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City stands to win with expanded casino
By: NICOLE SACK - Staff Writer | ∞
TEMECULA ---- New deals with four casino-operating Indian tribes ratified last month by state legislators give Temecula officials significantly better odds of getting the Pechanga tribe to ante up millions of dollars to offset the impacts of the casino on the city.
Temecula now gets about $2.7 million a year from a statewide fund designed to help cities deal with the impacts casinos have on nearby communities, but the new agreements open the door to much more. Because the affected cities and counties have to sign off before any expansion can take place, Temecula is in a stronger position to negotiate, said city officials designated to lead those talks.
Temecula City Councilmen Ron Roberts and Mike Naggar will act as the liaisons between the council and the tribe. Naggar said that when members of the city and the tribe finally meet, he would like to discuss the costs associated with a proposed interchange off Interstate 15 and Rainbow Canyon Road that would relieve traffic on Highway 79 South, an additional crossing over Temecula Creek and the impact the casino has on law enforcement.
"We are looking at the negotiations in two manners," said Naggar. "First, the impacts that exist today and how they are being mitigated. Second, the impacts of future developments, although we don't know what those expansion plans will be."
Naggar said both groups will need to strike a balance to coexist.
"Good relationships always work better than bad ones," Naggar said. "However, as diligent (as) the tribe is in protecting its interests, we, the city, will be just as diligent in protecting our citizens' interests."
If the two sides can't reach a consensus, there is a provision for binding arbitration in which a third party will review and set the terms of the agreement.
Pechanga Resort & Casino has 2,000 slot machines, the maximum allowed under state law. But the revised deal the Legislature approved will allow the tribe to add as many as 5,500 more.
What the tribe's actual plans are, however, remains unknown. Several meetings between the city and tribal officials have been canceled, with the next effort tentatively set for Aug. 31, Naggar said. Scheduling conflicts on both sides are making it hard to arrange the initial sit-down, said Aaron Adams, Temecula's assistant city manager.
Tribal officials also have not responded to numerous requests for information from The Californian.
When the two sides ultimately get together, two questions will have to be answered: What kind of cash will Temecula be looking for to sign off on the agreement? And how will that request be received by Pechanga officials?
In April, the city sent Pechanga a letter, prepared by Temecula City Attorney Peter Thorson, saying it would be asking $15 million per year for infrastructure improvements, and $3 million a year for police and public safety services.
However, city officials now say those numbers were "preliminary" and staff members are re-examining how much they believe would be needed to offset the impact the casino has on Temecula, both now and after any potential expansions.
"Once those negotiations commence, we will have a better handle on their plans and that will assist us in determining a price tag for infrastructure and police costs," said Adams.
The city has suggested in draft agreements that it will be asking for more money from the Pechanga for additional law enforcement, fire protection and emergency medical services.
The city also identified four major road improvements that it thinks the tribe should help pay for: a new four-lane road from Rainbow Canyon Road to the casino, south of the Temecula Creek Inn; the construction of a new interchange on I-15 south of Highway 79 South; reconfiguring the interchange at Highway 79 South; and adding two right-turn lanes from eastbound Highway 79 South onto southbound Pechanga Parkway.
Gov. Arnold Schwarzenegger signed the new agreements July 11, allowing four of the state's richest Indian tribes to expand their casino operations in exchange for paying the state hundreds of millions of dollars annually in taxes. Pechanga's agreement calls for a contribution of $42.5 million each year into the state's treasury, up from $29 million under the current arrangement. It also would pay 15 percent to 25 percent of the winnings from each additional machine.
Combined, the deals will allow the tribes to install nearly 17,000 new slot machines and other table games. In addition to Pechanga, the governor approved deals with the Morongo Band of Mission Indians in Cabazon, the Agua Caliente Band of Cahuilla Indians near Palm Springs and the Sycuan Band of the Kumeyaay Nation east of San Diego.
More than 50 California tribes already operate 58,120 slot machines across the state and took in an estimated $7.7 billion in revenue last year.
Earlier this month, San Diego County approved a deal with the Pala band allowing that tribe to expand its casino 10 miles south of Temecula ---- a deal that will bring that county $38 million to improve stretches of Highway 76, and more than $400,000 a year for law enforcement, criminal prosecution and gambling-addiction treatment services.
The Pala have been one of the most outspoken opponents of the deals struck by the Riverside County tribes, which the Pala believe allow too much expansion and give the state too much oversight.
Pala has put $500,000 into a campaign designed to force a public vote on those new compacts. The campaign is being spearheaded by a hotel- and service-workers union, which wants the right to organize casino employees, and by a coalition of racetrack owners.
Supporters of the initiative need to collect 434,000 signatures by Oct. 8 to put the question on the ballot in February.
Contact staff writer Nicole Sack at (951) 676-4315, Ext. 2616, or nsack@californian.com. Comment at www.californian.com.
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Whoa wrote on Aug 13, 2007 7:53 AM:You people trust Naggar? He said, "Second, the impacts of future developments, although we don't know what those expansion plans will be." Well, duh. So, what are you going to discuss Mikey if you don't know what the future impacts are? The better question is: How does a city "win" if the casino gets bigger? More people gambling their money away? Do they really need more slots? Have you ever won at Pechanga? You can bet the new slots will not be paying out anytime soon. The casino expansion needs to be paid for somehow.
good for economy wrote on Aug 13, 2007 8:21 AM:Gambling, alcohol, drugs (ask your doctor), prisons and war are good for the economy. Prisons and jails are full of druggies, while alcohol is far worse than marijuana. We kill thousands pretending to be better than everyone else, while we live in a corrupt and sick society.
Dave wrote on Aug 13, 2007 9:30 AM:Allowing Pechanga to expand without charging them to fix the access to the casino is ridiculous. If the tribe refuses to pay for road improvements on Pechanga Parkway then the city just needs to set up DUI checkpoints every night of the week on all roads leaving the casino. Pechanga will ante up or lose business. Why does the city try to ask for money when they can demand the money? It is all the traffic and drunks leaving the casino that is bringing more and more problems to Temecula. Pechanga should pay to clean up their own mess!
Come on wrote on Aug 13, 2007 9:40 AM:The Pechangas have always done the right thing for our community. They have proven to be good neighbors time and time again. They have given more than $1 million to our local high schools. Last year they gave $1.5 million to build two new Boys & Girls Clubs. And before that they gave the city millions to make road improvements in the area. Let’s show some faith in our neighbors.
Fact check wrote on Aug 13, 2007 10:14 AM:Since 2003, payments from Pechanga have resulted in more than $20 million for the City of Temecula and County of Riverside. I'd say the city has already hit the jackpot. These funds have been used to hire more police and firefighters for our growing community, and to make long-needed improvements on the I-15/79 South interchange.
American woman wrote on Aug 13, 2007 11:10 AM:I would never support the initiative. I find the Indian Casinos to be more of a detriment than an asset to America. They are very xenophobic in their hiring agendas, they are not friendly to other than their own in the business, and in my humble opinion, they only add to the problems of so many folks that become hooked on the money game. I have gone to Pechanga a few times with friends, but never even think about going back or taking family or visitors there. It's depressing. I applied there for a job, many years ago. They were very aloof and arrogant. When they called me back, I had already decided It wasn't for me. It's too bad the powers-that-be aren't more friendly and accomodating to those who donate so much money to the venues. These Indian tribes who specialize in the casino biz should be doing a lot more to support poor Native Americans all over the country! There are Indians living in such horrible conditions! I find these people to be self-serving and miserly when they could be helping so many others. It's very sad.
Neighbor wrote on Aug 13, 2007 12:00 PM:Pechanga has already paid the city millions to widen Pechanga Pkwy. You ought to call the city and ask why they're sitting on it. And while you're at it, let em know the developers putting the thousands of homes along Pechanga Pkwy. should pay their fair share too to improve traffic.
David wrote on Aug 13, 2007 12:50 PM:By all means. Tax the casinos until they leave. The gambling joints never benefit society in the short or long run.
Concerned-1 wrote on Aug 13, 2007 1:07 PM:So Pechanga has built all that on 2,000 slots and now they want 5,000 more? Has this facility been good for the community or bad? Somebody better do the math.
Fact check wrote on Aug 13, 2007 1:19 PM:Pechanga has provided more than $20 million to the City of Temecula and the County of Riverside to hire more cops and firefighters and to improve the I-15/South 79 interchange. Seems to me the city has already hit the jackpot.
What a sight wrote on Aug 13, 2007 4:44 PM: to see a boarded up stucture of this size. What would happen to the home values around it. What if the U.S. economy suddenly goes way BAD? Will people still come and gamble away what little money they have to live on? Oh, come-on people, how in the world did Temecula and other cities get along without these ridiculous megastucture's? VERY WELL! if I remember correctly.
Nick wrote on Aug 13, 2007 8:03 PM:I love the opening paragraph...lol. "The casinos impact on their city"...How about Temecula cough up millions of dollars for the adverse effects their city has had on San Diegos roads and traffic? I, for one, am fed up with all the Temeculites paying taxes to another County but working in ours. They have an incredible impact on San Diegos traffic problems. It's high time Temecula starts luring big business to their town and keep their residents there and off of our local roads and freeways. They are constantly building new housing tracts, but NO BIG BUSINESS. What's the deal Temecula? Get with the program.
Wake Up! wrote on Aug 13, 2007 8:45 PM:Striking deals with tribes sounds to me to be all about the money. Why should local communities continually absorb impacts brought on by needless expansion of these casinos. Tribal leaders should be straight with the local citizenry and not clam up regarding future plans. Don't forget that voters have the ability to change this rapid rampant expansion and level the playing field. Why should tribes be allowed to create a monopoly on this cash cow. It's getting old hearing all the whining from the various tribes offering gambling. This is no longer a sad story. Wake up Californians.
anotherview wrote on Aug 13, 2007 9:55 PM:http://www.nctimes.com/articles/2007/08/14/news/californian/81207184132.txt Years ago, Pechanga gave the City of Temecula a $6 million check to widen then-Pala Road. CalTrans has held up this road project, which may start soon. Again, years ago, Pechanga arranged about $4 million to build a new bridge over Temecula Creek, to replace the old two-lane bridge. As many people know, Pechanga generously gives back to the local community. Pechanga employs 5000 citizens from the local community in the Pechanga Resort & Casino. These employees have good jobs with benefits. This fact largely explains why the labor union bosses have not started a union at the PRC. As a matter of history, the PRC allowed the labor unions, years ago, to set up their table in the employee dining area to try to recruit employees to the union side. The PRC employees simply did not show enough interest in a union. The union drive went nowhere. Further, under the existing tribal-state gaming compact, signed in 1999, the PRC employees may join a union. That compact also guarantees worker rights and worker protections. The basic components of the NLRA also apply to the PRC employees. As a matter of history, the labor union bosses helped write the labor provisions of these 1999 compacts, and they still govern. The labor union bosses, however, want to tilt the playing field more in their favor, to make union organizing easier. They want an undemocratic technique called card-check neutrality. This technique does away with secret ballot elections for employees to vote on a union. It also takes away the opportunity for the tribe to state its view on a union in its casino. Let the unions face voting and free speech. Finally, recent legal and political history has validated tribes putting a casino on their land. The U. S. Supreme Court ruled in favor of the tribes. Later, the U. S. Congress passed, and President Reagan signed, the Indian Gaming Regulatory Act. Under IGRA, a tribe and a state negotiate an agreement for a tribal casino. Pechanga has done so. In fact, the last three governors have reached agreements with tribes for casinos. Moreover, the voters of California have twice voted in favor of tribal casinos on Indian land. Tribal casinos annually provide the state with smillions of dollars via revenue sharing. Tribal casinos have found a place in the Golden State.
view wrote on Aug 14, 2007 8:30 AM: You people trust Naggar? He said, "Second, the impacts of future developments, although we don't know what those expansion plans will be." Well, duh. So, what are you going to discuss Mikey if you don't know what the future impacts are? The better question is: How does a city "win" if the casino gets bigger? More people gambling their money away? Do they really need more slots? Have you ever won at Pechanga? You can bet the new slots will not be paying out anytime soon. The casino expansion needs to be paid for somehow.
Someone else wrote on Aug 14, 2007 11:44 AM:With the amount of local business support that Pechanga gives to the City of Temecula and neighboring cities as well as the County of Riverside, and the increase in employment generated in the city due to Pechanga's practice. I'd say it's a good thing. The unions don't have much support at Pechanga because the casino gives benefits that are just as good or better than what the unions give and without requiring union dues for their help. Who do you think helped with the widening of the exits on 79 south and as others above pointed out Pechanga PKWY. and 79 south? Just because the City chooses to allocate the funds to other areas that may not need certain upgrades at the moment doesn't mean the blame should go to Pechanga. Look at the employment rate before Pechanga opened up, and what it is now. This is not just at Pechanga, but all the other business' that work with Pechanga and business' that benefit from more people having more money to spend from work either at Pechanga or other outside business. And look at all the tax money both Temecula and Riverside county receives from all these employees and pechanga itself.
anotherview wrote on Aug 14, 2007 5:31 PM:Put simply, the Pechanga Resort & Casino functions as an economic engine in the local community. The benefits spread to many. Banks and other businesses see more activity. The City of Temecula realizes more sales tax revenue. Further, the 5000 employees at PRC have families who benefit from their employment. For example, the PRC employee medical plan also covers family members, and so do the dental and eye care plans. Additionally, the state receives millions of dollars from the PRC via revenue sharing. This money helps the state budget address the needs of citizens. The PRC expansion will allow the PRC to meet its customer demand. The benefits of this expansion will likewise continue to flow to the community.
To WHITE MAN: wrote on Aug 15, 2007 9:02 PM:How is anotherview wrong? You don't need to be a rocket scientist to realize that Pechanga's dealings with local businesses increases the sales revenue for Temecula. Pechanga takes very good care of it's employees. Anybody who says otherwise is simply not telling the truth.
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