Temecula's mayor on Friday said his city will proceed with a lawsuit against the Pechanga Band of Luiseño Indians after a last-ditch effort failed to resolve a dispute over the tribal casino's effects on city services.

Jeff Comerchero said the suit was to be filed Friday afternoon in federal court in Riverside. The City Council in August voted to take legal action against the tribe to recoup the cost of providing police protection and other services to Pechanga Resort & Casino, which borders the city.

Observers said the lawsuit could have statewide implications for determining when tribes have to mitigate their casinos' effects on local government services.
In a written statement, Comerchero said City Attorney Peter Thorson was ready to file the lawsuit several weeks ago, but the city held off after learning that "all parties" were to meet Thursday afternoon.

"That meeting took place at 3:00 yesterday and the tribe informed the city that they were not willing to resolve the matter," Comerchero said. "The city of Temecula must protect its residents and therefore is filing the lawsuit and requesting that the court compel the tribe to fulfill its obligations."

In a statement issued Friday, Tribal Chairman Mark Macarro said: "This absurd lawsuit shows poor judgment by the city's elected officials.

" ... Although the City Council commonly uses litigation as a tool to conduct business, for Pechanga it is a very serious matter that is not taken lightly. It is not our tradition to solve issues through litigation. This approach has enabled us to become Temecula's top employer and largest economic contributor."

The casino complex consists of a 200,000-square-foot gambling center, a 522-room hotel, an 18-hole golf course and other amenities, according to the city.
At issue is what the tribe owes Temecula after California voters in 2008 authorized more gaming machines at the casino, a popular tourist draw for the Temecula Valley. The vote created a process by which tribes could negotiate directly with local governments to cover the off-reservation impacts of casinos, rather than paying into a state fund to offset those impacts.

City and tribal officials spent nearly three years hammering out a 21-year agreement that called for the tribe to pay Temecula $2 million a year, with the amount rising after six years to account for inflation.

The city expected to take in up to $65 million during the 21 years. The tribe also agreed to pay $10 million or secure federal dollars in the same amount for improvements to the Interstate 15/Highway 79 South interchange, which is near the casino.

The council ratified the agreement in March, but city officials said the tribe missed a June 30 deadline to pay the city $2 million. The tribe countered that the agreement was not final until tribal negotiations concluded with Riverside County over payment for the county's casino-related costs.

At the time, the county and tribe were $352,000 apart on what Pechanga should pay, according to Thorson.
Reach Jeff Horseman at 951-375-3727 or jhorseman@PE.com