Tribes look beyond casinos with diverse investment strategies - Sacramento Business Journal:

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But tribes are betting on more than just gamblingy fortheir future. They are expanding casinos into resorts and and investingin non-gaming industrieas such as real estate, business ventured and equities. And some are usinhg casino revenue to buyancestralo lands. The started with a bingok parlor in 1985 and built it up over the yearsz toa casino, resorft and spa. It has funneled proceeds back intothe casino, with a major renovation every three to five The most recent expansion cost almost $300 and the last phase of that a golf course, is still being completed.
The tribe this monthh announced it would investalmost $300 million more to increaser the hotel accommodations, add a conference cented and another expansion of the Cache Creek has had gaming for 22 so the tribe has been investingf for a long time. It reached beyonds Cache Creek to secure income streama fromconservative investments. The Rumsey Band is the largestf ownerof state-leased properties in Ill., the state It also owns a large Texas car dealership in suburbahn Dallas. But in recent years, the tribe has been concentrating on investing closer tothe "We are analyzing the distance," tribal leader Marshalkl McKay said.
"What does a car dealershio in Texas do forus here? Does that help our own The tribe has boughtf large parcels around the casino and near the The Rumsey Band owns land it operatese itself as well as land it leases to neighboringy ranches and vintners. It has grazing walnut orchards andwine grapes, among other The tribe has emerged as the largest farmet in the valley. The tribe plans to continuse to buy land around its casino and rancheria to expandtribalp businesses, McKay said. "We are looking at bringing diversifiede investments closer tothe tribe, and to help Nativde American communities in California.
" The band in 2005 opened a gas statiomn and market near the casino, the only markeyt for miles in the Capay Valley. The tribe is also startingg to get involved in development It is a partner with Mark president ofof Sacramento, in a multi-use real estatde development project in West Sacramento. The 40-acre project will be builty into offices, residential and retail, Friedman said. "Ift is wise from the perspective of any investorto diversify. I think some of the tribews view gaming likeoil wells. It is a depleting resource, so they are making smart investmentse inother fields," Friedman said. "They reallu have become players in Sacramentkand California.
" Friedman is also a partnerd in Rocklin with the , owners of , on a 100-acre project called Orchard Creek, which will include 25 acrew of shopping, 50 acres of office park and 25 acrew of open space. Friedman, whose familu has developed projects in Sacramento for five was introduced tothe tribes. Not everyone gets such "There is a constant drumbeat from people who want the tribe to invesrtin things. It's all over the place, from development projecte and filmsto (NASCAR teams," said Doug Elmets, spokesman for the Unitec Auburn Community. Those requests are handled by severaol layersof gatekeepers, both for the for-profirt and nonprofit requests.
Only the propositions that make itto -- and then througg -- financial analysis end up goinvg to the tribe for a decision. "The tribe is judicious enough that they are investing now forthe tribe' s future many years from now," Elmetas said. "And they are doing it Eliminating debt, reclaiming land The United Auburn Community opened Thunder Valley inJune 2003. Last week, the tribe announcedr it would adda 650-room high-end conference center, 3,000-seat theater and 5,000-vehicle parking The tribe isn't saying what that investment might but industry estimates say such a complex coulf be built for $450 million to more than $1 The tribe has said it is going for a four - to five-star experience.