Reserve's referendum result puts businesses in legal limbo

The Roseau River First Nation has been hailing the success of a gas bar and gaming centre located on new reserve land just outside Winnipeg but the future of the venture is now in question in the wake of a referendum on the land's use.

The businesses are located on a 30-hectare parcel of land near Highway 6 and the Perimeter Highway, northwest of Winnipeg. The federal government granted the land reserve status about a year ago, just a few days before a rail blockade planned for on the reserve, which is in the southeast corner of Manitoba.

Chief Terry Nelson immediately invited offers from investors to establish businesses on the site.Several did: the Red Sun Smoke Shop & Gas Bar opened on the landin December 2007,while a gaming centre opened earlier this year.

But theIndian Actrequires the band's 2,100members to vote to "designate" the land, which allows people or companies that operate commercial or industrial ventures to lease a parcel of reserve land for their businesses.

On June 12, a referendum was held, and band members who voted rejected the proposal by a slim margin: 93 voted against the designation, 91 voted for it.

"Obviously the feeling of the people is they don't want that land, they don't want it to do business in that area," said Hector Pierre, who heads the band's custom council, which serves a role similar to a senate.

Band members are wary about the project because they're concerned that Nelson plays favourites and that he doesn't keep band members informed about what's happening on the land, Pierre said.Nelson's daughter owns the gas bar and store.

"We don't want it the way he's doing it," he said.

"We haven't been informed of what's going to happen there on that land. It's just the vision of the chief."

Second referendum could be held

Nelson said he's not worried. The "no" vote had a tiny majority, he said, and only 16 per cent of eligible voters cast a ballot.

"Unfortunately we didn't do a very good job of informing the people about the need for designation," Nelson said.

The community can hold another referendum on the matter.

Nelson will have to win his band over if he wants to continue with plans for a massive retail and office complex on the land. He said he knows new investors will require all the legalities to be satisfied before proceeding.

Officials with Indian Affairs are scratching their heads over the quandary.

Spokesman Jeff Solmundson said he's never encountereda situationwhere a band has allowed businesses to operate before it had the approvals needed.

"This is certainly a bit of an unusual situation, to have this referendum and the building's already existing," he said.

He refused to speculate about what the referendum's results mean for the land or businesses, or give a timeline for what will happen next.

"Unfortunately it's just a little too soon to say. We're going to review the options available to the First Nation under the Indian Act," he said."I just can't tell you what any of those options are right now.

"We also want to act very carefully. I don't know that those who turned down this land designation necessarily want the building removed."