By: Brandon Stahl, Peter Passi, Duluth News Tribune October 26 2009
In a move that could conceivably bankrupt the city of Duluth, the Fond du Lac Band of Lake Superior Chippewa is asking a federal court to return the $75.5 million it has given the city since 1994 as part of its agreement to open the Fond-du-Luth Casino.As a comparison, the city’s general operating fund next year – money that goes to pay for services including police and fire protection, road repairs and snow plowing – is projected to be $75 million. The city has only $1 million in its reserve fund.The request is part of a counter-claim to a late-September lawsuit that the city filed in U.S. District Court after the band stopped sharing its casino revenues.
Even before the band made its request, the possibility of the city losing its suit over revenue sharing from the casino carried high stakes: Duluth depends on the casino money for road repairs and to keep its credit rating high.“The band's demand that we pay them $75 million would have a devastating impact on our community and public services,” Mayor Don Ness said. “Obviously, it is an extreme position for the band to present to the federal court.”Band chairwoman Karen Diver declined to comment.“The legal paperwork speaks for itself,” she said. (more)
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