The Agua Caliente Band of Cahuilla Indians in California’s Coachella Valley plans to buy 12.5 acres from Cathedral City and develop it into a “mixed use entertainment and gaming district.”
The tribe will pay the City Urban Revitalization Corporation $5.5 million. The tribe’s master plan calls for a new casino, the first off-reservation casino for the tribe, but which is allowed by the 2016 tribal state gaming compact negotiated with Governor Jerry Brown.
The tribe currently operates two casinos. Its new compact allows it to build four more, each limited to 500 slot machines each.
The compact considered the fact that the reservation is laid out in a checkerboard shape. At the time the governor’s office stated that the agreement “creates a framework within which the tribe (that) can make significant investments that will generate jobs and stimulate additional economic growth in each of those communities.”
According to Tribal Chairman Jeff Grubbe, “This is about making a large-scale investment in Cathedral City.” He added, “The future development will create jobs, revitalize an undeveloped downtown property and support Cathedral City’s economic development efforts.”
The City Urban Revitalization Corporation and tribe were in negotiations for about 18 months before the sale. The city and the tribe are still working on a tax-sharing agreement, but it is expected to be similar to what the tribe has with Palm Springs.
Mayor Stan Henry hailed the agreement. “We have a natural relationship. They wanted to do more development in Cathedral City and we had the land,” he told the Desert Sun.
