The city of Madison and Dane County will both collect at least $45 million in 13 years from the Ho-Chunk Nation if the tribe adds casino gaming to its DeJope bingo hall on Madison’s southeast side.
“This agreement ensures that if the nation expands its DeJope facility, the full costs of infrastructure improvements, city services and social services for problem gamblers are picked up by the tribe and not the taxpayers,” said Madison Mayor Dave Cieslewicz in a statement.
Cieslewicz and Dane County Executive Kathleen Falk announced the agreement Monday afternoon, one day before the Madison City Council is set to vote on whether to ask the Dane County Board to hold a Feb. 17 referendum that would let voters decide if DeJope may expand into a full-fledged casino.
“My bottom line was to give citizens a voice in whether a casino opens, and to protect taxpayers. This agreement does that,” Falk said.
Under the gaming contract negotiated and signed by the tribe and Gov. Doyle last April, the Ho-Chunk Nation has the opportunity, after criteria are met, to expand the bingo hall. The City Council and the Dane County Board have until Dec. 1 to authorize a referendum asking voters if they support the addition of casino gaming at DeJope. If no referendum is held next year, Doyle could authorize the casino if he deems it “in the public interest.”
In addition to picking up all short- and long-term transportation improvements needed as a result of the expansion, the nation would make annual payments to the city and county every August. The tribe would pay an annual lump sum to each government, plus between 3.5 and 4.5 percent of the money the casino earns each year.
Falk said she supports the referendum’s passage, although Cieslewicz has said he is opposed to a referendum passing.
Dane County officials set aside more than half of the county’s $399 million budget for human services, which includes service to families with disabilities and the elderly, according to Falk spokesperson Sharyn Wisniewski. The Ho-Chunk payments would be used to supplement the dollars the county has for human services and will also be used for property tax relief.
In addition, Wisniewski said Falk supports passage of a referendum because the agreement protects taxpayers from bearing the costs of the casino and because she agrees it’s a legitimate way for the tribe to earn money.
Under the agreement, the county would receive about $3.5 million a year. The city’s payments would start at $1.5 in 2004 and increase to a minimum of $4.4 million a year. The payments assure the city and county would receive more than $45 million over 13 years and extend indefinitely.
The agreement also contains provisions to ensure the casino won’t compete with the Monona Terrace or the Alliant Energy Center for entertainment events, to identify and prohibit entry to problem gamblers and to work together to preserve and protect Native American burial mounds in the city and the county.
