Shirley won’t sign Glen Canyon measure

Copyright © 2009
Gallup Independent
By Kathy Helms
Diné Bureau

WINDOW ROCK — Legislation passed by the Navajo Nation Council to dissolve a memorandum of agreement related to the use and development of Glen Canyon National Recreation Area has been returned to the Office of the Speaker without the signature of President Joe Shirley Jr.

In a Jan. 5 memorandum to Speaker Lawrence T. Morgan, Shirley said he was returning the legislation, sponsored by Morgan, due to a transmittal error, but also said he felt compelled to express his concern about Council’s action and “hope that we can work diligently to negotiate a new agreement for the benefit of the Navajo Nation.”

Shirley said the terminated agreement was the foundation of existing economic development at Antelope Point and formed the basis for several other subsequent agreements between the federal government and the Navajo Nation. In the 1970 agreement, the federal government committed to seeking congressional action to transfer the annual franchise fee collected at Rainbow Bridge to the Navajo Nation, however, Congress never passed the legislation approving the transfer.

Shirley said the legislation approved by Council relies on this failure as justification for terminating the agreement, and that while it is true that the Nation has never received the annual fee, it does receive revenue from the existing development at Antelope Point, including revenue from economic activities occurring off the Navajo Nation on National Park Service lands in the Glen Canyon area.

Various agreements and business arrangements have been entered into as a result of the 1970 agreement, Shirley said, and terminating that agreement likely will have an adverse impact on Antelope Point development, including providing the Park Service with potentially sufficient justification to terminate agreements reached in 1994 and 2003, thus making joint administration at Antelope Point extremely difficult, if not impossible.

Without a mechanism for joint administration of development at Antelope Point, the Nation’s ability to play a role in Antelope Point Holdings LLC’s operations is severely limited, Shirley said. Future development calls for expanding marina operations, building a hotel and developing a visitor center — all of which would result in increased tourism and tax revenue to the Nation.

Should the Park Service terminate the company’s concessions contract, the Nation’s business site lease with the company also would terminate and it would not be able to continue operations on Navajo lands at Antelope Point. Shirley said the company has invested more than $20 million, and in the event its business site lease is canceled, the company could take legal action.

Agreements entered by the company in 2004 to obtain financing from National Bank of Arizona also would be affected and the company could be considered in default, in which case the bank could call the loan, he said.

“Termination of the 1970 MOA provides National Bank of Arizona with a basis for arguing that a default has occurred,” Shirley said.

This would have a potentially crippling impact on the company’s operations at Antelope Point, thus opening the door to potential legal action, he said.

“The intent of the legislation to pursue economic development in the Antelope Point area of the Navajo Nation is to be commended. Unfortunately, the termination of the 1970 MOA will have significant harmful consequences on the existing economic development,” he said, adding that the potential benefits associated with possible new economic opportunities may not outweigh the adverse economic impacts.

In addition to Shirley’s refusal to sign the legislation, Morgan also has taken a hit from the LeChee Chapter, which has unanimously approved a resolution denouncing a potential development by Texas billionaire B.J. “Red” McCombs of 50,000 acres along Navajo Canyon in LeChee, Kaibeto and Inscription House for private home sites, hotels, casinos, and possibly other business ventures.

“We, the people of the LeChee Chapter, adopt this resolution to put the central government on notice that we will resist any move to take our land. The chapter calls upon the central government of the Navajo Nation, specifically Speaker Lawrence Morgan and Delegate Ervin Keeswood to disclose any discussions on such a venture before proceeding further.”

The chapter also is requesting Kaibeto, Gap/Bodaway, Navajo Mountain, Oljato, Cameron and Tsah Bi Kiin (Inscription House) chapters join in the resolution.

Ivan Gamble of LeChee said the chapter has cultivated a relationship with Antelope Point Holdings and Jerry Moyes and has worked tirelessly for more than 30 years to make the marina a reality.

“Over 300 jobs are at risk for our regional economy because of Mr. Morgan’s legislation to unilaterally withdraw from this agreement. Now, because of his actions, we are on rocky ground with our marina and our neighbors, the U.S. Park Service. Our water source of Lake Powell, which we share with our neighbors in Page, is at risk; our Diné way of life is threatened because of Mr. Morgan.

“LeChee will not allow this to happen and will fight this at every step. We are unanimous in our dissent of this and have retained legal representation,” Gamble said.

There was no response from the Speaker’s Office Wednesday.