The Temecula City Council on Tuesday unanimously approved an agreement with the Pechanga Band of Luiseño Indians that guarantees the city at least $52 million over 21 years to handle the effect the tribe's hotel and casino have on traffic and public services.

The tribe will pay the city $2 million annually to offset Pechanga Resort & Casino's effects. Payments will be adjusted for inflation after the deal's sixth year.

City Attorney Peter Thorson said the deal has the potential to net the city up to $65 million.

City Manager Shawn Nelson praised the deal, calling it "a win for the tribe and for the community."

"This is 21 years worth of adequate mitigation assured," Mayor Jeff Comerchero said.

The deal also calls for an environmental study if the tribe wants to expand the footprint of its gambling center facilities by more than 10 percent or go beyond 5,000 gaming machines.

An agreement with the state approved by voters in 2008 allows the tribe to have up to 7,500 machines.

In addition, the tribe pledges $10 million toward the construction of interchange improvements at Interstate 15 and Highway 79 South.

The council also signed off on a memorandum of understanding between Temecula, the tribe, Riverside County and the Sheriff's Department, which provides police coverage in the city.

The agreement calls for one deputy on each shift to patrol in the zone closest to the 522-room hotel and 200,000-square-foot casino. Deputies will only respond to calls for service at the hotel and casino, and not "engage in random self-initiated patrols" at the gambling center, according to a city staff report.

Also Tuesday, the council granted Pelican Properties LLC a one-year extension on a deal that gives the company exclusive rights to devise a development plan for property near the new City Hall.

Pelican has worked since 2008 on a viable plan for commercial space, a staff report said, but "the economic climate collapsed and the project, in its present iteration, has become economically unfeasible."

The extension will provide "ample time for the industry to recover, thus enabling the agency's partnership with Pelican to produce the highest quality development possible," the report read.

Reach Jeff Horseman at 951-375-3727 or jhorseman@PE.com