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December 7, 2008
SAN DIEGO - In a surprise move, the Sycuan band of El Cajon declined the 2006
gaming compact that would have expanded their 2,000 slot machines to 5,000 and
given the tribe an option for a second casino on off-reservation land that
includes the former Singing Hills Country Club.
The Sycuan spend years and $6 million to gain the new agreement with the state.
It was signed more than two years ago by Gov. Arnold Schwarzenegger and Sycuan
Chairman Daniel Tucker, but it was never ratified by the tribe's 78 adult
members.
Chairman Tucker sent a letter to Gov. Schwarzenegger last week that said "It is
with sincere regret that Sycuan is unable to take advantage of the August, 2006
amended compact between our tribe and the state. (The current economic climate)
makes proceeding under the amended compact financially imprudent at this time
and for the forseeable future."
He added, "We are doing everything we can to avoid having to lay off our valued
employees and are continuing to restructure operations to mitigate the impacts
of an extremely challenging economic environment. In these circumstances, even a
modest expansion would be impossible."
Camille Anderson, a spokeswoman for the governor, said "We're disappointed but
understand the tribe's situation."
Under the terms of the rejected compact, Sycuan would pay roughly 10 percent
more on its existing slots or $20 million a year. It would also pay up to 15
percent on the additional 3,000 slots. Over the years of the deal (through
2030), the state estimated it would receive $1.6 billion from Sycuan.
Last February state voters approved Sycuan's compact along with compacts for
three other tribes. A few months later, the Schwarzenegger administration
announced that the state would not be receiving $30 million expected from Sycuan
because the tribe had not ratified its compact. A deadline of January 1st was
given to the tribe. Sycuan members voted against it last week. They still retain
the right to build a second casino under the existing compact, but they do not
have the explicit approval from the state for the newly acquired land.
Return to California Casinos.
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