Barstow casino scheme has stalled since 2005; aging Schwarzenegger agreements set to expire soon absent swift ratification

Last year, Marian Ilitch’s Detroit-based casino syndication team vowed they would win approval of their scheme for dual Indian casinos in Barstow when the California Legislature reconvened this month in Sacramento. In reality they're no closer than they were a year ago, they have no measureable progress to report and some would argue they faced a major setback when Senator Wes Chesbro, the author of legislation to approve their agreements and the only passionate supporter of their cause, was termed out of office last fall. The aging agreements they negotiated with Governor Arnold Schwarzenegger in 2005 are set to expire this legislative session if they aren't approved by both the Assembly and Senate soon.

In lieu of anything substantive to signal real progress in the California Legislature, the best the Ilitch team could do this past week was issue press releases filled with "spin" in an attempt to convince reporters and others that they are committed and making progress; and pose a veiled threat to the legislature.

As the 2007 legislative session gets underway, Ilitch and company find themselves at the same place they were a year ago – holding aging agreements signed by Schwarzenegger in 2005, absent an author or the introduction of legislation to serve as the vehicle for approval of those agreements and without crucial public commitments from any additional Sacramento lawmakers to support their scheme.

Among other triggers, the agreements Schwarzenegger has autographed are of no value unless ratified by the legislature soon. Failing to win ratification last year, the Ilitch crew has just months to make it happen.

The Ilitch organization, its two tribal partners and three Sacramento lobbying firms have failed to make any progress of their own, but have successfully blocked any other parties from making progress on alternative plans for casino development in Barstow – the halfway point between Los Angeles and Las Vegas.

Wes Chesbro, former state Senator, the author legislation to approve their Barstow scheme in the 2006 session. Chesbro’s term expired in 2006 and term limits prohibited him from seeking re-election. Ilitch and her Native American partners, the Big Lagoon Rancheria and Los Coyotes Bands of Indians, lost their only true legislative champion and were left without an author for legislation.

Including Chesbro, the Ilitch casino syndication had only won public commitments of support for their agreements from six legislators. Three of those were obligatory “co-authors” of Chesbro’s legislation because their districts, like Chesbro’s, include parties to the agreements (either the City of Barstow or Big Lagoon Rancheria). Two others (Assemblymen La Suer and Yee) indicated their support publicly after Chesbro and his original co-authors introduced the legislation.

The agreements were heard by the Senate Governmental Organization (GO) Committee last March (click to view). It was clear at the hearing Senators did not approve of the agreement but rather than take a public vote and sink the agreements at that time, the GO Committee concluded the hearing without any action.

The legislative time clock was ticking and absent any progress in the Senate, lobbyists for the Ilitch team worked with Chesbro to have legislation shepherding the agreements gutted and the agreements slipped into other legislation in the Assembly at the eleventh hour desperately hoping to find support their. The Assembly GO Committee scheduled a hearing on the agreements late in June and unlike their colleagues in the Senate, the Assembly committee members voted to reject the agreements.

ASSOCIATED PRESS
12:22 p.m. June 29, 2006

BARSTOW – An Assembly committee rejected proposed side-by-side Indian casinos by so-called reservation-shopping tribes hoping to lure Las Vegas-bound gamblers off Interstate 15 in Barstow.

Wednesday's vote by the Assembly Governmental Organizational Committee likely dooms Barstow casinos for the Los Coyotes Band of Cahuilla and Cupeno Indians of San Diego County and the Big Lagoon Rancheria of Humboldt County.

The chairman of the Assembly GO Committee, Jerome Horton, (now also termed out of office) attempted to broker a workable compromise in July/August with the various Native American concerns(San Manuel, Big Lagoon, Chemehuevi and others). Reportedly the tribes came to an understanding that would have taken Ilitch out of the driver’s seat but brought an end to inter-tribal struggles.

That didn’t settle well with Ilitch and her team pleaded with Schwarzenegger’s staff to hold off on agreeing to any new proposal. In effect, legislators and the Native American interests (including Ilitch partners) were prepared to move the proposal forward and resolve the lawsuit between the state and Big Lagoon but it was the Detroit-based Ilitch gaming interests that blocked progress.

The Ilitch team tried unsuccessfully to have the Assembly rules suspended last summer in order to pursue other options for approval in the closing weeks of the 2006 legislative session. One of Ilitch’s Indian partners resorted to theatrics and staged a hunger fast on the lawn of the state capitol. That generated media interest but failed to win any new supporters in the legislature.

RGT Online - Daily News
August 17, 2006

SACRAMENTO, California – As reported by the Desert Sun: "An American Indian band that hopes to build a casino in Barstow is attempting to get on the fast track.

"The Los Coyotes Band of Cahilla and Cupeno Indians began a fast at the state Capitol that will continue until the legislature ratifies a gaming agreement, or compact, according to Tom Shields, public relations agent for the band. In a press release, he wrote that compacts for the band and the Big Lagoon Rancheria Indians, who hope to build a dual casino in Barstow, are stalled.

"Shields said in a telephone interview that the fast began Wednesday after noon with three or four band members. Other band members and supporters will join the group in the coming days, he said. Some will fast on the Capitol lawn until the compacts get approved, but others will fast a day or so at a time, he said.

"…The state Assembly Government Organization Committee voted 7-0 to turn down the Los Coyotes/Big Lagoon compact in June…"

And now, there’s nothing other than what Ilitch’s PR team has distributed to suggest there is any thing new, any real hope in 2007. To the contrary, as long as Marian Ilitch and her "bulldogs" (as one former partner called them) stand in the way, Barstow looks like it will come up empty handed.

The terms of Senator Chesbro and Assemblyman La Suer expired last year and California's term limits laws prohibited them from running for re-election; that leaves just four of the six supporters still in office.

It should also be noted that Assemblyman Leland Yee accepted $3,300 from Marian Ilitch's partner Michael J. Malik, Sr. on June 4/5, 2006; weeks before his June 28, 2006 vote in the Assembly Governmental Organization Committee to support the Compacts. The Committee voted as a whole to reject the agreements.

2006 Legislative Proponents
1. Senator Roy Ashburn (R-18) [1]
2. Assemblyman Bill Maze (R-34) [2]
3. Senator Wesley Chesbro (D-2) [3]
4. Assemblywoman Patty Berg (D-1) [4]
** ↓support after bill introduced↓ **
5. Assemblyman Jay La Suer (R-77) [5]
6. Assemblyman Leland Yee (D-12) [6]

[1] Represents Barstow, co-author SB 168
[2] Represents Barstow, co-author SB 168
[3] Represents Humboldt County (Big Lagoon Reservation), author SB 168
[4] Represents Humboldt County (Big Lagoon Reservation), principal co-author SB 168
[5] Represents Eastern San Diego County
[6] Represents Bay Area; Speaker Pro Tem (card club supported/opposes Indian gaming)

(For more background)

Also for reference, available at Governor Schwarzenegger's web site:
* Big Lagoon Rancheria Compact
* Settlement Between the State of California & Big Lagoon Rancheria
* Los Coyotes Band of Cahuilla and Cupeno Indians Compact

You may also want to review these posts:
The Verifiable Truth: Big Lagoon Rancheria purchases 16 acres
The Verifiable Truth: Big Lagoon Rancheria trust plan under fire
The Verifiable Truth: In a move right out of the Ilitch Bay Mills playbook, CA's Big Lagoon acquires 16 acres, increases leverage
The Verifiable Truth:Ilitch & Company report spending $2.42 million lobbying for East Coast casino expansions; just $80k for Barstow plan
Capitol Notes: Trial Casino Deal Debated

Lobbyist indicates Senator Wiggins would sponsor Ilitch Family's Barstow casinos legislation

A California lobbyist for the Ilitch Family revealed first term state Senator Patricia Wiggins (D-Santa Rosa) would sponsor a second piece of legislation aimed at winning legislative ratification of agreements to allow a Detroit-based casino syndicate to develop two off-reservation casinos in Barstow, Calif. The deadline to submit bill requests to the Office of Legislative Counsel was January 26.

GOP politico, now Ilitch Family lobbyist, Keith Olberg revealed this information during a "Casino Update" at a Barstow City Council meeting January 16.

Wiggins was elected to the California Senate in November 2006 to fill the coastal Humboldt County seat vacated due to term limits by Wesley Chesbro (D-Arcata).

Chesbro attempted to shepherd the same plans through the legislature in 2006 but a Senate Committee chaired by Dean Florez (D-Bakersfield) failed to take any action on the plans in March 2006 and an Assembly committee chaired by Jerome Horton (D-Inglewood) voted to reject the agreements in June. The agreements with the Los Coyotes and Big Lagoon Rancheria Bands of Indians, which must be ratified by the legislature this year or they expire, were originally signed by Governor Arnold Schwarzenegger in 2005.

During the 2006 legislative session only six members of the legislature vowed publicly to support the plans and one of those was Chesbro who is no longer in office.

The addition of Wiggins could bring the total supporters on the record back to six out of 120 total Sacramento legislators.

Wiggins would be expected to take up Chesbro's torch given the only remotely compelling public policy case for relocating off-reservation casinos clear across the state to Barstow is tied to preservation of the Big Lagoon reserve in the nothern most section of Wiggins' District. Wiggins' constituents would expect her to take on the cause which has failed thus far to capture the interest of any other member of the legislature.

While the agreements would guarantee no future casino development on the Big Lagoon Rancheria lands it doesn't prohibit other development or future uses which could impact the Big Lagoon. The Big Lagoon Rancheria is sovereign territory. The family that makes up the Big Lagoon Indian tribe has consistently made that point clear and has reported recently the acquisitions of additional acreage to their current reservation (trust lands) for other development purposes. Some believe that was a threat designed as leverage in negotiations with the legislature.

Ilitch's Team has known since last summer that it would need to find a new author for legislation in a 2007 session with Chesbro's departure. Unless there is a significant show of support from an additional block of legislators at this anticipated announcement and if the author they've secured is Wiggins, it would further signal the agreements are on the same doomed path they took in 2006. If Wiggins refused to carry the legislation on Ilitch's behalf that would also be troubling news.

Under the gun, Ilitch Family publicist says they'll make announcement on future of Barstow casino Feb. 1

Under the gun, with this week's deadline to introduce legislation for consideration by the California Legislature in 2007, a publicist for the Ilitch Family of Detroit Michigan told The Sun they'll finally make an announcement on Feb. 1 to indicate who will shepherd a second attempt to win legislative approval of their plans for dual casinos in Barstow, Calif. A casino syndicate backed by the Ilitch Family has bankrolled the unorthodox plans for the Barstow location since 2002 but the plans have yet to capture support of lawmakers in Sacramento or Washington D.C.

Based on a presentation by an Ilitch lobbyist at a January 16 Barstow City Council meeting, it is expected that first-term Senator Patricia Wiggins (D-Santa Rosa) from Humboldt County will author the legislation. Wiggins filled the seat formerly held by Wesley Chesbro (D-Arcata) who was faced with term limits and left office last year.

Chesbro attempted to shepherd the same plans through the legislature in 2006 but a Senate Committee chaired by Dean Florez (D-Bakersfield) failed to take any action on the plans in March 2006 and an Assembly committee chaired by Jerome Horton (D-Inglewood) voted to reject the agreements in June. The agreements, which must be ratified by the legislature this year or they expire, were originally signed by Governor Arnold Schwarzenegger in 2005.

During the 2006 legislative session only six members of the legislature vowed publicly to support the plans and one of those was Chesbro who is no longer in office.

Wiggins would be expected to take up Chesbro's torch given the only remotely compelling public policy case for relocating off-reservation casinos clear across the state to Barstow is tied to preservation of the Big Lagoon reserve in the nothern most section of Wiggins' District. Wiggins' constituents would expect her to take on the cause which has failed thus far to capture the interest of any other member of the legislature.

While the agreements would guarantee no future casino development on the Big Lagoon Rancheria lands it doesn't prohibit other development or future uses which could impact the Big Lagoon. The Big Lagoon Rancheria is sovereign territory. The family that makes up the Big Lagoon Indian tribe has consistently made that point clear and is looking to add acreage to their current reservation (trust lands) for development purposes.

Ilitch's Team has known for six months that it would need to find a new author for legislation with Chesbro's departure. Unless there is a significant show of support from legislators at this anticipated announcement and if the author they've secured is Wiggins, it would further signal the agreements are doomed again this year. If Wiggins refused to carry the legislation on Ilitch's behalf that would also be troubling news.

In Brief 01-30-2007
Staff Reports

HIGH DESERT
Casino company set to name legislative sponsor


A Detroit-based company that needs legislative support for its effort to develop a two-casino project in Barstow could announce later this week which lawmaker will officially support its plan.

Tom Shields, a spokesman for BarWest Gaming, said the company plans to hold a news conference as early as Wednesday in Sacramento to reveal who will sponsor a bill that would allow the casino plan to move forward. BarWest Gaming is working with the Los Coyotes Band of Cahuilla and Cupeno Indians of north San Diego County, and the Humboldt County-based Big Lagoon Rancheria Tribe to build off-reservation Indian casinos in Barstow.

Gov. Arnold Schwarzenegger has signed gaming compacts with both tribes, but an Assembly committee rejected the deals in June. The Legislature and federal Department of the Interior must approve the project for the Barstow casinos to
be built.

http://www.sbsun.com/news/ci_5116254

NEWS: Contradicts Ilitch, Los Coyotes say about prospects of northeastern San Diego County casino development

January 27, 2007

Tribes to build casinos large and small

By: EDWARD SIFUENTES - Staff Writer

SANTA YSABEL ---- Five years after the first American Indian casino opened its doors in North County, tribal gambling continues grow taller, larger and farther into the region's backcountry.

Remote wilderness where sage and grass once grew is now covered with grand palaces nurturing a different kind of harvest. Casinos filled to capacity with slot machines and Las Vegas-style table games have sprung up like poppies along the San Luis Rey River corridor up to Palomar Mountain and Lake Henshaw ---- the traditional home of several San Diego County bands of American Indians.

About 30 miles east of Escondido, the Santa Ysabel Band of Diegueno Indians is putting the finishing touches on its casino near the northern tip of its rocky reservation overlooking Lake Henshaw.

"You are going to be amazed when you look at it," Santa Ysabel Chairman Johnny Hernandez said proudly about the casino. "It's a great view."

The 700-member tribe plans to open its casino in March. When it opens, it will join four others in the area north of State Route 78 and east of Interstate 15 at the Pala, Pauma, Rincon and San Pasqual Indian reservations. The La Jolla Band of Luiseno Indians, which opened in 2002 a small "slot arcade," closed it two years ago while it plans a larger facility.


Late start
North County casinos now attract thousands of visitors to the area. They have become economic engines for local Indian communities that were mired in poverty and whose residents were increasingly leaving them in search of better opportunities elsewhere.Santa Ysabel tribal leaders said they hope their casino will generate enough revenue to provide health care for their elders, education for their young and better infrastructure for their community.The casino will compete for customers with others closer to major highways.

That's why the tribe intentionally kept it small, at about 35,000 square feet and 349 revenue-generating slot machines. Keeping the number of machines under 350 will allow the tribe to continue to receive stipends from the revenue-sharing trust fund from wealthier tribes' casinos.
Hernandez said they chose the spot perched on the hill for its scenic beauty. His tribe hopes to capture some of the thousands of travelers who visit Julian and the surrounding countryside looking to get away from "city life," Hernandez said.

"We made it our casino," Hernandez said. "We didn't want to make it Harrah's."

Harrah's, the Las Vegas casino entertainment giant, is a partner with the neighboring Rincon Band of San Luiseno Indians in a huge resort casino with a high-rise hotel near Valley Center.

Residents and some county officials have raised concerns over increased traffic accidents and crime as a result of the casinos.

"We have many people call us about the accidents there," on State Route 76, said Sheila Walson. She and her husband, Gerald Walson, are Bonsall residents and community activists on traffic issues related to State Route 76.

Last year, San Diego County sheriff's Lt. Sean Gerrity, commander of the Valley Center-Pauma substation, released a report that said the influx of casino customers was the most reasonable explanation of why crime figures more than doubled from 1999 ---- when there were no casinos in the area ---- to 2005.

But tribal leaders say they have contributed money to the county, as part of their state agreement, for law enforcement, emergency and fire services to help offset some of the problems.


New players
While Santa Ysabel begins its venture into gambling, two other tribes in the area have already negotiated deals with the state, allowing them to build larger casinos with more than 2,000 slot machines each. The Pala Band of Mission Indians owns a large-scale casino hotel and resort 15 miles north of Escondido.

The Pauma Band of Mission Indians a few miles east of the Pala Indian Reservation announced last year that it will build a $300 million casino and hotel with the help of its partners, the Mashantucket Pequots' Foxwoods Development Co.

Hernandez said he's not worried about competition. Most tribal leaders say that having a cluster of casinos attracts visitors to the area, benefiting all.

Alan Meister, an economist with the financial consulting firm Analysis Group, said that San Diego County tribes have reason to be optimistic. San Diego, Riverside, Orange and Los Angeles counties have a combined population of about 18 million.

"There are definitely going to be competition effects," Meister said. "That's why you see all the advertising. They want you to choose one over the other, but there are a lot of customers to go around."

In his annual Indian Gaming Industry Report, Meister estimated that Indian gambling revenues grew about 24 percent, from $5.8 billion in 2004 to $7 billion in 2005. There are 57 Indian casinos in California ---- including eight in San Diego County ---- with about 60,000 slot machines."

Based upon the continued statewide growth of Indian gaming, California does not seem to be near its saturation point," Meister wrote in his report. "Thus, an increase in the supply of gaming may continue to yield positive returns."


San Pasqual
Leaders with the San Pasqual Band of Mission Indians seem to agree. The tribe's casino is expanding to more than double its size, from 43,000 to 110,000 square feet. In November, casino officials unveiled a new six-story parking structure.

The $114 million project will also add a larger buffet area, a steak house, lounge, three bars and other amenities. When completed, the larger casino will accommodate 2,000 slot machines, said Joe Navarro, president of the tribe's casino development group.

Navarro said business is good and the expansion will meet growing customer demands."

Our expansion is 100 percent guest-driven," he said. "We are bursting at the seams. We set records on our small facility. It's definitely a need-based expansion."

Navarro said the tribe abandoned a plan to build a larger casino and resort overlooking Lake Wohlford on the southern end of the reservation due to road access problems and other hurdles. He said the tribe instead plans to build on the current site, possibly adding a hotel later on.


Plans big and small
A few miles north of the San Pasqual reservation, the Pauma tribe's project is undergoing an environmental impact review ---- a requirement under agreements that tribes sign with the state. A new deal signed with Gov. Arnold Schwarzenegger in 2004 allows the tribe to operate more than 2,000 slot machines in exchange for paying the state more money.

For the project, Pauma originally struck a management deal with Las Vegas-based Caesars Entertainment. But the deal fell through after the company announced it would be sold to Harrah's, which is a partner with the neighboring Rincon tribe. A deal with Hard Rock Hotel & Casino also failed due to disagreements over the terms of the contract, tribal leaders said.

The new partnership announced last year with Foxwoods is expected to produce a 171,000-square-foot casino with about 90,000 square feet of gambling space and up to 2,500 slot machines. The complex would also include a 400-room hotel, a 1,500-seat event center, 2,500-seat outdoor amphitheater, and multiple retail and restaurant facilities.

The Mashantucket Pequots' Foxwoods Development Co. operates Foxwoods casino, one of the largest casinos in the country with 7,100 slot machines and a 1,400-room hotel in eastern Connecticut."

Our reasons for partnering with the Pequots on this project involves more than the fact that they bring with them a spectacularly successful track record," Pauma Chairman Chris Devers said in a statement announcing the project. "The Pequots respect native sovereignty and have a long history of struggle and perseverance, and we can relate to that."

Farther east of Pauma, the La Jolla band unveiled a plan last year to build a 35,000-square-foot casino with 500 slot machines, a 5,000-square-foot restaurant and a 150-room hotel. The tribe's Web site describes the first phase of the project as having a casino with 349 slot machines, and subsequent plans include a golf course, expanded casino and other entertainment.

At Santa Ysabel, Chairman Hernandez said the casino is attracting tribal members back to their ancestral home. His tribal government is already working to provide electricity to reservation homes that did not have it before."

This is a springboard for economic development, to get electricity, bring water, build better homes and roads on the reservation," he said.

Contact staff writer Edward Sifuentes at (760) 740-3511 or esifuentes@nctimes.com.

http://www.nctimes.com/articles/2007/01/28/news/top_stories/12707199.txt

You may also want to review these posts:
The Verifiable Truth: Google Earth Maps make it clear why Detroit Casino Syndicators won't settle for anything other than their Barstow location
The Verifiable Truth: Tribes doing what Los Coyotes Neighbors describe as impossible

NEWS: Tribes say Warner Springs rich with history and natural resources

January 28, 2007

THE WAY WE WERE
Warner Springs' history shadowed by conflict

By Vincent Nicholas Rossi
UNION-TRIBUNE

WARNER SPRINGS – The area known today as Warner Springs Ranch was originally called Kupa, after the indigenous people who first settled it.

Known today as the Cupeños, they came to the region 800 to 1,000 years ago. They would live there in relative isolation until 1795.

The valley's location at the headwaters of the San Luis Rey River, and the hot springs found there, made it “a natural way station on any route from the south or east through the Arizona desert to the coast of California,” according to “Introduction to the Cupeño People,” published by the Cupeño Cultural Center.

The original Mexican land grant for the region was bestowed “without prejudice to the indigenes (native peoples).” The original grantee, Jose Antonio Pico, failed as a rancher. In 1844, the property was turned over to Juan Jose Warner.

Warner's grant didn't mention the Cupeños at all, according to a 1973 history of the Cupeños, “Mulu'wetam: The First People,” by Jane Hill and Rosinda Nolasquez. The grant described the land as “vacant and abandoned,” evidently a reference to the buildings that had been built by the Indians under the supervision of Franciscan fathers from Mission San Luis Rey.

That description of vacant land flies in the face of other contemporary accounts of lands under cultivation for grain and vineyards, and of cattle being herded, with much of the work being done by Indians.

In 1846, Gen. Stephen Watts Kearney passed through the ranch on the expedition that would end in the Battle of San Pasqual. Kearney was tasked with seizing California from Mexico and establishing a government.

John Griffin, an army doctor traveling with Kearney, wrote in his journal of how hard Cupeños worked on the ranch, but also described their treatment by Warner as “worse by far than the worst-treated slaves in the United States.”

Another of Kearney's officers, Captain A. R. Johnston, wrote in his journal that the Cupeños “are stimulated to work by $3 a month and repeated floggings.”

California's entrance into the United States brought no relief to the oppressive conditions suffered by the Cupeños. In fact, they were further humiliated by the imposition of taxes on their land and cattle, leading in 1851 to the Garra Uprising, named for its leader, Kupa chief Antonio Garra.

Warner's ranch buildings were burned down and nine Americans were killed before the revolt was put down by U.S. Army troops.

Garra and William Marshall, a sailor who aided the uprising, were executed.
Warner moved to Los Angeles after the revolt and operated the ranch through intermediaries.

It appears the rebellion did win the Cupeños some rights over the ranch's hot springs. In an 1867 letter to a prospective buyer of the property, Judge Benjamin Hayes noted that on a recent visit, the Cupeños “seemed to regard the immediate vicinity of the spring as their own. I paid them a dollar for my bath, at the rustic bathing establishment they have constructed”

“Cupeños Trail of Tears,” a 2003 commemorative history compiled by the E Clampus Vitus, an organization dedicated to preserving Western history, noted that by the late 1880s, the Cupeños were totally self-supporting through farming and operations of a hot springs resort.

The hot springs' commercial potential, however, proved irresistible to John G. Downey, a former governor of California who had purchased Warner Springs Ranch in 1880. In 1892 he filed a complaint in the Superior Court of San Diego County to have the Cupeños evicted from the ranch. It was the beginning of a legal battle that would go on for more than a decade, culminating in a 1901 U.S. Supreme Court decision against the Cupeños.

An offer was made to purchase the property from the Downey estate but the asking price was too exorbitant for the Cupeños and their supporters.

On May 12, 1903, Bureau of Indian Affairs agent James Jenkins arrived with 44 armed teamsters to carry out the eviction. Rosinda Nolasquez, a Cupeño who was 11 at the time, described it years later in “Mulu'wetam”:

“Many carts stood there by the door. People came from La Mesa, from Santa Ysabel, from Wilakal, from San Ignacio – came to see their relatives. They cried a lot. And they just threw our belongings, our clothes, into the carts, chairs, cups, plates. They piled everything on the carts.”

The government had ordered the Cupeños to be relocated to the Pala Reservation, 40 miles away. The trip took three days.

The Cupeño became part of the Pala Band of Mission Indians. But the relocation was never forgotten. In May 2003, on the 100th anniversary of the eviction, the Pala Band rented a portion of the Warner Springs Resort to allow the descendants of the evictees to return for three days and commemorate the loss of their homeland and celebrate their survival as a people.

The commemoration has become an annual tradition.

Vincent Nicholas Rossi is a freelance writer who lives in Rancho Bernardo.

Find this article at: http://www.signonsandiego.com/news/northcounty/20070128-9999-lz1mi28wewere.html

You may also want to review these posts:
The Verifiable Truth: NEWS Contradicts Ilitch, Los Coyotes say about prospects of northeastern San Diego County casino development
The Verifiable Truth: Google Earth Maps make it clear why Detroit Casino Syndicators won't settle for anything other than their Barstow location
The Verifiable Truth: Tribes doing what Los Coyotes Neighbors describe as impossible

Tribe's doing what its Los Coyotes Neighbors describe as impossible

The Santa Ysabel Tribe is located in northeastern San Diego County just 10 miles from the Los Coyotes Reservation but the leaders of the two tribe are attacking their futures from opposite corners of the ring.

Seasoned journalist Chet Barfield regularly reports on San Diego's 18 Indian tribes for the San Diego Union Tribune covering Indian Country and Indian gaming in the County with the highest concentration of Indian casinos in the United States. Several years ago he wrote several stories on the hostilities that existed between waring factions on the Los Coyotes Reservation. A year ago he wrote:

Far-flung members of North County tribe are returning, with their hearts on the reservation and their eyes off it

By Chet Barfield
UNION-TRIBUNE STAFF WRITER

..."We're headed in a new direction," tribal Chairman Johnny Hernandez said. "We want to make this a reservation our people are proud of and make the land itself proud of the people who are on it."

Pride has long been scarce on this 15,500-acre reservation 65 miles northeast of San Diego. Its forested mountains abound with beauty, but its people are among the poorest and most oppressed in the region.

Over generations, families fled the reservation, mostly for economic survival. Today more than two-thirds of the tribe's 770 members are scattered throughout California and other states.

But lately, more and more are coming to tribal meetings, from Orange County, Los Angeles or farther. Some are even moving back to the reservation, as Ponchetti did in 1984 and Hernandez did in 2000.

What's bringing them back? The push for a casino? Opportunities for free land? Family connections? A voice in tribal decisions?

According to dozens of members, all those factors play a part and fuel frictions between old and new thinking, between factions on and off the reservation.

For many, however, the pull comes from something deeper.

"A lot of them wanted to come back to their roots to find out who the hell they were," said Ponchetti, 67, whose father was a prominent tribal leader in the 1950s. "They were Indian, but they didn't know what that meant." ... (Full
Story)

Based on this story, one has to wonder if Governor Schwarzenegger, Dan Kolkey, Marian Ilitch, Michael Malik, Barstow Mayor Lawrence Dale, and legislators like Roy Ashburn and Bill Maze have ever been to northeastern San Diego County. More startling is that the Governor's staff didn't appear to be verifying anything they were told by Marian Ilitch's team pushing the proposal for dual casinos in Barstow, Calif. Everything we've heard to date is contradicted by this story of a Tribe that's turning lemons into lemonade.


You may also want to review these posts:
The Verifiable Truth: NEWS Contradicts Ilitch, Los Coyotes say about prospects of northeastern San Diego County casino development
The Verifiable Truth: Google Earth Maps make it clear why Detroit Casino Syndicators won't settle for anything other than their Barstow location

Sector Snap: Casino Operators MGM Mirage stock may have topped out

Sector Snap: Casino operators

The Associated Press

January 26, 2007, 12:14PM EST

NEW YORK
Shares of casino operators were trading mostly lower on Friday after an analyst initiated coverage on several companies in the sector.

Prudential Equity Group's Joel Simkins gave MGM Mirage a "Neutral" rating, saying in a client note that he was optimistic about its more than $7 billion CityCenter project in Las Vegas.

But the company's stock may have hit the ceiling.

"While MGM Mirage has an impressive pipeline of domestic and international growth opportunities, we think the shares are due for a breather given a roughly 100 percent move in the stock since September 2006," he wrote.

Trump Entertainment Resorts Inc. also received a "Neutral" rating, with Simkins expressing confidence in the company's management team.

While he is cautious on Trump due to competition from Atlantic City megaresorts being developed and newer slot facilities in Pennsylvania, Simkins said internal and external development opportunities could provide catalysts for Trump.

Simkins also initiated coverage on Ameristar Casinos Inc. with a "Neutral" rating.
In a separate note, Simkins issued an "Underweight" rating for Isle of Capri Casinos Inc. on a slowdown in Biloxi and more competition.

"After the company came up empty in Pennsylvania and Singapore, we think its growth pipeline is average at best, and we see increasing competitive challenges across the portfolio," he said.
With casinos increasingly coming back online in the Gulf Coast after Hurricane Katrina, Isle is starting to face normalized results in the market, which could lead to further estimate reductions, Simkins explained.

Pinnacle Entertainment Inc. also received an "Underweight" rating, with Simkins saying the company may face some risks to its growth plan.

Simkins is particularly concerned about the possible $3.4 bilion to $3.6 billion Pinnacle may spend on new projects, saying in a client note that the amount "is significant considering the company had total assets of $1.5 billion in the third quarter of 2006."

"With so much capital at risk, we think a contrarian view is only fair, particularly as Pinnacle is casting its nets into markets that are fairly mature (St. Louis), highly competitive (Atlantic City) or potentially face new competition down the road (Texas gaming could severely damage Bossier City and Lake Charles)," he said.

Simkins gave Penn National Gaming Inc. and Boyd Gaming Corp. "Overweight" ratings. Penn and Boyd both look to benefit from "solid pipelines" and diversified portfolios, he explained.

Shares of MGM fell 78 cents to $69.15 in midday trading on the New York Stock Exchange.

Trump dipped 13 cents to $17.84, while Penn fell 21 cents to $43.62 on the Nasdaq.

Ameristar declined 80 cents, or 2.6 percent, to $30.28 on the Nasdaq. The stock has been trading in a 52-week range between $16.73 and $33.41. Isle of Capri dropped 65 cents, or 2.6 percent, to $24.65 on the Nasdaq. The stock has been trading between $18.98 and $34.30 for the past 52 weeks.

Pinnacle's stock dipped 37 cents to $33.43, while Boyd slipped 48 cents to $46.56 on the Big Board.

http://www.businessweek.com/ap/financialnews/D8MT3E800.htm?chan=search

MotorCity Debt = 100 percent of Casino's profits for next eight years

Is it any wonder that Moody's and S&P have posted concerns about MotorCity Casino's (CCM Merger Inc.) corporate credit rating and the risks tied to more than $300 million in junk bonds issued as part of Marian Ilitch's overall borrowing picture?

Jason T. Hanselman an attorney at the Dykema Gossett Law Firm practices in the following areas of law: Government; Regulatory Law; Gaming Law; Gaming Licensing; Education Law; Charter School Law; Public School Law; Election, Campaign and Political Law; Election and Campaign Finance.

Hanselman notes in his published public biography that he:

"Represents casino licensees, casino supplier licensees and vendors before the Michigan Gaming Control Board; and

"Helped facilitate the acquisition of Detroit's MotorCity Casino, including negotiating $1.1 billon in acquisition financing and obtaining regulatory approval for the acquisition from the Michigan Gaming Control Board, 2005."

The Detroit Free Press published:

"The price of a Detroit casino could be as high as $1 billion, said people familiar with the sale and purchase of casinos." 06.15.04

"The total estimated value of the MotorCity Casino property is close to $1 billion. Last year, the casino generated $436 million in revenue." 04.25.05

Crain's Detroit Business published:

"Marian Ilitch's $525 million offer to buy Mandalay Resort Group Inc.'s share of MotorCity Casino L.L.C. sets a value of nearly $1 billion on that property and highlights how some of the early local investors have become millionaires." 02.21.05

Forbes published in a feature story "Mike Ilitch has backed losing sports teams and pizza before it was dinner fare--and mostly won big. But casinos in Detroit?" that was part of the 2006 "Richest Americans" issue:

"Marian has poured more than $1 billion into buying (last year) and improving MotorCity Casino, one of Detroit's three gambling ventures." 10.09.06

MotorCity Debt =100% of Anticipated Casino Profits for the first 8 years.

Numerous sources estimated MotorCity Casino was valued at $1 billion when Ilitch acquired the 100% ownership. Ilitch has borrowed $1.1 billion and possibly even more using the Casino as collateral in order to fund the $525 million acquisition (53.5%) and subsequent development of a permanent casino and hotel required in the original agreement with the City of Detroit. At last review S&P and Moody's estimated that MotorCity Casino was leveraged at 8x; that's higher than originally anticipate and one of the reasons S&P and Moody's have raised red flags.

Simply stated, at best case it would take the owners 8 years, using 100% of profits each year, to pay off the large debt before they could realize any profit in their own pockets. Or, if Ilitch were forced to sell the casino today, it's likely that she would face a significant financial loss and certainly so would those who financed her acquisition and expansion. Moody's estimates they would lose at least 88% of their investments.

Ilitch Holdings has a history of extreme leverage with its various subsidiaries. Take the Detroit Tigers baseball team for instance, there are only two other teams out of 30 in baseball that have higher debt to value ratios. If the baseball team were sold today, approximately 80% of the sale would be used to pay off debts.

Moody's Assigns "Loss-Given-Default" Rating to CCM Merger Inc. (dba MotorCity Casino)

excerpted from

IBL - InterNet Bankruptcy Library

http://www.bankrupt.com/about_ibl.html

T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, October 17, 2006, Vol. 10, No. 247

CCM MERGER: Moody's assigns Loss-Given-Default Ratings

---

In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the gaming, lodging and leisure sectors, the rating agency confirmed its B1 Corporate Family Rating for CCM Merger Inc.

Moody's also revised or held its probability-of-default ratings and assigned loss-given-default ratings on these debentures:

Debt Issue	Old POD Rating	New POD Rating	LGD Rating	Projected Loss-Given- Default
Five Year Senior Secured Revolver	B1	Ba3	LGD3	35%
Seven Year Senior Secured Term Loan B	B1	Ba3	LGD3	35%
8% Senior Secured notes	BR	B3	LGD5	88%

Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%).

CCM Merger Inc. owns and operates MotorCity Casino in Detroit,Michigan.

http://bankrupt.com/TCR_Public/061017.mbx

Ilitch owned casino site

50-acre Barstow site is part of larger several hundred acre commercial mega resort plan Ilitch envisions for the Mohave Desert community. Ilitch controlled Barwest would have the exclusive rights, free of future competition, to develop the only two casinos and all encompassing resorts in California's 'High Desert' area from the Cajon Pass Summit north to the Nevada stateline.

BARWEST-Owned Site

Proposed Dual Indian Casinos and Resorts
Barstow, CA

*Map included in 9/06 EIS/TEIR Scoping Report

Barwest owns multiple parcels totalling 110+ acres; 48-50 acres set aside for dual casino resort developments. The Barwest owned land is adjacent to hundreds of acres managed by the Bureau of Land Managment (BLM). BLM has been approached about land swap acquisition of the adjacent lands; presumably part of the larger master resort development plans by Barwest and other commercial developers. Neither Big Lagoon or Los Coyotes Indian tribes own or control any land in Barstow today.

Detroit casino syndicators made large investment in Pombo

The Ilitch Family and Michael Malik invested heavily in Richard Pombo while he was chairman of the House Resources Committee (oversight for Indian Affairs and Indian Gaming).

Included among their gratuities to Pombo:

• $16,000 from Mike & Marian Ilitch, and Michael Malik to RICH PAC (earning them #9 and #5 spots respectively on RICH PAC’s “Top Ten” individual donors list for ’04 and ’06; Jack Abramoff was #10);


• Total of more than $40,000+ for RICH PAC including contributions from various Ilitch lobbying firms (from $11,500 bundled on May 18, 2004 – $15,500 bundled on December 7, 2005);
  


• $26,600 to the San Joaquin County GOP Committee (Pombo’s home party organization) on October 18, 2004 from Detroit-based Barwest (Ilitch/Malik entity doing business in Barstow, Calif.);
  


• A $5,000 per head fundraiser at the 2005 MLB All-Star Game in Detroit (total proceeds unknown as there are no related contributions noted in Pombo’s campaign committee or RICH PAC disclosures despite aides to Pombo indicating he was the beneficiary of the event);
  


• Various travel arrangements including private air travel;
  


• $50,000 to the RNC recorded the day after (7/13/05)the All-Star Game fundraiser ($25,000 each from Michae l J. Malik and Christopher Ilitch);
  


• $220,000 lobbying contract signed by Barbara Bonfiglio on behalf of Williams & Jensen to represent Malik’s MJM Enterprises and Development during the period Bonfiglio was also RICH PAC treasurer.

Note: Under California's political reform laws, Barwest L.L.C. was to have reported the $26,600 contribution made 10/18/04 as a "major donor" in disclosure filings due January 31, 2005. No disclosures were filed. A second reporting period for major donor disclosures ended June 30, 2005. Again no disclosures were filed. Michael J. Malik, Sr. did not file disclosure documentation declaring Barwest L.L.C. a "major donor" until September, 5, 2005 -- nearly a year after making the curious contribution and almost nine months (and two reporting periods)after disclosures were required.

Richard Pombo's former patrons might shed light on his future

RICH Political Action Committee is Rep. Richard Pombo's "leadership committee." As described by Recordnet.com in March 9, 2006 story:

it is "a kind of extra campaign committee that many lawmakers maintain. Pombo calls his Rich PAC. The money raised for these accounts can be used for nearly any purpose other than to directly get the law-maker re-elected."

Generally reporters and others look at PAC contributions but using g data available from the Federal Election Commission and additional analysis available from PoliticalMoneyLine for Congressional Quarterly (2004 & 2006 ), The Center for Responsive Politics, this analysis looked at individual contributions to RICH Political Action Committee for the 2004 & 2006 election cycles, covering the period of time Rep. Pombo served as chairman of the House Resources Committee.

RICH Political Action Committee

Individual Contributions Cumulative '04 & '06

(couples combined)

Contributors	Total
1. Bridges, Lowell & Kimberly (WA)	$15,800
2. Barnett, John (WA)	$10,000
3. Weinberg, Joseph & Debra (MD)	$10,000
4. Barnett, David & Kristine (WA)	$9,000
5. Malik, Michael (MI)	$9,000
6. Dacey, Scott (VA)	$8,000
7. Furman II, Harold (DC)	$8,000
8. Mattoon, Jane (VA)	$7,000
9. Ilitch, Mike & Marian (MI)	$6,000
10. Abramoff, Jack (DC)	$5,000

The following sources were among those accessed during October 2006 in preparing this report: U.S. Federal Elections Commission; PoliticaMoneyLine by Congressional Quarterly; Center for Responsive Politics; CampaignMoney.com.

click for: RICH PAC's top 100 individual donors 2004 + 2006

You may also want to review these posts:

• Progressive 11th (C.D.-CA): Pombo in Talks to Become a Lobbyist?
• Hank Shaw @ Recordnet.com: Pombo Emerges
• David Roberts @ Gristmill: Pombo goes through the revolving door
  

Ilitch Family, associate increased political campaign contributions 2000% in four year quest to expand their gambling empire

The Ilitch Family and their associate Michael J. Malik increased political campaign contributions 2000% in the four year quest to expand their Michigan gambling empire.

During the summer of 2005, when controversy erupted over the timing of a big ticket All-Star Game fundraiser the Ilitch family hosted for Rep. Richard Pombo and a House hearing scheduled two days late and chaired by Pombo on matters affecting one of the Ilitch tribal partners, Ilitch publicist Tom Shields, as usual, tried to down play the circumstances saying, “the Ilitches donate regularly to officeholders of both parties.” But he forgot to mention their regularity was fiercely snowballing by 2000 percent.

The following is based on federal campaign disclosure documents.

• During the six years from 1997 through 2002 (the 105th, 106th , 107th Congresses) the Ilitch Family contributed $23,100, and Michael J. Malik contributed $2,000, for a total of slightly more than $25,000 to federal candidates and committees.
  
• During the four years from 2003 through 2006 (the 108th & 109th Congresses) the Ilitch Family contributed at least $332,000, and Michael J. Malik contributed at least $171,000, to federal candidates and committees topping half a million dollars in individual (non-PAC or corporate) political dough. There were additional large contributions made to local and state office holders, ballot measure and the San Joaquin County GOP Committee (Calif.) which are not included in the more than half million dollar figure presented here. In all, these individuals paid out almost $900,000 in local, state and federal political campaign contributions.


• Collectively for the four years from 2003-2006 their individual checkbooks logged a 2,000 percent increase in federal political campaign contributions over the previous six year period 1997 – 2002; that’s a 2000 percent increase in 2/3rds the amount of time.


• From 2003-2006 the bulk of the $500,000 went to candidates the Ilitch Family/Malik had not previously backed. It is believed $300,000 went toward support for Senator Debbie Stabenow, Rep. Candice Miller and Rep. Richard Pombo or committees they favored, but none of that was paid out until after each had introduced legislation to help advance Ilitch/Malik efforts to expand their casino empire.


• Their contributions were often bundled or sent in pairs of large amounts and directed toward Leadership PACs, or related party campaign committees in order to bust the lower contribution limits placed on funds that can be contributed to a candidate’s campaign committees.

The data used for this overview analysis was available from The Center for Responsive Politics at opensecrets.org and can also be verified with the Federal Election Commission. By the “Ilitch Family” we represent Michael and Marian Ilitch along with their seven children and respective spouses all with the Ilitch name except for daughter Lisa Ilitch Murray and her husband Glenn Murray. All immediate family members have an interest and are generally part of the privately held family controlled Ilitch Holdings enterprises and any federal political contributions are most often bundled with those of their parent’s or Michael J. Malik Sr.

We have not included contributions made by their lobbying firms, lawyers, partners or associates other than Michael J. Malik although the contributions by these others are also extensive. Nor have we considered for this discussion almost $3 million paid out to Capitol Hill Lobbyists from 2002-2006.

USATODAY.com - MGM Grand Detroit unveils $765 million casino plan

04.07.06
USA Today

MGM Grand Detroit unveils $765 million casino plan

DETROIT (AP) — The MGM Grand Detroit Casino says it plans to spend a greater-than-expected $765 million on a 17-floor, permanent gambling facility that will create 1,000 jobs.

On Thursday, the MGM Grand and the Greektown Casino released new plans for their permanent facilities. The MotorCity is Detroit's third casino.

MGM Grand spokesman Bob Berg said the permanent facility, featuring a hotel, restaurants and stores, will create 1,000 jobs. MGM Grand Detroit now employs 2,500 people. The casino itself will be 100,000 square feet.

MGM Grand is spending $190 million more than previously announced and more than the other two Detroit casinos combined, Berg told the Detroit Free Press.

The Art Deco-style design is "kind of this romantic icon of the future," University of Detroit Mercy architecture Dean Stephen Vogel told The Detroit News. "It's a lot more zooty that what you expect to see in Detroit."

Greektown Casino on Thursday presented plans for a 33- to 35-story garage and hotel tower addition to the City Planning Commission in a rezoning request. The commission is expected to decide by May 4. Other city approvals also are needed before construction can start.

The MotorCity Casino plans to spend $275 million to build a hotel tower and expand its temporary casino. The Greektown Casino says it plans to spend $200 million on its expansion.

Last year, MGM Grand took in $460.7 million, Greektown $335.6 million and MotorCity $432.2 million.

http://www.usatoday.com/travel/hotels/2006-04-07-detroit-casinos_x.htm
Wikipedia: MGM Grand Detroit Casino

DIGG Story: East Coast Slot Revenue in 2006 Rises 7%, to $8.1 Billion

ATLANTIC CITY, N.J., Jan. 23 /PRNewswire/ -- Casinos and racetracks from Maine to Florida generated $8.1 billion in slot machine revenue in 2006, an increase of 7.1 percent over the previous year, according to the Gaming Industry Observer's East Coast Slot Report. The report, which tracks vital slot statistics on a monthly basis, includes the results of the 36 publicly reporting gaming facilities in the East. It does not include revenue from the 12 Native American casinos in Florida, New York and North Carolina, whose monthly gaming statistics are not publicly disclosed.

"The rise in East Coast slot revenue is attributable to the start of racetrack gaming in Florida and Pennsylvania, the expansion of racetrack gaming in New York, an increase in the slot-machine cap in Delaware, and healthy increases in the long-established markets of Connecticut, New Jersey and West Virginia," said Joseph Weinert, Editor of the Gaming Industry Observer.

PRNews: East Coast Slot Revenue in 2006 Rises 7%, to $8.1 Billion