The Navajo Nation, the largest Native American tribe in the United States, has historically relied on natural resources like coal, gas, and natural resources for its economic sustenance. With the anticipated closure of the Black Mesa Mine, a significant revenue source for 35 years, the tribe has been actively exploring diverse avenues to bolster its financial standing and secure a prosperous future for its members. In the mid-2000s, then-Navajo Nation President Joe Shirley Jr. expressed optimism about the potential for significant new revenue streams, projecting an influx of approximately $360 million per year, starting in 2006 and beyond. This ambitious forecast was predicated on a multifaceted strategy encompassing the development of gaming enterprises, the construction of the Desert Rock Power Plant, the establishment of a theme park near Williams, Arizona, and various other strategic initiatives. This article delves into the details of these proposed ventures, the challenges and opportunities they present, and their potential impact on the Navajo Nation.
Diversifying the Economic Portfolio: Beyond Natural Resources
Historically, the Navajo Nation’s economy has been heavily reliant on its abundant natural resources. However, recognizing the need for diversification and sustainable growth, the tribal leadership has been actively pursuing alternative economic development opportunities. The projected closure of the Black Mesa Mine served as a catalyst for this strategic shift, prompting the tribe to explore innovative revenue-generating ventures that align with its cultural values and long-term economic goals.
Gaming: A New Frontier for Revenue Generation
One of the most prominent initiatives in the Navajo Nation’s economic diversification strategy is the development of gaming enterprises. Recognizing the potential of casino operations to generate substantial revenue, the tribe embarked on a plan to establish multiple casinos within its territory. As of the mid-2000s, the Navajo Nation hired its Navajo Nation Gaming Regulatory Office director, Eddie Lockett, who brings years of experience to the job. The initial projections estimated that the opening of at least two casinos in 2006 would generate approximately $100 million in new revenue.
Several locations were under consideration for these casino developments, including Shiprock, Nahata Dzill, Iyanbito, LeChee, Cameron, and possibly Chinle. These locations were strategically chosen to maximize accessibility for both tribal members and tourists, thereby optimizing the potential revenue generation. However, the implementation of these gaming ventures also presented challenges. The tribe recognized the need to establish a comprehensive revenue-sharing formula to ensure that host chapters, the local communities where the casinos would be located, would receive a fair share of the generated revenue. This was deemed essential to foster community support and ensure that the benefits of gaming development would be distributed equitably across the Navajo Nation.
Furthermore, the Navajo Nation leadership emphasized the importance of adhering to the Local Governance Act, which mandates the devolution of authority to local government entities. This principle underscored the tribe’s commitment to empowering local communities and ensuring that they have a significant voice in the decision-making processes related to gaming development. The revenue generated from gaming operations was earmarked for critical social programs and services, particularly those benefiting Navajo veterans, students, and the elderly. President Shirley specifically highlighted the pressing need for increased funding for scholarships, noting that a significant number of deserving students were unable to pursue higher education due to financial constraints.
The Desert Rock Power Plant: Balancing Energy Needs and Environmental Concerns
Another key component of the Navajo Nation’s economic development strategy was the proposed construction of the Desert Rock Power Plant in the Four Corners area. This ambitious project was envisioned as a state-of-the-art energy facility that would utilize advanced technology to minimize harmful air emissions. The power plant was projected to generate hundreds of quality jobs during its construction phase, which was expected to last until 2010, and would continue to provide employment opportunities during its operational phase. In addition to the economic benefits, the Desert Rock Power Plant was anticipated to generate approximately $50 million in annual revenue for the Navajo Nation.
However, the proposed construction of the Desert Rock Power Plant also faced significant opposition from environmental groups and concerned citizens who raised concerns about its potential impact on air quality, water resources, and the overall health of the environment. These concerns underscored the complex challenges of balancing economic development with environmental stewardship. The Navajo Nation leadership emphasized its commitment to utilizing the most advanced technology available to mitigate the environmental impact of the power plant and to ensure that the project would adhere to the highest environmental standards.
Theme Park Near Williams, AZ: Tapping into the Tourism Market
In addition to gaming and energy development, the Navajo Nation also explored opportunities in the tourism sector. One such project involved the development of a theme park near Williams, Arizona, a popular gateway to the Grand Canyon. The theme park was envisioned as a major tourist attraction that would draw visitors from around the world, providing a significant boost to the local economy. The Navajo Nation’s role in this project would be to create a tax-free bond district on land used for the park. The project was projected to generate approximately $53 million per year for the tribe.
The theme park project offered a unique opportunity for the Navajo Nation to leverage its proximity to the Grand Canyon, one of the world’s most iconic natural landmarks. By creating a compelling tourist destination, the tribe could attract visitors to its territory, generate revenue for its members, and promote its rich cultural heritage.
Capital Improvement Plan: Investing in Infrastructure and Community Development
President Shirley also championed a comprehensive Capital Improvement Plan (CIP) aimed at addressing critical infrastructure needs and promoting community development across the Navajo Nation. The CIP proposed a $500 million bond initiative to fund the construction of essential facilities, including public safety/judicial complexes, Headstart centers, senior centers, multi-purpose community buildings, and waterline and power line extensions.
However, the CIP faced challenges in securing approval from the Navajo Nation Council. In response, President Shirley explored alternative funding sources, including the possibility of requesting an interest-free loan from the U.S. Congress. He argued that the U.S. government frequently provides financial assistance to other countries and that the Navajo Nation, as a sovereign nation within the United States, should be eligible for similar support. The CIP underscored the Navajo Nation’s commitment to investing in its infrastructure, improving the quality of life for its residents, and creating a more sustainable future for generations to come. The Navajo Tribe Looking to Gaming, Businesses and Theme Park for Revenue.
Protecting the Land Acquisition Trust Fund: Preserving the Navajo Nation’s Land Base
In addition to pursuing new economic development opportunities, the Navajo Nation also remained committed to protecting its existing assets, particularly its land base. President Shirley expressed his satisfaction with the Navajo Nation Council’s decision to reject legislation that would have diverted $33 million from the Land Acquisition Trust Fund. This fund was established in 1993 with the specific purpose of purchasing land to consolidate and expand the Navajo Nation’s land base. President Shirley argued that the proposed diversion of funds would have undermined the original intent of the trust and would have jeopardized the tribe’s ability to acquire additional land in the future.
The Navajo Tribe Looking to Gaming, Businesses and Theme Park for Revenue: A Vision for the Future
The Navajo Nation’s multifaceted economic development strategy, encompassing gaming, energy, tourism, and infrastructure investment, reflected a bold vision for the future. By diversifying its economic portfolio, the tribe sought to reduce its reliance on natural resources, generate new revenue streams, create jobs for its members, and improve the quality of life for its communities. While these initiatives presented challenges, they also offered significant opportunities for the Navajo Nation to chart its own course toward a more prosperous and sustainable future. The Navajo Tribe Looking to Gaming, Businesses and Theme Park for Revenue.