Report on the Economic and Sustainable Development Impact of Michigan’s Tribal Non-Gaming Enterprises

Statewide Economic Contributions and Alignment with SDG 8

A 2024 statewide study indicates that the non-gaming business enterprises of Michigan’s 12 federally recognized tribes are making significant contributions to sustainable economic development. These efforts align directly with the objectives of Sustainable Development Goal 8 (Decent Work and Economic Growth) by promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

The 2024 Michigan Non-Gaming Tribal Economic Impact Study reported the following key metrics for the 78 Tribal Business Entities (TBEs):

• Total Economic Impact: $1.24 billion generated through direct, indirect, and induced effects.
• Employment: Nearly 2,820 workers employed, fostering job creation and economic stability.
• Wages: An average annual wage of approximately $59,971, supporting decent work and living standards.
• Revenue and Assets: Annual gross revenues reached $805 million, with total business assets valued at approximately $1.5 billion.
• Fiscal Contributions: $136 million paid in federal and state taxes.

The Pokagon Band: A Case Study in Sustainable Diversification

The Pokagon Band of Potawatomi exemplifies a strategic approach to economic diversification that supports multiple Sustainable Development Goals. By expanding beyond gaming, the tribe is building a resilient economic foundation that fosters community well-being and long-term sovereignty.

Investment Strategy and Contribution to SDG 9

The tribe’s investment portfolio demonstrates a commitment to building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation, in line with SDG 9 (Industry, Innovation, and Infrastructure).

1. Investment Organizations: The tribe’s non-gaming ventures are managed by Mno-Bmadsen and the Pokagon Development Authority.
2. Diversified Sectors: Investments span a wide array of industries crucial for a robust economy, including:
   • Professional Services (Architecture/Engineering)
   • Construction (Commercial HVAC and Plumbing)
   • Manufacturing (Injection molding, tool & gauge production)
   • Commercial Real Estate (Cressy Commercial Real Estate, Red Tail Properties)
   • Retail (Bent Tree Market)

Fostering Sustainable Communities and Partnerships (SDGs 11 & 17)

The Pokagon Band’s initiatives extend beyond commercial enterprise to actively build sustainable communities and foster strong local partnerships, addressing the targets of SDG 11 (Sustainable Cities and Communities) and SDG 17 (Partnerships for the Goals).

• Local Procurement and Partnerships: The tribe has engaged with over 3,300 vendors across Michigan and Indiana, disbursing nearly $387 million. This practice strengthens local supply chains and stimulates regional economies, embodying the spirit of SDG 17.
• Sustainable Infrastructure and Housing: Proceeds from tribal enterprises are reinvested into community infrastructure. A notable project is a future community center in Dowagiac, designed to be LEED-Silver certified, which directly contributes to the development of sustainable and resilient community facilities as outlined in SDG 11.

Strategic Outlook: Long-Term Sustainability and Self-Governance

Leadership commentary underscores a strategic vision rooted in long-term sustainability, aligning with the foundational principles of the SDGs. The “Seven Generation Thinking” philosophy guides investments, ensuring that economic activities build a foundation for future generations while strengthening self-governance and reducing inequalities (SDG 10).

According to economic leaders, the strategic objectives are to:

1. Diversify tribal economies to generate sustainable revenue streams beyond gaming.
2. Create quality, long-term jobs that support community well-being.
3. Leverage economic diversity to build greater independence, sovereignty, and self-governance.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights several issues that directly connect to the following Sustainable Development Goals (SDGs):

• SDG 8: Decent Work and Economic Growth

  The core theme of the article is the significant economic contribution and diversification of Michigan’s tribal businesses. It details job creation, wage levels, and overall economic impact, which are central to SDG 8. The article states that these enterprises “generated $1.24 billion in economic impact” and “employed nearly 2,820 workers,” directly addressing economic growth and employment.

• SDG 9: Industry, Innovation, and Infrastructure

  The article emphasizes the tribes’ strategic diversification into various industries beyond gaming. This includes investments in “professional services, construction, manufacturing, commercial real estate, and retail settings.” This focus on building a diverse industrial base and developing infrastructure like commercial real estate and community facilities aligns with the goals of SDG 9.

• SDG 10: Reduced Inequalities

  The economic activities described in the article are a means of empowerment for indigenous communities. By building “sustainability, sovereignty, and self-governance,” the tribes are working to reduce historical and economic inequalities. The entire initiative is a case study in the economic inclusion and empowerment of a specific indigenous group.

• SDG 11: Sustainable Cities and Communities

  The article mentions that proceeds from tribal enterprises are directed towards community development projects. Specifically, it notes investments in “housing and cultural facilities, such as a future LEED-Silver certified community center.” This focus on building sustainable, inclusive, and resilient community infrastructure is a key component of SDG 11.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, several specific SDG targets can be identified:

1. Targets under SDG 8 (Decent Work and Economic Growth)

   • Target 8.2: Achieve higher levels of economic productivity through diversification. The article’s central point is the tribes’ successful diversification “well beyond the casino floor” into sectors like manufacturing and construction to “build sustainability.”
   • Target 8.3: Promote development-oriented policies that support productive activities and decent job creation. The existence of tribal “non-gaming investment organizations, Mno-Bmadsen and the Pokagon Development Authority,” which oversee and fund a wide array of ventures, directly supports this target.
   • Target 8.5: Achieve full and productive employment and decent work. The article provides evidence of progress by stating that tribal enterprises “employed nearly 2,820 workers, with an average annual wage of about $59,971.”

2. Targets under SDG 9 (Industry, Innovation, and Infrastructure)

   • Target 9.2: Promote inclusive and sustainable industrialization. The investment in “manufacturing (e.g., injection molding, tool & gauge production)” is a direct example of promoting industrialization within the tribal communities.

3. Targets under SDG 10 (Reduced Inequalities)

   • Target 10.2: Empower and promote the social and economic inclusion of all. The entire article showcases the economic empowerment of Michigan’s 12 federally recognized tribes, demonstrating how they are leveraging business to achieve “economic independence and strengthening the foundation for long-term self-governance.”

4. Targets under SDG 11 (Sustainable Cities and Communities)

   • Target 11.1: Ensure access for all to adequate, safe and affordable housing. The article explicitly mentions that the tribe has “directed proceeds from gaming to housing.”
   • Target 11.7: Provide universal access to safe, inclusive and accessible, green and public spaces. The plan to build a “LEED-Silver certified community center in Dowagiac” is a direct action towards this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several quantitative and qualitative indicators that can be used to measure progress:

• Economic Impact Data: The figure of “$1.24 billion in economic impact” serves as a high-level indicator for SDG 8, measuring the overall economic contribution.
• Employment and Wage Data: The numbers “nearly 2,820 workers” and an “average annual wage of about $59,971” are direct indicators for Target 8.5, measuring the quantity and quality of jobs created.
• Revenue and Asset Figures: The mention of “annual gross revenues reached $805 million” and “Tribal business assets totaled approximately $1.5 billion” are indicators of economic productivity and business scale (relevant to Target 8.2).
• Number of Business Entities: The existence of “78 Tribal Business Entities (TBEs)” is an indicator of entrepreneurship and economic diversification (relevant to Target 8.3).
• Investment in Sustainable Infrastructure: The specific mention of a “LEED-Silver certified community center” is a qualitative indicator for Target 11.7, demonstrating a commitment to green and sustainable public spaces.
• Local Procurement and Partnerships: The data point that the Pokagon Band “collaborated with over 3,300 vendors… and disbursed nearly $387 million” is an indicator of stimulating local economies and building partnerships.
• Investment in Housing: The statement that proceeds are used for “housing” is a qualitative indicator for Target 11.1, showing a commitment to improving living conditions in the community.

4. Summary Table of SDGs, Targets, and Indicators

Source: moodyonthemarket.com