"Wampanoags decline deal with investors; Council hopes for better terms" by Matt Viser, Globe Staff | June 16, 2009
The newly elected leaders of the Mashpee Wampanoag tribe have opted not to endorse a deal they have with a group of deep-pocketed casino investors, the latest impediment to the tribe's efforts to build a $1 billion casino in southeastern Massachusetts.
The tribal council, hoping to get a more favorable deal, voted unanimously last week not to reaffirm a 2007 development contract that a previous group of tribal leaders had negotiated with the investors, Sol Kerzner and Len Wolman, who built Connecticut's Mohegan Sun resort.
Related: A Whale of a Hotel
Rhode Island First State to Bail Out Casinos
That gives you a little more background on those fellas.
I'm happy the tribe said no.
It is not clear how big of a rift the dispute represents. The vote does not mean that the tribe is walking away from the deal, at least for now, and they still have a contract with Kerzner and Wolman to try to build a casino in Middleborough.
"The terms did not seem in the best interest of the tribe," said Cedric Cromwell, who began reviewing the contract after being elected in February.
I'm not at all surprised considering who they are dealing with.
Cromwell said there were certain terms of the deal that he objected to, although he would not get into details. He also said the former tribal chairman, Glenn A. Marshall, ignored professional advice against the deal in letters that were only recently discovered....
Related: The Massachusetts-Abramoff Connection
Why not, 'eh?
Both sides have incentives to patch things up. A multimillion dollar windfall could be at stake. The investors have been banking on the tribe being able to use its federal rights to open the first casino in Massachusetts. The tribe is relying on the investors to provide front money and expertise.
--more--""Wampanoag tribe cuts size of casino project; Officials brief Middleborough" by Christine Legere, Globe Correspondent | October 21, 2009
MIDDLEBOROUGH - Leaders of the Mashpee Wampanoag tribe have scaled back plans to build a billion-dollar resort casino in Middleborough, saying they would start small with a facility that simply offers some gambling choices and food, primarily because of the slow economy....
That doesn't sound good for Sol and Len, does it?
More bad news for the Jews:
"Wampanoag cut ties with casino investors; Now in negotiations with Malaysian firm" by Christine Legere, Globe Correspondent | November 30, 2009
The Mashpee Wampanoag tribe is dissolving its partnership with two investors to develop a Middleborough casino and making a new start with an international investment group that boasts a strong track record for building successful gambling resorts.
New investors could put the project on steadier footing at a time when gaming is likely to get its most favorable airing yet on Beacon Hill early next year. But the tribe faces a number of obstacles....
Wampanoag Tribal Council vice chairman Aaron Tobey said yesterday that investors Sol Kerzner and Len Wolman have agreed in principle to bow out of the project.
But?
The pair had been backing the tribe for more than two years, after striking an agreement with former Tribal Council chairman Glenn Marshall. Marshall was convicted of fraud and embezzlement and is currently serving a 3 1/2-year prison term. A new slate of Tribal Council members refused to reaffirm their agreement with Wolman and Kerzner last spring, saying it was unfair to the Wampanoag tribe. The investors subsequently ceased to make agreed-upon payments to the tribe - a sign the relationship was unraveling....
Aren't you glad the gamblers are coming here, dear readers?
The tribe said yesterday its leaders are negotiating an agreement for a “world class’’ resort-style gambling facility with Arkana Limited, a wholly-owned affiliate of Malaysian investment group Kien Huat.
Dennis Whittlesey, the Washington lawyer who helped Middleborough craft its multimillion-dollar casino agreement with the Wampanoag tribe, said the change in the investment team should bode well. “They have a lot of money and they are experienced in getting projects done,’’ Whittlesey said of the Malaysian group. “Depending on the terms of the deal, this could be a very positive development.’’
In the United States, Kien Huat affiliates financed the startups of Foxwoods Resort and Casino in Connecticut in 1992 and the Seneca Niagara Casino in New York in 2002. Worldwide, Kien Huat affiliates maintain substantial interests in a group of companies actively involved in gaming, leisure, cruise, power generation, plantations, property development, biotechnology, and oil and gas.
Kerzner and Wolman, meanwhile, recently filed for bankruptcy for their jointly owned Twin Rivers casino in Rhode Island....
Yeah, and it looks like they are going to get a bailout from the state, can you believe it?
