Grand Forks casino plan could get new life as amendment

Mar. 26—BISMARCK — A plan to someday build an American Indian casino in Grand Forks could be getting a second chance.

After a bill to allow the Turtle Mountain Band of Chippewa to operate outside its borders

failed to earn approval in the state Senate

earlier this year, the plan has re-emerged as a proposed amendment to Senate Bill 2018, an appropriations bill related to the Department of Commerce. The amendment was discussed Wednesday afternoon in a meeting of the House Education and Environment Committee.

The committee did not vote on the amendment but only heard testimony, including from Rep. Emily O’Brien, R-Grand Forks, and Mayor Brandon Bochenski.

O’Brien made the proposal, saying she sees it as an “opportunity for the state to support local and tribal (economic development).” She said the state shouldn’t stand in the way of what she considers local development decisions.

During Wednesday’s committee hearing, O’Brien cited her own written testimony supporting the proposed amendment to SB 2018. She said the casino proposal is “designed to create jobs, revenue and revitalization” for Grand Forks and the area.

In North Dakota, the Department of Commerce oversees the state’s Tourism Division.

“This aligns with the Grand Forks strategy to improve economic (and) community development, and quality of life and attract visitors and new residents,” she said. “This is a perfect fit for the Department of Commerce’s budget and meeting their mission of ‘leading the efforts to attract, retain and expand wealth and talent in North Dakota.'”

Technically, proponents are seeking a change to state law that will allow the Turtle Mountain Band to operate a casino outside of its traditional boundaries. It’s just one of a number of steps that must occur before a casino could begin construction in Grand Forks, which is roughly 170 miles from the Turtle Mountain Band’s headquarters.

The tribe hopes to build a casino and “high-end resort

” along the west side of Interstate 29, just south of the Grand Forks city limits. Expected to cost upwards of $300 million, the resort and casino would likely employ some 800, making it one of the city’s top 10 employers, according to data compiled in a 2022 feasibility study.

If built, the casino could see as much as $80 million in gross annual gaming revenue in its first year and $90 million by year five, the study predicted. That does not include revenue from food and beverage sales, lodging and other amenities.

The tribe already owns the land, but needs the change in state law to allow it to operate outside of its current borders. If that’s approved, it would also need a series of other approvals — at the local, state and federal level — before construction could begin.

Originally, the proposal to allow the tribe to operate in Grand Forks County was presented to the Legislature in Senate Bill 2376. It failed to get out of the Senate, falling 29-15 in a mid-February vote. Opponents have said they worry about a casino’s impact on legal charitable gaming. They also cited concerns about a potential increase in gambling addiction, while some wonder if it would start a movement of casino projects in other cities.

O’Brien said in her testimony that she frequently requests reports on charitable gaming in Grand Forks and “if they suffer losses, we can evaluate the best path forward,” although she said it’s unlikely any trends would develop for a few years. She also wrote in her testimony that the state “is dedicated to raising awareness and stopping gambling addictions in North Dakota,” noting the balance of the Problem Gambling Prevention and Treatment Fund was $1.2 million last session.

Bochenski and the Grand Forks City Council have been amenable to the proposal. Earlier this year, the council voted to enter into a non-binding letter of intent to help move the plan forward, while Bochenski testified in favor of the plan during a Senate committee hearing on Feb. 5.

At the time, he noted that the tribe is not seeking any sort of city funding incentive.

“This is my second term and this is the first time a $300 million project has come to us that isn’t asking for anything. Every time somebody comes in, they want an incentive. Quite frankly, (other projects) want the moon and we have to try to deliver that or they will find greener pastures. That’s not the case with this one,” he said. “On top of that, the economic impact numbers speak for themselves.”

Wednesday, he told the House committee that even if the amendment is added to SB 2018, and even if the bill gets final approval, it could be as long as five years before construction would begin.

A committee member asked Bochenski about taxation. If the casino is built, the land upon which it is constructed would be considered tribal trust and therefore would be exempt from traditional taxation. Specifically, the casino would be on a small portion of the 146 acres the tribe owns at the site; the rest of the land — the portion that doesn’t have the casino building itself — would be taxed as usual, Bochenski said.

Further, the city and the tribe have discussed annual payments from the tribe to local taxing entities in lieu of typical taxes.

“There are really two ways the local subdivisions will get funding (in lieu of taxes). Aside from the economic impact it would bring to the community, you also have a small portion that would be in trust but the rest of the land would pay taxes as a normal entity would,” Bochenski said. “The other way is through a community host services agreement. We’ll have that spelled out. That’s a piece that needs to be solved before this can move forward. What exactly is going to be the benefit for the local subdivisions? We’ve had conversations with them. They do expect something or they won’t be supportive of the project and I’m not going to be supportive of the project.”

O’Brien said that even if the committee approves the amendment, SB 2018 still has several legislative steps to pass before it can be approved.