Let's make a deal
B&F to controller: Look for another place to get $100 million

By Kathy Helms
Diné Bureau

WINDOW ROCK — The Navajo Nation can get a better deal on $100 million to finance casino gaming, says Delegate LoRenzo Bates.

Navajo Nation Controller Mark Grant basically offered a one-liner Tuesday on the status of the Navajo Nation’s gaming financing agreement with JP Morgan Chase.

Grant told the Budget and Finance Committee, “We have substantially completed negotiations with Chase Bank on the loan agreement, and at this point in time we could sign the loan at any time.”

That was basically all the comment Grant made in open session regarding the $100 million loan agreement, but it opened the door for B&F Chairman Bates to offer a directive to Grant, which was approved by the committee following an executive session.

“Giving the amount of money that Council approved and given where it’s at today, we are no closer to spending those monies than we were,” Bates said.

“That’s all due to JP Morgan insisting on certain things which probably were not clarified in their entirety. At this point, I would not support the signing of that agreement simply because of that matter.

“My directive, with the authority of the committee, is to make a directive to Mr. Mark Grant to go out and seek alternatives. It doesn’t go against the Council action. All we are saying is go out and look at other alternatives. If another institution out there comes in and says we can do better, then allow them to act.

“If those alternatives are not any better than what we have before us, then we have at least explored all of the alternatives and in the end, maybe JP Morgan is the one we’re going to go with,” Bates said, adding that time is of the essence.

“He needs to go out ‘yesterday’ and do this and immediately get back to us. We have our next meeting on the 15th, and if he can bring something forth by then, whatever appropriate action that needs to be taken can be taken then.”

Bates also stressed that the Budget and Finance Committee is not against gaming. “This is an initiative to pursue what is in the best overall interest of the Navajo Nation,” he said.

The resulting action also could be a deciding factor in whether the group Ha’a’da’a Sidi moves forward with filing a lawsuit against the controller over the proposed $100 million loan agreement.

The loan document is out in the “real world” where it is being reviewed, Bates said. “Given that, that now allows us to say maybe we can do better. That is what I want to have the controller’s office look into.

“In doing so, it would also satisfy, obviously to a certain extent, concerns that are out there surrounding this whole deal at this point in time.”

Grant basically has a week to look at options and report back to the committee. His findings then will determine the next plan of action, which could include possibly introducing legislation during Council’s winter session to rescind the present loan agreement legislation, or bringing forward new legislation.

Bates said his directive was based solely on the fact that JP Morgan is asking for 125 percent collateral and there was no mention in the foregoing agreement that that was going to take place.

“It’s like I previously stated, they basically just don’t trust the Navajo Nation,” he said.