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CONTRA
TO: BOARD OF SUPERVISORS
a SMS..:.= :: COSTA
FROM: John Sweeten, County Administrator
COUNTY
DATE: April 26,2005
SUBJECT: SB 995 (Florez)-Oppose
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)& BACKGROUND AND JUSTIFICATIOL,
RECOMMENDATION
OPPOSE SB 995 (Floret}which would allow Indian Tribal Governments to issue tax exempt bonds.
BACKGROUND/REASON(S)FOR RECOMMENDATION
On April 5, 2005, the Board of Supervisors adopted a position opposing the creation or expansion of any further
Indian gaming casinos within Contra Costa County, as well as the establishment of reservations on which there
could be gaming operations. In adopting this policy, the Board acknowledged the growing practice of
"reservation shopping," where a tribe seeks to place land into trust outside its aboriginal territory over the
objection of the County. The Board also noted that numerous studies and actual experiences of other
communities have shown that Tribal casino operations have caused extensive off-reservation impacts, such as
increased traffic congestion, noise, air and water pollution and water supply demands as well as increased law
enforcement and public safety burdens and additional social and health impacts on surrounding communities,
costing local governments hundreds of millions of dollars annually.
In addition, there have been instances where a tribe has sought to take land into trust for the sole purpose of
allowing development which would, otherwise, not be permitted. In Santa Barbara County, a tribe is seeking to
put land into trust in the Santa Ynez Valley to allow for residential development in partnership with a developer
who had previously been denied permission.
CONTINUED ON ATTACHMENT: r YES SIGNATURE:
v-"'-RECOMMENDATION OF COUNTY ADMI101STRATOR RECOMMENDATION OF 21"A COMMITTEE
APPROVE OTHER
SIGNATURE(S):
top" 4C4
ACTION OF 87 _3�-�- I n -, APPROVED AS RECOMMENDED THER
7
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS(ABSENT TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED
ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Sara Hofh 336-1090
ATTESTED A�
cc: CAO, JOHN SWEETEN,CLERK OF
Nielsen Merksamer(via CAC)) THE BOARD OF SUPERVISORS
CSAC(via CAO) AND COUNTY ADMI STRATOR
Urban Counties Caucus(via CAO)
BY%- __,. DUTY
s
Y
BACKGROUND/REASON(S)FOR RECOMMENDATION(S):
SB 995 (Florez) would allow Indian tribes to issue tax exempt bonds. Tax exempt bonds are issued at rates
lower than ordinary bonds. Tax exempt bonds are normally issued by public agencies for projects which benefit
the public.
By extending the authority for tax exempt bond issuance to tribes, SB 995 would encourage the practice of
•
reservation shopping for pure commercial gain, at the expense of local communities. SB 995 provides that the
tax exempt bonds can only be issued if the tribe adopts an environmental ordinance regarding environmental
impact reports (EIRs); however, these EIRs would be prepared by the tribe and certified by the tribe, rather than
the local jurisdiction responsible for the health and welfare of the surrounding communities. Furthermore the
tribe's obligation to mitigate off-reservation impacts is explicitly limited by the terms and conditions of the
Tribal-State Compact. Tribal-State Compacts only apply when tribes engage in Class IIIg
amin � not Class II
g
gaming or other commercial activities.