Indian tribe unveils plans for casino near Oakland Airport

Terence Chea

Friday, Oct. 8, 2004 | 9:41 a.m.

OAKLAND, Calif. -- A landless American Indian tribe envisions turning a sprawling parking lot outside Oakland International Airport into a casino resort in the heart of the San Francisco Bay area.

But the Lower Lake Rancheria Koi Nation faces major obstacles to realizing its gaming ambitions. The tribe is one of several competing to build urban casinos in the Bay Area, where many communities fear that gambling venues will clog traffic, spawn crime and damage ecosystems.

Two tribes have started negotiations for casinos in western Contra Costa County, northeast of San Francisco. Other tribes have proposed gaming facilities in Oakland, but the Koi project has attracted the most interest so far.

But those proposals could all quashed by a compact signed in August by Gov. Arnold Schwarzenegger to allow the Lytton Band of Pomo Indians to build a 2,500-slot machine complex in San Pablo, about 15 miles north of Oakland. That compact, if approved by the state Legislature, would give the Lytton tribe the exclusive right to operate slot machines within a 35-mile radius.

The Koi Nation, which has 44 members of mostly Pomo descent, lost its land in Lake County in 1956, but had its federal recognition reaffirmed four years ago. The tribe's office is in Sonoma County, but it still doesn't own any land.

The casino is far from a reality, and many observers call it a long shot. Among the hurdles, the tribe needs to negotiate a gaming compact with the governor, gain support from city residents and officials and have the U.S. Interior Secretary put the parking lot in trust as its reservation.

On Thursday, tribal chairman Daniel Beltran and fellow tribe members took reporters out to the 35-acre parking lot where they hope to build a gambling complex with 2,000 slot machines, a hotel and spa, restaurants and entertainment venues.

Beltran said a casino would boost Oakland's economy by generating an $1 billion annually in "overall economic activity" and create 4,400 jobs -- 2,200 employed at the casino itself and another 2,200 working for vendors and support services. It would also help tribe members pay for housing, health care and education.

"We're trying to help families," Beltran said.

The parking lot, which serves airport travelers and is surrounded by warehouses, shipping services and other parking lots, is owned by real estate firm Legacy Partners, which would sell the property to the tribe if the federal government agrees to put the land in trust.

Some Oakland leaders, including Mayor Jerry Brown, have expressed interest in the casino because the tribe has offered to pay $10.7 million annually to the cash-strapped city. But others worry that a casino would strain public services, cause gambling addiction, harm local businesses and hurt Oakland's image.

"While a casino might enrich developers and this particular tribe, it is not clear it would benefit Oakland," said City Council President Ignacio De La Fuente.

Addressing environmental, crime and traffic worries, the tribe points out that the casino would be built on an existing parking lot in an industrial area removed from Interstate 880.

Still, opponents warn of a casino's potential impact on Oakland, which has long struggled with crime and poverty.

"Urban casinos create significant social problems," said Cheryl Schmit, co-director of Stand Up for California, which opposes the expansion of tribal gaming. "Casinos are not economic engines that benefit a greater body of people."