Feds say Chukchansi Gold won’t reopen in September

An anticipated reopening this month of Chukchansi Gold Resort & Casino seems highly unlikely because the National Indian Gaming Commission still is awaiting a significant number of documents from the tribe and an indication that its governance is stable.

A National Indian Gaming Commission spokesman told The Fresno Bee on Tuesday that the commission will wait at least until after the tribe’s election on Oct. 3 for further proof of the council’s stability.

Confirming stability of a new government will take several weeks after the Oct. 3 election, which will likely extend the reopening beyond the one-year anniversary of the closure order issued for the Coarsegold resort on Oct. 10, 2014.

Without the approval of the NIGC, the tribe cannot resume operations at the casino and hotel.

In addition to the election, the federal government also is working on a settlement agreement for two years worth of late audits that sparked a casino gaming office raid and led to the casino’s closure. Auditors found $49.6 million was not accounted for by casino operators.

“Government stability is one of the significant factors in our decision-making process as to whether or not to enter into a settlement agreement for reopening the casino,” Michael Odle, a Washington, D.C.-based spokesman for the federal gaming commission, said Tuesday.

“We sympathize with the tribe’s desire to reopen operations, but the reality is there are several conditions the tribe must address before the casino can reopen,” he said. “This includes specific assurances, documentation and tribal government stability. Instability in the tribal government was an aspect that led to the current situation.”

Odle said another key to opening the casino is ensuring the safety of patrons, employees and tribal members while ensuring the integrity of gaming.

Meanwhile on Tuesday, the Madera County Board of Supervisors approved a draft agreement for the tribe to reopen the casino, even as discord was evident between tribal members.

Dora Jones, a member of the council elected in 2010 that was recognized by the federal government earlier this year, and Monica Davis, who serves on a separate council that is located at the rancheria business complex, disagreed about the validity of each other’s group.

Supervisors voted 5-0 to approve the draft agreement and discuss it with both sides.

Jones objected, saying that Davis’ group does not have federal recognition. Jones serves on the 2010 council with Reggie Lewis. Their group has offices in Fresno.

Davis said the Jones faction was only authorized to distribute federal grant monies to tribe members and wasn’t deemed the lawful tribal council.

Both groups were included in the supervisors’ discussions; Davis pointed out that anything “that council signs is null and void to us … and vice-versa.”

It could take weeks before the county’s agreement is finalized, which also will certainly delay reopening Chukchansi Gold.

“That casino needs to be reopened,” Jones said, standing next to Davis at the podium. “It’s being overseen by a legitimate government that the federal government recognizes.”

A new council will be elected next month, Jones said, and that council will then take on the responsibility of running the tribe’s operations and overseeing the casino.

Only one member of the Davis faction, which was formerly headed by Tex McDonald, chose to run in the election. There are 32 candidates seeking a tribal council seat. Jones said her group opened candidacy to all members of the tribe, and only one member of the Davis faction chose to campaign. McDonald, a former tribal chairman, stepped down after he was arrested and prosecuted for his role in the casino raid.

Odle said the federal gaming commission wants the tribe to succeed. He could not pinpoint a date when the casino would reopen.

“We are optimistic about upcoming elections and are hopeful the tribe will be able to put their house in order,” he said. “We can’t predict the outcome of the election, but we are and will continue to closely monitor events on the ground to ensure the tribe is moving in the right direction towards compliance.”

Work continues to get the casino ready to open, a spokesman said Tuesday.

“The 125-plus team members have been working tirelessly to get the facility in pristine condition, we have and will continue to proactively address any and all concerns that the NIGC has identified, and we look forward to finalizing the reopening agreement expeditiously,” said Christian Goode, Chukchansi Gold’s chief operating officer. “We are confident that the additional 900 employees we need to reopen will be on board in the near future.”

New agreements with county

The county’s draft agreement seeks repayment of money that the county didn’t receive since the casino’s closure.

It also spells out requirements for law enforcement and other public safety services and orders that a barrier be placed between the tribal office complex on Road 417, the hotel and casino to stop incidents similar to last year’s office raid.

The agreement will next go to tribal officials for approval before returning to supervisors for final approval.

Supervisors said they just want the casino open and people working.

Supervisor Brett Frazier said the county’s only role is to submit an agreement for offsetting issues associated with the casino, such as traffic and public safety.

“Whoever is in power is up to you and the federal government,” he said. “This is about our mitigation for our government.”

The county says the tribe owes it about $4 million in payments that haven’t been made in three years, the draft agreement said.

Under the law enforcement agreement, the county wants the tribe to pay for the services of one deputy sheriff 24 hours a day, which would require five full-time equivalent deputies. The county also wants payments for firefighters available seven days a week around the clock, which is equivalent to two full-time firefighters.

The county also is seeking $1.1 million for a new aerial firefighting helicopter or plane, and a $75,000 annual contribution to Cal Fire.

In addition, the county seeks $1 million annually for roads and transportation and $1 million in a general contribution.

Other funding requests include $250,000 annually to the county for its community and economic development department, which oversees housing and job programs for the county. Another $25,000 annual contribution will be used for alcohol education and treatment and problem gambling and gambling disorders.

Supervisors said they want 1,000 casino employees back at work and revenues flowing again.

“It’s in the best interest of the tribe and the county for this to get done,” said David Rogers, Madera County board chairman.

This story was originally published September 15, 2015 at 6:25 PM with the headline "Feds say Chukchansi Gold won’t reopen in September."