The Elk Grove City Council voted unanimously in favor of a proposed memorandum of understanding with the Wilton Rancheria tribe over a plan for the construction of a hotel and casino complex in the city.
The vote came as a conclusion to a late Wednesday meeting at which city officials were presented with Elk Grove residents’ opinion on the project and with more details regarding the memorandum of understanding, with those being provided by tribal officials.
Casino projects usually attract both strong support and staunch opposition and the case is not different with the Elk Grove proposal. Citizens voiced concerns that a gambling venue in the area will ruin the community’s reputation as diverse and family-oriented one.
Under the memorandum of understanding, the Wilton Rancheria tribe will pay the amount of $132 million to the city over a 20-year period to compensate for the impacts its complex will have on residents.
The tribe’s $400-million resort is planned to feature a 12-story hotel tower with 302 rooms, an entertainment facility with numerous food and beverage options, a spacious casino floor, and a convention center. The property is to be built right next to a half-built shopping center, the construction of which was suspended as a result from the recession.
Following the positive vote on the memorandum of understanding, City Mayor Gary Davis said that the project has the potential to boost Elk Grove’s economy significantly and that it does not pose serious threat to the community’s character. The city’s top official also noted that the amount they will receive from the Wilton Rancheria tribe as a compensation for hosting the property will be twice the tax revenue that would have been generated by the failed shopping mall project.
Tribal Chairman Raymond C. Hitchcock promoted their casino as a venture that would turn into an economic catalyst for Elk Grove and the area and that the tribe will establish a “life-long relationship” with the community as its revenue-generating partner. The hotel and casino complex is expected to create close to 2,000 permanent jobs, once and if completed.
Although the Wednesday positive vote is an important step towards the project’s potential materialization, the Wilton Rancheria tribe needs an approval by the State of California and the federal Bureau of Indian Affairs in order to be able to proceed with construction work. Such an approval may take years before granted.
If eventually built, the tribal casino will face serious competition from gambling venues in a highly saturated market, with Thunder Valley Casino Resort, known to be one of the most popular destinations in the region, Red Hawk Casino, Jackson Rancheria, and Cache Creek Casino Resort being few of its future competitors.
