The Minnesota Court of Appeals revived a lawsuit over a land-into-trust application filed by the Fond du Lac Band of Lake Superior Chippewa Indians in Minnesota.

The tribe wants a one-acre site in Duluth placed in trust. The cit y claims the acquisition constitutes a breach of contract because it would affect operations at the adjacent Fond-du-Luth Casino.

The tribe and the city have an agreement affecting the casino but it does not cover land-into-trust applications, the Minnesota Court of Appeals acknowledged in an unpublished decision on Monday. However, the court said the agreement vests the state courts with jurisdiction to resolve any disputes that might arise between the two parties.

"There is a very clear and present dispute here over whether the intent of the parties has been disregarded by the action of the band in taking the first step in what may be regarded as a two-step action," the decision stated. "Indeed, one of the strongest arguments put forth by the city is that it suffers a tax loss when the subject property is placed in trust (the first step) and is therefore irrevocably harmed even if the second step, (the completion of denominating the land as Indian Land) has not yet occurred."

The one-acre site is home to the 83-year-old Carter Hotel. The tribe wants to demolish the building, a move the city opposes.

The city is also concerned that the tribe might expand the casino site although Chairwoman Karen Diver has said there are no plans for the property.

Get the Story:
Appeals court sides with city of Duluth in ongoing Carter Hotel case (The Duluth News Tribune 4/16)

Minnesota Court of Appeals Decision:
City of Duluth v. Fond du Lac Band of Lake Superior Chippewa (April 15, 2013)

Related Stories:
Fond du Lac Band plans to demolish building deemed unsafe (02/05)