Koi Nation’s Sonoma Casino Plans Stall After Federal Court Ruling

The tribe’s plans for a high-profile venue have faced fierce resistance, with the newest court ruling eliminating any chances of a quick resolution to its expansion ambitionsImage Source: Shutterstock.com

The Koi Nation’s push to open a large casino resort in Sonoma Countyhas hit a significant obstacle after a federal judge threw out the US Department of the Interior’s (DOI) approval to place land in trust for the project. The development remains mired in legal trouble as neighbouring tribes and theState of Californiahave challenged the Koi Nation’s planned expansion.

The Project Faced Significant Pushback

At the center of the dispute is the Nation’s $600 millionShiloh Casino and Resort, planned to occupy an attractive parcel near Windsor in the middle of California’s wine country. The project was touted as a substantial economic driver for the region, providing roughly 1,100 permanent jobs, featuring a 400-room hotel, and an impressive530,000-square-foot gaming area.

Despite the Koi Nation’s ambitions, Judge Rita F. Linof the Northern District of California has halted any development indefinitely. The case stems from challenges raised by the Federated Indians of Graton Rancheria(FIGR). They operate the nearbyGraton Casino Resort at Rohnert Park. FIGR claimed that the Koi Nation hasinsufficient ancestral tieswith the site at Shiloh and that federal agencies had failed to perform proper research when approving the application.

Further legal action by the State of California and Governor Gavin Newsomin May placed additional pressure on the Koi Nation, asserting that the DOIfailed to followthe required “two-part determination” process that usually governs the establishment of new tribal casinos. It involves extensive discussionswith local authorities and the governor, and a pledge that any new venue would not harm the local community.

A New Examination by the DOI Could Ngake Years

The decision by Judge Lin represents apartial winfor the challengers. She ruled that the Bureau of Indian Affairs director who approved the trust application lacked the legal authorityto do so, noting that only theSecretary of the Interior, a Senate-confirmed official, can make this determination. She also held that recorded information did not supportthe agency’s conclusion about the Koi’s historical connection with the land.

The record does not support the DOI’s conclusion that Koi established a significant historical connection to the Shiloh Parcel.

Judge Rita F. Lin

The court also found that the DOI did not properly consultwith FIGR  regarding cultural and historical impacts, as required under federal preservation statutes. However, Lin acknowledged that the agency hadsufficiently examinedissues such as wildfire risk, groundwater, and traffic. Even so, the observed deficiencieswere enough to reverse the DOI’s decision.

The court’s order mandates that the DOI must review its prior decision. The process will likely involvefresh consultationswith sngakeholders and a more focused attention on whether the restored lands exception of IGRA may apply to the Shiloh parcel. The timeline could run for years, meaning that the Koi Nation’s hopes for a swift resolution are unlikely to materialize.