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Tribe may sue casino builders

By Donald E. Coleman The Fresno Bee (Updated Wednesday, June 2, 2004, 10:52 AM)

After settling for millions of dollars with subcontractors who worked on its Madera County casino, the Chukchansi Indian tribe will try to receive reimbursement from two companies charged with overseeing the project. 


For months after the $180 million Chukchansi Gold Resort and Casino opened last August, numerous subcontractors said they had not been paid for their work on it. But in early May, tribal officials said they had made final payments to the subcontractors.


"The tribe stepped up and paid the subcontractors because they built a beautiful resort and casino and deserved to be paid for their hard work," said Joyce Burel, chairwoman of the Picayune Rancheria of the Chukchansi Indians. 


The tribe had contracts with Walton Construction Co. of Kansas City, Mo., to build the casino-resort and Cascade Entertainment Group of Sacramento to secure the project's funding, among other duties.


 The tribe's effort to be reimbursed by these two companies for its payments to the subcontractors probably will involve legal action, Burel said. "The tribe has a commitment to the community and wanted to do the right thing," she said. "The tribe paid the subcontractors and now will be seeking reimbursement from Walton and Cascade."


Burel said the tribe had a guaranteed maximum price contract with Walton, the general contractor. She said there were significant cost overruns, which were Walton's responsibility.


"There was building and spending beyond what the tribe agreed to," Burel said. She added that initially the tribe could not verify the costs overruns, but now knows the figure to be about $14 million.


Cascade also was contracted by the tribe to oversee development and management for the resort and casino, Burel said.


She said the tribe was not satisfied with how the subcontractors were treated, but had to move cautiously because of legal ramifications.


Calls to Walton's lawyer and Cascade's president were not returned.
In February, the tribe and Cascade agreed to pay more than $17 million owed to subcontractors. The agreement came after the tribe had insisted that payments would be made by Walton.


Burel said some subcontractors were paid more and some less than initial bids due to discrepancies with invoices and work orders. Ultimately, all the subcontractors were paid a mutually agreed amount, she said.
All eight lawsuits filed in federal court in Fresno's eastern district have been dismissed.


Still pending are a lawsuit filed in January by Cascade against the rancheria and a lawsuit filed in March by the rancheria against Cascade. Also pending is a Walton lawsuit filed in February against the tribe.


David Hayden, former site manager for the complex who quit to become an advocate for the subcontractors said, "Everyone got paid and they're satisfied."
The reporter can be reached at dcoleman@fresnobee.com or (559) 441-6360.


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