A California Court of Appeal rejected a challenge to a casino agreement between the city of Richmond and the Scotts Valley Band of Pomo Indians.

The city agreed to provide municipal services to the tribe's casino. The tribe would pay the city an estimated $335 million over the course of the 20-year deal.

Some local groups challenged the agreement, saying the city failed to conduct an environmental review of the casino. But the court said the casino does not meet the definition of a "project" under the California Environmental Quality Act because the site is not actually within city boundaries.

"In our view, the Tribe's casino development does not constitute a 'project' of the City under CEQA because the City has no legal authority over the property upon which the casino will be situated," the court said. The 29.87-acre site sits adjacent to the city, the decision stated.

The Scotts Valley Band is based about 100 miles north of Richmond. A former chairman is trying to get tribal leaders to pursue a casino closer to home.

Get the Story:
Richmond deal with Indian tribe seeking casino in North Richmond is legal, court rules (The Contra Costa Times 2/25)
Richmond-Indian tribe casino deal reinstated (The San Francisco Chronicle 2/26)

Court Decision:
Parchester Village Council v. City of Richmond (February 24, 2010)

Earlier Stories:
Scotts Valley Band hopes for casino approval this year (2/25)
Scotts Valley Band urged on casino closer to home (2/22)