The Bureau of Indian Affairs has confirmed that it has placed 36 acres in trust for the Wilton Rancheria in Elk Grove, Northern California, in an unfinished outlet mall. The tribe must still negotiate a state tribal gaming compact with Governor Jerry Brown.
The proposed $400 million casino would employ up to 2,000 and generate as many as 3,000 ancillary jobs, says tribal Chairman Raymond Hitchcock.
The project remains controversial. Enough residents opposed the casino to gather signatures to place the city’s action that made the land available on the ballot, but it was too late to prevent the BIA from putting the land into trust.
As Wilton attorney Rose Weckenmann put it, “A tribal reservation or tribal trust land is not impacted by city ordinance.”
Says Hitchcock, “A vocal minority of Elk Grove residents opposes the project, but most see the obvious benefits, including the transformation of an abandoned mall – a true blight – into a shopping and entertainment area that Elk Grove residents very much want.”
Howard Hughes Corp., which sold the 36 acres to the tribe, and which owns the rest of the 100-acre mall, says the casino is vital to the financial viability of the mall.
Howard Dickstein, a Sacramento attorney who specializes in tribal law, says the BIA decision may not stick because the city rescinded its action letting Hughes out of a development agreement, which means the property is encumbered.
Normally the BIA takes land into trust after encumbrances are taken off property. The Elk Grove City Council in October took such an action, only to fan the flames of a petition drive that forced the council to undo its action last month.
“This is not a slam dunk,” Dickstein told the Sacramento Bee. “It’s unclear what the situation is.” He added, “The purpose of the City Council amending the agreement was to clean up the legal mess that would otherwise result. The repeal of that amendment has created a confusing situation. It will probably end up in court.”
Nedra Darling, a spokesman for the BIA, while confirming that the land was put into trust, did not speculate on whether the development agreement would affect that action.
Nelson Rose, an expert on gaming law based at Whittier College, told the Bee that the U.S. Constitution prevents the federal government from interfering with a legal contract. “That contract is going to stand until the parties to the contract renegotiate or change it,” said Rose.
