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Temecula may get $42 million in pact with Pechanga

Monday, March 8, 2010 By JEFF HORSEMAN The Press-Enterprise

Temecula would get at least $42 million over the next two decades to cover the impact Pechanga Resort & Casino has on roads and public services, according to a draft agreement between the Pechanga tribe and the city.

In addition, the agreement calls for the Pechanga Band of Luiseno Indians to give $10 million for improvements at the Interstate 15/Highway 79 South intersection and for an in-depth environmental review if the tribe wants more than 5,000 gaming machines.

The City Council tonight will consider a resolution approving the agreement . The 7 p.m. meeting is at City Hall, 43200 Business Park Drive.

The tribe has been in the Temecula Valley for more than 10,000 years. Its reservation established in 1882 borders Temecula on the city's southern end.

The agreement stems from an amendment to the tribe's gaming compact with California that allowed the tribe to add up to 7,500 gaming machines. The tribe has 4,200 machines now, in a 200,000-square-foot casino as well as a 522-room hotel and related operations.

When voters okayed the additional machines, they also required tribes to reach an accord with local governments to address the impact of their operations. Under the prospective agreement under consideration by Temecula

The agreement ending on Dec. 31, 2030 limits the tribe to a maximum of 5,000 machines.

If the tribe wanted to add machines or expand the casino or hotel, an environmental impact report would be needed. The tribe and city would also have to determine whether the current mitigation fees are enough to cover additional traffic and other consequences of expansion.

Under the proposal, Temecula would receive $2 million annually for the first five fiscal years of the agreement. After that, the $2 million payment would be adjusted for inflation. The tribe's payment could be lower if the city receives money from a special state fund.

The tribe would also agree to spend $10 million on I- 15/79 South interchange improvements. The amount could be less if the tribe secures state or federal grants for the project.

The city would agree to cover public safety calls at the hotel and casino. There would also be a study at the start of the agreement to determine the baseline level of hotel and casino traffic.

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


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