Organizational and Corporate Structures for Selected Native American Economic Development Entities

Board Structure

Siyeh Corporation ( Blackfeet )

Mille Lacs Corporate Ventures

Citizen Potawatomi Community Development Corporation

Number Total 5 5 7 6 7 7

Number of Tribal Council Required

Number of Other Tribal Citizens Required

Term ( Years ) 3 4 ( staggered ) Staggered 3

Paid Yes No No

6

Potawatomi Business Development Corp . ( PBDC )

Tribally chartered in 2003 by the Forest County Potawatomi ( FCP ), the PBDC was capitalized in 2004 with $ 5 million , and received an additional $ 5 million per year for the next four years . Potawatomi developed a diversified investment and development portfolio of active and passive investments , both on and off the reservation .

The PBDC has a five-member board of directors , comprised of three tribal members and two other tribal citizens . The FCP Tribal Council appoints board members and approves annual operating plans and long-term implementation plans of the corporation . Corporate staff oversees day-today management and makes all major strategic decisions .

Transparency , accountability and communication are all key to the success of the PBDC . The PBDC provides the tribal council with an annual report , audited financial statements and an annual strategic development plan . In addition , the PBDC reports at quarterly general council meetings and for tribal newspaper articles and periodic newsletter mailings . A member of the executive council is also invited to attend all monthly PBDC board meetings .

Strategies and Resources

These examples provide a good representation of the variety of successful approaches to structuring tribal economic development agencies . Mille Lacs is a first-generation model , with the board dominated by council members . Siyeh Corp . and Citizen Potawatomi CDC have chosen to make a clear separation between the board and the tribal council . A balance between council or other tribal members and outside business experts , such as at PBDC and Ho-Chunk , Inc ., allows for tribal oversight while fostering a variety of perspectives and expertise .

The case studies of the Mississippi Choctaw and Ho-Chunk , Inc . illustrate two opposing strategies to building economic development . In contrast to HCI ’ s “ outside-in ” approach , the Mississippi Choctaw gained its initial experience developing housing and industrial parks on the reservation , eventually expanding off-reservation well after it had established its economic development infrastructure and resources . As the Choctaw experience shows , successful on-reservation development frequently involves asking , “ What are we buying and paying for that we could provide for ourselves ?” and providing the support needed to locate the resources to take advantage of such opportunities .

Historically , Native Americans have not enjoyed the best possible deals when leveraging their natural resources and assets against federal , state , industrial , agricultural or other commercial activities . The Native-to-Native movement is one opportunity to overcome this disadvantage by dealing directly with other tribes in the buying and selling of products and resources , and to establish native trading and business networks .

There are several organizations established to promote business relationships between tribes and tribal enterprises , including the National Center for American Indian Enterprise Development ( sponsor of the annual RES conferences ); the Office of Native American Affairs , Small Business Division ; the Native American Business Enterprise Center ; the National American Contractors Association ; the American Indian Business Network ; and the American Indian Chambers of Commerce , which operate throughout the country .

Another common tool used by tribal development corporations involves federal contracting through the SBA 8 ( a ) program , designed to help small businesses that are owned and controlled by socially and economically disadvantaged individuals and economically disadvantaged Indian tribes and Native Hawaiian Organizations , helping them compete on an equal basis in the mainstream of American economy . The program strives to promote the viability of such concerns in the marketplace by providing such available contract , financial , technical and management assistance as may be necessary .

Thomas Zitt , Ph . D ., is executive vice president and Chris Irwin is director , Native American and interactive services for The Innovation Group .

16 TRIBAL GOVERNMENT GAMING 2020