TEMECULA: City approves lawsuit against Pechanga tribe
City also moves to backfill $2 million revenue shortfall By AARON CLAVERIE - aclaverie@californian.com | Posted: August 10, 2010
In the next couple of weeks, the city of Temecula is expected to file a lawsuit against the Pechanga Band of Luiseno Indians in an attempt to force the tribe to pay millions of dollars to the city to cover the costs associated with the addition of thousands of slot machines at the tribe's casino.
The council voted unanimously during Tuesday's council meeting to direct City Attorney Peter Thorson to proceed with that legal action.
Thorson, in his report for the council, said the litigation would be filed in about 45 days to allow for notification to be sent to the governor's office.
The council on Tuesday also approved a transfer from its reserve account to cover a revenue shortfall caused by what the city calls the tribe's "failure" to make a $2 million payment on June 30.
The tribe's reaction to the council's actions was concise and swiftly delivered.
"At a time when real leaders work together to solve problems, the Temecula City Council chooses a path of conflict, litigation and uncertainty. The absurdity of their action is beyond comprehension and jeopardizes millions for services that benefit the entire community. We will consider our options and proceed accordingly," said Tribal Chairman Mark Macarro in a statement released shortly after Tuesday's meeting.
During the meeting, Thorson said the tribe has added 2,200 slot machines at the casino in recent years to bring the total to 4,200.
According to an amended compact between the tribe and the state, the addition of those machines was supposed to trigger new payments to address expenses that the city would incur related to increased traffic and more calls for public safety officers to respond to the casino.
Earlier this year, the city and the tribe signed an agreement that had the tribe paying $2 million annually for the next 21 years to offset those effects. The tribe also agreed to pay, by 2015, $10 million toward improvements at the Temecula Parkway/Interstate 15 interchange.
According to the city, the first $2 million payment was due June 30.
The tribe, however, has pointed to a clause in the agreement that specifies it doesn't take effect until a separate agreement has been reached with the county.
The purpose of that clause, Thorson told the council, is that it allows the tribe to know what its obligations would be with the county and the city.
As of Tuesday, the tribe's negotiations with the county are ongoing, said Ray Smith, the county's spokesman. Smith added that he has not been given a date as to when to expect any resolution.
Interviewed after the meeting, Temecula Mayor Jeff Comerchero and Thorson said the amended compact requires the tribe to produce what's called a "tribal environmental impact report."
That report is supposed to detail how much money the tribe should pay to address the effects of the new slot machines at the casino.
Comerchero said that based on the data he has seen related to traffic counts and police costs, the dollar amount to address those effects is higher than the $2 million per year figure that was agreed upon by the city and the tribe earlier this year.
"It's somewhere between $2 million and $3 million," he said.
Thorson, during a separate interview, said the amount of money the city might receive in the future, provided the litigation is successful, will be determined by that tribal environmental impact report.
Call staff writer Aaron Claverie at 951-676-4315, ext. 2624.