Delay expected in Navajo gaming investment OK

By Kathy Helms
Diné Bureau

WINDOW ROCK — The terms and conditions between the Navajo Nation and the Gaming Enterprise had not been completed as of last week, meaning that final Budget & Finance Committee approval of investing $35 million of the Land Acquisition Trust Fund for gaming is expected to be delayed, according to Chairman LoRenzo Bates.

B&F is scheduled to hear the hear a report on the terms and conditions today and Bates said he fully expects the legislation to get tabled.

“If it’s not done, then I’m going to recommend to my committee to wait. I don’t want to be jumping the gun on it,” Bates said. “It's going to be delayed simply for the fact that we want an agreement/term sheet between the Enterprise and the Navajo Nation. I'm not looking for no one page or two-liner. We want to have a complete package when it comes to the committee.” Bates said that until the terms and conditions are done, “I know my committee is not going to move on it.”

A group of grassroots members and former Navajo leaders known as Ha’da’a Sidi recently announced they are not withdrawing their notice of intent to sue Navajo Nation President Joe Shirley Jr.’s administration until the legislation approved by Council authorizing a $100 million bond issue from JP Morgan Chase to finance gaming on Navajo is rescinded.

Milton Bluehouse Sr., chairman of the group, said it is his understanding that there are several delegates who would like to kill the legislation, while member Eddie Arthur expressed concern, saying, “The resolution of the Navajo Nation Council is very much alive until rescinded.”

“It has nine lives,” Bluehouse added. “We’d better make sure that it’s gone.”

Navajo Nation Delegate Leonard Tsosie said the issue of using the land acquisition fund needs to be brought back before Council, adding that B&F and Resources Committee do not have jurisdiction over gaming.

The standing committees of the Navajo Nation Council have oversight of various aspects of the government.
“B&F has authority over financial aspects of the Navajo Nation, any and all,” Bates said. But B&F created and oversees the Investment Committee, which has authority over investments.

“So whatever recommendations, changes, thoughts, whatever, has to be approved by B&F,” he said.

“In this case, the Investment Committee recommended, by virtue of the agreement between Resources Committee, to invest the land acquisition fund as a direct investment for the casino. Resources Committee has authority over the purchase of land.”

Bates said an amendment to the land acquisition fund investment policy was approved last June.

“Under 'Purpose,' it talks about ‘invest.’ Depending on which side of the fence you are on, you can interpret that to your liking,” he said.

“The Investment Committee recommended clarity, that ‘invest’ means they can do these things. By virtue of their action it had to come to B&F to say, ‘We’re OK with the proposed amendment of the investment policy.’ So as a result of that, it brought clarity and now you can invest those monies.”

Bates said Controller Mark Grant will continue to pursue any and all proposals, and if a proposal comes forth that is in the best interest of Navajo, that is what would be recommended to Council for approval.

“The JP Morgan legislation is still there,” Bates said, “and the reason it is still there is the negotiations that were taking place are at a stalemate because Navajo is not in agreement with the conditions JP Morgan is making.

“If JP Morgan Chase comes back to Navajo and says, ‘We don’t need to do that, we’ll do this’ — if they come off their conditions to where it’s satisfactory to Navajo, then they can also be considered. But as long as they maintain their position of ‘these are the conditions’ — it sits there,” he said.

“Now, if a proposal comes forth that is in the interest of Navajo, then that JP Morgan resolution probably would need to be rescinded and whatever proposal comes forth would be put in its place.”