A partner in a development company, the Monarch Group, negotiating with the San Diego Unified School District in California to build an apartment complex on the site of a former elementary school paid a 0,000 fine to the California Bureau of Gambling Control earlier this year.
Ryan E. Stone owns two card rooms near Sacramento and is buying the Seven Mile Casino in Chula Vista— and is also a partner in the La Jolla-based Monarch Group. Nearly a year ago the school district approved of a 66-year lease of 6 acres of the former Ellen Browning Scripps Elementary School for a total of $37 million.
Two months ago, Stone and two partners in his card clubs agreed to pay $500,000 in fines to settle an accusation from the state that they loaned $3 million to the former owner of Seven Mile Casino and were involved in managing it without state approval.
Stone was first licensed to operate card rooms in 2004. His father, Monarch Group co-founder Rodney Stone, did not discuss his son’s involvement in gaming when he first began discussions with the school district, which says it didn’t know of his involvement.
Local residents of Scripps Ranch who oppose the project say they didn’t know of the gaming connection. The Monarch Group says there is no connection between the apartment project and Stone’s gaming interests.
The school district noted that in doing “due diligence” regarding the Monarch Group that it didn’t uncover any issues. It also noted that it has no formal agreement with the LLC as yet.
The district is trying to increase the monetary value of some of its real estate holdings, rather than selling them off, and asked for proposals from area developers. Monarch submitted a proposal for the Scripps Ranch site in February.
