Tribe seeks to shelter land holdings
If OK'd, Agua Caliente wouldn't have to pay tax on future businesses there Written by Mariecar Mendoza The Desert Sun Dec. 1, 2011
Agua Caliente Band of Cahuilla Indians has applied to take 138 acres of land off public tax rolls and consolidate it with parcels the tribe owns at the intersection of Interstate 10 and Highway 111 north of Palm Springs.
The transaction involves four parcels known as the Beylik property next to about 100 acres of the tribe's land that is already held in trust.
The tribe already owns the Beylik land, the site of an old horse ranch, and is attempting to convert it into trust. That would exempt it from property taxes and local land-use regulations.
The tribe filed its application, known as a Notice of Non-Gaming Land Acquisition, with the Bureau of Indian Affairs on Oct. 7.
But Arvada Wolfin, realty specialist with the Bureau of Indian Affairs, said the tribe's application process began in 2007.
The tribe said in the application that it is seeking the transfer to “consolidate its land base, provide for the opportunity to diversity (sic) its economic development and protect its natural and cultural resources.”
Alva Johnson, director of government affairs/public relations for the tribe, could not be reached for comment Wednesday but according to the notice there are no specific development proposals for the property.
The notice added, however, that the extra acreage has the “potential for exceptional highway commercial development.”
The Palm Springs-based tribe presently pays about $16,000 a year in property taxes on the four parcels.
“Once the land goes into trust they can develop it in any manner they wish,” said Cheryl Schmit, director of Stand Up for California!, a statewide watchdog nonprofit organization that focuses on tribal gambling and fee-to-trust issues. “It's a deficit to the local taxpayers as well as the state taxpayers. The taxpayers essentially would subsidize that development with no benefit to the taxpayer.”
Schmidt said the tribe's request is among 137 similar requests made by tribes throughout California seeking to take more than 15,000 acres of land off county tax rolls. The Bureau of Indian Affairs makes the decision on whether a piece of land is moved into trust.
Many of those tribes seek to do so for casino development, Schmidt said.
The site has long been rumored as a potential casino site, but the Agua Caliente have said repeatedly that there is no casino plan, especially since the tribe opened its new Rancho Mirage casino and resort in 2008.
“We understand there may not be plans for a casino at that site, but we're still concerned,” Schmidt said. “We want to know what would be developed there and how much would the state of California lose.”
Stand Up for California! wants all fee-to-trust real estate transactions to cease until there is reform to federal policy that allows “local government more voice in the decision,” Schmidt said.
“The tribe could build a business on the land and that business would be exempt to taxation. It's a loss to the state and we'd like to see reform of that process,” she said. “They already own the land and market control of the land … why do they need to put it in trust? Why not develop it and pay taxes?”