Plan for new Bay Area casino faces scrutiny amid shifting gaming operations

The Scotts Valley Band of Pomo Indians’ plan to build a 160-acre casino in Vallejo is drawing heightened scrutiny and now the pace of how the project can legally be developed is being questioned.

Nearly three months ago the Scotts Valley Band of Pomo Indians graded a project site in Vallejo to make way for a pair of modular trailers, repeatedly asserting that they were solely for “tribal office” use and not for casino purposes. However, the Yocha Dehe Wintun Nation tribe now claims that’s not the case.

RELATED: Tribe behind proposed Bay Area casino breaks ground on homes, offices as legal fight continues

The proposed casino Scotts Valley wants to build would include the construction of 24 single-family residences, a tribal administration building, a parking garage, and a 45-acre biological preserve area located within and adjacent to the city boundary in Solano County, near the intersection of Interstate 80 and Highway 37. The casino facility, at a cost of $700 million, would be open 24 hours a day, seven days a week.

Judge Trevor McFadden of the U.S. District Court for the District of Columbia rejected Scotts Valley’s efforts to invalidate the reconsideration process in October, and soon afterward the Department of the Interior acknowledged that its original approval of the proposed casino may have been based on “legal error.” It noted that evidence submitted by local tribes and others “raise(s) questions” about whether the project site qualifies for gaming. Underscoring the seriousness of those questions, McFadden stated that Scotts Valley “would be ill-served” by relying on the prior gaming eligibility determination while reconsideration is ongoing.

Now the Yocha Dehe Wintun Nation is arguing that by placing Class II slot machines in its trailers, it’s violating McFadden’s ruling and the Memorandum of Understanding with the city of Vallejo.

Scotts Valley isn’t denying the claim of having slot machines in the trailer. A letter dated Nov. 19 from the tribe to Vallejo city officials proves it. However, the Yocha Dehe Wintun Nation and some city officials with Vallejo are concerned about the transparency, including Mayor Andrea Sorce.

During a Sept. 30 Vallejo City Council meeting, the discussion was solely around the pros and cons of an MOU for “Modular Tribal Offices.” Its proposal characterized the arrangement as being solely relevant to a “government center” as Scotts Valley Chairman Shawn Davis said the trailers would be “just an office.”

Things changed with the Nov. 19 letter from Davis to Sorce and Vallejo city staff stated: “Following the recent federal court ruling restoring the gaming eligibility of the Tribe’s trust land, the Tribal Council has determined that the modular buildings will be repurposed to accommodate a limited number of Class II gaming machines rather than the administrative office space initially contemplated last summer.” The adjustment “reflects the Tribe’s intention to preserve its rights under federal law while it evaluates its next steps,” the letter reads.

“The Tribe also anticipates that the installation of Class II machines will create opportunities to hire local residents for onsite operational roles,” the letter continues. “As you may be aware, Class II gaming machines are electronic bingo-style devices that may appear similar to slot machines but operate differently and are governed exclusively by federal law. These machines do not require a state gaming compact. The number of machines will be modest, and the overall site configuration will remain unchanged. The Tribe expects only minor increases in vehicle trips along Columbus Parkway associated with staff and patrons. The Tribe appreciates the continued engagement of the City with Tribal leadership and representatives, and we remain committed to maintaining open communication as the project proceeds.”

Meanwhile, Patrick R. Bergin — counsel for Scotts Valley — says the tribe “has been fully transparent with the City” and has done nothing wrong.”

After the federal court restored gaming eligibility to the Tribe’s land on October 30, “the Tribe notified Mayor Sorce in writing that the modular buildings would be repurposed for a small Class II operation,” Bergin wrote the Times-Herald on Tuesday afternoon, adding that nothing was hidden, and nothing the Tribe has done violates federal law or the court’s order.

“The trailers are temporary modular buildings on the Tribe’s trust land,” Bergin wrote. Placing the Class II bingo-style machines in the trailers, he said, “is a modest, federally regulated use of the Tribe’s own land. It is also entirely routine for a tribe to begin with a small operation and grow over time — this has been the history of tribal gaming across the country.”

Bergin went to say that Yocha Dehe’s claims are “simply wrong.”

“Scotts Valley has followed the law and been open with the City from day one,” Bergin said. “Unfortunately, Yocha Dehe appears determined to stop Scotts Valley from exercising rights the federal government and the court have already confirmed. Scotts Valley will continue working transparently with the City of Vallejo, move forward with a limited Class II operation, and participate in Interior’s reconsideration process. Our focus remains on responsible development and creating economic opportunities for the Tribe, the City, and the region.”

Source, however, wrote the Times-Herald on Wednesday morning, denying she had been notified by Scotts Valley prior to Nov. 19 and saying the news was one “of deep concern.”

“I have not been in communication with Scotts Valley about this issue,” Sorce wrote the Times-Herald on Wednesday. “The Tribe sent a letter to Gillian Haen on Nov. 19 addressed to the mayor and city council. That letter was forwarded to the entire council by the City Manager’s office on Nov. 20. That is the only communication about this matter that I have received, and was the first I heard about the gaming machines.

Sorce said her position remains unchanged. “I have maintained since the outset that I believe the city should let the federal process play out and remain neutral out of respect for that process,” she said. “That is why I voted against both the DOI comment letter on May 27 and the MOU on Set. 30. My position is that it is not our place to take sides in a sovereign land dispute, nor should we be getting involved in projects while the reconsideration is in process.”

Sorce said she is currently in the process of reviewing emails released via PRA that contradict what City Council was told by city staff at its Sept. 30 meeting.

“The lack of transparency in how information has been presented to City Council and the public is deeply concerning,” Sorce said.

Despite the Nov. 19 letter, however, Yocha Dehe Nation claims that Vallejo City Staff, specifically the City Manager’s Office has acted unfaithfully concerning the issue of the buildings.

“Scotts Valley brought a large team to the September 30 meeting and several of its leaders made lengthy presentations, but the Band never disclosed its plans to install Class II slot machines in the trailers,” Yocha Dehe Nation wrote to the Vallejo City Council on Tuesday. “In light of your stated interest in promoting transparency and fairness in City government, we also feel it is important to note the role of the City Manager’s Office in the proceedings regarding Scotts Valley’s “tribal offices“ and proposed MOU. The September 30 City Council agenda item was framed as a question of “possibly direct[ing] staff to negotiate” an MOU with Scotts Valley. But, contrary to that representation, MOU negotiations were well underway before the meeting.”

Yocha Dehe Nations then states that “a Public Records Act request clearly show the City Manager’s office spent considerable time negotiating the MOU with Scotts Valley well in advance of the September 30 meeting” and claims an August 28 email from Assistant City Manager Gillian Haen to Scotts Valley legal counsel that Yocha Dehe Wintun Nation claims to prove this was “not a mere misunderstanding.

“At multiple points in the September 30 meeting, members of the City Council expressed concern that the City Manager’s Office had gone beyond the Council’s prior authorization by engaging in negotiation of an MOU,” Yocha Dehe Wintun Nation wrote the city council. “The City Manager (Andrew Murray) and Assistant City Manager (Haen) repeatedly assured members of the Council that no such negotiations had occurred. For example, in response to concerns from Councilmember Tonia Lediju, the City Manager himself (Murray) said, ‘We have not negotiated an MOU. In fact, we’re bringing this item to you specifically to get your direction on whether we should.’”

Yocha claims Murray’s statement was “simply not accurate.””

“Worse, it appears the City Manager (Murray) may have attempted to conceal from the Council the fact of prior negotiations,” Yocha Dehe Wintun Nation wrote the council. “For example, a draft of the Staff Report for the September 30 meeting stated “staff recommends that the City Council direct staff to continue negotiation of the MOU with the Tribe in order to implement water, fire and police services for the interim development of modular Tribal offices and ensure reimbursement of those services.”

The City Manager’s office and Haen dispute these claims, saying in an email to the Times-Herald on Wednesday that “staff was notified by the Tribe about the change in direction of the use of the portable trailers via the letter on Nov. 19 that was immediately sent to the full City Council on Nov. 20.” Haen states that Vallejo had no knowledge of this change prior to Nov. 19.

“Staff has not disregarded any direction from the Department of the Interior,” the email from Haen reads. “The land has been put into trust for benefit of the Tribe by the DOI as of January 2025. The City has no jurisdiction over the trust land application or gaming eligibility.  The Tribe may put gaming facilities on its site without City approval or review. Staff is simply following the process to ensure we are aware of each step along the way. It is important to be prepared ahead of any action rather than reactionary after the impacts occur.”

The email goes on to say that Vallejo City Staff is not involved in the Tribe’s project, except where it has legal jurisdiction concerning the city’s infrastructure and services requested from the Tribe. It also states that Scotts Valley is legally able to proceed on projects on their trust land without approval from the city of Vallejo. Haen wrote that Vallejo will “continue to analyze potential impacts of any proposal the Tribe brings forward to ensure the City is protected if they move forward with their project.”

“Staff has been analyzing potential impacts and mitigation from the proposed larger casino project to ensure if that project moves forward, the City is protected,” Haen notes. “Because of the change in project direction, staff did not bring the MOU forward for Council consideration as planned prior. Staff is gathering additional project details to ensure City Council is fully informed before they consider the MOU. Staff did review proposed language of the MOU prior to the public meeting to prepare and understand the potential implications. To date, staff has halted review and negotiation of the document until the Tribe provides the requested information on the project changes for City Council to consider. This is a proactive measure to ensure the City is not left behind in the process. No nefarious negotiations took place.”