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County suit against Ojibwe dismissed

By Dawn Slade and Luther Dorr

On May 6 Judge James Rosenbaum of the U.S. District Court dismissed a lawsuit filed by Mille Lacs County and the First National Bank of Milaca against the Mille Lacs Band of Ojibwe regarding the status of the Mille Lacs Reservation.

Rosenbaum said in his 23-page opinion that the county failed to show a real dispute between the county and the band.

The county has spent about $1 million in attorney fees since it filed the lawsuit Feb. 19, 2002.

The county feels the reservation is little more than 4,000 acres, while the band says the reservation is 61,000 acres.

"I was very surprised and disappointed," county commissioner and board chairman Bob Hoefert, Isle, said Monday of the judge's decision to dismiss the case.

"We knew it was a possibility, but I didn't expect it. After reading his summary, I'm just having a hard time. I don't think he decided on what we asked for. I don't think he took it into account."

Mille Lacs Band Chief Executive Melanie Benjamin wasn't surprised.

"The Mille Lacs Band has always stated that we have not harmed the county or the bank, and the judge's dismissal supports our position," she said last Friday.

"In fact, the band has worked cooperatively with the federal, state and county governments on a wide range of issues - including law enforcement, taxation, hunting and fishing, and water quality - in an effort to address real problems and to avoid or settle costly litigation.

"I urge the county and the bank to join the Mille Lacs Band in future efforts that will make this area better, not tear it apart, and improve life for all county residents."

Dick Satterstrom of Princeton, commissioner of the newly-created District 1 that includes just the city of Princeton, said Monday it appeared "the judge just didn't feel anyone was threatened."

Satterstrom plans to vote this month against paying legal fees to the Tobin Law Office of Winner, S.D., saying although "it's just sort of a protest vote," he thinks the work of that office should be over.

"What worries me is it's just starting [if there is an appeal]," Satterstrom said.

Commissioner Phil Peterson, Milaca, said he was frustrated and disappointed with the judge's decision.

"I don't know how he could dismiss it," Peterson said. "It was pretty clear-cut that the tribe doesn't have jurisdiction on that 61,000 acres."

He admitted $1 million is a substantial amount of money, but added, "If that was your property line, what would you be doing?

"It affects everyone in the county and people all over the country. This whole issue is not settled. The people at Mille Lacs Lake are pretty frustrated. They want to get on with their life. You can't blame these people for wanting a definition on this boundary issue."

Peterson believes that if the band gets its way, it will affect the county's budget dramatically.

"I haven't got anything against the tribe," Peterson said, adding that his nephew is Indian. "It's a boundary thing. There's a pretty dramatic difference in government."

Don Wedll, former commissioner of natural resources for the band for 19 years and now a special assistant to the chief executive, said the judge's decision bears out what the band has been saying.

"Lots of people have been saying we've been doing things to them - and we're not," he said Tuesday.

Trial was scheduled for next month

The trial for the lawsuit had been scheduled for next month before Rosenbaum's ruling.

Instead, a special county board meeting was scheduled Tuesday, May 13, with the commissioners, the bank and their lawyers to determine if the county will appeal the judge's decision.

First National Bank of Milaca attorney Scott Knudson said, "We're obviously disappointed with the judge's ruling and don't agree with the court's analysis of the case law to conclude that there is no case or controversy over the continued existence of the reservation.

"The bank is currently considering its options with respect to an appeal to the Eighth Circuit Court of Appeals. The decision does not mean that the reservation continues to exist, for that question remains to be decided.

"But one thing that emerged from this lawsuit so far is that the band has stated that it does not intend to regulate businesses or property owners unless they do business directly with the band or on trust property. If the band changes its position on that point, then this order doesn't apply and the case can be restarted."

Rep. Sondra Erickson, R-Princeton, very involved in the case, said Tuesday it's questionable if the county should continue the lawsuit.

"I think the county should really assess whether or not going forward is the best at this time," she said. "Do they have enough facts to proceed?"

Former county attorney not surprised by verdict

Janelle Kendall, county attorney in Mille Lacs until January and now the county attorney in Stearns County, said she wasn't surprised by the verdict.

ėThe federal judge's decision is consistent with my advice [not to pursue a lawsuit] to the county board in January of 2000," she said Monday.

"The band has not, to my knowledge, attempted to assert any jurisdiction, and courts just don't give advisory opinions.

"They [county commissioners] have to wait until they have a real legal issue. Legal issues have to be based on more than fear."

Kendall was also critical of Tom Tobin, attorney for the county.

"I have had a long-standing concern with any attorney willing to spend the taxpayers' money without a real legal issue to fight," she said.

Tough questions by judge at St. Paul hearing in January

Judge Rosenbaum presided over a hearing last Jan. 24 on a motion by the Mille Lacs Band of Ojibwe to dismiss the lawsuit the Mille Lacs County Board filed.

"What's your problem?" Rosenbaum repeatedly asked attorney Tobin, representing the county, and Scott Knudson, the attorney for the First National Bank of Milaca.

"What needs fixin'?" Rosenbaum asked Tobin after Tobin said the county was injured because of the dispute about the reservation.

When Tobin replied that what needed fixing was for the band to comply with federal law, Rosenbaum responded, "Why? What's the problem, counsel?"

Rosenbaum continued to press Tobin, asking if lakefront property is less expensive in Mille Lacs County because of the reservation dispute.

Tobin didn't have any examples of that happening, saying lakeshore owners at Mille Lacs Lake had been fortunate during the dispute.

Rosenbaum continued to ask similar questions to Knudson, representing the bank.

"What's the problem?" Rosenbaum asked as their exchange began.

After Knudson said the bank holds real estate security in the disputed area, and is worried that the dispute would decrease the value of real estate, Rosenbaum countered:

"Is real estate not getting transferred in Mille Lacs County? And, "Is there evidence showing the per-square value is cheaper in Mille Lacs where the tribe has jurisdiction?"

The hearing lasted about an hour in front of an overflow crowd, with some listening in another courtroom.

County board decides to appeal decision

At a three-hour special closed meeting Tuesday, the Mille Lacs County Board decided to appeal Judge Rosenbaum's decision.
Mille Lacs County Attorney Jan Kolb, speaking for commissioners, said, "Part of it is simply because we've invested this much into it. We can't quit now.
"We've all reviewed the opinion and we disagree. - The opinion doesn't take into account that the state supports our position but hasn't taken an active role thus far."

Kolb said she believes there's a liability concern within the 61,000 disputed acres with regard to law enforcement and prosecution of crimes.

"The Court of Appeals sets precedence, where as an individual judge at the federal district court level does not set precedence. It only makes sense to appeal."


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