Tribe fighting to open urban casino: The battle over plans for a San Pablo card
                     room blocks an Interior budget bill.

                     By David Whitney
                     Bee Washington Bureau
                     (Published July 29, 2001)

                     WASHINGTON -- A small band of American Indians in Santa Rosa is
                     locked in a colossal battle to protect its opportunity to convert an East Bay
                     card room into a gambling casino, the first in a California urban area.

                     The battle is pitting Democrat against Democrat, has drawn in big-money
                     players and is quickly escalating into the major obstacle between the House of
                     Representatives and the Senate over passage of an $18 billion funding bill for
                     the Interior Department.

                     Hanging in the balance is the future of the landless Lytton band of Pomo
                     Indians, who are counting on proceeds from the San Pablo casino along
                     Interstate 80 to eventually pay for a new start for its 220 members.

                     "They have been without a land base for over 40 years," said tribal
                     chairwoman Margie Mejia. "They've been without proper health care for over
                     40 years. They want their reservation back. This whole project is the vehicle
                     to provide the revenue for that."

                     The Lytton band lost its traditional Sonoma County homeland four decades
                     ago under a discredited federal policy to break up reservations and assimilate
                     Indians into society. A lawsuit settled in 1991 restored the band's tribal status
                     and promised it new economic opportunity as long as it didn't involve a casino
                     in Sonoma County.

                     The Lytton band cut a deal three years ago to buy the card room in San
                     Pablo, an hour's drive from their aboriginal lands. In a stealth amendment that
                     Rep. George Miller, D-Martinez, added to an omnibus Indian affairs bill last
                     fall, the San Pablo casino deal was sanctified under the Indian Gaming
                     Regulatory Act.

                     Now Nevada's two senators, who are the largest recipients of campaign
                     contributions from the gambling industry, are fighting Miller's legislative coup.
                     Led by Sen. Harry Reid, the Democratic whip, a rider attached to the
                     Senate's Interior Department spending bill would rescind the congressional
                     approval.

                     The Lytton band is not going unarmed into battle with the Nevada senators,
                     however, and it has concentrated strength with Republicans who control the
                     House.

                     One of the band's partners in the casino enterprise is Pennsylvania sports
                     stadium developer Sam Katz, a huge player in state Republican circles and a
                     former candidate for governor and Philadelphia mayor.

                     Katz has enlisted the lobbying muscle of Bob Livingston, the former Louisiana
                     congressman and chairman of the House Appropriations Committee.

                     While the casino battle is being waged over loftier policy issues and concerns
                     about public process, it has huge economic ramifications. An Indian-operated
                     casino in San Pablo could provide the slot machines and gaming tables, but
                     maybe not all the glitz, that now draw San Francisco Bay Area gamblers three
                     hours over the mountains to the sprawling Lake Tahoe and Reno gambling
                     resorts.

                     Reid didn't respond to a request for an interview. But according to his
                     spokesman, Nathan Naylor, the senator believes Miller undermined the Indian
                     Gaming Regulatory Act.

                     "There wasn't full debate on it," Naylor said. "No hearings were held on this."

                     Danny Weiss, Miller's chief of staff, said the fight over the Lytton provision
                     amounts to nothing more than last-minute self-preservation by the Nevada
                     gaming industry.

                     "This is one economic entity in Nevada trying to stop another in California,"
                     Weiss said. "It's just sheer economic competition."

                     Naylor also said that a San Pablo casino is bad for California, a more potent
                     issue.

                     "I don't think there are many members of the community who would like to
                     have a class-three style casino in their backyards," he said, a reference to the
                     highest category of gaming that includes rows of slot machines and many
                     tables for blackjack and other high-stakes games of chance.

                     On that point, Reid has the endorsement of other California Democrats. Sen.
                     Dianne Feinstein, a fellow member of the Appropriations Committee, shares
                     Reid's concern, said her press aide, Howard Gantman.

                     "We're seeing an explosion of casinos throughout the state," Gantman said.
                     "The senator is concerned that this would be the first casino in an urban area
                     that was not traditional tribal land."

                     Gov. Gray Davis also has raised concerns about entering into a compact with
                     the Lytton band, the final step before the casino can open.

                     But according to Doug Elmets, spokesman for the tribe, the San Pablo casino
                     has wide community support largely because the Indian band has agreed to
                     waive its sovereign immunity in order to involve the city and its police
                     department in the business operations.

                     The anti-gambling group Stand Up for California! has endorsed the Lytton
                     casino largely because of its model operations agreement with San Pablo, and
                     it has urged the Davis administration to approve the casino pact.

                     Because the House has no similar provision on its spending bill, the Reid
                     provision would have to be resolved in the House's favor by a House-Senate
                     conference committee.

                     For the Lytton band, Reid's provision is adding to their distrust of federal
                     promises.

                     "I understand that Senator Reid has the weight of his constituency, the
                     Nevada gaming interests, on him," Mejia said. "But there is more to this than
                     money for my tribe. I have the plight of my people in my heart. We have to
                     keep moving forward and praying that we come out of this OK."
 
 

                     The Bee's David Whitney can be reached at (202) 383-0004 or
                     dwhitney@mcclatchydc.com.