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Serving Northern St. Louis County, Minnesota

Leecy announces new phase in reservation growth

Band to increase minimum wage to $11.10 an hour over three years

Marshall Helmberger
Posted 1/31/15

VERMILION RESERVATION— After ten years of rapid growth in facilities, programs and services, the Bois Forte are ready to move into a new phase of development, according to Tribal Chair Kevin Leecy. …

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Leecy announces new phase in reservation growth

Band to increase minimum wage to $11.10 an hour over three years

Posted

VERMILION RESERVATION— After ten years of rapid growth in facilities, programs and services, the Bois Forte are ready to move into a new phase of development, according to Tribal Chair Kevin Leecy.

Leecy made his comments at the annual State of the Band address, held last Thursday at Fortune Bay Resort Casino.

“This new phase of growth won’t be as flashy as the first,” he said. “There won’t be as many big new buildings going up, or brand-new programs being started. Instead, this will be a phase of more expansion, renovation, fine-tuning and preservation. We will have to remember that caring for what we have created is just as important as creating it in the first place. We will have to understand that, though the path may change, the journey still continues.”

The plans Leecy outlined for 2015 were wide-ranging, including a new focus on home rehabilitation as well as new home construction. In addition, he outlined plans for expanded services at the Band’s Northern Eagle Credit Union, recruitment of more health care providers to staff the Band’s new Vermilion clinic, and partnerships with local community colleges to structure customized educational training programs for people seeking careers in Band businesses.

And many of those who work on the reservation can look forward to a pay increase, as Leecy said the Band’s minimum wage would be increased by a dollar per year over the next three years, when it will reach $11.10 per hour. That would put the Band’s minimum wage well above the statewide minimum, which is currently set to increase to $9.50 per hour by 2016.

“The reason for these increases is to ensure than anyone who is willing to work for Bois Forte businesses – not just Band members, but anyone in the region – can earn a decent wage along with benefits.”

The promise of a pay increase comes as Fortune Bay reported its gaming revenues fell by six percent in 2014. That’s consistent with a nationwide trend in gaming. While the industry as a whole set new records for total revenue, that growth was due primarily to the opening of new gaming facilities. The increased competition has made it harder for many gaming facilities to maintain or grow their revenues year-to-year.

Leecy noted that the Band’s strategy of economic diversification had significantly helped offset the loss with an increase in non-gaming revenues.

“We have worked steadily to make Fortune Bay a full-service entertainment destination,” he said. He noted that while the national average of non-gaming revenue for most tribes is 14 percent, at Bois Forte it is more than double that, at just over 30 percent for 2014, thanks to its many recreational amenities.

Leecy noted that The Wilderness golf course was once again rated Minnesota’s best course by Golf Week, and managed to increase the number of rounds played during 2014 despite a season shortened by harsh winter weather. The Band’s restaurants, such as the recently remodeled Tamarack and the Sunset Steakhouse, helped generate important food and beverage revenue. And Fortune Bay’s resort, which underwent a major facelift in 2014, set records both for room occupancy and total revenue.

He explained that further expansion and diversification will ensure that Fortune Bay continues to succeed – and just why that success matters so much.

“This is not about pleasing some nameless, faceless shareholders,” he said. “The revenue we generate through our businesses is essential for the programs and services that our tribal government provides to Band members. Equally important is the creation of jobs and careers, first through construction of the facilities and then through the ongoing operation and management of our businesses.”

More than 475 band members and guests attended Leecy’s address and other activities that followed his speech.