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Station Clears Hurdle for Sacramento Casino

LAS VEGAS, Nevada – Jan. 4, 2002 -- Station Casinos plan to manage a Sacramento, Calif.-area tribal casino received a boost Friday when the U.S. Department of the Interior announced that it plans to place land in trust for the site of a United Auburn Indian Community gambling complex.

"This is an important step, but just one of several steps," said Glenn Christenson, Station Casinos chief financial officer.

The Interior Department has a mandatory 30-day appeal process, Christenson said. He wasn't sure how long the appeal process would take if one is filed.

If an appeal is not filed, the department's decision to take the land in trust would stand, and the Auburn tribe and Station Casinos would then take about 60 to 90 days to receive required permits from Placer County, Christenson said.

Once necessary permits are obtained, construction could then begin.

Christenson said the company is still working with the tribe to decide what the casino will cost to build, but he said that it will cost in excess of $100 million.

The tribe will finance the casino's construction, he said.

Station Casinos opened its newest and most luxurious Green Valley Ranch property in Henderson last month at a cost of $300 million.

Christenson said that, unlike Green Valley Ranch, the Sacramento-area property's first phase won't have hotel rooms. In addition to building a casino, the company plans to build a couple of restaurants, parking areas and other infrastructure to complement the casino.

"As we get closer we'll define the project more closely," Christenson said.

No decision has been made on a brand for the casino, he added.

The National Indian Gaming Commission has to approve Station Casinos management agreement with the Auburn tribe before the company can operate the tribe's casino, Christenson said.

The Auburn tribe reached a deal with Station Casinos in October 1999 to have the Las Vegas-based locals gaming Goliath develop and manage a casino on a parcel about 3.5 miles from Interstate 80.

Northern Nevada casino executives have expressed concern about the competitive effect of a Las Vegas-style casino so close to the main artery connecting Northern California's population centers to Reno. They worry that gamblers will stop at the tribal gambling complex rather than crossing the Sierra Nevada to reach Northern Nevada casinos.

Christenson said he thinks such fears are overblown.

"This site won't have that type of impact on Reno and Tahoe," he said. "There are a number of natural attractions those markets have that will continue to attract customers."

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