonprofit groups arose on the Bering Sea shore, and they have invested mightily in ships, real estate and processing plants. Over two decades, the groups amassed a combined net worth of $785 million.

But the results on the ground, in rural community and economic development, have been deeply uneven, and nonexistent for many people who still gaze out to the blinking lights of the factory ships and wonder what happened.

“You eat from one bowl,” said Ivan M. Ivan, 67, chief of the native community here in Akiak, quoting the Yup’ik Eskimo cultural adage about shared resources. “That didn’t happen.”

Collectively, the groups created tens of thousands of jobs and scholarships in one of the poorest regions of the nation. But critics say that community development, over time, got lost in a push toward institutional sustainability — and in some cases lavish salaries for leaders. Deregulation became self-regulation with a board of overseers appointed by the groups themselves the only real watchdog in recent years.

Meanwhile, a lopsided division of spoils among the groups has festered into a conflict that some Alaskans fear could unravel the catch-share project itself, which has done much good, they say, despite its flaws. In 2011, according to the most recent figures, one group with a small population got nearly 22 times more revenue per resident than another, larger group, based on allocation formulas locked in by Congress in 2006.

The fate of places like Akiak, a village of 350 people about 400 miles west of Anchorage, was dictated by a political compromise two decades ago, when a line was drawn 50 miles from the Bering Sea. Villages inside the line got pollock money. Akiak’s rutted dirt roads and 80 percent unemployment rate, residents said, bespeak its outsider status, 20 miles from that border.

Residents of Napaskiak, by contrast, a village of similar size 24 miles away, get scholarships, free firewood, free tax assistance and subsidized boat motors, all courtesy of the local catch-share group, the Coastal Villages Region Fund, which also buys halibut and herring from local fishermen.

The rules were hard but necessary, said Dick Tremaine, an economist who was a consultant to the state in the early 1990s. “This was a social engineering experiment that had not yet existed,” he said.

But even communities within the line have seen uneven development.

The federal health clinic in the village of Teller, for example, in Alaska’s northwest corner, went months without toilets last year after its septic system failed. Doctors and patients used five-gallon buckets instead, then stacked them in the street. Worse still, there were often not enough buckets to go around. Cardboard boxes, lined with plastic bags, then had to suffice.

Teller is not unique: 10 of 15 villages dotting the tundra along the Bering Sea outside of Nome — all within the catch-share system — do not have complete sewer service or running water.

“I can understand how C.D.Q.’s, in the early years, focused on the development of businesses,” said Ed Backus, vice president for fisheries at Ecotrust, an economic development group in Portland, Ore., that works in Alaska, referring to the Community Development Quota Program. “But over time as those revenue streams really bulked up, which they have, I think it’s important to remember the main mission of C.D.Q.’s is to really improve life in the villages.”

Spokesmen for the nonprofit groups agreed that not every village has seen the same benefits.

Part of the problem is geography, said Simon Kinneen, vice president and chief operating officer of the Norton Sound Economic Development Corporation, which covers the northern corner of the catch-share region, including Teller. “Developing fisheries and economies in our member communities that do not have reasonable access to commercially viable fish species is difficult at best,” he said in an e-mail.

A spokesman for the Coastal Villages Region Fund, Dawson Hoover, conceded that much more work should be done.

Under that guise, Coastal Villages, the largest of the groups by population, with about 9,300 residents, began an effort last year to get Congress to change how pollock and other fish are apportioned in western Alaska — to a formula based on population.

The shift would greatly increase Coastal’s clout and income, and the effort is creating sharp conflict with other groups that could get less. “The groups with the largest amount of people receive less fish per person,” Mr. Hoover said. “It’s just not fair.”

Many native subsistence fishermen, meanwhile, say the pollock trawlers inadvertently catch too many salmon. Dozens were cited by state game wardens last summer — and faced emotional legal proceedings this spring — for setting their nets on the Kuskokwim River in violation of an emergency fishing ban.

Joe Garnie, a former mayor of Teller, and a board member of the Norton Sound group, said fairness depends on where you look. Imagine what might happen, he said, if a lack of plumbing had led to similar unsanitary conditions in a clinic in, say, Detroit. “In 15 minutes there would be a federal investigation,” he said. “Why isn’t there one here?”

Part of the answer to Mr. Garnie’s question, is that the program grew up without a yardstick, according to people who were involved in its early years. And as each nonprofit group went its way, one-size-fits all measurements no longer applied.

Coastal Villages became a vertically integrated seafood company. The Aleutian Pribilof Island Community Development Association, another catch-share group, developed a separate economic plan for each village. In Norton Sound, benefits were delivered mostly in the form of community grants and scholarships, sending hundreds of Alaskans to college every year and helping villages operate.

Federal rules are loose, requiring only that the groups spend 80 percent of their money in fisheries. And in 2006, Congress stepped back even further, allowing the groups to regulate themselves, with reviews from Washington every decade. But in the first 10-year review, even the self-regulating catch-share oversight board in Alaska said the data measuring changes in poverty and quality of life in the villages was not meaningful.

But there is no doubt that guaranteed pollock shares — later extended to include, crab, pacific cod, halibut and other fish — created a new empire. Coastal Villages now owns an entire fishing fleet based in Seattle and Alaska. The Bristol Bay group owns half of the seafood giant Ocean Beauty. The Glacier Fish Company, based in Seattle, is partly owned by fish-quota groups. Four groups also invested in publicly traded securities, totaling $134 million in 2011, or 28.8 percent of their net assets. Salaries for top executives, meanwhile, have ranged in recent years from $69,503 to $832,367.

The oversight board said in a recent report that in its first 19 years, the program distributed $521 million in wages, training and benefits. But the region’s troubles drag on. Of 65 communities within the 50-mile boundary, including Teller, 38 are still listed as “distressed” at the Denali Commission, a federal agency that focuses on Alaska’s remote communities.

Joel Neimeyer, co-chairman of the Denali Commission, said it would be impossible for one program to solve Alaska’s rural problems. The process of giving people training for jobs, for example can, in a perverse way, create a brain drain that leaves communities ever more locked in struggle. People leave and get a taste of the outside world. “A lot of them just never go back,” Mr. Neimeyer said.

 

This article was written in cooperation with InvestigateWest, a nonprofit investigative journalism organization based in Seattle that covers the Pacific Northwest.

Boom City is open

Visit Tulalip Boom City for your Fourth of July fireworks and fun. With 136 stand, Boom City has something to offer everyone, including food. Boom City is open daily through midnight on July 4th.

Directions:

I-5 North: Take exit 200, take a right at the light follow until you reach 27th and take a right.

I-5 South: Take exit 200, take a left at the light follow until you reach 27th and take a right.

directions

Spike and the Impalers return to Tulalip

KZOK-FM personalities Spike O'Neill (above) and Bob Rivers lead the tongue-in-cheek cover band Spike and the Impalers.
KZOK-FM personalities Spike O’Neill (above) and Bob Rivers lead the tongue-in-cheek cover band Spike and the Impalers.

By Andy Rathbun, The Herald

Music is coming back to the Tulalip Amphitheatre, with the venue’s summer concert series kicking off with a return visit by Spike and the Impalers.

The group, which will play at 8 p.m. Friday, has been a staple in the venue’s summer lineup for years.

The group, led by 95.7 KJR morning show hosts Spike O’Neill and Bob Rivers, is basically a cover band, playing hits from AC/DC to ZZ Top.

Tickets are $38.50 to $54.50 at ticketmaster.com or 800-745-3000.

Fans of classic rock also may be headed to Woodinville’s Chateau Ste. Michelle Winery, where the Steve Miller Band will play a sold-out show at 7 p.m. Saturday.

Steve Miller, who turns 70 this year, has been a touchstone on classic rock radio for decades. His hits in the 1970s included “The Joker,” “Jet Airliner” and “Rock ‘N Me.”

All of those tracks are included on the singer’s “Greatest Hits 1974-78,” which remains a top seller to this day.

Tickets are sold out but can be found at a markup at stubhub.com.

A longer drive will give fans a chance to see some bigger shows, as the White River Amphitheatre in Auburn hosts a pair of shows.

The Last Summer on Earth tour will bring the Barenaked Ladies and Ben Folds Five to the amphitheatre at 7 p.m. Saturday. Both acts boast loyal followings and have found a home on adult contemporary radio.

The Barenaked Ladies’ geek-friendly take on alt-rock helped it score a string of hits around the turn of the century, including the hits “One Week” and “Brian Wilson.” The group released a new album, “Grinning Streak,” earlier this month.

Ben Folds Five, meanwhile, broke up in 2000, only to reform for a new album in 2012. Warmly embraced by fans, “The Sound of the Life of the Mind” found the group falling back into step with its piano-pounding sound.

Guster, the alt-pop band, will open the show.

Tickets are $46.50 to $86.20 at ticketmaster.com or 800-745-3000.

Then, the amphitheatre will draw a very different kind of crowd, as it hosts the Rockstar Energy Drink Mayhem Festival at 1 p.m. Wednesday.

The annual hard rock festival will feature headliners Rob Zombie and Mastodon.

Rob Zombie acts as the elder statesman of the group. The campy singer — who also has directed horror flicks like “House of 1000 Corpses” — is touring behind his new album, “Venomous Rat Regeneration Vendor,” which hit No. 7 on the charts.

Despite his bluster, Zombie is a mainstream act. Mastodon, meanwhile, boasts some indie cred. The metal act, a favorite of taste-making websites like Pitchfork.com, cracked the top 10 with its 2011 album, “The Hunter,” and may road test some new material during the concert.

Tickets are $42 to $101.55 at ticketmaster.com or 800-745-3000.

Finally, Bellevue’s own Queensryche will play the Moore Theatre at 7:30 p.m. Saturday.

The Bellevue act, again featuring original vocalist Geoff Tate, is touring behind its new album, “Frequency Unknown.”

Tickets are $22.50 to $42.50 at stgpresents.org or 877-784-4849.

Interior Dept Rolls Out $1.9 Billion Cobell Settlement Land Buy-Back Program

Native News Network

WASHINGTON – Following extensive consultations with American Indian leaders, the Department of the Interior Tuesday, June 18, made a number of announcements related to the efforts underway for the purchase of fractional interests in American Indian trust lands from willing sellers.

In particular, the Department announced that it has launched efforts to establish cooperative agreements with several tribal nations to facilitate the purchase of individual interests in highly fractionated trust lands for the purpose of consolidating ownership of these acres for the beneficial use of tribal nations.

The Department has also established purchase ceilings to ensure that all qualifying tribes will have the opportunity to participate in the Land Buy-Back Program for Tribal Nations. Additional incentives for individual owners to offer their fractionated shares for the benefit of tribal communities also were announced, including minimum payments and Indian scholarship funds.

As part of President Obama’s commitment to help strengthen Indian communities, the Land Buy-Back Program was created to implement the land consolidation component of the Cobell Settlement, which provided a $1.9 billion fund to purchase fractionated interests in trust or restricted land from willing sellers, at fair market value, within a 10 year period.

“With a solid foundation built on government to government consultation, the Department is now prepared to begin working with tribal nations so we can proceed with initial offers by the end of this year,”

said David J. Hayes, Deputy Secretary of the Interior. Hayes, who chairs the oversight board created to ensure accountability within the Interior Department, emphasized that the goal of the Land Buy-Back Program is to unlock the benefit of fractionated lands for tribal communities.

“We need to be smart about managing the available resources of tribal communities and the federal government, while developing flexible processes for each cooperative agreement,”

he said.

As outlined in the Implementation Plan released in December 2012, Department officials have had extensive consultation with tribes across Indian country over the past several months to determine how to move forward with a process that provides an efficient and fair way for individual owners of fractionated interests to participate in the Land Buy-Back Program, maximizes the opportunity for tribal government involvement, and offers the greatest flexibility for each tribal nation to determine what is best for their community.

Today’s announcements are based on these consultations, which will continue to inform next steps. Department personnel have also been hard at work refining valuation methods, updating title systems, and staffing up appraisal teams to accommodate the significant interest in the program.

Pilot Efforts Underway

Interior holds about 56 million acres in trust or restricted status for American Indians. More than 10 million acres are held for individual American Indians and nearly 46 million acres are held for Indian tribes. The Department holds this land in more than 200,000 tracts, of which about 92,000 (on 150 reservations) contain fractional ownership interests available for purchase by the Land Buy-Back Program.

Approximately 90 percent of the fractionated lands available to purchase are in 40 of the 150 locations.

Following its consultations with tribes, the Department of the Interior has identified key criteria that will determine how and when tribal nations will be engaged over the next several years. The Land Buy-Back Program will move forward based on a number of factors, including the severity of fractionation, degree of ownership overlap between tracts, geographic location to maximize efficiency and resources, appraisal complexity, and readiness or availability of resources.

In particular, the Land Buy-Back Program will ensure that all types of tribal communities are participating in all phases of the program – including tribes that do not have large numbers of fractionated lands. Ensuring this type of tribal diversity in the Land Buy-Back Program was an important and frequently raised issue by tribal nations through consultation sessions, and it will be a key consideration in setting priorities.

Using these criteria, the Department will launch pilot efforts with as many as 10 reservations this year, with the opportunity to make adjustments for lessons learned for future implementation. Land research, valuation work, and outreach efforts are underway at several locations, including the Pine Ridge, Crow, Makah, and Sisseton-Wahpeton reservations.

Cooperative Agreement Development

As tribal communities are identified for implementation, the Department will enter into cooperative agreements that are flexible and responsive to the specific needs of the nation involved. Tribes have the opportunity to actively participate in the process, which will improve the program’s effectiveness and efficiency while minimizing administrative costs. Agreements will allow for resources to be provided to each tribal government to facilitate outreach and education, solicit interest from owners, and further identify tribal priorities.

“This is a program that will not be implemented overnight, but we will be thorough and tailor opportunities for the benefit of each nation,”

said Kevin Washburn, Assistant Secretary for Indian Affairs.

“We must have the flexibility to learn from each buy-back effort and provide transparency for each successive tribe.”

Establishment of Purchase Ceilings and Base Payments

Two key decisions flowing directly from the Department’s nation to nation consultations relate to purchase ceilings and base payments. To ensure that the Land Buy-Back Program will be implemented at as many locations as possible (including less fractionated locations), purchase ceilings will be used to protect against premature exhaustion of funds. Also, the Land Buy-Back Program will provide landowners with a base payment of $75 per offer, regardless of the value of the land, based on estimates for the time and effort required for individual land owners to proceed through the acquisition process and to facilitate sales.

In addition to base payments, the Department discussed the allocation of funds toward Indian educational scholarships as a further incentive for participation. Up to $60 million from sales will be designated for the Cobell Scholarship Fund for American Indians and Alaska Natives. The fund will be controlled by a board of trustees nominated by tribal governments and administered by the American Indian College Fund in Denver, Colorado with 20 percent allotted to the American Indian Graduate Center in Albuquerque, New Mexico.

Transparency & Availability of Resources

The Department is committed to ongoing consultation with tribal nations and full transparency as it continues to implement the many steps associated with the Land Buy-Back Program, which had been referred to as the Cobell Trust Land Consolidation program.

In addition to future consultations, personnel will hold a workshop prior to remarks by Secretary of the Interior Sally Jewell at the upcoming National Congress of American Indian’s Mid-Year Conference later this month. The workshop will further discuss the development of cooperative agreements, the ongoing, independent review by the Appraisal Foundation of the Department’s appraisal process, and the pilot efforts and ramp up plans for the acquisition of land at initial locations.

Tribal dispute puts Chukchansi casino at risk of default

Marc Benjamin, The Fresno Bee

The ongoing leadership dispute at the Picayune Rancheria of Chukchansi Indians has put the tribe at risk of defaulting on its bonds for Chukchansi Gold Resort & Casino, according to a lawsuit filed Tuesday in New York.

A $250.4 million agreement was reached last year when Chukchansi’s economic development authority restructured its financing after the tribe struggled to pay its debts.

But the tribal dispute over who controls the Coarsegold casino’s funds left the development authority unable to make its full May payment.

“The actions of the tribal parties and individual defendants endanger the collateral (casino revenue) and place the financial well-being of the casino in danger,” the suit filed by Wells Fargo Bank said.

The suit is against the tribe, its casino-affiliated corporations and commissions, competing tribal council factions, as well as three financial institutions that hold proceeds from the casino.

Wells Fargo holds the note for casino investors. The Chukchansi Economic Development Authority agreed to a 9.75% interest rate to restructure its debt.

The tribe was supposed to pay off $310 million in loans last year, but couldn’t make the payments. Instead, the tribe arranged an agreement with bondholders to restructure its debt to be due in 2020 and allow a longer-term payback for much of the remaining loan. The previous interest rate was 8%.

Wells Fargo declared itself “an innocent bystander” in the tribal dispute between two factions that contend they represent the tribe — one led by Reggie Lewis and the other by Nancy Ayala.

The bank’s lawyers said Wells Fargo has “done everything it can to resolve the issue consensually, but is left with no choice but to seek the court’s intervention” by filing the suit.

The Ayala group took control of the tribal business complex and casino after a February referendum the Lewis faction contends was unconstitutional.

The Lewis group then took control of a Rabobank account used to pay off casino debt. Rabobank officials didn’t recognize the Ayala group’s leadership and the Ayala group refuses to deposit money into the Rabobank account.

Since the last week of February, “presumably because of the disputes,” the tribe stopped depositing revenues and cash into the Rabobank accounts, which violates the agreement with Wells Fargo and the tribe’s bondholders, the suit said.

The Rabobank account is designed to use proceeds from the casino and make twice yearly bond payments of $11.93 million.

A partial payment was made in May, which constitutes “an event of default,” the lawsuit said.

Wells Fargo lawyers say money was available for the full payment if not for the ongoing factional dispute.

Under its agreement, the tribe is supposed to put casino revenue into the Rabobank account once each week, but can hold out $10 million in cash to run the casino, the suit said.

When the Lewis group gained control of the account, the Ayala faction opened accounts with other banks. Wells Fargo contends those are illegal under its agreement with the tribe.

Rabobank, which is named in the suit, froze its account, leading the Ayala group to move casino revenues in the casino “cage” instead of a bank, the suit contends.

The frozen account has led to employees getting paid in cash or by cash vouchers instead of check or direct deposit, adding security and internal cash concerns, the suit said.

“It is becoming increasingly difficult for Chukchansi Economic Development Authority to satisfy the daily cash needs of the casino, including payroll and the amounts required to maintain gaming operations,” the suit said.

Wells Fargo’s lawyers say the bank “takes no position with respect to which faction rightfully should be in control of the tribe and the tribal council,” the suit said. “But that does not change the fact that Chukchansi Economic Development Authority and the tribe have violated their agreements.”

Global Cash Access, which is named in the suit, is a company that reconciles all ATM cash dispensed at the casino. Wells Fargo estimates it holds $14 million in uncashed checks, the suit said.

The Rabobank account is supposed to have a minimum of about $14 million to make the twice yearly payment, tribe officials say. The suit said $10.55 million was in the account when the partial payment was made in May.

Wells Fargo also said the casino could lose its license because checks couldn’t clear through the Rabobank account and the casino was $551,250 in arrears to the California Gambling Control Commission.

Officials with both factions say they agree with the Wells Fargo action.

The Ayala group wants to get the Rabobank account out of the Lewis group’s hands.

“We have been operating the casino and taking care of day-to-day financial concerns,” said David Leibowitz, a spokesman for Ayala’s group. “The Lewis group has successfully sacrificed the biggest asset the tribe has and has ever had.”

But Lewis faction lawyer, Richard Verri, said the Ayala group can put money into the Rabobank account but refuses to because Rabobank recognizes the Lewis group.

“We have been waiting for this and pressuring (Wells Fargo) to get involved,” Verri said. “Now, the Ayala faction will be forced to make the deposits we are calling for.”

Read more here: http://www.fresnobee.com/2013/06/19/3351430/bank-tribal-dispute-puts-chukchansi.html#storylink=cpy

Breaking: Occupation launched at Enbridge’s Line 9 pipeline in Ontario

Representatives from Six Nations speak to reporters. “Enbridge is operating in our territory without any consultation with us, and that’s outrageous. We’re here for all people and their children – It’s not just native people anymore.” Photo: @AdamCarterCBC
Representatives from Six Nations speak to reporters. “Enbridge is operating in our territory without any consultation with us, and that’s outrageous. We’re here for all people and their children – It’s not just native people anymore.” Photo: @AdamCarterCBC

Swamp Line 9

Canada – As this statement is released, we are digging in and occupying Enbridge’s North Westover Pump Station in the Beverly Swamp. We have done this to stop construction in preparation for the reversal of their Line 9 Pipeline to carry toxic diluted bitumen from the Alberta Tar Sands through our communities and watersheds, likely for export.

For the past year, we have organized in our communities across Southern Ontario to raise awareness of Enbridge’s plan to reverse Line 9. Increased awareness quickly lead to concern and to a desire from our communities to at the very least make our voices heard about our opposition to this project. What we found was a rigged game, where the political party most indebted to the oil industry had taken spectacular measures to remove the usual environmental oversights from Line 9 and other pipeline projects. The Line 9 reversal is, from the perspective of the powerful, a foregone conclusion and they have insultingly offered only the most meaningless opportunities for public engagement.

Of course, we understand that even if there had been a full Environmental Assessment, this project would still be going ahead. If anything, the federal government simply had the good courtesy to be honest that they just don’t give a shit what anyone thinks. Although we have few illusions about process, it is very much the case that the removal of the usual process is what has lead to this exceptional step of occupying a construction site. Deprived of all other options for dissent, the move to direct action to stop this reversal is obvious to even the most law-abiding of people. Perhaps we should thank the federal government for removing the usual sham of participation to make it clear that there is no pipeline debate – there is just a pipeline fight.

We are establishing a camp on Enbridge property in the middle of the Beverly Swamp, the largest remaining forested wetland in Southern Ontario. The health of this wetland is crucial to the health of the Spencer Creek, which feeds Cootes Paradise, the beautiful marshland that forms the western end of Lake Ontario. Protecting the water is vitally important — once water is poisoned, it can’t be undone.

This is also stolen Indigenous land and is the traditional territory of the Chonnonton people as well as of the Mississagi Anishinabec and the Onondawaga Haudenosaunee. This pipeline crosses the territories of dozens of Indigenous nations along its route, including the Six Nations of the Grand River who have taken an inspiring lead in building resistance to Line 9. “The whole thing about Line 9 is that it’s going through our territory and Enbride hasn’t consulted us or talked to us at all,” said Missy Elliot of Six Nations. “What’s best for the land is what’s best for our people. We have to protect the land – this isn’t just a side project for us, we have to protect our future. It’s our responsibility.”

If you want to support us, drop by the site! We will be maintaining an info point at the mouth of the North Westover driveway, on Concession 6 W just west of Westover Rd, in Flamborough. We welcome any donations of food, camping supplies, money, or whatever you think would be useful. We also encourage you to come join us, whether just for a few hours or for a few days. We are calling for our supporters to rally in the public park across the street from us on Concession 6 at 11am tomorrow morning, that’s Friday June 21, to show support for the occupation and to call for the Line 9 reversal to be cancelled.