SHINGLE SPRINGS CASINO SETTLEMENT

COUNTY REACHES SETTLEMENT WITH SHINGLE SPRINGS MIWOK TRIBE OVER PROPOSED PROJECT
County to Receive $192 Million over 20 Years; Paves the Way for Significant Improvements to Highway 50
Thursday, September 28, 2006

Memorandum of Understanding and Intergovernmental Agreement between the County of El Dorado and Shingle Springs Band of Miwok Indians [.pdf]

Resolution of the Shingle Springs Band of Miwok Indians Regarding Limited Waiver of Sovereign Immunity Relating to, and Approval of, Intergovernmental Agreement with El Dorado County [.pdf]

PLACERVILLE, CA – The El Dorado County Board of Supervisors emerged from a closed session today to announce it has reached a settlement agreement with the Shingle Springs Band of Miwok Indians (“Tribe”). As a result, the County will dismiss its pending litigation in federal and State courts, having determined it is by far the most responsible course of action given the County’s diminished prospects of blocking the project through further court action. In exchange for dropping its opposition to the Tribe’s proposed casino project, the Tribe has agreed to pay the County a minimum or $191.6 million over 20 years. The agreement specifically earmarks $104 million for Highway 50 improvements.

            “For more than 10 years the County has battled the Tribe over its attempt to open a casino in Shingle Springs,” said Supervisor Helen Baumann. “With our legislative efforts and legal challenges nearly exhausted, we decided it is time to bring this matter to a conclusion that is in the best interest of the County’s residents.   Today’s announcement accomplishes exactly that.”

            Through the Settlement Agreement, the Tribe will pay the County $5.2 million per year for 20 years to fund the construction of an additional lane on Highway 50, a programmed 5.3 mile High Occupancy Vehicle (HOV) project, already approved by the California Department of Transportation (“Caltrans”), east and westbound from Bass Lake Road to South Shingle/Ponderosa Road. It is anticipated that this project will alleviate the new traffic that the casino will generate. Without the payments from the Settlement Agreement, this project is not scheduled for completion until 2020. As a part of the casino project previously approved by Caltrans, the Tribe is already funding the cost of building a new interchange on Highway 50 that will take traffic to and from the casino.

Also through the Settlement Agreement, the Tribe has agreed to make the following annual payments to the County over 20 years to mitigate a variety of impacts that casinos are known to create:

$500,000 for the El Dorado County Sheriff’s Department to hire additional law enforcement officers, purchase new law enforcement vehicles, and to fund other tangible resources that the Board concludes are necessary to protect the safety of County residents;

$500,000 in lieu of sales and hotel taxes to ensure that the Tribe does not have an unfair advantage over local businesses;

$2 million in years one through seven, and $2.5 million, increasing by 2% each year, in years eight through 20, in discretionary fund payments; and

$1.3 million in years eight through 20.

In addition, the Agreement calls for the County to receive $100,000 per additional 100 slot machines.

            “These past ten years of litigation has provided the county with a roadmap of where the impacts are and how best to deal with them,” said Supervisor Rusty Dupray. “Our agreement with the Tribe will provide the County with the resources to lessen the impacts of traffic congestion and other impacts that we have all been concerned with. We bargained hard and reached a good agreement for the County.”

            “Our concern extended beyond mitigations,” said Supervisor Norma Santiago. “We wanted to make sure that long-time businesses are not put at a competitive disadvantage.”

            The agreement also calls for the Tribe to comply with County ordinances, particularly those concerning asbestos and dust protection. The Tribe has also agreed to give hiring preferences to County residents. “The Tribe’s project will generate good paying jobs, and we want to make sure that County residents and businesses are at the front of the line when those job announcements are made,” said Board Chairman Jack Sweeney. “We’re hopeful this agreement will translate into contracting opportunities for area businesses.”

            The agreement between the County of El Dorado and the Shingle Springs Band of Miwok Indians will take effect immediately. Under the agreement, the County will receive its annual payments after a full year of casino operations. It is likely that the casino and the associated interchange will take several years to construct.

            This agreement is a result of the Board of Supervisors’ realistic assessment of the probable results of the current litigation, weighed against the obvious benefits that this settlement will bring to County residents. The Board is gratified by the responsible approach of the Tribe in addressing the impacts of their project, and looks forward to continuing with this positive relationship in the future.

Settlement Agreement between El Dorado County and the Shingle Spring Band of Miwok Indians

Over the past ten years, the El Dorado County Board of Supervisors has been committed to doing everything it could to stop or mitigate the proposed casino. The Board has nearly exhausted its legislative efforts and legal challenges and has determined that the County’s ability to block the project through further court action has been diminished. Recognizing this position, the Board has decided it is time to bring this matter to a conclusion that is in the best interest of the County’s residents by mitigating the effects of the proposed casino.

TRAFFIC

The Tribe will pay the County $5.2 million per year for 20 years to fund the construction of an additional High Occupancy Vehicle lane on Highway 50 east and westbound from Bass Lake Road to South Shingle/Ponderosa Road.

Caltrans has already approved and programmed this improvement.

It is anticipated that this project will alleviate the new traffic that the casino will generate.

Without the payments from the Settlement Agreement, this project is not scheduled for completion until 2020.

These improvements are in addition to the construction of a new interchange on Highway 50 that will take traffic to and from the casino.

ENVIRONMENT

The County and the Tribe will work with other agencies, such as the El Dorado Irrigation District, to address the Tribe’s operational needs, such as the provision of water and sewer services to the site. This will help ensure the groundwater supplies of surrounding residences.

The agreement also calls for the Tribe to comply with County ordinances, particularly those concerning asbestos and dust protection. The inclusion of this provision in the agreement ensures that the Tribe follows County and State environmental ordinances.

LAW ENFORCEMENT

The County continues to be concerned about the potential for an increase in crime, particularly “driving under the influence” of alcohol consumed at the casino.

The Tribe agrees to provide $500,000 annually for the El Dorado County Sheriff’s Department to hire additional law enforcement officers, purchase new law enforcement vehicles, and to fund other tangible resources that the Board concludes are necessary to protect the safety of County resident.

LOCAL BUSINESS CONCERNS

Many local businesses have expressed concern about their ability to compete with a tribal business that pays no property, income, or sales taxes.

The Tribe agrees to provide $500,000 annually in lieu of sales and hotel taxes to ensure that the Tribe does not have an unfair advantage over local businesses.

The Tribe will give hiring preferences, both during construction and operation, to El Dorado County residents.

REVENUE

Agreements between local governments and other Indian tribes include a one-time payment (equivalent to an impact fee) and an annual payment to reimburse the local government for additional services.

The Tribe agrees to provide $2 million annually in the first seven years, and $3.8 million (adjusted for inflation) annually in the remaining 13 years, in order for the County to mitigate the costs of additional services related to the casino, such as social services.

To our knowledge, this is the best mitigation payment in the State of California.

This agreement is a result of the Board of Supervisors’ realistic assessment of the probable results of the current litigation, weighed against the obvious benefits that this settlement will bring to County residents. The Board is gratified by the responsible approach of the Tribe in addressing the impacts of their project, and looks forward to continuing with this positive relationship in the future.

TRIBAL-COUNTY AGREEMENT BETWEEN EL DORADO COUNTY AND THE SHINGLE SPRINGS BAND OF MIWOK INDIANS SUMMARY OF COMMUNITY BENEFITS FOR EL DORADO COUNTY

The binding agreement between El Dorado County and the Shingle Springs Band of Miwok Indians is believed to be one of the most generous of its kind, given the significant set of benefits included for the County and its residents.

In exchange for the County dropping its opposition to the Tribe's proposed gaming project, the Tribe has agreed to pay the County $192 million (and as much as $2 1 2 million) over 20 years, the largest such agreement by any Tribe with both a tribal-state gaming compact and tribal land in trust.

Community benefits paid to the County, which will be used to address future impacts, to strengthen public services and inhtructure and to protect and enrich the quality of life of all El Dorado County residents, include:

$104 million ($5.2 million/year/20 years) for the Construction of New HOV Lanes, eastbound and westbound, on Highway 50 along the 5.3-mile stretch fkom Bass Lake Road to South Shingle/Ponderosa Road.

$10 million ($500,00O/year/20 years) for Local Law Enforcement to protect the safety of El Dorado County residents, beginning with the purchase of new police vehicles and the hiring of additional law enforcement officers.

$78 million (with the potential of increasing to $98 million) (over 20 years) for the County to address anticipated/future impacts on the County and to protect/enrich the quality of life for County residents, including payments equivalent to or exceeding local sales and hotel tax ensuring local businesses aren't placed at a competitive disadvantage.

Full compliance with all county ordinances, including the County's toughest-in-the-nation Naturally-Occurring Asbestos and Dust Mitigation regulations.

Hiring preferences, both during construction and operation, for residents of El Dorado County.

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