The Estom Yumeka Maidu Tribe of the Enterprise Rancheria has partnered with Hard Rock International for a proposed $440 million Hard Rock Hotel & Casino in Yuba County, in Northern California.
The proposal came to light in a credit rating released by S&P Global, which wrote of plans by the tribe’s development arm, Enterprise Development Authority, to issue $440 million in collateral-backed bonds.
According to the report the Authority plans to use senior secured notes and $12 million in new subordinated loans, to fund the project and fund pre-opening operating costs and other expenses.
S&P gave the Authority a “B –” credit rating, based on the belief that the casino will open on scheduled and generate “solid levels” of EBITDA and begin paying down its debt the first year.
The tribe would not confirm that it is partnering with Hard Rock. However, spokesman Charles Altekruse said that the credit rating was a positive step. “We are moving ahead with preliminary steps to put the pieces together to get fully engaged in construction. We are hoping to make a big announcement in the near future,” he told the Enterprise-Record.
The Rancheria purchased land several years ago in Yuba County and has fought off attempts to keep it from putting a casino there. Lawsuits have held up construction of what the tribe originally dubbed Fire Mountain Casino on 40 acres. Construction began in 2016 but had stopped.
The last of these challenges were recently rejected by the Ninth Circuit Court of Appeals and the tribe in May said it hoped to resume grading this month and open a casino late next year.
