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Gun Lake Casino remains on track

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April 15, 2009

Management company's likely bankruptcy won't delay construction

WAYLAND TOWNSHIP - The Gun Lake Band of Pottawatomi are reportedly preparing to publicly announcement soon about their schedule for groundbreaking and construction of their $200 million casino despite the pending bankruptcy of their management company, Station Casinos Inc.

The Associated Press has reported that Station Casinos will file for bankruptcy within weeks. That setback could impact the tribe's ability to secure construction financing from banks, which have recently tightened their lending qualifications.

In addition the banks may have concerns about saturation of the casino market as the FireKeepers Casino will soon open its doors and the Four Winds Casino in New Buffalo is relatively new.

There is also an outside chance that a pending lawsuit could concern the lenders. A suit filed by former Wayland Township Trustee David Patchak last year is still active in federal Circuit Court in Washington, D.C., and the judge is expected to rule within a few weeks on whether the case should continue. The suit was intended to stop the federal government from taking the land for the casino into trust for the tribe however, the land was transferred into trust last January. Therefore, the case may be dismissed

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