Sunday, August 26, 2007

San Manuel Band of Indians has diversified its holdings beyond its Highland, CA casino operations

8.26.07

San Manuels venturing out

Joe Nelson, Staff Writer
San Bernardino County Sun

SAN MANUEL RESERVATION - In 1986, the San Manuel Band of Mission Indians opened a high-stakes bingo parlor, paving the way for a gambling enterprise that would ultimately lead the tribe to self-sufficiency.

San Manuel Indian Bingo and Casino has since expanded to become one of the most successful tribal casinos in the country.

Now, 21 years later, the fragile political grounds Indian gaming is being conducted on has forced the tribe and others across the nation to diversify their business ventures, said Jacob Coin, spokesman for the San Manuel tribe.

"As a government, we have to be able to secure sources of revenue for the (tribal) government well into the future," Coin said. "There's a lot of entities that would like to see gaming opened up in California, so there's no guarantee tribes will maintain exclusivity for (Las Vegas-style) gaming."

On Tuesday, officials from the San Manuel and two other gaming tribes it has partnered with to form Three Fires LLC will be present at the grand opening of their Marriott Residence Inn hotel in Sacramento, across from the state Capitol.

It is one of two hotels the tribes jointly own.

The other two tribes are the Viejas Band of Kumeyaay Indians in San Diego County and the Oneida Nation of Wisconsin.

The San Diego County and Wisconsin tribes also partnered with the San Manuel and the Potawatomi tribe of Wisconsin in another Marriott hotel project - Residence Inn by Marriott - which opened near the nation's Capitol in Washington in March 2005. That venture was formed as Four Fires LLC.

While some poorer tribes continue to push for gaming compacts to open casinos, wealthy tribes like the San Manuel and Viejas continue to seek out other revenue streams to ensure economic vitality and self sufficiency for generations to come.

On Friday, the Viejas tribe announced plans to build a second casino, a hotel, cineplex and retail stores and restaurants adjacent to its casino off Highway 8 in Alpine.

The price tag is $800 million. The tribe hopes to have the project completed in 2012, said spokesman Bob Scheid.

He said diversification is essential to the economic well-being of tribal members.

In 1976, the tribe opened the Ma-Tar-Awa RV park, which remains open to this day and has expanded to include a clubhouse, convenience store, laundry facilities, a swimming pool and 88 RV hookups.

"That's one of two RV parks we run now. Viejas has really had an entrepreneurial spirit that predates gaming," Scheid said.

The tribe's other business ventures have grown to include the Viejas Outlet Center across from the casino, concert promotion company Viejas Entertainment and Productions, part ownership of three radio stations, and Borrego Springs Bank, the first American Indian-owned bank in California.

In the last decade, the San Manuel have been just as aggressive in their business endeavors.

They opened a water bottling plant on the reservation in 2001 and sell and deliver its Big Bear Mountain water to homes and businesses across the San Bernardino Valley and High Desert.

The tribe owns a three-story building in Washington near the House of Representatives. High-level meetings are conducted there among tribal leaders, and the other two lower floors are leased out to tenants, Coin said.

San Manuel Village is currently under construction on the southeast corner of Highland and Boulder avenues in Highland. The 12-acre site will feature a Hampton Inn Suites hotel, an office building, retail stores and restaurants.

It is expected to create 250 jobs.

The hotel is expected to be open in the first half of 2008, with the rest of the development occurring in phases, Coin said.

The tribe also owns about 91 acres at the former Norton Air Force Base, obtained during a federal land acquisition process soon after the base closed in the mid-1990s, Coin said.

In September 2006, former tribal Chairman Deron Marquez led a trade mission to China in an effort to establish ties and open the door to possible future partnerships in international trade.

The tribe has considered, among other things, using the former Norton site to warehouse cargo for distribution, but nothing has been set in stone.

Coin said the two Marriott hotels in Washington and Sacramento are not intended to sway policymakers and show tribal clout, but are merely lucrative business opportunities.

"Just because three or four tribes have a hotel in Washington and are establishing an economic presence, it's no guarantee your political and policy objectives will be advanced any quicker than they have in the past," Coin said. "The fact is we're still facing an uphill battle in Sacramento getting our compact ratified."

Even so, all 120 state legislators have been invited to the hotel's grand opening on Tuesday, Coin said.

Research shows that economic diversification among wealthy tribes has become more recognized nationwide.

"At one level it just makes good business sense. No one suggests that you should put all your eggs in one basket," said Steven Light, a political scientist and co-director of the Institute for the Study of Tribal Gaming Law and Policy at the University of North Dakota. "It also makes good political sense because there is no guarantee that the status quo as far as federal and state policy and regulation will remain the same in regard to Indian gaming."

He said the San Manuel partnership with the three tribes in opening a Marriott in Washington was a pioneering effort in that the tribes secured a visible and reputable corporate partner in Marriott.

"If a tribe can convince a corporate partner to come on board in any venture, especially off the reservation, the tribe has almost instant credibility with investors and local officials," Light said.

And having hotels in Washington and Sacramento is symbolic of a tribal political presence, he said.

"Up until that point, there had been such a limited degree of tribal political clout in Washington, and it's gaming revenue that has brought these issues to the forefront, in both positive and controversial ways," Light said. "Four Fires, I think, was the rise of tribal political clout in D.C."

He said the same goes for Three Fires LLC and its new hotel in Sacramento.

"That certainly symbolizes how much gaming revenue has changed the political calculus for the state in that it has consistent dealings with gaming tribes," Light said.

Others don't think it makes much difference.

"Frankly, I don't think those tribes have to work very hard to show their muscle," said Jason Barnett, a spokesman for the Big Lagoon Rancheria tribe in Humboldt County and the Los Coyotes Band of Cahuilla and Cupeno Indians in San Diego County, both of which are trying to build casinos in Barstow and get gaming compacts ratified.

The San Manuel are attempting to thwart those efforts, arguing the tribes do not have ancestral ties to the land.

The San Manuel and the Chemehuevi tribe near the Colorado River, however, have also expressed interest in Barstow and claim to have ancestral ties to the land.

It is a claim some have disputed.

"Here in California, the wealthiest gaming tribes happen to be the largest political contributors in the state as well," Barnett said.

He said hotels in Washington and Sacramento may be a way the tribes can have a voice in the public policy debate.

"D.C. is where you want to be for the federal level and Sacramento is where you want to be at the California level," he said.


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Business interests

The San Manuel Band of Mission Indians has diversified its business ventures in the last decade to include the following:

Twin Palms Pasadena restaurant
The San Manuel are a majority owner in this restaurant formerly owned by actor Kevin Costner. The tribe bought it in 2000 after Costner's ex-wife put it up for sale.

San Manuel Bottled Water Group
Founded in December 2001, the tribe's Big Bear Mountain bottled spring water is sold and distributed to homes and offices across the San Bernardino Valley, High Desert, and in Palm Springs.

San Manuel Village
Currently under construction at the southeast corner of Highland and Boulder avenues in Highland. This 12-acre mixed-use development will include a Hampton Inn Suites, an office building and small retail stores and restaurants. It is expected to create 250 jobs for San Bernardino and Highland residents.

Office building
The tribe owns an office building in Lake Forest, bought in the 1990s.

San Bernardino International Airport
The tribe owns about 91 acres at the former Norton Air Force Base, obtained soon after the base closed in 1994. The land may be used for warehousing purposes or other interests related to international commerce.

Marriott Residence Inn (Sacramento)
This 15-story, 239-suite hotel opened to the public on July 6. A grand-opening ceremony will be held at 5 p.m. Tuesday. The upper three floors include 30 condo units available for purchase.

Residence Inn by Marriott (Washington)
This $45 million, 13-story and 233-suite hotel opened in March 2005 near the nation's Capitol.

'Congressional building' (Washington)
The tribe owns this three-story building two blocks from the House of Representatives. It is referred to as the "Congressional building" because it is where tribal members often regroup after meetings in D.C. The tribe uses the top floor for its meetings and leases out the bottom two floors to tenants.

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