The Agua Caliente Band of Cahuilla Indians, based in California’s Coachella Valley has announced plans to build a “new mixed-use entertainment and gaming district” on long vacant land in downtown Cathedral City.
The tribe plans to acquire 12.5 acres for $5.5 million paid to the City Urban Revitalization Corporation, the non-profit that acts as the development agency for downtown Cathedral City. The money will be used to fund a new fire station.
Although the land will be off the reservation, development of a casino is permitted under the tribe’s tribal state gaming compact negotiated last year. Under the compact, the tribe can open as many as four additional casinos, each one limited to 500 machines.
Tribal Chairman Jeff Grubbe commented, “This is about making a large-scale investment in Cathedral City,” he said. “The future development will create jobs, revitalize an undeveloped downtown property and support Cathedral City’s economic development efforts.”
The announcement came after many months of talks between the tribe and the city government. Mayor Stan Henry said, “We have a natural relationship. They wanted to do more development in Cathedral City and we had the land.”
A tax-sharing agreement is still being negotiated, said Henry.
The tribe has a somewhat unique checkerboard patterned reservation. The compact allows for development of casinos between the tribal parcels. Last year when the compact’s terms were announced, Governor Jerry Brown’s office commented that the compact “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.”
