Tribe breaks ground on $250 million casino

Erica Werner

Thursday, May 29, 2003 | 9:51 a.m.

MORONGO INDIAN RESERVATION, Calif. -- In the latest sign of the growing wealth and political might of California's Indian tribes, the Morongo Band of Mission Indians broke ground on a huge new casino complex Wednesday as Gov. Gray Davis and other top officials looked on.

The $250 million casino-resort will be the second-largest in the state, behind only the Pechanga Casino in nearby Temecula that opened a year ago, tribal officials said. It will have 148,000 square feet of casino space and a 23-story hotel that will be the tallest building in the fast-growing inland region east of Los Angeles when it is completed in 2005.

The casino will also have room for 3,000 slot machines -- 1,000 more than are now allowed under California law and a sign that tribal officials expect Davis to allow even more growth for Indian gambling, which state officials now estimate is a $5 billion-a-year industry.

"The dream of Indian self-reliance is being realized," Tribal Chairman Maurice Lyons told a crowd of 1,000 at a ceremonial groundbreaking under a huge white tent beneath the desert sun.

"This project is a wonderful example of tribal governments working as good neighbors with local governments," Davis said.

The complex is being built next to the tribe's existing casino in Riverside County, 20 miles west of Palm Springs. An economist hired by the tribe estimated that the casino will bring more than 4,000 new jobs to the region.

The project has sparked some concern about increased traffic and demands on public safety services, but local officials were on hand to welcome the development and praise the tribe for working with the community. Tribal officials have agreed to buy more than $1 million in fire equipment for the county and are considering ways to deal with increased traffic.

The 1,000-member Morongo band is among the most politically active of California's 107 federally recognized Indian tribes, a pioneer when it opened its bingo hall in 1983 and a leading force behind the ballot measures in 1998 and 2000 that legalized Nevada-style gambling on Indian reservations in the state.

It is a top political donor, giving nearly $800,000 to candidates and causes during the 2001-2002 election cycle, including close to $100,000 to Davis.

The tribe's political influence was on display Wednesday in the presence of Davis, Lt. Gov. Cruz Bustamante, California Democratic Party Chairman Art Torres, U.S. Reps. Joe Baca and Jerry Lewis, and a host of state legislators and local officials.

But recently officials from Morongo and other tribes have clashed with Davis, angered over the governor's request that tribes, which pay no state or local taxes, contribute revenue to close the state's vast budget deficit. Davis requested $1.5 billion from tribes when he released his budget in January, lowering the request to $680 million when he released his revised budget in May.

He said that in exchange he'd be willing to allow tribes to increase the number of slot machines they operate. Tribes and the state are currently negotiating over that and other aspects of the agreements that allow tribes to operate casinos.

Morongo officials said they have not yet met with state negotiators but they welcomed Davis' presence Wednesday. Davis met privately with tribal officials after the public ceremony.

"We're just delighted that he's here," said Michael Lombardi, a tribal gambling consultant whose wife and daughter are Morongo tribal members.

"We know that the state is in need of additional revenues, we're in need of additional machines, so we both have something to gain," he said.

Despite tribes' recent clashes with Davis, Lombardi and others said tribes were staying neutral on the current Republican-led campaign to recall the governor. Questioned by reporters, Davis said his attendance at the groundbreaking was not an attempt to curry tribal support as he confronts the recall campaign.