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Tribal casino to pay at least $9 million a year to Sonoma County

By JEREMY HAY
THE PRESS DEMOCRAT

The tribe building a casino in Rohnert Park has agreed to pay at least $9 million annually to Sonoma County to offset the impacts of the project, plus up to $38 million more a year if its revenues hit projections.

The payments from the Federated Indians of Graton Rancheria, some of which would start this year, are nearly four times what the county previously estimated it would get.

Looking west, the Graton Rancheria Rohnert Park casino construction is taking shape along Wilfred Avenue. Highway 101 is at the bottom. (Chad Surmick / PD)

And they are separate from those laid out in a 2003 agreement between the tribe and Rohnert Park, under which the tribe is to pay the city about $200 million over 20 years.

“Without a doubt, I think it’s the best agreement that’s ever happened between a tribe and a local government,” said Shirlee Zane, chairwoman of the county Board of Supervisors. She lauded the tribe for its participation.

“I think they’ve set a good role model for other tribal agreements in the future,” she said. “The tribe has been continually trying to put their best foot forward in terms of negotiating and really giving back to the community.”

The county in 2008 concluded that although it opposed the casino, it could not stop it, and reached a deal with the tribe to negotiate payments to address its impacts. Those negotiations led to the agreement announced Friday.

The casino, with a maximum of 3,000 slot machines, is projected to open next year. The tribe secured $850 million in financing in August.

Of the money the county would get, Santa Rosa, Petaluma, Sebastopol and Cotati would share $416,000 a year for law enforcement, and county fire districts would split $1 million.

Also the tribe is to make one-time payments totaling $5.1 million, mainly to address costs associated with public safety, traffic improvements and measures aimed at addressing the casino’s anticipated impact on groundwater supplies.

An initial payment of $3.52 million is expected to come in January to cover public safety costs, including the hiring of four new sheriff’s deputies.

The agreement extends for 20 years, the term of the gambling compact between the state and Graton Rancheria that allows the tribe to operate a Las Vegas-style casino. That compact required the tribe to sign agreements with the county and Rohnert Park before opening the casino.

Work on the project started in June and its steel framework began rising on 66 acres last week.

The board is to vote on the agreement Tuesday. Zane wouldn’t predict the outcome of that vote, but she said the agreement, reached after 3½ months of negotiations, achieved everything the county wanted and more.

“This agreement has met, I believe, every single concern that we’ve put forward in terms of mitigation,” she said.

“In addition to that, there are community benefit dollars that will come back to the county for mutual interests,” she said, referring to money that the tribe would give the county, primarily for open space projects, if it has money left over after its payments to the state, county and Rohnert Park.

In practice, the tribe is to pay, for the first seven years of operation, 15 percent of its net earnings from gambling to the state into a Graton Mitigation Fund. After seven years, that drops to 12 percent. The state then distributes that fund to Rohnert Park and the county.

In April, the state and tribe projected those earnings, known as net win, as $350 million in the casino’s first year, rising to $418 million in its seventh year.

Neither the tribe nor its attorney responded Friday to requests for comment. Nor did opponents of the casino, who are still fighting it in court.

The agreement includes language allowing the county and tribe to reopen negotiations if impacts are found to be greater than projected, something supervisors had pushed for.

“There might be unforeseen issues that come up outside the scope of the agreement, the tribe may want to do something, or the county may recognize something that we want to address, and there’s a mechanism to do that,” said Supervisor David Rabbitt, whose 2nd District includes the 254-acre Wilfred Avenue casino site just south of Home Depot.

Over and above the $9 million a year the county is guaranteed, the agreement stipulates that once the tribe meets its financial obligations to Rohnert Park and the state, it will begin paying the county more.

It would give up to $25 million a year to county parks and the county’s Open Space District. The money could not be used to buy more land. It would go to create public access to parks and open space, conserve and protect environmental resources, develop organic gardens and farms serving “disadvantaged” people and enhance understanding of local Native American tribes.

Should that $25 million be paid in full, additional monies would go first to other environmental projects and then to the county’s Indian Health Project and other Sonoma County tribes that do not run gambling operations.

Asked whether the casino, which has been one of the most controversial projects ever in the region and is still bitterly resented by many, might prove to be a net win for the county, Rabbitt said: “I think that the proof’s really in the pudding going forward, and we’ll see.”

“My hope is that it will be seen as a positive,” he said. “My hope is that the majority of people will visit the casino in a bus, leave their money here and go home.”

TRIBAL PAYMENTS TO SONOMA COUNTY

Under an agreement that Sonoma County supervisors are to take up on Tuesday, the Federated Indians of Graton Rancheria would make a series of payments to the county, including:

ANNUAL PAYMENTS
$3.1 million for law, justice, public safety and tribal relations.
$2 million to the Sonoma
County Transportation Authority to complete work on the Marin-Sonoma Narrows project on Highway 101. After the 10th year, or following completion of that project, the tribe would pay $2 million annually to fund projects on 101 between Highway 12 and the Sonoma- Marin County line or other arterial roads serving casino.
$1.79 million to be paid as development and mitigation fee programs. The payment is equivalent to what a commercial developer would pay in order to obtain a permit.
$1 million to fire districts.
$700,000 to be paid in lieu of county transient occupancy tax once a planned hotel opens.
$600,000 for education, prevention and treatment programs to address gambling addiction and problems associated with substance abuse, mental illness, elder abuse, domestic violence and child abuse and neglect.
$500,000 to mitigate the impacts on local roads within a two-mile radius of the casino.
$416,918 to mitigate crime impacts. Santa Rosa will receive $286,923; Petaluma, $102,591; Sebastopol, $14,596; Cotati, $12,808.
$275,000 for a water conservation program.

ONE-TIME PAYMENTS
The tribe’s proposed one-time payments to the county include:
$1.7 million to hire and train four new sheriff’s deputies and purchase two new sheriff’s vehicles.
$1.5 million for fire and emergency services.
$1.5 million for measures to offset the project’s groundwater use.
$370,000 for traffic improvements near the casino.
$60,000 for “tribal relations.”





7 Responses to “Tribal casino to pay at least $9 million a year to Sonoma County”

  1. Follower says:

    GAJ You make a great point about “low income” people.

    These are people who clearly can barely afford to survive yet they go a friggin Casino and gamble away what little they have.

    And THESE are the people for whom we should be redistributing the wealth of others who worked hard and made responsible financial and personal decisions?

    People who sacrificed things like a night out at the local Casino in favor of investing that money to improve their personal financial status.
    Only to be rewarded by having that money seized for redistribution to the Casino crowd!

    …and you wonder how a used car salesman like Mitt Romney could possible be doing so well in the polls!

    Thumb up 5 Thumb down 1

  2. Ricardo Sorentino says:

    Talk about how the math doesn’t add up; Rohnert Park has been getting casino money for quite some time and yet the new pool has now been closed for three years.

    Wonder where all that money has gone? Public safety overtime? Public safety retirement funds? Public safety vehicles? Other RP city employees? No wonder the City was so anxious to sell out Rohnert Park… great slush fund that they can spend any way they want and then still claim ‘poor’ so they can pick and choose what park pools to maintain and let the youth use.

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  3. Reality Check says:

    Nice work Steveguy.

    But your number doesn’t cover overhead. This place will open with about an $800 million mortgage.

    The “net win” is the number after all overhead expenses are paid. It looks to me like you may have underestimated the number and/or amount thousands of gamblers must lose each day.

    I hope the county/cities don’t pre-spend the money they hope to get.

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  4. Skippy says:

    It never does and never will.
    Casinos eat people and communities and excrete misery and hopelessness.
    How many little Bay Area widows can the busses bring to satisfy the Native American greed and corruption?
    Answer: not nearly enough.
    Politicians usually get all excited and supportive of Indian casinos ‘cuz they see the unaccountable transactions as a fabulous source of graft and payoffs.
    They blind themselves with big buck fantasies, only to be abandoned in the end just like the losers at the tables.

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  5. GAJ says:

    Doesn’t everyone feel good that we’re picking the pockets of low income people to fill County coffers?

    “About one-third of those surveyed were retired, and one in eight classified herself as a homemaker or housewife. Contrary to Dunston’s report, Thompson found that more than one-fourth of those who responded to the survey had an annual income under $20,000. The typical income was between $20,000 and $30,000. Only one in eight had an income over $60,000. As to how much those surveyed gambled, the median number of visits respondents reported was 52 visits per year. The respondents reported that they spent 58 percent of their time at slot machines and another 31 percent playing bingo. The median amount of money respondents reported that they wagered while at the casino that day was $60.”

    http://www.wpri.org/Reports/Volume25/Vol25No5/Vol25No5p2.html

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  6. Steveguy says:

    OK, Let’s do some math !

    $350 Million a year in ‘net winnings’ equals around $1 Million a day. ( Casino winnings)

    That would mean that 10,000 people would have to lose $100 each DAILY to meet that goal. 10,000 times 365 = 3,650,000 people annually. That doesn’t even count the other losers that pay the winner’s payouts.

    Then I notice who gets the money ! Many items are totally unrelated and seem like cash payouts for support.

    They seem to have the same number crunchers as the SMART Board. Unbelievable.

    The math doesn’t seem to add up to me.

    Thumb up 21 Thumb down 7

  7. Sonoma County Insider (Trading) says:

    I guess we’ll never find out how the previous property owners of the casino site somehow knew that the Pomo Tribe and Station Casinos wanted to acquire parcels of land forcing the Tribe to pay three to four times above the then market price.

    It’s interesting how the then Sonoma County Treasurer now works for these same former owners of the casino site.

    I guess it doesn’t matter now that the Tribe is already doling out millions of dollars.

    Here’s some friendly advice to the Tribe; you’ll get more bang for your buck if you help the elected officials get their 460 Forms to show healthy cash balances.

    Thumb up 15 Thumb down 5

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