Casino Is Again Urged on Garden Grove

A 1,000-room resort anchored by an Indian casino should be developed by Garden Grove to pull the city out of a worsening financial slump, civic leaders will tell the City Council next week.

A casino 2 1/2 miles south of Disneyland is a political and legal longshot, “but every now and then things like this work out,” said banker Bob Fish, chairman of the city’s Chamber of Commerce and head of an advisory group created by City Hall to explore ways to solve the city’s looming $12-million budget shortfall.

“If it works out, it’ll be wonderful,” Fish said. “If it doesn’t, we’ll have to go to other sources.”

The casino resort was one of 40 revenue-producing ideas considered by the 11-member committee, and the top choice of eight members because it offered a significant long-term revenue stream and job opportunities at little or no cost to the city.

The casino idea surfaced last year with word that four council members had met with Las Vegas casino mogul Steve Wynn and that city officials had spoken with leaders of the Mesa Grande band of Mission Indians about building a casino on Harbor Boulevard.

But almost as quickly, the idea died in the face of community opposition based on concerns that it would harm the city’s image.

This year, new Councilman Harry Krebs said he wanted to revive the idea. Councilman Mark Leyes said he remained opposed to a casino, but other council members have yet to weigh in on the resurrected discussion. They’ll get the opportunity Tuesday, when the advisory committee’s recommendation will be aired at a City Council study session. City Manager Matt Fertal, who formed the study committee, said the council could shelve the matter or vote to reopen discussions on a casino.

This week, council members were again in Las Vegas, attending the same International Council of Shopping Centers convention where they met Wynn a year ago.

City officials estimate a casino resort could bring the city as much as $20 million a year.

“I’m sure there will be plenty of opposition to this,” said Fish, general manager of the Farmers and Merchants Bank in Garden Grove. “Indian casinos from everywhere will throw money against it if it gets that far. But I think the people in this city will support it. I’ve talked to hundreds of people as a banker, and most are saying this is something we should look at. I say, ‘Let’s stir the pot and see what happens.’ ”

After the casino, the next two most popular revenue-producing ideas proposed by the advisory group were considerably more conventional: a utility users tax and a public safety tax.

“I think we should be working a lot harder on a lot of other options,” Leyes said. By coming up with the proposals, the committee has given the City Council “political cover to two unrealistic and unpopular ideas, a casino or new taxes.”

Committee member Tony Flores opposed the casino plan and said he was disappointed that the committee didn’t spend more time exploring other ideas.

“There were some fantastic minds in that room,” Flores said. “But we were pushed by city staff toward three options, the casino and creating two new taxes.”

Critics of the casino idea say they doubt the proposal will gather much momentum. The proposal would have to negotiate a host of state and federal hurdles, and city and tribal officials acknowledge that the political climate in Washington and Sacramento make an urban casino unlikely. Gov. Arnold Schwarzenegger opposes allowing Indian casinos in urban areas.

Officials at Disneyland, north of the proposed 5-acre site on Harbor Boulevard near the Garden Grove Freeway, criticized the plan Tuesday.

“It runs counter to the Disneyland Resort’s core values and our 50-year tradition of providing safe, wholesome family entertainment,” said Rob Doughy, a Disneyland spokesman.