Oregon disputes casino ruling.

Byline: SCOTT MABEN The Register-Guard

The state is suing the U.S. Department of Interior in hopes of reversing a decision late last year that allows a casino to be built on tribal land east of Florence.

The only one of Oregon's nine federally recognized tribal groups without a casino, the Confederated Tribes of the Coos, Lower Umpqua and Siuslaw Indians had planned to open the gaming center by July 2003.

The state's suit, filed Tuesday in federal district court in Eugene, could push back the opening a year or more, a tribal official said.

Gov. John Kitzhaber said he objects to the Interior Department's conclusion last December that the tribe's 100-acre parcel off Highway 126 on the North Fork of the Siuslaw River qualifies as restored tribal land.

Under federal law, tribal gaming on land acquired after the 1988 Indian Gaming Regulatory Act requires a governor's approval.

But when the Interior Department declared the North Fork land restored, because of the tribes' historical ties to it, Kitzhaber was left with basically no say in the matter.

The land was acquired in 1998, 10 years after the gaming act.

The federal government's decision in the North Fork case could clear the way for more casinos in Oregon and other states, including in metropolitan areas, the governor said.

"I am concerned that Interior's decision will significantly impinge any governor's authority under the law," Kitzhaber said in a news release.

"I have given Interior's determination careful consideration, but in the interest of the state in terms of the larger potential for siting other tribal gaming facilities, I am taking this action," the governor said.

The 700-member tribal organization is "surprised and confused by the governor's decision," tribal Chairman Ron Brainard said.

Tribal casinos have helped other communities thrive, Brainard said, "and now the governor is not going to let it happen to another community."

Brainard said that until recently he expected the state would negotiate an agreement with the tribes over the location and other issues, allowing the project to move forward.

"Apparently the governor is worried about the impact of the (Interior Department) decision on other terminated and subsequently restored tribes," Brainard said.

But he said the decision is narrow, so there's little chance that it sets a precedent that would allow other tribes to develop casinos on lands acquired since the gaming act went into effect.

But Danny Santos, the governor's legal counsel, said the state is genuinely concerned that the federal ruling could spawn a wave of new casino proposals for sites acquired after 1988, in effect circumventing the governor's concurrence.

Many tribes have taken land into trust for cultural, economic and other purposes, Santos said.

"This says tribes can make the argument that these lands should be part of their reservations and therefore become eligible for gaming," he said.

"While the Coos tribes could argue this is just a single case, the reality is I think each tribe - those in Oregon and in other states - could argue, `Well, we're unique.' '

In its Dec. 5 finding, the Interior Department recognized that the North Fork land, known as the Hatch tract, contains the site of a historic tribal village, is adjacent to a tribal cemetery and remained in ownership of generations of tribal members.

The federal Bureau of Indian Affairs took the parcel into trust for the tribe but at first refused to classify it as restored land.

The tribe appealed the decision to federal court, which ordered the agency to reconsider.

The Confederated Tribes of the Coos, Lower Umpqua and Siuslaw Indians have struggled to break into the casino business since the early 1990s.

More than six years ago, they sought support for sites in Springfield and later within the city of Florence, but both plans were withdrawn in the face of public opposition.

The state and the tribes signed a compact in 1994 spelling out how the casino will operate, including the kind and number of games, the regulatory structure and the state's role in monitoring the operation. But it applied to a small piece of land in the Empire area of Coos Bay that the tribe later chose not to develop.

With the Coquille tribe's Mill Casino in nearby North Bend, a second casino in that community would not be viable, Brainard said.

A new compact must be signed before the tribes can build on the Hatch property.

Although the state's suit puts the question of the location on hold, other compact issues will be negotiated in the meantime, both Brainard and Santos said.

The two main issues are the scope of games, which has changed considerably since 1994, and security issues.

The casino plan has both fans and critics in the Florence area and two members of the City Council have come out against it.

But the council itself has not taken a stand, and instead asked Kitzhaber in January to make his decision as soon as possible.

The casino will have an impact on city services, Florence City Manager Rodger Bennett said.

"We are vitally interested in what happens with the Hatch tract," Bennett said. "Florence is very appreciative of how carefully the governor has dealt with this issue and what it means to all the people of Oregon, not just our community."

He said he is in no position to agree or disagree with the state's suit.

"This is very difficult and complex," he said. "We are waiting to see how the whole thing unfolds, because we are learning as we go along."