Garden Grove May Revisit Casino Idea

Las Vegas-style gambling in the heart of Orange County, a longshot possibility previously dismissed as too controversial, is up for reconsideration in Garden Grove as a new source of city revenue.

When it meets Tuesday night, a divided City Council will once again discuss allowing a tribal-owned casino down the street from Disneyland.

Among the five council members, two say they favor exploring the idea, and two oppose it. The swing vote rests with the mayor, whose committee to study revenue options recommended an Indian casino. He said he was willing to at least discuss it.

“If it looks like I’m going to be the deciding vote, I’m glad I’m open-minded,” said Mayor William Dalton, who voted last year to quash the casino proposal. “I’m willing to discuss any alternative that would provide what we need -- more revenue. We owe it to the citizens to ... look into all these things.”

The casino proposal gained traction last year, when four council members met with Las Vegas casino mogul Steve Wynn and city officials spoke with leaders of the Mesa Grande band of Mission Indians about building a casino on Harbor Boulevard. The plan succumbed to community concerns that it would harm the city’s image.

But with the city’s financial slump worsening, casino proponents say revenue from a 1,000-room resort and Indian casino on Harbor Boulevard could help solve a looming $11-million deficit. The casino concept was further embraced by a committee of business and civic leaders who recently concluded that it offered the city a significant long-term revenue stream and job opportunities at little or no cost. City officials estimate a resort casino could bring the city up to $20 million a year.

Even if the idea wins local support, construction of an Indian casino in Garden Grove faces significant hurdles. The city would have to sell the land to the U.S. Department of the Interior, which would put it in trust for a tribe. Gov. Arnold Schwarzenegger and the tribe would then have to negotiate terms to operate a casino, which would then need legislative approval.

Three months ago, Schwarzenegger issued a proclamation opposing Indian casinos in urban areas.

Rural Indian tribes have long hoped to operate casinos in more profitable urban areas, but have been thwarted by legal and political obstacles at the local, state and federal levels. Some tribes operate casinos on the outskirts of Sacramento, San Diego and San Bernardino.

To what degree Garden Grove might pursue the idea, which is on the City Council’s agenda for Tuesday night, is unclear.

“It could be very limited, such as continuing to work with the governor’s office, or it could mean reinstituting discussions with the Indian tribe,” said City Manager Matt Fertal.

Before the council moves forward, it would have to reverse its previous decision to cease discussions with any casino parties.

An Indian casino was the first choice, among the 11 members of the mayor’s advisory group, to address the city’s fiscal health. Less-popular proposals were a utility users tax, a public safety tax and aggressive redevelopment on Harbor Boulevard.

Fertal said developers in the resort and gaming industry were knocking on City Hall’s door. “The biggest names in the industry are waiting to see what Garden Grove is going to do,” Fertal said. “I don’t think we would have a shortage of tribes that would love to be part of this endeavor.”

Councilman Mark Rosen opposed the casino idea last year, but said he now supported the concept. “The way casinos are springing up so haphazardly everywhere, I think you’ll eventually see an urban casino somewhere,” he said. “I don’t think we should put ourselves at a disadvantage to those cities who might be pursuing the same thing.”

Councilman Harry Krebs, who was appointed in December to fill the seat vacated when Dalton was elected mayor, was the first council member to revisit the topic after the previous council killed the plan last year.

“I don’t gamble; I’d rather listen to classical music or opera,” Krebs said. “But I’m not going to tell people what they should do. I just feel that eventually, down the road, this is going to happen. And I think the city of Garden Grove should be the city where it happens.”

Councilwoman Janet Nguyen said she was philosophically opposed to a casino and would rather pursue redevelopment on Harbor.

“Why can’t we look at Anaheim’s Platinum Triangle and make one for Garden Grove?” she said. “A mix of housing, retail and restaurants are more immediate solutions to help the city than a casino. I don’t want to take my full-time staff to look at something 10 or 20 years down the road. What are we going to do right now that would help solve the city’s deficit?”

Councilman Mark Leyes said he remained strongly opposed to a casino.

Casinos “are more trouble than they are worth. It’s shown that with it, comes crime, prostitution, money-laundering, glare and lack of compatibility to the neighborhood.”