The Coyote Valley Band of Pomo Indians and Gov. Jerry Brown have negotiated a new gambling contract that allows the tribe to keep more gambling revenue from its Ukiah-area casino while requiring that it renegotiate millions of dollars of debt.
"It's a great day," tribal Chairman John Feliz Jr. said Friday, shortly after the governor's office released the amended agreement with the 400-member Redwood Valley tribe. The new compact will allow the tribe to maintain self sufficiency for its members and pay the state a fair share of its revenues, Feliz said.
He's hoping it also will allow the tribe to move forward with a casino expansion that began, then stalled five years ago.
"Hopefully, it will allow us to pursue growth," Feliz said.
The compact won't go into effect until the state Legislature and the Bureau of Indian Affairs sign off on the agreement, a process that could take months.
The tribe has been paying the state an unfair share of its revenues under the current compact, negotiated in 2004 with former Gov. Arnold Schwarzenegger, said the tribe's attorney, Little Fawn Boland. It includes an annual $4,600 payment on each of its 250 slot machines, no matter how little the casino collects. The tribe also pays a percentage of its revenues to the state.
Schwarzenegger's administration was known for wresting lucrative agreements from tribes. At least one agreement — with the Upper Lake Pomo tribe — was rejected by the Interior Department as too onerous.
Coyote Valley's new agreement with Gov. Jerry Brown would bring it into line with other tribes with small casinos. It initially does not require the tribe to pay fees on gaming devices until it has more than 350 of them.
"It's a way they can actually survive," Boland said.
In exchange for more favorable terms, the tribe is required to make some concessions. They include reducing the maximum number of gaming devices allowed from 2,000 to 1,250. The tribe also is required to work out its debt with Bank of America. The tribe has defaulted on a $12 million loan it took out to begin building a new casino. The project never progressed much beyond breaking ground so the current casino continues to be housed in a tent-like structure.
The tribe has 30 months from the time the compact becomes effective to renegotiate its loan. The state is recommending that it pursue concessions from the bank that could include reducing the principal, lowering interest rates or forgiving accrued interest.
That becomes more likely now that the tribe has a more favorable gambling compact, Feliz said. With greater anticipated revenue, the tribe also potentially could get a new loan to pay off the existing one, he said.
Like many other casinos, Coyote Valley's has taken a financial hit from the recession, Feliz said. It's also suffered from internal tribal leadership upheaval. Nevertheless, it's been able to maintain a 24-hour presence and a stable workforce, currently at about 194 people.
"We're grateful" for that, he said.
(You can reach Staff Writer Glenda Anderson at 462-6473 or glenda.anderson@pressdemocrat.com.)
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