Scotts Valley Band Sues DOI After Trust Approval Scrutiny
The Department of the Interior (DOI) in a letter dated March 26 announced that it was temporarily rescinding its previous approval of the Scotts Valley Band of Pomo Indians’ $700 million casino project in Vallejo, California while it reconsiders arguments lodged by opponents.
Three other state gaming tribes—the United Auburn Indian Community, the Yocha Dehe Wintun Nation and the Kletsel Dehe Wintun Nation—in March filed suit against the DOI for approving the off-reservation casino in the last days of former President Joe Biden’s term.
Now, the Scotts Valley Band has also sued the DOI for reconsidering the approval. According to the Vallejo Times-Herald, the tribe is seeking a temporary restraining order to halt the review and allow the development to proceed as before. In addition to a casino, the project includes 24 family residences, an administration building, a biological preserve and more.
“This is like trying to replay a football game after the final whistle has blown and the score has been posted,” Scotts Valley Chairman Shawn Davis told the Times-Herald. “We won. The process is over. We shouldn’t have to replay the game because others don’t like the outcome.”
Poarch Creek Close on Birmingham Racecourse Acquisition
The Poarch Creek Indians announced April 2 that the tribe has closed on its purchase of the Birmingham Racecourse in Alabama, formerly a horse and dog racing track. The tribe is planning to “build upon the strong foundation that is already in place while enhancing the facility to create a first-class entertainment destination that benefits the Birmingham community and the region,” according to Yellowhammer.
Parimutuel wagering and historical horse racing will continue at the property, the tribe confirmed. Unlike the other properties owned by the Poarch Creek Indians’ Wind Creek Hospitality arm, Birmingham Racecourse is not on tribal lands and therefore cannot be converted into a Class III casino. But gambling expansion is top of mind in Alabama again this legislative session, and if the state were to legalize casino gaming, the property would be a prime site for development.
REITs Could be Source of Capital for Tribal Projects
A first-of-its-kind financing agreement between the Ione Band of Miwok Indians and Gaming and Leisure Properties (GPLI) could create a new capital source for tribal gaming projects.
On April 1 a panel at the Indian Gaming Tradeshow and Convention, moderated by CBRE’s head of credit research Colin Mansfield, featured three figures involved in the deal:
- Sarah Dutschke, chair, Ione Band
- Brandon Moore, president and COO, GLPI
- William Newby, president, TFA Capital Partners
Panelists explained the financing agreement, which is the first between a tribe and a real estate investment trust (REIT). GLPI and the Ione Band last September entered into a $110 million delayed draw term loan to fund the construction of the tribe’s Acorn Ridge Casino project near Sacramento.
Over the course of discussion Moore explained that GLPI had been working on such a deal for nearly a decade. The only thing missing was the right partner with the right project, which eventually became the Ione Band. When asked about the potential for more tribal financing deals moving forward, Moore told iGB that the REIT is open for business.
He confirmed GLPI has “discussed this concept with a few different tribes” and is “willing to move forward with the concept” again soon.
“Would we do several hundred million [more]? Sure, absolutely,” he said. “If the underwriting is there and the project is good and we believe in the team, we would absolutely pursue a transaction before we see in five years whether [the Ione Band] elects to enter into a long-term lease or not. We are actively pursuing this if it’s a good fit.”
