Casino critics continue effort to stop $100M loan
By Bill Donovan
Special to the Times
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Critics of the tribe's plans to finance casino construction will file a lawsuit in Window Rock District Court in the next few days in hopes of stopping a $100 line-of-credit agreement they believe is too risky, their attorney said Wednesday.
The group, which goes by the name Ha'a'da'a Sidi ("the vigilant ones"), filed a notice of intent to sue 30 days ago as is required by law, said Jim Zion, the Albuquerque-based lawyer representing the critics.
No talks with the tribal government have occurred since then and they are pressing ahead with intentions to seek a judicial order preventing the tribe from executing a lending agreement with JPMorgan Chase Bank.
Zion said the critics had planned to hold a press conference in Chinle on Monday to announce the lawsuit but cancelled due to bad weather.
The prospective plaintiff group is composed of a number of past and present tribal leaders, including former tribal president Milton Bluehouse Sr.
In announcing their intent to sue last month, the critics pledged to
do whatever is necessary to overturn the casino funding agreement,
which was developed by President Joe Shirley Jr. and approved by the
Navajo Nation Council.
The group's main objection centers on provisions requiring the tribe to pledge tribal assets in case the casinos do not generate enough revenue to pay the loans back.
The language is too broad, potentially putting all or most tribal assets at risk in case of a default, they contend.
In addition, there are too few restraints on how the money can be spent and too little oversight, making it possible for the president to use the money for other purposes without seeking the council's approval, they contend.
Navajo Nation gaming czar Robert Winter has said the line-of-credit deal is the best plan to fund gaming development that he's seen in over 30 years as a gaming attorney.
The critics say they plan to sue the tribe's controller, Mark Grant, who was given the responsibility of identifying tribal assets that could be pledged.
The tribe and the bank are still working out details of the agreement but tribal officials said the threat of a lawsuit has not caused bank officials any second thoughts about going through with it. The hang- up still centers around determining which tribal assets will be pledged.
Under tribal law, prospective plaintiffs must give the tribe notice 30 days before they plan to file a lawsuit and Zion said this was done Dec. 4. The idea is to encourage negotiations leading to a resolution of disputes out of court, which saves everyone time and money.
"We haven't received any response from the tribe," Zion said, adding that it would have been nice if the tribe had said something even if it was only to say the whole thing was "full of baloney."
Zion said he is still confident that the lawsuit will stop the line- of-credit deal from going through.
After all, he said, all you have to do is look at the precedents.
When the council approved paying for famed attorney F. Lee Bailey to defend then chairman Peter MacDonald against accusations that he accepted bribes from Tucson Gas and Electric Co. (now Southwest Gas Corp.), a group of Navajos filed suit and the tribal courts stopped the payment.
Later, the courts stopped the sale of the Navajo Times to the late Marshall Tome and also stopped council delegates from giving themselves a salary increase.
"We are taking the same approach in this lawsuit," Zion said.
He added that the plaintiffs will seek a restraining order if they learn that a loan is in the process of being issued.