Schwarzenegger Signs New Gaming Compacts with 5 Indian Tribes

Gov. Arnold Schwarzenegger signed new gaming compacts on Monday with five tribes who will contribute a portion of their gaming revenues to compensate the state for years to come.

The governor promised some of the funds to state transportation projects, which stand to be increased by $1 billion during the coming year.

The agreement means that the tribes will finance a billion-dollar bond that will be used to accelerate repayment of Proposition 42 revenues previously borrowed by the General Fund to close the state's budget deficit, according to a statement released by Transportation California. Since the pacts would be nullified if either of the casino gaming initiatives on the November ballot are passed, it is not expected that these monies would translate into movement of projects until after the first of the year. The governor has pledged to lead the fight against both initiatives.

Regarding the tribe's new building projects, the new agreements will require EIRs, code adherence levels and building inspections while new construction is in progress. The agreements also guarantee increased protections for casino patrons and workers, the environment and local communities.

Making the new agreement with California are the Pala Band of Mission Indians, the Pauma Band of Luiseño Indians, the Rumsey Band of Wintun Indians, the Viejas Band of Kumeyaay Indians and the United Auburn Indian Community.

"This agreement helps local governments meet their law enforcement, fire protection and infrastructure needs," said Schwarzenegger.

"It strengthens our environmental protections. It provides more rights and safeguards for workers and guests. It brings in at least $1 billion in new state revenue this year, which I will dedicate to desperately needed transportation projects. And in addition, this agreement can generate up to another $150 to $200 million a year in ongoing state revenue, which is good for California."

"This is a fair deal for the tribes and for the state. It solidifies a partnership based on their exclusive gaming rights. I am hopeful that more tribes will join us.
Mike Lawson, executive director of Transportation California called the deal a significant step forward."

"Early repayment of money owed to transportation will reverse the recent practice of using transportation revenue to plug holes in the budget, instead of potholes on our streets and highways," Lawson said.

"The governor's position has come a long way since the pro-forma budget plan submitted in January. The Indian compacts, coupled with an additional $400 million in loan repayments in his May revise and conversion of this year's Proposition 42 suspension proposal into a relatively short-term loan, all reflect a recognition that transportation must be a priority for the sake of our economy and the public. "None of this is a done deal, but signs are promising."

Details of the compacts signed Monday include:

• A $1 billion payment to the state, to be financed by a bond repaid over 18 years. Upon repayment of the bond, the tribes then will make annual payments to the state for the duration of the compact, expected to total an additional $700 million. The one-time payment is based on $100 million annual payments by the tribes over 18 years, which is at least 10 percent of the tribes' current slot machine net wins, and, in some cases, represents more than 18 percent of net profits.
• A graduated scale of progressively higher annual fees for additional slot machines above the current limit of 2,000 machines, reaching up to $25,000 per additional machine. The fees represent approximately 15 percent of the net win of the additional machines on average and are estimated to provide as much as $150 to $200 million in annual revenue to the state over time from these tribes alone.
• Additional slot machines may be located only on presently existing Indian land at presently existing gaming operation locations.
• Tribes will make increased annual payments in the amount of $2 million per tribe for a total of $10 million annually to the Revenue Sharing Trust Fund for non-gaming tribes and those with lesser operations.
• Tribes agree to prepare an environmental impact report for new projects and to negotiate mitigation of off-reservation impact and increased demand for services with local governments, with binding arbitration if negotiations reach impasse.
• Tribes agree to meet or exceed California Building Code and Public Safety Code on new construction, allow the state to inspect construction in progress and permit the state to prohibit occupancy in any portion where there is a serious or significant risk to health or safety.
• Tribes will allow the state to inspect the slot machines and will submit patron disputes to binding arbitration.
• Tribes agree California tort law and procedure will govern cases involving third-party injury, will increase liability coverage from the existing $5 million in aggregate to $10 million per occurrence and will agree to binding arbitration of all claims.
• The duration of these renegotiated compacts is extended to 2030, providing long-term stability for the tribes and the state. In exchange for the one-time, $1 billion payment from the bond, the tribes are guaranteed the exclusive right to offer slot machines and banked card games free from competition from non-tribal entities.
• Tribes without existing arrangements with organized labor agree to modify their tribal labor relations ordinance to provide workers with enhanced organizing rights in exchange for a no-strike clause.

Schwarzenegger said that in order to protect these agreements, which he believes provide a fair contribution of gaming revenue to the state in exchange for exclusivity for tribal gaming, he will oppose a ballot initiative that could result in slot machines in certain card rooms and race tracks. He had previously announced that he opposes a ballot initiative to allow unlimited gaming expansion on Indian lands.

The compacts signed this week must be ratified by the Legislature and then approved by the federal government. The compacts can be viewed at the governor's Web site at www.governor.ca.gov.

Parsons Brinckerhoff Named CM for Sacramento Tunnels

SACRAMENTO — Parsons Brinckerhoff has been named construction manager by the Sacramento Regional County Sanitation District for two interceptor tunnels being built on the Sacramento River. Construction on the tunnels is expected to begin this summer with completion scheduled for the middle of 2006.

The $44 million tunnels are part of the lower northwest interceptor project, which consists of bored tunnels of approximately 15-ft. excavated diameter and approximately 2,000 ft. in length. The project's location is at the northern Sacramento river crossing, east of the Interstate 80 Bridge at River Mile 62 and the southern Sacramento river north of the Freeport Bridge at River Mile 47. The tunnels will accommodate twin, 66-in., force-main center pipes and will be inclined downwards at 6 percent from deep shafts on either side of the river. The force mains connect either side of each river crossing with pipelines constructed under other construction contracts primarily by cut and cover methods.

The tunnels will be excavated using earth pressure balance or slurry-type tunnel boring machines with gasketed, precast concrete segmental linings installed behind the TBMs. The shafts exhumed on either side of each river crossing will launch and receive the TBMs, while the twin steel carrier pipes will be installed inside the excavated tunnels and shafts. The tunnels will be back filled with low-density, cellular concrete.

Parsons Brinckerhoff is responsible for providing complete construction management services, including contract administration, quality assurance, schedule, cost control, inspection, construction staking and materials testing for the County of Sacramento. Based on the SRCSD Interceptor Master Plan 2000, SRCSD has begun construction of 120 mi. of new interceptor pipelines. The pipelines will be completed in stages over the next 20 years.

Santa Maria FairPark to Create 20-year Vision Plan

San Luis Obispo-based RRM Design Group was recently awarded the Santa Maria FairPark Master Plan program, which will create a 20-year vision that guides development of agricultural facilities at the FairPark.

The plan establishes a set of long range goals that will provide a cohesive design concept to be implemented during the next two decades.

RRM and its consultant team will meet with key stakeholders and attend events such as the Strawberry Festival and the Santa Barbara County Fair to seek a hands-on understanding of operations and events at the FairPark. Input derived from these meetings and event attendance will be incorporated into the master plan to allow the FairPark to better serve the needs of the community, said Tony Keith, RRM's project manager. Two alternative plans will be developed for review and selection by the board of directors.

The board will select a preferred alternative that will capitalize on economic opportunities, better facilitate ongoing and new events, and enhance the overall appearance of this 100-year-old-plus, community facility, Keith said. The master plan process should conclude this fall.

The Strawberry Festival, Santa Barbara County Fair and several other community events will continue to be held at the FairPark.

RRM Design Group is a professional firm of architects, civil engineers, landscape architects, planners, public facilitators and surveyors who specialize in the design and implementation of projects for public and private clients.

Mattel Moves Into Mammoth Distribution Center

One of the largest distribution centers in California has been completed in San Bernardino for the world's largest toy maker.

Whittier-based Oltmans Construction was the general contractor for the 1.2 million sq.-ft. national distribution and logistics center for owner Torrance-based Mattel Inc. The building is on the site of the former Norton Air Force Base within AllianceCalifornia, a 58-acre site begin developed by Ft. Worth-Texas-based Hillwood Investment Properties. The total cost of the project, including infrastructure work, was $35 million, said Dan Wozniak, project manager for Oltmans Construction. Approximately 250 people will be employed at the logistics center, which represents an expansion and consolidation of Mattel facilities that were located in Chino and City of Industry. Mattel signed a 10-year lease for the property.

The building is a concrete tilt-up structure that has 30-ft. minimum interior clearance, dock-high loading with 144 doors and an Early Suppression Fast Response fire sprinkler system. The facility includes 25,000 sq. ft. of build-out space with an after-market retail outlet. On-site parking is provided.

Newport Beach-based Hill Pinckert Architects included extensive amounts of reflective glass at the set-back, two-story entry, colored accent striping and notched details in concrete columns.

Hillwood Investment Properties plans to redevelop the 2,000 acres at AllianceCalifornia into an industrial logistics and air cargo complex that will ultimately comprise more than 14 million sq. ft. AllianceCalifornia is expected to replenish the number of jobs lost in the area when Norton was closed in the mid-1990s, according to Hillwood officials.

The project is anchored by San Bernardino International Airport and is close to a BNSF intermodal rail facility and interstates 10, 210 and 215. It is about 20 mi. east of close to commercial passenger service at Ontario International Airport. Two large distribution centers will begin construction this year at AllianceCalifornia: a major supermarket chain, San Bernardino-based Stater Bros., will build a 1.8 million-sq.-ft. distribution center and corporate office. Los Angeles-based Pep Boys, a chain of auto parts stores/repair shops just announced a new 600,000-sq.-ft. project. Wisconsin-based retailer Kohl's completed its 600,000-sq.-ft. west coast distribution hub at AllianceCalifomia last year.

Hines to Develop Major Industrial Park in Mexico

Hines, a Houston-based international real estate firm, has formed a partnership with leading Mexican developer Grupo Valoran to develop Parque Logistico, an industrial park in the industrial zone of San Luis Potosi.

Parque Logistico will be an industrial and logistics center located on Eje 140 adjacent to Highway 57 (the NAFTA Highway), the principle north-south railway connecting the United States with Mexico. Intermodal facilities like that located at the new industrial and logistics park are land-based container terminals that allow for the quick transfer between road and rail transportation networks.

San Luis Potosi is a city of nearly 1 million people, and is located 240 mi. north of Mexico City on Highway 57, an extension of U.S. Interstate 35, which runs from Canada through the central US and Texas and into Mexico.

San Luis Potosi is currently one of the fastest growing economies in Mexico due to its highly skilled workforce and its location along the NAFTA Highway. Parque Logistico is designed to be a multi-service, logistics-oriented industrial park. Over the next seven years, it will house more than 120 national and international manufacturing and distribution operations, which will require the construction of about 20 million sq. ft. of facilities. Approximately 1,000 new jobs will be created within the park in the first two years, while approximately 15,000 additional jobs are expected to be created over the next seven years.

The first phase of the project — a $7 million investment — involves 100 acres of the more than 1,000 total acres that eventually will be developed. The project will include a natural gas distribution network, a fiber-optic communications system, a factory-mutual-standard fire loop, and a sewage treatment facility. Construction is scheduled to begin this month. Parque Logistico marks the fourth industrial park developed by Hines in Mexico, and its first major investment in San Luis Potosi since a sale of a large real estate portfolio last year.

"Since our entry into the Mexican real estate market, our strategy has been to ally ourselves with high-quality local partners and provide the highest quality product available in the market in the most prime locations," said Mark Cover, a Hines senior vice president.

"We determined that Mexico did not have an adequate supply of quality industrial land with access to intermodal facilities to meet its expanding trade volume."

Hines entered the Mexican real estate market in 1975. Since that time, the firm has completed office, residential and industrial properties in Mexico totaling more than 3 million sq. ft. and has developed more than 700 acres of land.