SAN DIEGO -- San Diego County could soon be adding another Indian casino to the area, but opponents said the state compact with the tribe makes the plan a risky investment.

The La Jolla Band of Luiseno Indians is attempting to obtain federal approval to build a 13-story, 200-room hotel and casino on a 79-acre site just south of State Route 76 in the Pauma Valley area.

The La Jolla Indian Reservation is considered a quiet farming community at the foothills of Palomar Mountain, and much of the land has been untouched. Some nearby residents hope the new development will bring people into the area.

"I kind of have mixed emotions. It would help our business, the campground, plus bring traffic up here," said Pauma Valley resident Paul Busch.
The Pala Indian Reservation is just one of three in the area and they all have casinos. Some say there is no room for a fourth.

Those casinos -- Pala, Pauma and Rincon -- are all of SR-76. The La Jolla tribe's casino would be several more miles east.

"How are they going to capture travelers to reach that destination without cannibalizing on other casinos in the area?" said Cheryl Schmit, director of a Sacramento-based gaming watchdog group.

Schmit questioned the project's viability and is concerned the cost could be passed on to taxpayers.

The La Jolla tribe has one of the earlier compacts with the state, meaning it does not have to negotiate with San Diego County to pay for needed services.
"Without that component, the law enforcement services, fire services emergency services are all going to be subsidized by the taxpayers of San Diego," said Schmit.

Sycuan is one of the county's first casinos, and the tribe also has an older compact similar to La Jolla's. However, Sycuan Chairman Daniel Tucker said they still choose to help pay for services.

"It's about giving back to the community. We have a fire department, and 95 percent of the runs are off the reservation, and so what it does it helps our community and they help us; it's a two-way street," said Tucker.

La Jolla's tribal chairwoman declined an on-camera interview with 10News, but she said the tribe plans to work with the county to offset costs. She also predicted the land will be turned into a destination resort that will create roughly 2,000 jobs.

The tribe hopes to open the casino in 2012.