Spilyay Tymoo
Coyote News, est. 1976
November 12, 2015
Vol. 40, No. 23
November – Anaku Ipach’aanxa Yaamash
PO Box 489
Warm Springs, OR 97761
ECR WSS
Postal Patron
U.S. Postage
PRSRT STD
Warm Springs, OR 97761
December referendum on cannabis project
The tribal membership will de-
cide on December 17 whether to
pursue the economic opportunity of
cannabis commercialization.
The referendum will ask the
members whether Tribal Council
should be authorized to “allow, regu-
late and operate an on-reservation,
tribally owned cannabis cultivation
and extraction facility, with retail
sales allowed only off the reserva-
tion.”
The referendum would not
change the tribal criminal code re-
garding personal possession or sale
of cannabis on the reservation.
The legalization of cannabis off-
reservation in the state of Oregon
created this economic opportunity
for the tribes. And the opportunity
is a big one, according to research
and analysis by the Warm Springs
Ventures team.
Revenue from the cannabis en-
terprise in the first year would be
more than $11.7 million net, accord-
ing to the financial study.
In the second year, the first full
year of operation, revenue is esti-
mated at $26.1 million. Over the first
seven years of operation, the can-
nabis enterprise would generate
more than $173 million net, accord-
ing to the study.
For comparison, the 2016 total
enterprise revenue—from Indian
Head Casino, Power and Water,
Composite Products, Kah-Nee-Ta,
Credit and Ventures—is estimated
at $8.75 million.
Council member comments
Courtesy Warm Springs Ventures.
Conceptual drawing of greenhouses for the project.
Repairing the tribal budget, and
creating new jobs for the members
are the reasons why Tribal Council
and Ventures have been studying
the cannabis commercialization
project.
The new enterprise would cre-
ate a minimum of 82 jobs, accord-
ing to the Ventures report (for de-
tailed information see pages 5 and 8).
The enterprise
In brief, if the referendum
passes, the tribes would create a trib-
ally-owned enterprise that would
work with an experienced partner
to establish the cannabis growing
operation.
This would be housed in a
36,000-square-foot cultivation facil-
ity. The enterprise would also oper-
ate three retail outlets in the Port-
land and Bend market areas.
Eventually, after the employees
gain experience and training in the
industry, the tribal enterprise would
run on its own without an outside
partner.
The initial partnership would be
with Sentinel-Strainwise.
Sentinel is a private equity fund,
with $700 million under manage-
ment. The group, based in Florida,
has worked with other tribes on eco-
nomic development projects.
Strainwise is one of the largest
cannabis cultivation, retailer and
extraction management companies
in the U.S. Strainwise has nine retail
stores, and manages five grow op-
erations with 130 employees.
Strainwise and Sentinel this year
began working together to help ad-
vance responsible economic devel-
opment on Native American land
through the cannabis industry.
Chris Hardiman, Sentinel asso-
ciate director, was on hand this
week for the Tribal Council meet-
ing on the resolution approving the
referendum.
Hardiman said the idea is to work
with the tribes in developing a suc-
cessful and profitable growing op-
eration. Then eventually the tribes
will be the sole operators of the
project, Hardiman said.
See REFERENDUM on 5
Chief Judge retires from tribal court
Walter ‘Spud’ Langnese has
retired from the Tribal Court,
after 18 years on the bench. For
the past two years he has been
the Chief Judge. His final day
at court was last Friday.
During retirement, one of his
hobbies will be training his pap-
illon dogs, and bringing them
competitions. The competitions
involve the dogs running
through an obstacle course.
Langnese will be pursuing this
hobby with his wife Elina.
And he’ll be doing some trav-
elling. Coming up is a trip to the
Cayman Islands, where he’ll
meet up with friends he met
while in the Marine Corps.
Walter served in the Marines
in the early 1970s, including time
in Vietnam.
He lost contact with his Ma-
rine Corps friends until a few
years ago, when they got together
for a reunion. Now they plan
trips and have regular reunions.
The best part of his job as
Tribal Court Judge was seeing
some people make a successful
change in their lives.
“So much of what the court
deals with is negative,” he says.
“But occasionally you see a suc-
cess story, when someone does
what they’re supposed to do, and
way it’s been presented—grown
here and sold off the reserva-
tion.” Personal possession of
marijuana would remain illegal
on the reservation, and it should
stay that way, Langnese said.
Alternate sentencing
Walter ‘Spud’ Langnese
it works for them.”
The problem that generates
most of the crime in the commu-
nity is methamphetamine,
Langnese says. “I would say 90
percent of our cases are meth re-
lated,” he says.
Asked about his impression of
the tribes’ proposed cannabis
project, he says, “From the busi-
ness side, I think it’s a good move,
as long as it’s followed through the
Compared to state and fed-
eral court, Langnese says, the
Tribal Court has the benefit of
allowing some creativity in deal-
ing with criminal cases.
State and federal judges are
often required by law to impose
a certain and specific sentence.
A tribal judge can take other
factors into consideration, in-
cluding tradition. Langnese re-
members a case in which the
whipman was used as part of the
sentence. The youth involved
responded as his parents hoped,
and stayed out of trouble.
The Wellbriety Court is an-
other example: A person can
have criminal charges dismissed
by completing the Wellbriety pro-
gram, which began a year ago.
Tribal Council is now in the
process of finding new judges
for the court. Not only has
Langnese left the bench, but
former judge Glendon Smith
also left this fall, taking on the
secretary-treasurer job.
At the Tribal Council meet-
ing approving the December 17
referendum, Councilman
Reuben Henry said the question
for him is an easy one. “We have
needs here that are not being
met,” he said.
A new community center is
an example, Councilman Henry
said. In coming years, “What if
Power and Water has no divi-
dend? We need something done,
and we need it done now.”
Councilman Scott Moses said
that in the 1990s there was some
hesitation about Warm Springs
opening a casino, until other
tribes showed that gaming can
be profitable. In this case, he
said, “Our job is not to follow
other tribes, but to do what is
right for this tribe.”
Councilman Carlos Smith
said he is not an advocate of
cannabis, nor of gambling, alco-
hol and tobacco. But the tribes
allow casino gambling, and alco-
hol and cigarette sales on the res-
ervation for economic reasons.
The same reasoning applies to
the cannabis project, he said.
Councilman
Or vie
Danzuka said the tribes should
also look into the still-unsettled
revenue management aspect
of the cannabis industry, as this
may be another new source of
revenue.
Councilwoman Evaline Patt
said she was impressed with
the progress that the Ventures
team has made over the past
10 months in evaluating the
cannabis project. The presen-
tation was very thorough and
professional, she said.
Councilman Kahseuss Jack-
son, Wasco Chief J.R. Smith,
Warm Springs Chief Delvis
and Paiute Chief Joe Moses
joined the above Council mem-
bers in approving the resolu-
tion for the December 17 ref-
erendum. Council Chairman
Austin Greene Jr. did not vote,
as the chairman votes in case
of a tie.
USDA video features Academy
The U.S. Department of Agricul-
ture has produced a video that fea-
tures the Warm Springs k-8 Acad-
emy and the community of Warm
Springs.
USDA representatives were in
Warm Springs last week, meeting
with Tribal Council. Jill Rees and
Vicki Walker from the USDA
showed the video to the Council,
and requested permission to release
the film to the public.
After viewing the documentary,
Council approved its release.
The USDA was a funding part-
ner in the construction of the Warm
Springs Academy. They produced
the video to show the opportunities
the USDA can offer to tribal na-
tions.
The video will be posted soon on
the USDA website: usda.gov
Meanwhile you can see the docu-
mentary on Youtube. Search for
Warm Springs Academy and USDA.
Featured speakers in the video
are a student, Council Chairman
Austin Greene Jr., school district
board member Laurie Danzuka,
and district superintendent. The
background music was provided by
the KWSO 91.9 radio station.
General Council on 2016 budget
There is a General Council meet-
ing scheduled for this Thursday
evening, Nov. 12, at the Agency
Longhouse. The topic for discussion
is the 2016 tribal budget. Dinner is
at 6 and the meeting starts at 7.
This year the budget process was
even more difficult that during re-
cent years.
In October Tribal Council ap-
proved a 2016 proposal for post-
ing. Council then learned that the
Power and Water Enterprises divi-
dend will be substantially less than
the amount anticipated. Finance
came up with an option that would
cover the shortfall, which was over
$2 million, without any employee
lay-offs.
The situation only goes to show
the importance of bringing new rev-
enue to the tribes, such as through
the cannabis project, said Tribal
Councilman Scott Moses.
Some years ago, Power and Wa-
ter Enterprises was a main source
of revenue for the Confederated
Tribes. Annual dividends were at
times over $10 million.
The power market in more re-
cent years, among other factors, has
significantly limited the Power and
Water Enterprise dividend, with no
plan for an increase at least over
the next few years.
Among enterprises, War m
Springs Ventures, working in part-
nership with the Natural Resources
Branch, is expecting to bring in new
revenue for 2016. This is through
the carbon sequestration project.
The cannabis project is the next Ven-
tures proposal, with the potential for
much greater revenue.