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The Sault Ste. Marie Tribe of Chippewa Indians (SSM) has amended the settlement agreement to the 2023 case involving the a new casino the tribe was vying for on the Lower Peninsula. The tribe missed a payment at the beginning of the month, which prompted the amendment.
SSM had already paid $25 million back to its developers, JLLJ Development LLC and Lansing Future Development II LLC, in 2023. However, tribe owed $5 million on May 1, which went unpaid. The new settlement, still pending approval, now includes a $7 million payment.
The tribe could also owe an additional $5 million, which hinges on a malpractice claim against its former legal counsel, Patterson, Earnhart, Real Bird & Wilson LLP.
The United States Supreme Court declined to hear the tribe’s case earlier this month, which ultimately sunk the hopes of SSM expanding.
Tribe to conduct an investigation
It appears as if the tribe missing the payment on May 1 was a mistake. It announced the following measures in a press release last week:
Unfortunately, staff failed to make the required May 1 payment, which resulted in a default causing the tribe to quickly work toward an amended settlement.
An internal investigation will occur to determine culpability for the missed settlement payment, and those responsible will be held able.
The tribe was originally got reduced to guaranteed $25 million.
SSM also has to turn over the land back to its former investors. The tribe continued in the press release:
While board are extremely disappointed to be forced into this situation, they remain hopeful that some costs will be recovered through the Patterson lawsuit.
They also note the transfer of the Sibley parcel will save the tribe $100,000 per year in taxes and other expenses for a property that could not be used after the Supreme Court ended the tribe’s efforts to force the United States to place the land into trust when it declined to hear the case.
SSM still operates five recovering from temporary closures because of security breach in February.
All five casino re-opened in a phased process that spilled into March.
