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December 8, 2008
ROHNERT PARK - The financial backer of the Federated Indians of Graton Rancheria
for building a casino in Rohnert Park could be facing bankruptcy. The company,
Station Casinos, is over $5 billion in debt and may not be able to pay its
creditors on December 31st.
Christopher Snow, an analyst with CreditSights in New York, is an expert on
Station Casinos' finances. He said "Even if they manage to get their own house
in order, they are not going to get financing to build new casinos. I don't see
that project (Rohnert Park casino) getting off the ground until there is a
significant improvement in the markets."
The Federated Indians of Graton Rancheria plan a 760,000 square-foot casino and
a 12-story hotel. Last May the federal government agreed to take the land into
federal trust as sovereign tribal territory. This prompted its opposition to
file a lawsuit in the federal district court to stop the transfer. So far there
has been no movement in the case.
However, Marilee Montgomery, a spokesperson for Stop the Casino 101, says "If
(Station Casinos) were to drop out of the project, then Graton Rancheria would
have to find another partner, which means the environmental review would have to
go back to the beginning. The EIR process is all about approval of the
management contract."
Neither the Federated Indians of Graton Rancheria nor Station Casinos have made
public comments on the issue.
Return to California Casinos.
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