Texas firm in California Indian deal

Jessica Gresko

Thursday, Aug. 12, 2004 | 9:19 a.m.

SAN DIEGO -- A Texas company will help a tribe with San Diego County's smallest casino build a $25 million hotel and casino offering more than 10 times the number of slots.

Nevada Gold and Casinos Inc., a Houston-based casino developer, will develop and manage a 75-room hotel and casino for the La Jolla Band of Luiseno Indians in north San Diego County. The casino will have a dozen game tables and 349 slots.

Construction is slated to begin this year. The casino is expected to open by the end of 2005.

The 700-member tribe runs a 30-slot arcade, along with a small waterpark and campgrounds, on about 10,000 acres in the Pauma Valley near the Palomar Observatory.

"We're doing okay with our other enterprises, but this will just be a plus to us," Tribal Chairman Tracy Lee Nelson said.

Nevada Gold will manage the expanded casino in exchange for 23 percent of pretax revenues over the next five years. The deal can be renewed for two more years.

The tribe also will pay Nevada Gold 2 percent of the total development costs of the project.

Nevada Gold will help the tribe find financing for the project.

Future phases could include an expanded casino, RV-park, restaurants and other entertainment venues, Nevada Gold said.

Nevada Gold, with profit of $7.5 million last year, has developed casinos in Colorado, California and Nevada. The company helped Dry Creek Rancheria Band of Pomo Indians develop and finance their Sonoma County casino.