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El Dorado County officials and an American Indian tribe announced Thursday that they have reached a deal to allow a casino to be built in the county in exchange for at least $190 million in payments to the county over 20 years.
The county had fought the tribe in court for years to block the casino. The Shingle Springs Band of Miwok Indians still must deal with legal opposition from a citizens group opposed to the casino, which would be built off Highway 50 in Shingle Springs.
The agreement provides $104 million - $5.2 million each year for 20 years - from the Tribe to construct "diamond" lanes on Highway 50 to handle the expected traffic flows.
"This agreement will ensure that the residents of the County will benefit for decades to come," Tribal Chairman Nick Fonseca said. "Our contributions to the county will be the single largest revenue generator of any business in the county."
"For more than 10 years, the county has battled the tribe over its attempt to open a casino in Shingle Springs," said Supervisor Helen Baumann. "With our legislative efforts and legal challenges nearly exhausted, we decided it's time to bring this matter to a conclusion."
The agreement also calls for the tribe to pay $10 million, or $500,000 per year, over 20 years for local law enforcement, and at least $78 million over 20 years to deal with unanticipated impacts on the county. The $78 million would include payments equivalent to or exceeding local sales and hotel taxes, to ensure tha local businesses aren't placed at a competitive disadvantage.
The agreement also will give the county an extra $100,000 a year per additional 100 machines, if the tribe is allowed to operate more than 2,000 Class III slot machines. The Tribe plans to build a $200 million casino on its 160-acre reservation, according to a news release. The plans include a 250-room luxury hotel in future phases of the project.
The tribe will also build an off-ramp from Highway 50 that will allow direct access to and from the reservation.
But legal opposition remains to the casino.
Voices for Rural Living, an El Dorado County citizens group opposed to the casino, announced earlier this month that it had filed a new lawsuit challenging the state Department of Transportation and California Transportation Commission's approval of the casino and Highway 50 interchange. The group filed the suit in Sacramento Superior Court on Sept. 7. The group's attorney Stephan Volker said in an telephone interview Thursday that the new lawsuit is scheduled to go to trial in April. Though it will be harder without the county's assistance, he said, "We are committed to fighting the good fight as long as it takes us to prevail."
The state appellate court previously upheld the group's contentions that Caltrans' initial environmental impact report for the interchange violated the California Environmental Quality Act, because it failed to disclose the project's effect on air quality and failed to consider the alternative of a smaller casino.
Voices for Rural Living said that a new lawsuit is necessary because Caltrans' new environmental report does not disclose whether the project would violate the state's air-quality standards for ozone. The group also maintains that the new study rejects the option for a smaller casino without adequate explanation.
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