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El Dorado banking on new Red Hawk Casino

By Diana Lambert Dec. 14, 2008 The Sacramento Bee

Bhupinder Bal has high hopes. He's changed Gold Harvest Market to a 24-hour operation, hired more staff and added food to go.

The Shingle Springs business owner is banking on the Red Hawk Casino, which opens this week, two miles away, near Highway 50.

"We do have expectations that, hopefully, people will stop by here," Bal said.

It's anticipated that millions of dollars will start to pour into El Dorado County after Wednesday's opening of the region's latest Indian casino and its 2,000 slot machines, 75 gambling tables, six restaurants and four bars.

The casino also is expected to hire local vendors and make major contributions to charities.

"There is always additional economic impact when a business as huge as this opens," said Laurel Brent-Bumb, chief executive officer of the El Dorado County Chamber of Commerce. "The 17th will be a changing day for El Dorado County."

Indian casinos are, on the whole, "a positive economic benefit to the community," said Mindy Marks, assistant professor of economics at University of California, Riverside, and co-author of "Lands of Opportunity: Social and Economic Effects of Tribal Gaming on Localities."

Marks acknowledged, however, that money spent at the casino could just be redistributed from one place to another, leaving other casinos or entertainment venues with less revenue.

But casino workers also could bring economic benefit to county businesses. Red Hawk's 1,750 workers will make it the largest private employer in the county.

"With the unemployment rate as high as it is, it will have a positive impact for at least 1,700 families," said Suzanne O'Keefe, associate professor of economics at California State University, Sacramento. "We've been losing jobs in the range of 10,000 in our region in the last year, and it helps put a dent in that problem."

Other jobs could be generated indirectly.

"I think that the complementary businesses – hotels, gas stations and the boutique industry – will benefit and grow," Brent-Bumb said.

All this activity, Brent-Bumb added, should yield a "short turnaround on the construction of new lodging," but did not name the planned hotels.

It is hard to predict how much prosperity a new casino can add to a community, but the success of Thunder Valley Casino in Lincoln offers some insight. The United Auburn Indian Community casino, opened in 2003, sits along Interstate 80, on the way to Reno. Its size is comparable to Red Hawk's, with over 2,600 slot machines and 98 tables.

"They have been a tremendous interceptor of traffic heading up the hill," said Greg Van Dusen, Placer Valley Tourism chief executive officer.

Thunder Valley spends about $30 million a year on food, gasoline and other goods, mostly from area vendors, said Doug Elmets, spokesman for the casino.

And the United Auburn Indian Community is one of the largest philanthropic givers in the county, Elmets said, donating over $1 million a year.

The Red Hawk Casino and its owners, the Shingle Springs Band of Miwok Indians, are expected to become big donors to local charities.

"We've already had more requests than we can deal with," Peter Fordham, the casino's general manager, told The Bee in October.

Although El Dorado County and residents around Red Hawk fought the casino – it will change the semi-rural feel of the location, dotted with small ranches and homes – it now stands as a potential economic boost for the area.

The Shingle Springs tribe's compact with the state gives California 20 percent to 25 percent of its slot machines' net win. El Dorado County stands to garner at least $191 million over 20 years, of which $104 million is earmarked for Highway 50 improvements. Under an amended compact signed July 1, the tribe may deduct payments it makes for constructing HOV lanes on Highway 50 from its payments to the state.

A half-million dollars of the new money will go to local law enforcement, for equipment and personnel to cope with the surge in traffic.

"I can tell you that our county negotiated the best contract ever in history," Brent-Bumb said.

Not far from Red Hawk, Danny Perez of Joanie's Cafe & Grill isn't thinking about long-term expectations for the community. He's focused on the casino's opening day.

"They are expecting traffic from early morning," Perez said gleefully. "We're hoping it will bring us a lot of new business."


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Call The Bee's Diana Lambert, (916) 478-2672.



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