Talk about winning the jackpot!
The feds awarded a staggering $54 million to Connecticut’s politically-connected Mohegan Indian tribe, which runs one of the highest grossing casinos in the country, according to a new bombshell report.
The tribe, which operates the popular Mohegan Sun casino, earned more than $1.3 billion in gross revenues in 2009.
But that didn’t stop Sen. Chris Dodd (D-Conn.) of helping the tribe secure the funds, according to ABC News.
The stimulus money — a loan from a Department of Agriculture rural development program — is meant to help communities of less than 20,000 people that have been “unable to obtain other credit at reasonable rates and terms and are unable to finance the proposed project from their own resources.”
Sen. Dodd’s communications director, Bryan DeAngelis, confirmed the lawmaker’s support for the loan.
“Senator Dodd supported this project in the same manner and for the same reasons he supports federal assistance for other Connecticut projects creating and preserving local jobs,” said DeAngelis. “The only factor that mattered in Dodd’s support of these loans was job creation and economic recovery in Connecticut.”
A former aide to Dodd, Charles Bunnell, is Chief of Staff for External and Governmental Affairs for the tribe, ABC News reported.
ABC News reported that the $54 million loan represents more than one-third of the $168 million allocated by the USDA in the latest wave of stimulus funding for its rural development program. The loan is part of $74 million in loans directed to the tribe by the USDA for the construction of a community center and building.
USDA spokesperson Justin DeJong also said the loan would provide employment.
“The loan that USDA provided will help create an estimated 1,200 jobs for this shovel-ready project. … Construction for the project was underway before the economic downtown, was suspended because of the credit crunch, and the USDA loan is helping the Tribe to restart construction.”
The Mohegan Tribal Gaming Authority currently employs 9,600 people at the Mohegan Sun and other properties.
Lynn Malerba, who serves as chairwoman of the Mohegan Tribal Council, defended the award.
“The whole Connecticut delegation, I think aside from [Rep.] Jim Himes, who was traveling, sent a letter in support.”
A spokesman for Himes said the congressman “did not weigh in on this specific project since it is not in his district.”