State’s tribal gaming generates $7.8 billion in 2014

The California Nations Indian Gaming Association (CNIGA) has released its bi-annual economic impact study produced by Beacon Economics, a premier leader in economic research.

Beacon found that tribal government gaming continues to be a positive economic engine in the state of California. In 2014 the state’s tribal government gaming generated $7.8 billion in economic output.

Tribal government gaming spent $4.0 billion in goods and services which generated an additional $3.8 billion in secondary spending by vendors that supply casinos. Tribal non-gaming operations in California – the expenditures that tribal governments make in order to provide services to the tribe and community – generated an estimated $3.3 billion in economic output.

Year after year, tribal gaming and non-gaming activities generate an increasingly positive impact on California’s labor markets. For example, in 2012, tribal gaming operations supported approximately 56,100 jobs statewide. In 2014, tribal gaming operations supported about 63,400 jobs statewide. In 2012, tribal non-gaming operations supported approximately 14,800 jobs statewide; in 2014, tribal non-gaming operations supported around 21,300 jobs statewide.

Said Council member and CNIGA Chairman Steve Stallings, who is also a member of the Rincon tribal council, “The economic and labor impacts are felt in the local communities that surround tribal government gaming facilities. Across the state, ninety percent of those employed by tribal governments are non-tribal employees. Most of these facilities are in very remote and economically depressed areas and the casinos are some of the biggest employers in their regions. The salaries and benefits provided by our members and their facilities exceed market wages for the same labor pool in California.”

“In addition, the salaries and benefits provided by CNIGA members tribes exceed market wages for the same labor pool in the state,” Stallings added.

In 2014 Southern California tribal casinos generated an estimated $4.4 billion in economic output. Of that total, $2.1 billion came from secondary economic effects. Of the $4.4 billion in total economic output generated, $2.8 billion represented value added to the economy of Southern California, while casinos in the region generated an additional $1.8 billion in total labor income.

Tribal gaming and non-gaming operations serve an important role in state and local tax revenue. In 2014, tribal gaming generated $39.2 million in state and local tax revenues, while tribal non-gaming operations paid $80.3 million in state and local taxes. Employees and recipients of gaming expenditures collectively and individually contribute millions of dollars to each year to local sales, property and income tax revenues in California.

The report also noted that charitable contributions from gaming tribes and their casinos underwrote an estimated 542 jobs statewide and an estimated $137.9 million in donations.

Stallings praised the tribes for participating in the Beacon survey and analysis. “In the local communities where Indian casinos exist the public is supportive because of the integrity with which the tribes operate our casinos, work with local governments, and share the benefits of our enterprises with our neighbors. However, the Beacon Report is valuable because it gives the tribes and all Californians an overall picture of our very impressive industry and its collective impact on the state economy.”

Casinos in Northern California generated an estimated $3.2 billion in economic output, of which $1.5 billion represented secondary economic effects. Of the $3.2 billion in economic output these casinos generated $2.0 billion represented value added to Northern California region, while $1.4 billion represented wages and earnings for Northern California workers.

In the San Diego area the tribes have earned a reputation for keeping promises. The tribes have earned high ratings from neighbors and government officials, and at the same time underscore statewide statistics with strong employee numbers and expansion.

“The tribes made promises to California voters that we would use gaming revenues to become economically self-sufficient, create jobs, take out people off welfare, build modern governments that are responsible, and establish ourselves as good neighbors,” said Rincon Chairman Bo Mazzetti, adding, “This year’s 2014 Beacon report shows that we have not only kept our promises, but exceeded them by becoming one of the state’s major employers and important economic and government partners in our local regions.”

Rincon takes economic leap of faith

In 2011, the Rincon government took an economic leap of faith, betting $160 million that the stalled U.S. economy would recover and with it bring a healthy surge of growth in California’s tribal casino market. Rincon’s tribal council believed it was time to diversify the experience at their Harrah’s property, investing in a second tower of guest rooms, conference and entertainment center, outdoor pool and water play features and nine new dining and beverage specialty venues.

On April 2014 the tribe completed the second phase of the expansion and opened the new property with a name change to Harrah’s Resort So Cal. Rincon was the first tribe to begin to shape the future of tribal government gaming by expanding into the resort and food and beverage market, and the early decision to diversify has paid off. So did the 2013 $4.3 million investment Rincon made in construction of the Travel Plaza, featuring the only 7-11 franchise owned by the band, a Subway restaurant and Shell vehicle service station.

The 2012-2014 Harrah’s Resort remodel and new construction created 1,500 new jobs, $99.9 million in new income for San Diego workers, $104 million in goods and purchases, and $11.5 million in new state and federal taxes. During 2013, the resort and casino employed 1,520 annually, with a payroll including wages and benefits of $56.9 million. The band’s enterprises played a significant role in underwriting local businesses and kick starting the region’s economy with expenditures of $77.5 million for goods and services. Accounting for the ripple effect, Harrah’s expenditures flowing into the local and state economy were $254 million with tax contributions of $7.8 million.

The year 2016 was also very good for California tribal enterprises. Rincon has contributed to increases in North County jobs, tourism, entertainment, business, and meeting markets, and supported large and small business through purchases of goods and services. Harrah’s expenditures flowing into the local and state economy were $254 million with tax contributions of $7.8 million.

During 2016 Rincon saw growth in all areas. The government payroll was $8.3 million and infrastructure investments were $1.7 million. Rincon-owned Travel Plaza and 7-11 franchise has consistently ranked fifth among the region’s 97 7-11 stores in the region.

In addition to being the first tribe to diversify its economic base with a 7-11 franchise, the band also joined the microbrewery explosion, opening SR76Beerworks. SR76Beerworks represents another first – the first microbrewery owned by an American Indian tribe. Opened in December 2016, the brewery is named after the state highway, running parallel to the San Luis Rey River, which was once the home to Luiseno tribal villages. The trails created by the Luiseno villagers would eventually become the path of State Route 76, and, now great brewery suds named after travel destinations along the highway.

Other investments include partnering with unique and successful specialty small businesses, through Rincon’s First Nations Capital Partners (FNCP). To support a tribal economic diversification strategy, Rincon assisted in developing FNCP, a private equity fund organized in a partnership with the Colusa Indian Community and Wells Fargo Bank. The band shares results with the other partners. The portfolio now includes four robust companies manufacturing diverse products.

Able Card Company is a manufacturer of plastic cards for many applications like gift cards, casino cards, hotel room keys, and ATM cards. Everson Cordage Works manufactures high quality twisted twines and ropes for fishing, industrial, and commercial customers. Advance Adapters designs, engineers, and manufactures Powertrain and Four Wheel Drive after-market products.

According to Steve Stallings and Tribal Treasurer Jim Murguia, this strategy has multiple benefits. It creates revenue for the band, is insured through a credible financial institution, and supports growth of small to medium-size businesses with an infusion of capital.

“There are many solid, sustainable, growth oriented businesses that get overlooked because they may lack glamour, but which are the type of products and businesses that are the foundation of the American economy,” noted Stallings.

Adhering to an established policy of sharing financial resources with neighbors through a program of philanthropic giving, the Rincon Band annually supports more than 250 non-profits and public programs annually. The band takes pride in the tribal services such as the fire department, paramedic, and ambulance services that also respond to calls from neighboring communities. Every day, every minute the availability of these services is saving lives and improving public safety in the county’s rural-inland neighborhoods.

Century old tribal water dispute will be settled soon

A lawsuit that has gone on so long that most of those who initiated it are dead, will be settled very, very soon, possibly this week. For Bo Mazzetti, chairman of the Rincon Band of Mission Indians, that is a bittersweet thing. “My biggest regret is that not one of the original people who started this is alive to see it finished,” he told The Roadrunner this week. “They have all passed away. It has been fifty years we have been trying to settle this.”

One of those was his father, the legendary Rincon leader Max Mazzetti, who fought for Indian causes all his long life.

The lawsuit involved water that the federal government gave away—first to the five Indian bands whose reservations ring the Valley Center area—and then later gave the very same water to two water agencies that came to serve Escondido and Vista.

When you give the same thing to two different parties, it is a recipe for disaster.

This action by the federal government more than a century ago planted the seeds of a festering legal wound that is only now being healed.
Even as the United States was forming Indian reservations in San Diego County in latter part of the 19th century and the early part of the 20th century and giving them water rights, it was giving the same rights to the non-white populations through the approval of the water and power projects that today serve Vista and Escondido. Beginning in the 1890s the newly formed City of Escondido (through ancestor agencies that included the Escondido Irrigation District and Escondido Mutual Water Company) began diverting water from the San Luis Rey River through the Escondido Canal, which crosses several reservations to Lake Wohlford, which is owned by the city.

On Wednesday, January 25 the Escondido City Council was due to vote on a “Global Agreement Between the City of Escondido and the Vista Irrigation District.” This week an attorney for the city filed a motion in federal court to revive the longstanding lawsuit one more time so that it could be noted that all the parties involved had agreed to the settlement.

Between 1912 and 1998 Vista and Escondido joined in a total of 18 agreements that affected various aspects of the local water system that included facilities owned by Escondido and the VID and allowed water from the Warner Basin to flow into Dixon Lake Treatment Plant and from there to Escondido and VID. This new agreement supersedes all of them.
The new agreement recognizes the Settlement Agreement between Escondido, VID and the five neighboring Indian bands, including Rincon, San Pasqual, La Jolla, Pauma and Pala. All, to one degree or another, take water from the San Luis Rey River.

In the 1960s the tribes sued VID and the City of Escondido to reclaim their rights to the San Luis Rey water. Most who initiated those lawsuits died before the issues were resolved.

In the 1980s former Congressman Ron Packard did his best to solve this situation. Last year Congressman Duncan Hunter’s legislation settling the San Luis Rey lawsuit passed Congress. One of President Barrack Obama’s final act in office was signing that bill.

Duncan Hunter Deputy Chief of Staff Mike Harrison told The Roadrunner: “Obviously, the congressman is very pleased to see the legislation finally be implemented. This is a longstanding issue. Water is very important in our region. Any action that can be resolved to such a longstanding issue we are happy to see resolved. Former Congressman Ron Packard was the champion of this. He should be given credit for his leadership and we are thankful that we were able to get it done.”

In the early years of the decades-long litigation it went to the U.S. Supreme Court but by 1985 no final decision had been reached and all the parties determined that they should reach a settlement. Congressman Packard’s San Luis Rey Indian Water Rights Settlement Act resolved the dispute. The Act provided for finding the supplement amount of 16,000 AF and to pay the bands $30 million in damages.

Packard, who retired to Payson, Utah after his 18 years in Congress, was gratified to hear that the cause he fought for before he was elected to Congress and after was finally being resolved. Packard told The Roadrunner: “I have worked on the San Luis Rey water settlement since before I went to Congress, forty years or more. It’s marvelous that we finally put it to bed. We finally got it done this year, thanks to Duncan Hunter, who introduced the bill. The lawsuit is put to bed!”

Packard recalls, “When I went to Congress we passed the legislation.” When he took office, he met with the bands, the water districts and the Department of the Interior to determine how to settle the lawsuit.

“We required that the government would furnish enough water to make all parties equal, which meant they had to come up with the water. The first water that came from that lining [of the two canals carrying water from the Colorado River] was to settle this dispute. Plus, we earmarked 30 million for the Indians in a trust that they can access that money once we sign the agreement. It has accrued interest since 1986, now it’s closer to $60 million, that will be a big benefit to the five bands and settles a long legal dispute.”

Once the federal government identified lining the canals as the source of the water, litigation over that action required several more years to settle.

As Epp describes it, “the benefits fall into two major areas. The first is it preserves and protects an important supply of local water and second it is a high-water mark in our cooperation and teamwork with the surrounding Indian bands.”

What started as a bitter adversarial relationship in the 1960s eventually evolved into the warring parties realizing that the true cause of the problem was the federal government.

“This brings us one step closer to vitalizing an issue that started in 1967 and 1969 for the tribes,” said Mazzetti. “The federal government caused the problem by creating the reservation and giving it the water and then giving it to Vista and Escondido. We became very hostile towards each other. Since then we have become good friends and allies and worked well together.”

Epp said, “The framework at that time was that the Indian bands sued the Escondido Mutual Water Co. and Lake Henshaw Water Company, Escondido and Vista for essentially taking the waters of the San Luis Rey River. The paradigm shift that made this settlement possible, was that the U.S. had licensed the cities to use that water at the same time it created the reservations. So essentially the U.S. gave the same water away twice.”

To settle this problem, the parties had to involve the U.S. government. The Department of the Interior agreed to replace the water and make it available so the cities wouldn’t be harmed. But where to find the 16,000 AF?

“Where do you find another sixteen thousand acre feet?” asked Epp rhetorically. “It took the better part of a decade to find the answer.” The answer was to line the Coachella Canal and the All-American Canal, which brings water to California from the Colorado River. This saved 100,000 AF from evaporation, and 16,000 was set aside for the settlement. Many other entities benefited from lining those canals, but the tribes were put at the head of the line.

Mazzetti recalls, “When in 1986 Packard passed the act that promised to find the 16,000 acre feet, no one knew it would take twenty years to find it! When we found it, the federal government tried to rewrite the agreement. We spent a long time fighting what the definition of ‘supplemental’ meant. We all know what it means, but government attorneys thought it meant ‘replacement.’ There was a seven-year battle on that one word.”

“Once we had the other water supply it became a matter of negotiating an agreement,” said Epp. “It covered how we were to share the supplemental water and local water so the bands and the U.S. entered into an agreement that was signed in 2012. Then we needed to have legislation—that was where Duncan Hunter came in.”

And now, says Mazzetti, “We’re almost there. The final step is to file in federal district court, which was done earlier this week by the City of Escondido. It had been an inactive case. Now they reopened the case. All the parties are in agreement and then the court can rule and close the case. The only thing left is to get a Federal Energy Regulatory Commission (FERC) license to operate the Bear Valley hydroelectric plant just below the Lake Wohlford dam.”

And perhaps, sometime soon, after sixty years of water, the water will begin to flow towards the Indian reservations.

Bo Mazzetti re-elected chairman of the Rincon Band

Bo Mazzetti has been re-elected to his fourth term as chairman of the Rincon Band of Luiseño Indians with Tishmall Turner, elected to the post of vice chairwoman, serving her first term of tribal council leadership. Incumbent Alfonso Kolb, who ran unopposed, begins his second two-year term as a tribal council member.

“It is both an honor and great responsibility to serve the Rincon people. Faced with so many changes and new challenges, I am grateful that Rincon members value the consistency and direction of our leadership, and have given me more time to complete the agenda priorities I have embraced over the past 8 years, “said Mazzetti.

“The band’s desire to become economically independent and self-governing is an important element to our success as business owners and a government. Our folks often disagree on the path, but our goals and history unite us. Like my father before me, and our ancestors before him, we are determined to keep our cultural and sovereign identities, and at the same time continue to build good relations with our neighbors and local governments with whom we share many common concerns.”

The five-member council is elected on a rotating basis with the officers and one council position voted on every two years, and two additional council positions in the off years.

The 2017-2018 Rincon Tribal Council consists of Chairman Mazzetti, Vice Chairwoman Turner, Council Member Kolb, and incumbent Council Members Steve Stallings and Laurie G. Gonzalez.

In addition to serving as the executive, legislative and judicial branches of the government, the tribal council is the board of directors for tribal enterprises, including, Harrah’s Resort Southern California, one of the premier resorts in San Diego County.

The Rincon Band of Luiseño Indians occupies a 6,000-acre reservation in Valley Center, and has a tribal population of 500 plus enrolled members. Established in 1875, the Rincon Band is a sovereign government recognized by the U.S. Constitution, the United States Congress, court precedent, and federal policy.

Democratically elected by a majority vote of tribal members, the Rincon Council has the executive, legislative, and legal authority and responsibility to protect and promote the welfare of the tribal members and jurisdiction over the reservation land. The tribe is not subdivision of the county or state, but as a federally recognized sovereign tribal government, Rincon has powers equal to a city, county, or state. More information on the Rincon Band may be found at www.rincontribe.org

Rincon tribe opens first tribal brewery in So Cal

Local VIPs cut the ribbon for the new SR-76 Brewery, located next to Harrah’s Southern California Resort. Shown are (from left) Council member Steve Stallings, Shalome Briggs, council member, Alfonso Kolb, council woman Laurie Gonzalez, Tishmall Turner, Rincon Treasurer Jim Murguia, Rincon tribal member Frank Mazzetti, Darrell Pliant, Harrah’s general manager. Back row is brewmaster, Brian Smith.

In a San Diego county beer industry that’s growing like Bermuda grass, there’s a new entry, the SR-76 brewery at Harrah’s Southern California Resort in Valley Center.

Although it’s next to the valet parking entrance to the casino, SR-76 is wholly owned by the Rincon Band of Mission Indians.

The name, after State Road 76, has great historical significance for the tribe, which used the original trail along the San Luis River to migrate and forage from the inland to the coast. The trail eventually became that road.

The first beer to be created was a Kölsch-style, which is a clear, all-barley pale ale. SR-76 will offer at least four different styles of beer, rotating them seasonally. It will produce up to 20 different brews each year.

On November 5 the brewery held an open house and “soft opening,” although it will be open from now on (see below for hours.) The staff of the brewery was there to meet the public and offer tastings.

Of course, at the top is Brewmaster Brian Scott, a longtime area brewer, who has helped manage several breweries in the area, including Firehouse, Mission and Karl Strauss. He has been in San Diego a little over 13 years.

Scott will showcase beers intended to highlight the region and location. This rare opportunity gives him a really unique opportunity to draw inspiration, as well as ingredients from the local area, which plays naturally into his philosophy behind beer.

Scott plans to showcase beers that will highlight the region, using ingredients from the local area. His philosophy, he says, “is focused on creating beers that are approachable, well built, and balanced. Brews that show off the lighter side of the spectrum like Kolcsh, Wheat beers and Pale Ales.”

The current brews available:

Weissbier
A pale, refreshing German wheat beer with high carbonation, dry finish, a fluffy mouthfeel, and a distinctive banana and clove yeast character.

Pale ale
A pale, refreshing, hop-forward ale with sufficient supporting malt to make the beer more balanced and accessible than modern American IPAs

Kolsch
A clean, crisp, delicately-balanced beer with subtle fruit and hop character. Subdued maltiness leads to a well-attenuated and refreshing finish.

Designing a tribal brewery

We talked to Carrie Mecaro, who created the iconic look for the brewery that is a fusion of the “industrial” look that is trendy with breweries — but also draws from the native culture that is so important to tribal members.

We asked her to elaborate on the design features. She noted that the industrial look was a bit of “form follows function” because she needed to work with the existing open ducts and pipes of the building.

“Given that the existing space was full of industrial ductwork and piping our goal was to deemphasize those visible mechanics by introducing other materials into the space,” she said.

“We utilized the existing drop ceiling panels by rearranging them to shield the larger clusters of industrial piping and ductwork from view and were able to also strategically locate them for better acoustical value throughout the space. Incorporating the logo of SR-76 into the interior was of high importance so we chose to create a large dimensional wood wall with the logo laser cut into the wood and back-lit for a dramatic effect. The paint colors used are also a reflection of the regional agriculture and reflect natural elements (earth, ocean,fire) found along the SR-76,” she said.
Because there is so much concrete in the space they used natural materials with interesting textures to soften those edges and create a more organic and modern feeling.

“From the woven pendant lights and barstools to the soft leather seating and wood elements, our goal was to create a casual and comfortable, welcoming vibe. We also used a ton of plants! Having a focal wall full of planters and hanging plants really does create a sense of openness and lightness in the space,” said the designer.

Members of the tribe are interested in seeing iconic tribal symbols in the interior design. One such symbol is petroglyphs, literally prehistoric artwork carved into the living stone. There are many such ancient works of native art in San Diego county, although most of them are in locations that are protected from molestation by people who might harm them.

“Future artwork,” said Mecaro, “will be created to tell the story of the rich culture and history of the tribe as well as to support the brewery concept and to demonstrate the significant meaning of the SR-76 in the Tribes history. We are in the middle of exploring ideas to go about creating that artwork in a way that will be modern and unique, but still showcase Tribal culture and history, perhaps in the form of petroglyphs. Stay tuned!”

Her company, A.Community. A Design Collective is made up of Carrie Mecaro-Interior Designer, and her business partner Nastaran Ghomi-Architect. They formed their business in 2013 after working in the industry for about 15-20 plus years each.

Mecaro explained the origin of the company: “We founded our firm upon one simple concept, creating community, which then became our name. Out for dinner one night we were sat at the ‘Community’ table by the hostess who was incredibly apologetic thinking we wouldn’t like it. We looked at ourselves, laughed, and the light went off. We love to create community with others, we love to listen and learn from everyone we meet and the idea of sitting next to a stranger is exactly our whole point. We can create a community out of anyone and anywhere as long as we are open to speaking with and learning from those we do not know. Long story short, we had such an incredible table mate seated next to us that night and had one of the best dinner conversations of our lives.”

Their mission statement defines a company “founded with the simple belief that design is not just an act of building, it is the creation of a vital destination. We see design as a strategic approach in achieving a unique expectation. It’s about discovering the needs and aspirations of our Clients. A belief that creating sustainable spaces is rooted in intelligent design and planning and that the most creative spaces grow organically from the relationships we build with our diverse base of Clients. Simply put, we build spaces that foster inspiration. Places where people feel good. That’s COMMUNITY.” Visit http://www.com-collective.com/

SR-76 Brewery is located at 777 Harrah’s Rincon Way, Valley Center. Stay tuned to the website for news about the grand opening.

Hours are:
WED & THU: 1–9 p.m.
FRI & SAT: 12–10 p.m.
SUN: 12–7 p.m.
MON & TUE: CLOSED
760-751-3100

For more information visit: sr76beerworks.com

Burning Man festival

For those of you who do not know what burning man is, it is a MASSIVE art festival that takes place in the Nevada dessert.

It is a culture of people looking to express themselves in the most radical ways in art, style, and music within an encouraged 10 principles outlined by the group.

The burnings are likened to that of a high school bonfire on steroids-huge art structures set ablaze. For those who can’t make the long trip to Nevada, a local alternative will be offered here in October at the La Jolla Indian Campground.

Unlike the dryer parched dessert this local festival will not have burning due to the area’s highly flammable environment.

In some ways I am reminded of a modern day hippy movement after looking into the festival, and in a way it is, but the focus is more on the art. Like many life experiences, participation is highly encouraged at this event, hence the name YOUtopia.

The event will feature outrageous and engaging works of art from many San Diego artitst, DJs, performances, light show, fire dancers, and even your own works of art to showcase if you so chose.

About 3,000 people are expected to come out to the campground this year. This will be the seventh year for the event. What stands out about this event is there will be NO VENDORS! Items will be free or gifts. No one will be selling items. Only ice and coffee are sold on site. All the works of art will be accepted from an unconditional gifting system which is again part of the principles of burning man: #3 gifting.

The festival is very expressive both artistically, visually, and well lets just say bodily as in you may see Adam and Eve walking around which ties into principle #4 self expression.

If you are indeed an artist, one who is an admirer of art, or an adventurer, just as the theme this year says, “Create your own adventure,” you’re bound to find something colorful. Youtopia is not a La Jolla Indian Reservation sponsored event, only a venue for the festival.

The San Diego Collaborative Arts Project, a nonprofit company, raises the money for the event and is responsible for giving out $80,000 in art grants to display at Youtopia.

The event will begin Thursday, October 13 and will go through Sunday, October 16. Basic tickets have already sold out but other options are available as well as tickets for low income. More information can be found online at: sdyoutopia.com