Vanessa Dietz/Daily Mining Gazette Former Ojibwa Casino Manager Don Messer is seen here near some of the many gaming machines earlier this year at the Keweenaw Bay Indian Community’s Baraga facility.

BARAGA — Two Upper Peninsula casinos are being seriously revamped — to the tune of $40 million.

Keweenaw Bay Indian Community voted in August to spend up to that amount to upgrade its casinos in Marquette and Baraga.

Estimated costs for the projects are $33.5 million for the Ojibwa II in Marquette and $6.5 million for the Ojibwa Casino in Baraga.

According to a study the tribe did in 2015, global market advisors study warned ” … it is likely that the casinos will begin to experience year-over-year declines in revenue and earnings before income tax depreciation and amortization.”

In addition, the new casinos work group met with Dave Anderson, who has extensive experience in the restaurant business as well as casino development, initially to see if Famous Dave’s BBQ would consider franchising with KBIC. That didn’t work out, but Dave did give the group some valuable ideas.

“Dave shared his thoughts and expertise and recommended the tribe rethink its projects and consider building a major resort in the Marquette area for a number of reasons,” said CEO Larry Denomie III. “He suggested reaching out to the governor one last time and went as far as assisting in drafting the letter that was sent. Dave’s insight and business expertise certainly played a role in the tribal council’s decision to rethink the projects that were approved by the voters in 2015 and ultimately leading up to the revised projects approved by the voters this year.”

Gov. Rick Snyder did not allow the tribe’s previous plans to relocate the Marquette casino to Negaunee so it revised its plans to remodel the facilities at their current locations.

“The refusal of Gov. Snyder to cooperate has held the tribe’s dreams of developing a tourism and entertainment complex up long enough,” said KBIC Tribal Council Vice President Jennifer Misegan. “Business experts and financial lenders have advised the tribe develop where the greatest potential exists.”

Marquette offers many opportunities including being the largest population center in the Upper Peninsula, a regional hub for retail stores, restaurants, education, healthcare and outdoor recreation.

“We’re hoping to fill a void here,” said KBIC President Chris Swartz, regarding the lack of hotel space for large conferences and events in both Baraga and Marquette. “The bigger picture here is increasing the revenue in Marquette. That’s the place to be.”

The tribe has developed a comprehensive site master plan that allows for future expansion, including additional hotel rooms, along with a new resort and entertainment complex in Marquette. It will expand the number of gaming devices by up to 50 percent, add a three-star branded hotel with 100 rooms, similar in quality to a Courtyard by Marriott, Radisson Inn or Hampton Inn. The complex will feature two restaurants; one full service that is possibly branded, and a grill with extended hours.

Plans for the Ojibwa II also include adding a 1,200-seat entertainment venue that can also serve as a major conference center.and to reuse the current facility for conference center, BOH functions and office space.

At its Baraga Ojibwa Casino, the tribe will add a new gaming facility onto the existing building that provides proper ventilation, essentially eliminating the smoke filled atmosphere, while creating a gaming experience second to none for our customers. Plans for Baraga also include remodeling the existing casino space for additional gaming and providing public access to the remaining existing facilities including the Pressbox Sports Bar and Grill, hotel, restaurant, and non-public access to functions.

Ground has been broken on both projects, and more design and engineering will be developed throughout the winter. Construction will pick up more in the spring until completion sometime between late 2017 and early 2018.

Tribal trust funds and casino cash flow are financing the projects.

“The tribal council has stressed time and time again that the senior pension trust account will not be used in any way, shape or form to finance these projects,” Denomie said, keeping in mind that taking care of the tribal elders has been and continues to be a priority.