“I felt like it was not the proper time to get financed for more than $200 million for this casino,” Smith recalled. “The current casino was doing well and there was no assurance a new one was going to be a success.”

Smith’s warnings were not heeded and now the Quechan Nation finds itself and its resort in a financial hole.

On Friday, Fitch Ratings downgraded ratings for the Quechan Nation. Fitch downgraded the Quechan’s issuer rating from B+ to CCC, its $110 million gaming enterprise revenue bonds from BB- to CCC+ and its $45 million governmental project tax exempt bonds from B+ to CCC.

According to a Fitch Ratings report the downgrading “reflects the inability of the tribe to secure $25 million in external completion financing to fund the remainder of the $214 million total project cost.”

The report also says the downgrading “reflects Fitch’s view that a real possibility of payment default exists at this time.”

Multiple calls to Quechan Nation President Mike Jackson were not returned. When contacted, Felix Montague, Quechan construction committee chairman, deferred questions to Jackson.

But Smith said there have been many concerns expressed regarding the building of the casino.

“It seems like they had no idea what they were doing,” Smith said of the tribal council. “They were spending all the tribe’s assets.”

Smith said the tribal council had previously purchased land in the Yuma area “for future fallback.” But he said that property was sold, for an amount he did not know, to help pay for the cost of the construction of the casino.

 
 
“It seems like the council is putting all its eggs into one casino,” he said.

Preston Arrow-Weed, another Quechan tribal elder, said he wasn’t sure if the nation would be able to find money to finish the casino.

“We’ve had concerns that we may not be able to meet that money (requirement),” he said. “We don’t know what was bargained and how they’re going to get money.”

He said concerned tribal members have contacted Imperial County and state officials regarding the situation, but he said because the Quechan Nation is a sovereign nation, outside entities are limited in the help they can offer.

“I believe (the tribal council) has misinformed the tribal people by saying, ‘Everything’s OK,’” Arrow-Weed said. “But it’s not. Everything’s going wrong.”

>> Staff Writer Eric Galvan can be reached at 337-3441 or at egalvan@ivpressonline.com