Investigators examine Sault Chippewas' non-gaming losses

Of the Sault Chippewas' 29 non-casino businesses, 21 lost money last year, according to the tribe's financial report. The other eight made a combined profit of just $1.4 million, the Detroit Free Press reported Wednesday.

The tribe has 20,000 members and annual revenues of about $400 million. About 80 percent of that money is generated by the tribe's business interests. Most of the rest comes from state and federal sources.

While the Sault Chippewas' five casinos were earning $45 million in profits last year, the tribe's non-casino companies lost more than $8 million. Health services and a community ice rink and recreation center subsidized by the tribe accounted for nearly $3 million in losses, tribal spokesman John Hatch said.

Other ventures that lost money included a neon-light manufacturing plant in Sault Ste. Marie that the tribe closed in June; an air-charter service in which the tribe had invested; and two construction companies since merged into a nonprofit enterprise.

The tribe continues abandoning unprofitable ventures and is working with consultants to improve the performance of others, Hatch said.

"We've taken a breath, looked around and decided what should go and what should stay," he told the Free Press. "We're a conglomerate. Some of the ventures we've gotten into didn't work out. And we know we've taken some broadsides from those folks, but that's business."

Hatch also noted that the Sault Chippewas have relatively few debts and have lined up Wall Street financing for their Detroit casino venture.

The Michigan Gaming Control Board next year will begin reviewing state police investigators' reports on all three casino applicants and decide whether they meet state standards. Applicants will have to answer any of the board's questions about their business practices during public hearings.

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