Building Trades News

If Approved, Project Would Be Built Under a Project Labor Agreement

Officials from the city of Garden Grove are in talks with members of the Gabrielino-Tongva Indian tribe regarding building a casino resort in what is being envisioned as the entertainment hub of the city-designated resort area on Harbor Boulevard.

The Gabrielino-Tongva Tribe’s proposal calls for two opulent casinos housing 7,500 slot machines, two upscale hotels, a 10,000-seat stadium and — the topper— a promise of a college scholarship for every high school graduate in Garden Grove.

The plan, submitted to the City of Garden Grove, also promises $5.1 billion to the city over 30 years, payment of $100 million for infrastructure improvements within the city and nearly 10,000 permanent jobs, according to Jonathan Stein, chief executive officer of the Gabrielino tribe.

If the casino gets approval it would be built under a Project Labor Agreement and provide work opportunities for hundreds of craft union members.

"They have a lot of hurdles to cross," Councilman Mark Rosen said. "But if they do, it’ll be good for the city."

Stein said the tribe is also talking to Inglewood city officials, but prefers Orange County to Los Angeles because of less competition from other Indian tribes.

The city has struggled over the last five years to find a theme park or resort to anchor hotels, restaurants and retail for the planned InternationalWEST. Ideas for a film studio-based theme park, a Riverwalk entertainment area and even a Las Vegas-style casino resort have failed to go forward.

"We need something big on Harbor Boulevard – whether it’s a theme park or a casino resort," Councilmen Steve Jones said. "We need to stay open to ideas."

The council has traditionally been split on the casino resort proposal.

Stein called financing the proposal a "slam dunk" and said the tribe had been "eagerly solicited" by Bear Stearns, Merrill Lynch, Bank of America Securities, JP Morgan Chase and others. City officials said the casino proposal will be among several others vying for development rights to a 40-acre parcel on Harbor Boulevard, land owned in part by the city.
Stein said he expected his project to be the most financially appealing to city officials.

He said the enterprise would generate a $78-million annual payment to the city that would come from 5% of the slot machine revenues. Part of that payment would be mandated to reduce residential property taxes, sewer and water rates, he said.

As part of a revenue-sharing plan with surrounding cities and government agencies, the proposal pledges additional amounts up to $46 million annually to be divided among Westminster, Anaheim, Santa Ana, the county, the Orange County Transportation Authority and the Garden Grove Unified School District.
The scholarship fund, which the proposal says could offer each Garden Grove graduate up to $2,500 annually for up to four years, would be generated by slot machine revenues.