Updated:
Original:

Appeals court sides with Fond du Lac band in Duluth casino dispute

Author:

A federal appeals court panel has upheld a ruling that the Fond du Lac band of Lake Superior Chippewa is not obligated to share casino profits with Duluth.

For 15 years the band did share profits from its Fond du Luth casino with the city, providing Duluth with $75 million in revenue. But the tribe stopped making the payments in 2009, arguing the agreement with the city violated federal law. A District Court agreed with that position in 2011 and panel of the Eighth Circuit Court of Appeals upheld that ruling in the decision filed Monday.

Still in dispute, however, are two years worth of payments from 2009 to 2011. The district court had ruled the band should make more than $12 million in back payments to cover those years. The appeals panel disagreed, and sent the matter back to the lower court for further review.

Duluth has counted on the casino money to provide about $6 million per year, which the city used for street repairs. Mayor Don Ness told the Star Tribune Monday's ruling is devastating news for taxpayers of Duluth.

Since the legal dispute with the tribe has gone to court, some in Duluth have suggested the city look to build its own casino on the Lake Superior waterfront.

Next Up

Screen Shot 2019-07-18 at 9.10.30 AM

Here's where DFLers stand on Minneapolis' public safety ballot question

The question would create a Department of Public Safety and remove some requirements.

Arthur Kollie

Man pleads guilty to brutal murder of 14-year-old girl in Fargo

The 14-year-old girl was the victim of a random attack outside a Fargo strip mall.

Minneapolis Mayoral Candidates 2021 - jacob frey sheila nezhad kate knuth

Here's who has endorsed the frontrunners for Minneapolis mayor

Politicians and community groups are voicing their opinions.

covid

Minnesota's COVID-19 update for Tuesday, October 26

The latest data for the pandemic in Minnesota.

target

Target touts new app, ordering features ahead of holidays

Here's how the retailer plans on making things "easy" for customers.

shower

Someone keeps trying to film showering women at U of M

The university has received three reports in the past two weeks.

Anya Magnuson

Woman in critical condition after driver hit her in Minneapolis

She's been unresponsive, but recently gave a thumbs up to her family.

crime scene tape - police tape

Suspect in fatal hit-and-run of Blaine dog walker arrested

The woman was airlifted and died at the hospital.

Anthony Edwards

Ant's rally not enough to save Timberwolves

Edwards' third-quarter explosion came too late in a loss to the Pelicans.

Rent, mortgage, house, key, door

Victims of property manager's sexual harassment to get $736,000

It's part of a consent decree announced by the Department of Justice Monday.

Related

Fond du Lac band and city of Duluth file appeals in casino profit-sharing ruling

Both sides are filing appeals after a judge declared that the band does not need to share profits from its Fond-du-Luth casino with the city of Duluth. But the band, which declared victory in the case, wants to reverse a decision that would still require it to pay $14 million in back payments to the city. The band stopped making the payments in 2009, which sparked the legal battle.

City of Duluth files lawsuit to stop Fond du Lac Band from expanding its downtown casino expansion

Duluth claims the tribe breached its contract with the city. The News Tribune reports the band is seeking federal authority to expand its downtown gaming activities to include a former hotel without obtaining approval from the city.

Judge tosses out Duluth's lawsuit against Fond du Lac band

Duluth maintains the band needs city approval before expanding its reservation at Fond du Luth casino to include an adjacent hotel. The city attorney says a St. Louis County judge dismissed the lawsuit because a federal court is a better venue for it.

Fond du Lac Band to choose leader Tuesday

Voting members of the Fond du Lac Band of Lake Superior Chippewa will choose the next chair of their Reservation Business Committee. The position oversees a budget of about $180 million and businesses, including a casino amid a legal battle with the city of Duluth. Pete DeFoe is challenging incumbent Karen Diver for the four-year term.

Duluth terminating parking agreement with Fond du Lac Band

The city has decided the tribe will no longer operate a parking garage next to its downtown casino. A city official told the News Tribune it's part of a plan to consolidate all parking facilities in Duluth. New management will begin in June.