Posted on 02/12/2008 8:50:05 AM PST by NormsRevenge
The Santa Ysabel casino overlooking Lake Henshaw opened in April to much fanfare, but it has been hampered by a bad economy, wildfires and torrential rains that closed roads leading to it.
The San Ysabel Band of Diegueño Indians, which owns the 349-slot gambling hall in North County, has fallen $410,144 behind in payments to the county for sheriff's deputies, prosecutors, ambulance service, fire protection and treatment for problem and pathological gamblers.
“It hasn't been what we expected,” Santa Ysabel Tribal Chairman Johnny Hernandez said. “Look at what we've been through.
“You just have enough money to keep yourself open. That's pretty much where we're at until things get better down the road,” he said. “We're trying to do the best we can.”
Casino managers say they are focused on paying their employees and other bills.
County officials want to meet with tribal leaders about the overdue payments.
“They're choosing to pay their other costs first,” said John Snyder, the county's public works director.
This is the first time a tribe has failed to make payments after reaching a deal with the county, Snyder said. If meetings between the county and tribal leaders don't lead anywhere, the county could take the tribe to arbitration.
Because of the missed payments, a sheriff's deputy was reassigned from the reservation in December and the gambling treatment program has been postponed.
Cy Rickards, head lawyer with the California Gambling Control Commission, said he was unaware of other disputes like this one.
“This is an issue between a tribe and a local government. It's not something the state would comment on or get involved in,” he said.
Santa Ysabel negotiated its gambling agreement, or compact, with then-Gov. Gray Davis in 2003.
Unlike agreements from 1999, the 2003 compact called for Santa Ysabel to make a deal with the county to make up for the impact of its casino.
That means money. Of the $583,000 that was to be paid in the first year, $300,000 was for treatment of out-of-control gamblers, who often have no money or insurance for psychological help.
When entering into the deal two years ago, leaders of the 781-member tribe said they were satisfied, given that the county had asked for more than $1 million.
Because its casino is small, Santa Ysabel qualifies for annual $1.1 million payments from California tribes with larger casinos.
The provision for agreements with county officials made this deal and others negotiated at the same time a model for casino compacts in the future.
But the agreement with the county had a downside, said Whittier School of Law professor I. Nelson Rose, an expert on tribal gaming.
“They promised a flat amount to the county, and it's always dangerous to have a flat amount because some years are good and some years are bad,” he said.
The La Posta band of Mission Indians, which had a similar agreement for a casino off Interstate 8 near Campo, wouldn't agree to the county's demands, and an arbitrator decided it had to pay about $140,000 a year for the impacts of its 349-slot casino.
It hasn't missed payments.
Santa Ysabel's remote location on state Route 79 between Julian, Ramona and Lake Henshaw means it will never rival casinos that have several times as many slot machines.
And the bad economy, the fires and road closures have made things worse.
“We're having significant issues just from a cash-flow perspective,” though nobody has been laid off, said Phil Pepple, the casino's general manager.
Hernandez, the Santa Ysabel tribal chairman, said other casinos hit rough patches shortly after opening, but things are different now. “In the 1999 compacts, they didn't have to deal with the county,” he said. “We want to do it, but things just haven't worked out.”
Hmmm.
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