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Ho-Chunk, Inc.: A national model in reservation economic development.

Article Excerpt
Introduction

Thirty miles south of the South Dakota border in Thurston County, Nebraska on the Winnebago Indian Reservation there is a shining example of Indian Country economic development. Ho-Chunk, inc. with its 8 divisions and $51 million in revenues posted for the year 2001 has become a regional economic powerhouse in northeast Nebraska. (see Chart 1) The Ho-Chunk, Inc. model may hold possibilities for development on other reservations.

The History

Ho-Chunk, Inc. CEO Lance Morgan of Winnebago ancestry and a Harvard Law School graduate has been at the helm of Ho-Chunk, Inc. since 1994. At that time the Winnebago Nation was depending on its gaming operation, "Winnevegas" in Sloan, Iowa, which opened in 1992, to generate most of the Tribe's revenues. Although tribes have the power to tax, often they have a very small tax base. Therefore, tribes must rely on tribal businesses to fund their government programs. In 1994 the state of Iowa was about to put some pressure on the Winnebago Nation. They were allowing for expansion of riverboat gaming.

In March of 1994, legislation was enacted that would allow for unlimited wagering and elimination of loss limits, pending local referendum approval, for the expansion of gaming in counties where riverboat gaming operations existed. (1)

This was going to create tough competition for the Tribe's gaming enterprise. With gaming profits sun-setting on the tribe, they were faced with diversifying their economic development efforts away from gaming. That is when John Blackhawk, Chairman of the Tribal Council, recruited Morgan to the community from his job with the large corporate law firm of Dorsey & Whitney LLP in Minneapolis. Morgan was given the task of constructing an economy. His tools were a wholly owned tribal enterprise known as Ho-Chunk, Inc. and twenty percent of gaming profits for two years as seed money.

Initially Morgan, working out of his apartment, invested the profits into existing ventures such as hotels. As the gaming revenues dwindled due to the success of the non-Indian gaming competition, it was becoming obvious that Ho-Chunk, Inc. was going to need a new approach.

Without significant funding from the Tribe, the fledgling tribal enterprise initiated reservation-based tribal businesses to generate revenues that would replace the lost gaming revenues. This began what would become the economic engine that is Ho-Chunk, Inc. today. "This 'make or break' the company experience was extremely beneficial because it forced Ho-Chunk, Inc. to be an innovative and aggressive entity. Almost all of Ho-Chunk, Inc.'s current operations stem from the decisions made after our funding from gaming was eliminated," states Morgan.

Mission Statement

The...

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