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Agua Caliente Band of Cahuilla Indians Signed Decision Letter 10

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Agua Caliente Band of Cahuilla Indians Signed Decision Letter 10 SOT Op es. United States Department of the Interior OFFICE OF THE SECRETARY Washington, D.C. 20240 OCT 0 7 2019 The Honorable Jeff L. Grubbe Chairman, Agua Caliente Band of Cahuilla Indians 32250 Bob Hope Drive Rancho Mirage, California 92270 Dear Chairman Grubbe: On November 9, 2017, the Agua Caliente Band of Cahuilla Indians (Tribe) submitted to the Bureau of Indian Affairs (BIA) an application to transfer into trust approximately 13 acres of land known as the Section 33 Parcel in the City of Cathedral City (City or Cathedral City), Riverside County, California, for gaming and other purposes.' The Tribe also submitted a request for a determination that the Tribe is eligible to conduct gaming on the Section 33 Parcel.2 The Tribe seeks to construct a casino and mixed-use facilities, including a combination of tribal government office space, restaurants, and retail uses. We have completed our review of the Tribe's request and the documentation in the record. As discussed below, it is my determination that the Section 33 Parcel will be transferred into trust for the benefit of the Tribe pursuant to Section 5 of the Indian Reorganization Act, 25 U.S.C. § 5108. Once transferred into trust, the Tribe can conduct gaming on the Section 33 Parcel pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. Background In 1876 and 1877, the executive orders of Presidents Grant and Hayes established a reservation with tribal lands interspersed with non-tribal lands in a checkerboard pattern.3 ' See Letter to Amy L. Dutschke, Regional Director, Bureau of Indian Affairs, Pacific Regional Office, from Jeff L. Grubbe, Chairman, Tribal Council, Agua Caliente Band of Cahuilla Indians (Nov. 9. 2017) [hereinafter Tribe's Application]. 2 See Letter to Maria Wiseman, Acting Director, Office of Indian Gaming, from Jeff L. Grubbe, Chairman, Tribal Council, Agua Caliente Band of Cahuilla Indians (Nov. 8. 2017). 3 See Executive Order of May 15, 1876, in Indian Affairs, Laws and Treaties, Vol. I, compiled and edited by Charles J. Kappler (1927) 818, available at https://dc.library.okstate.edu/digital/collection/kapplers/id/27768; Executive Order of September 29, 1887; Id at 822, available at https://dc.library.okstate.edu/digital/collection/kapplers/id/27769. 1 De rt Hot Springs 2S2E. 2S3E 2S 4 F. 2S5F. To Los Angeles 3 S 3 E. 62 Sin PArrlat,d,10 3521 3S5E AMR • 10 San Diego ,rn penal 11' „AO Southern California Riverside 114 County h - . City 4 S 2 E 453E - 1 r, 457E ! Springs s 5 I- S4iF it Riverside County .:1111,ff Rancho Vicinity Map Mirage Palm Springs Area 41111. --- Riverside County California Palm Desert 5 7 I ACM Resertaion Boundary 5 S 4 F, 5 S5 I.: 556E I I Tewnslaps 11 0. C3Pollical Jurisdctions Indian Wells .1196 interstate highways Indio sitb= State Highways La Qui nta Railroad 654E 6 5 F. h (,S7E Riverside County 1 Prior to creation of the Tribe's reservation, Congress granted a fee interest to the Southern Pacific Railroad in odd-numbered sections on either side of the railroad right-of-way as an incentive for the company to build a railroad through the area. The company retained rights of way and sold the bulk of its land grants on which the cities of Palm Springs, Cathedral City, and Rancho Mirage were established. The Presidents' executive orders created the Tribe's Reservation on the even-numbered sections. The government allotted most of the Tribe's Reservation lands to tribal members. Many of the allottees sold or leased their lands to non-Indians, who now operate hotels, restaurants, golf courses, and other business establishments, or maintain residences on the allotted lands.4 The Reservation consists of more than 31,000 acres in a checkerboard pattern. Within its boundaries, the United States holds in trust approximately 4,000 acres for the Tribe and approximately 18,000 acres for individual Indian allottees.5 The Tribe, tribal members and non-Indians hold the remaining See Agua Caliente Band of Cahuilla v. Riverside Co., 181 F. Supp.3d 725, 731 (D.D.0 2016)(noting the existence of approximately 20,000 master leases, mini-master leases, subleases, and sub-subleases for the use and occupancy of reservation trust lands subject to federal statutes governing the lease of trust lands). 5 Memorandum to Director, Office of Indian Gaming, from Regional Director, Pacific Region (May 31, 2019) [hereinafter Findings of Fact] at 5. 2 approximately 9,300 acres in fee. As discussed in more detail in Section 151.10(b), approximately 14,718 acres of the Tribe's trust and fee lands located both on and off-reservation are subject to development restrictions, making them unsuitable for economic development. Description of the Property The Section 33 Parcel is located within the boundaries of Cathedral City in Riverside County. The legal description of the Section 33 Parcel is included as Enclosure I. Eligibility for Gaming Pursuant to the Indian Gaming Regulatory Act Congress enacted the Indian Gaming Regulatory Act (IGRA), to in part, provide a statutory basis for the operation of gaming by Indian tribes as a means of promoting tribal economic development and self-sufficiency.6 Section 20 of IGRA generally prohibits gaming activities on lands acquired in trust by the United States on behalf of a tribe after October 17, 1988. Congress expressly provided several exceptions to the general prohibition. One such exception exists for lands located within or contiguous to the boundaries of the reservation of the Indian tribe on October 17, 1988 (Contiguous Exception).7 6 See 25 U.S.C. § 2702(2). 7 Id at. § 2719(aX1). 3 AGUA CALIENTE INDIAN RESERVATION RIVERSIDE COUNTY, CALIFORNIA SECTION 33 PARCEL The Department's regulations at 25 C.F.R. Part 292 implement Section 20 of IGRA. Section 292.4 sets forth two criteria for determining whether land qualifies for the Contiguous Exception. First, Section 292.4(a) requires that a tribe had a reservation on October 17, 1988. Here, the Tribe's Reservation meets the definition of "reservation" set forth in Section 292.2, which defines "reservation" in relevant part as, "land set aside by the United States by final ratified treaty, agreement, Executive Order, Proclamation, Secretarial Order or federal statute for the tribe, notwithstanding the issuance of any patent." Here, the Tribe's Reservation clearly meets this definition because it was established by executive orders in 1876 and 1877. Second, Section 292.4(a) requires that the land must be contiguous to the boundaries of a tribe's reservation. Section 292.2 defines "contiguous" as "two parcels of land having a common boundary notwithstanding the existence of non-navigable waters or a public road or right-of-way and includes 4 parcels that touch at a point." Here, the BIA Regional Office confirmed that the Section 33 Parcel shares a common boundary with the Tribe's Reservation.8 We, therefore, conclude that the Section 33 Parcel meets the Contiguous Exception of Section 20 of IGRA, and the Tribe can conduct gaming on the Section 33 Parcel upon its transfer into trust. Trust Acquisition Determination Pursuant to 25 C.F.R. Part 151. The Secretary of the Interior's (Secretary) general authority for acquiring land in trust is found in Section 5 of the Indian Reorganization Act (IRA), 25 U.S.C. § 5108. The Indian Land Consolidation Act, 25 U.S.C. § 2202, extends the Secretary's acquisition authority to all tribes. The Department's regulations at 25 C.F.R. Part 151 set forth the procedures for implementing Section 5 of the IRA. 25 C.F.R. § 151.3 — Land acquisition policy Section 151.3(a) sets forth the conditions under which land may be acquired in trust by the Secretary for an Indian tribe: (1) When the property is located within the exterior boundaries of the tribe's reservation or adjacent thereto, or within a tribal consolidation area; or (2) When the tribe already owns an interest in the land; or (3) When the Secretary determines that the acquisition of the land is necessary to facilitate tribal self-determination, economic development, or Indian housing. Transfer of the Section 33 Parcel into trust will facilitate tribal self-determination and economic development, thus, satisfying the criteria of Section 151.3(a)(3).9 The proposed gaming facility is expected to provide a source of revenue for the Tribe, create employment opportunities for tribal members, fund essential tribal governmental programs, and fund other development opportunities that will facilitate tribal self-determination and economic stability. For example, the Tribe seeks to develop a tribal court system, create a tax commission, and address the growing homelessness problem on the Reservation.1° The Tribe also seeks to re-establish its historic land base following the loss of reservation land to allotment. The Tribe is prioritizing the acquisition of parcels with cultural significance and parcels for tribal economic development.11 The cost of reacquiring land on and off the Reservation in the Palm Spring, Cathedral City, and Rancho Mirage area is extremely high. Median prices can reach into the millions of dollars per acre.' The proposed gaming facility is expected to provide a significant source 8 Findings of Fact at 3. Although only one factor in Section 151.3(a) must be met, the Tribe's application also satisfies the criteria of subsections (a)(1) and (a)(2) because the Section 33 Parcel is contiguous to the boundaries of the Tribe's Reservation, and the Tribe owns the Section 33 Parcel in fee. ° Tribe's Application at 11. " Id. at 9.
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