The Brown administration announced Wednesday that it negotiated its first Indian gambling compact with the Habematolel Pomo of Upper Lake, which plans to open the region's newest casino by Jan. 1.

The historic deal – which takes none of the profits on the tribe's first 350 slot machines and takes 15 percent only after it operates more than 600 – is expected to set the administration's tone for negotiations with the state's 58 other tribes with casinos. At stake are hundreds of millions of dollars a year in potential casino revenue paid by tribes to mitigate casino resorts' off-reservation impacts.

It supersedes the 2009 compact negotiated by then-Gov. Arnold Schwarzenegger that was rejected by the Bureau of Indian Affairs. That deal – a straight 15 percent cut to be paid directly into the state's general fund – amounted to a tax that violated the federal Indian Gaming Regulatory Act, the BIA said.

The 215-member Habematolel Pomo tribe – "People of the Rock Village" – plans to open Running Creek Casino after getting BIA approval.

The casino resort about 120 miles from Sacramento expects to hire 145 employees initially – a boost for Lake County, suffering from 19.7 percent unemployment and an 18.8 percent poverty rate, both in California's top 10.
It will open with 349 slot machines, six poker tables, a restaurant, fast-food court and cocktail lounge, said tribal chief Sherry Treppa.

"This is truly a momentous occasion for the tribe. It's righting so many wrongs in our history," said Treppa, weeping tears of joy. Tribal unemployment is 75 percent and many tribal members can't afford to finish school, she said.
The casino, expected to eventually make $15.6 million a year from 750 slot machines, "will provide jobs and give us hope and pride," Treppa said.
The 76,750 square-foot, $30 million casino and hotel resort – to be built by Luna Entertainment of Michigan – is along Highway 20 about a mile from the site of the Bloody Island Massacre of May 15, 1850, Treppa said.

About 100 Pomo – most women and children – were massacred by the U.S. Cavalry after a Pomo warrior killed a white settler who had "enslaved, brutalized and starved" the tribe, according to the state's historic marker.

The tribe agreed to the Schwarzenegger compact because it was told "take it or leave it," said tribal attorney Rob Rosette. "The effect of playing hardball was no casino, no jobs, no stimulus."

The Brown administration addressed the BIA's concerns, took into account the tribe's size and resources, "and produced a win-win for everybody," Rosette said.

Brown's negotiator, Jacob Appelsmith, called the compact "a model for how the state and local communities and tribes can all work together toward achieving something positive for each of their interests."

The basic structure of the compact – which addresses local impacts, environmental concerns, gambling addiction and the rights of employees and patrons – could apply to future compacts, Appelsmith said. "We also take the view that each tribe is different. This is a very small, isolated tribe in terms of its ability to be successful in gaming, and we were mindful of that in trying to forge an agreement that would work for them."

By building a coalition with local agencies and community groups, the Habematolel got universal support for their project, Appelsmith said.
Cheryl Schmit, director of the casino watchdog group Stand Up For California, said while "some folks are still uncomfortable about a casino within a mile from an elementary school, the tribe to their credit did negotiate a comprehensive agreement that's beneficial to Lake County."

Howard Dickstein, who represents the Jackson and Auburn casino tribes, said, "I don't think there will be any objections. This will be a mom-and-pop operation too far from major markets."

The first compacts signed by new administrations "all become templates for later compacts," said Dickstein, who negotiated the first compacts signed with the last three administrations. The 15 percent state cut "is no more onerous than prior administrations," Dickstein noted.