Gov. Davis Faces Push for Indian Casinos in Urban Areas

A push by Indian gambling proponents to open casinos in urban areas of California could present a sticky political situation for Gov. Gray Davis.

He negotiated a landmark agreement with the state’s Indian tribes a little more than a year ago, granting them exclusive rights to operate Nevada-style casinos in California on their reservations.

At the same time, the governor has maintained that he does not want to see a major expansion of gambling in the state, particularly in urban areas.

Now, a landless band of Indians wants permission to buy property in the San Francisco Bay Area that already has a card club on it so the tribe can install slot machines.

President Clinton has until Wednesday to sign federal legislation ordering the secretary of the Interior to receive a deed for the land beneath the card club, located in the city of San Pablo, and hold it in trust for the Lytton Band of Pomo Indians.

If Clinton signs the legislation, the Lyttons’ next move would be to seek a state gambling compact, a necessary step for the tribe to operate a Nevada-style house.

“If the request comes before him it will be evaluated and reviewed, and a decision about compacting will have to be made,” said Davis spokeswoman Hilary McLean.

How Davis handles the situation could foreshadow the fate of future proposals to open casinos in metropolitan areas.

Last week, Oakland Mayor Jerry Brown announced that he has been talking with the Muwekma Ohlone Indians about opening a gambling facility on a 27-acre site on the former Oakland Army base at the foot of the Bay Bridge. Brown has also held extensive talks with architect Frank Gehry about designing the project, which would include a hotel and cultural center.

“This is a very big longshot with many, many hurdles that will have to be overcome,” Oakland City Manager Robert C. Bobb said of Brown’s concept.

Former Lt. Gov. Leo McCarthy, who opposes expanding gambling on tribal land, described both proposals as a “predictable consequence” of the passage of Proposition 1A. The March ballot initiative granted California tribes the exclusive rights to offer Nevada-style slot machines and banked card games, ratifying compacts that Davis had signed with dozens of tribes.

“When you have the Lytton band trying to establish a casino in San Pablo, which is very likely, and you have an otherwise sensible Mayor Jerry Brown . . . suggesting a hotel, gambling center, you know that there will be major gambling centers in the urban areas of California,” McCarthy said. “Everybody is looking at getting revenues while totally ignoring any responsibility for the destructive consequences.”

The Lyttons’ plans call for 1,000 to 2,000 slot machines to be installed in Casino San Pablo, which is on a 10-acre plot near Interstate 80 within 10 miles of Oakland.

Tony Cohen, a Santa Rosa attorney representing the Lyttons, described the tribe’s proposal as a win-win situation, noting that it is supported by organized labor and San Pablo officials, among others.

Interim City Manager Ronald Kiedrowski said San Pablo has already reached an agreement with the Lyttons to provide municipal services to the tribe’s project for an annual fee of $1.5 million.

Transforming the card club into a Nevada-style casino is expected to bolster tax revenues generated at the facility from $1.8 million per year to at least $5 million, which includes the $1.5-million service fee.

By agreeing to assume the collective bargaining agreement currently in place for card club employees, the Lyttons also garnered the support of the Hotel Employees and Restaurant Employees International Union.

The union, in turn, was key in rallying support in Washington for the amendment to the federal legislation that pertains to Casino San Pablo, according to Jack Gribbon, the union’s California political director.

Finally, the Lyttons turned a potential opponent into an ally by arranging to have the Rumsey Band of Wintun Indians, which operates the Cache Creek casino in nearby Yolo County, to manage Casino San Pablo.

“My hope is that we’ve done our homework,” said Margie Mejia, chairwoman of the Lytton band’s roughly 200 members. “The tribe has really tried to be considerate of every point and address it in an acceptable manner.”

Mejia said most of her band’s members are scattered around the Santa Rosa area. Money generated from the casino would be used to purchase land in Sonoma County to build homes for tribe members, only about 30% of whom are employed, according to Mejia.

“It is our dream to have our members all come back to the reservation,” Mejia said.

The Lyttons are one of more than a dozen government-recognized tribes in California that have no reservation.

One of the reasons Brown’s proposal for an Oakland facility is considered a longshot is that the Muwekma Ohlone Indians are still trying to gain federal recognition.

Bobb, the Oakland city manager, said the city is working with the Muwekmas toward achieving the tribe’s goal of recognition. But even if that goal is met, the cumbersome federal process for allowing tribes to acquire new reservation land will have to be dealt with.

The 27 acres on the Oakland Army base are scheduled to be transferred to city ownership within two years.

“One of the proposals is to develop a gaming facility with the hotel,” Bobb said. “The concept would be similar to the most recent hotels in Las Vegas . . . it would be very spectacular.”