Navajo casino cash nears payout

By Kathy Helms
Diné Bureau

WINDOW ROCK — The Resources Committee has given unanimous approval to a resolution supporting the investment of $35 million of the Land Acquisition Trust Fund through a loan to the Navajo Nation Gaming Enterprise to construct a casino in Churchrock.

Budget and Finance Committee Chairman LoRenzo Bates, accompanied by Controller Mark Grant, presented the legislation at a special Resources meeting Friday afternoon.

“This legislation that is before you, as is indicated, is just an acknowledgment from this committee to go forth with what we have been talking about for the last two weeks,” Bates said.

“From here, the Budget and Finance Committee will meet next Thursday, and it will be at that time that they will consider the amendments to the investment policy.

“In February, the Budget and Finance Committee will meet on it in its entirety and soon thereafter is when Mr. Grant and the Controller’s Office will allow the money to proceed over into the gaming,” he said.

Grant asked Resources’ for “favorable consideration” of the resolution.

In a question to Bates, freshman Resources member Phil Harrison said, “I just want to ask, how did you arrive at this 11 percent interest, or can it be increased to 12 percent? Is that 11 percent just an easier number to deal with?”

Bates referred to a recent meeting of the committee at one of the chapters Harrison represents. “If you recall the meeting in Cove, that was what the committee determined. How it came about is the land acquisition fund is generating 8 percent at this point in time, and the committee, because it’s an investment, they wanted a return above and beyond what it’s generating.

“Another three points was put onto it for the risk (of investment). So it will get the 8 percent, but it will get an additional 3 percent,” he said.

Investing $35 million of the land acquisition fund will leave a balance of $21 million for purchasing land in the checkerboard area of New Mexico.

“The priority of the Land Acquisition Trust Fund, as it was originally established, was to consolidate Navajoland in Eastern areas,” Resources Chairman George Arthur told B&F during the Controller’s recent presentation on the funding option.

“We’re still working on those issues and we’re still working on other acquisition possibilities,” Arthur said. “If the money is not fully reimbursed or paid back within a certain time frame, then we re-evaluate the format of whatever agreement might be in place at the time.”

In keeping with those discussions, Resources member Norman John III offered three amendments to the legislation presented Friday.

“It says the Navajo Nation hereby supports the investment of an amount of dollars ($35 million) of the Land Acquisition Trust Fund through a loan to the Navajo Nation Gaming Enterprise,” to which he added “to be effectively six months starting today.”

“The clock starts today,” John said.

The second amendment adds the possibility of increasing the rate of return to the land acquisition fund from 11 percent, through the addition of language, stating, “or better when the market is better.”

“When the market goes up, the return will be better,” John said.

Though the legislation allows for a maximum pay back period of three years, in accordance with Navajo Nation Code, the Master Investment Policies and trust fund sub-policy, John’s third amendment would allow the committee to revisit the investment if not paid back within that time period.

When asked by Resources Vice Chairman Curran Hannon whether he had a problem with the amendments, Bates responded, “We’ll make it work.”

Monday
January 21, 2008
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Stories published in today’s edition of the Independent

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