Business Group Supports California Casino

A group representing businesses in the Sacramento area has endorsed a proposed casino resort by the Wilton Rancheria. The tribe has petitioned the Bureau of Indian Affairs to put land in Elk Grove into trust for a $400 million casino with 2,000 slot machines. Region Business likes what it sees so far.

A regional association representing businesses in the Sacramento area has come out in support of the Wilton Rancheria’s proposed casino and resort project in Elk Grove, California.

David Temblador, president of Region Business, which represents area industries such as builders, farming, brewers, restaurants, real estate etc., wrote a letter of support to tribal Chairman Raymond C. Hitchcock last week.

Temblador wrote, “It is our belief that the Wilton Rancheria Casino & Resort is the next big catalyst project because it will create 1,600 construction jobs and over 3,000 direct and indirect jobs. The project will benefit the City of Elk Grove and the greater Sacramento region by funding essential infrastructure and saving the outlet mall project from several more years of inactivity.”

He added that the association was also pleased that the tribe’s members would benefit through jobs, health care and educational opportunities, among others.

Chairman Hitchcock responded: “Region Business is a leader in championing regional economic growth and we are very appreciative of their support. We look forward to working together as we move ahead with this vital project, which will create lasting benefits for the economy, the community and our Tribe.”

The tribe proposes a $400 million resort with 2,000 slot machines and an unnamed number of table games. The resort would have a 12-story hotel tower with 302 rooms, plus a spa, fitness center and 50,000 square foot convention center, which would be capable of hosting concerts with up to 3,200 attendees.

The city of Elk Grove has not yet taken a position on the project, according to Darrell Doan, the city’s economic development director. He told the Sacramento Business Journal, “We’re keeping an open mind on it.”

According to Brian Larson of Halo Hospitality, a consulting firm in Sacramento, the casino would be well positioned to attract players from the Bay Area. Larson predicted that the casino would have more of a negative impact on casinos in the Northern Nevada than it will on other Indian casinos in the region.

The project could create 1,600 construction jobs of two-year duration and then 1,750 permanent casino jobs. This would make it one of the largest employers in the city, behind the school district and Apple Inc.

Nevertheless some members of the community are skittish about the possibility of a casino resort in their town. They voiced these concerns at the two public meetings that have been held in the past few weeks. They worry about increased crime, emergency service calls and traffic.

Some critics conceded that the drawings Hitchcock revealed at the first meeting were attractive. Melanie Hoblitzell told the Sacramento Business Journal: “The casino was tastefully rendered, but I still don’t want to see that from my backyard.” She added, “If I knew there was going to be a casino there at that time, we would not have bought this house,” she said. “I don’t think this is the right fit for the Elk Grove community. It’s not a family thing.”

The 700-member tribe has applied to put 36 acres along Highway 99 in Elk Grove into trust. The land is currently owned by the Howard Hughes Corporation, which has sold the tribe an option on the land. The remaining portion of the land would be developed as an Outlet Collection mall.

Before that can happen the Bureau of Indian Affairs must prepare an Environmental Impact Statement (EIS) on the project. The tribe would also need to obtain a tribal state gaming compact with the State of California.

The tribe, whose members claim descent from the Plains and Sierra Miwoks, lost their federal recognition in 1959 when the federal government was attempting to end the reservation system. Its status was restored 50 years later. Two years later the tribe adopted a constitution.

The tribe is currently mired in poverty, with nearly two-thirds of the members unemployed. A casino could change that, says Hitchcock, who told the Journal, “We can move past surviving to thriving.”

Boyd Gaming, which is the tribe’s development partner, agrees. David Strow, a spokesman for Boyd, told the Journal “We feel there is great potential in Elk Grove. We view this as a compelling market for us. That is why this is our first casino in California.” The company operates nine casinos in Las Vegas and is in the midst of buying more.

Boyd will find financing for, oversee the building of and manage the casino for seven years, for 25 percent of the earnings.