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Att A - LTR - FINAL EA SAN PABLO COMMENT LTR TO BIA 072224 V5

San Pablo City Council
August 5, 2024

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Att A - LTR - FINAL EA SAN PABLO COMMENT LTR TO BIA 072224 V5
Meeting
August 5, 2024
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San Pablo City Council
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Text extracted from the city's file for reading and search. Open the original on sanpablo.legistar1.com. That file is the official record.

CITY OF SAN PABLO
City Council

1000 Gateway Avenue ● San Pablo, CA 94806
Main: 510-215-3000 ● Fax: 510-215-3011
www.SanPabloCA.gov

July 22, 2024

E-TRANSMITTAL & U.S. REGULAR MAIL
Sent via email to: [email protected]
[email protected]

Amy Dutschke, Regional Director
Bureau of Indian Affairs, Pacific Regional Office
2800 Cottage Way, Room W-2820
Sacramento, CA 95825

RE: COMMENT LETTER ON THE NOTICE OF AVAILABILITY/ENVIRONMENTAL

ASSESSMENT FOR THE SCOTTS VALLEY CASINO AND TRIBAL HOUSING

PROJECT FROM THE CITY OF SAN PABLO, CA

Dear Ms. Dutschke:

Thank you for making the Notice of Availability/Environmental Assessment (EA) for the proposed Scotts Valley Casino and Tribal Housing Project available for public review. Unfortunately, certain public agencies which are in close proximity to this proposed project, and who are directly impacted by the proposed project, were not properly noticed of the EA document released on July 8, 2024.

However, the City of San Pablo appreciates the opportunity to provide comments at this time given the limited timeframe.

The City of San Pablo considers itself to be an interested party regarding this proposed project due to our close proximity, and the vested interest that our community has with San Pablo Lytton Casino for which we are the host community. The San Pablo Lytton Casino is located in central San Pablo just off of I-80 freeway corridor in Contra Costa County which is approximately 16 miles from the proposed project site.

The San Pablo Lytton Casino is located on federal trust land established by the federal government and the Lytton Rancheria Band of Pomo Indians (Lytton Tribe), within City incorporated limits. The Lytton Tribe owns and operates the San Pablo Lytton Casino, and has a vested interest in the consideration of the development of this proposed project by the Scotts Valley Band of Pomo Indians, who desire to formally establish federal trust land for this new mega casino gaming operation, which was previously denied by BIA officials in 2016.

Since 1999, San Pablo has served as host community for San Pablo Lytton Casino which has been an important economic partner for our community for the past 25 years. The City of San Pablo recognizes that, through the City’s Municipal Services Agreement (MSA) with the Lytton Tribe, Casino revenues provide a much appreciated and relied upon source of funds that comprise nearly 65% of the City’ annual general fund budget each year. Casino revenues fund critical municipal services through the MSA agreement to the San Pablo community (pop. 32,000), including but not limited to, the following: police and fire protection, emergency management services, building health and safety, youth and senior services, etc.

Amy Dutschke, Regional Director
Bureau of Indian Affairs, Pacific Regional Office
Date of Transmittal: July 22, 2024
Re: Comment Letter - Notice of Availability/Environmental Assessment for the Scotts Valley Casino and Tribal Housing Project from the City of San Pablo, CA

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In addition to providing critical funding for the City, the Lytton Tribe and the San Pablo Lytton Casino partnership is an important contributor to our local economy through creation of jobs and attraction of visitors who patronize our local commercial corridors and contribute to our local economy. Each year, the Lytton Tribe’s generous annual contributions also benefit local seniors and non- profit community service organizations who provide our local residents with health care, services for the disabled, local youth programs, and more through the San Pablo Community Foundation Grant Program.

Preliminary Concerns on Economic Analysis
San Pablo is one of the lowest -income communities in the Bay Area and includes several tracts which are categorized as Disadvantaged Communities, according to U.S. Census. These are areas throughout California which suffer immensely from a combination of economic, health, and environmental burdens. By way of contrast, San Pablo’s median household income is significantly less (16%) than that of the City of Vallejo.

Within its Economic Analysis, the EA for the project projects a reduction of over (-20%) in annual gaming revenues for the San Pablo Lytton Casino due to the relatively close proximity to the proposed project, which would be just 16 miles north along Interstate 80. Because the MSA with San Pablo is based on a percentage of the casino’s revenue, this will result in a direct commensurate negative impact in benefits that accrue to the City of San Pablo, and its ability to serve its local residents. This impact must be considered a significant socio-economic and environmental justice impact of the proposed project, and is obviously of tremendous concern to the City of San Pablo officials, and its residents. The EA document fails to include any analysis of the off-site environmental justice impacts on the City of San Pablo, from which the project will syphon a considerable portion of Casino revenue which has a corresponding economic and negative impact to the City of San Pablo, and its program and service delivery. Based on the projected 20% reduction in annual gaming revenues to the San Pablo Lytton Casino, there would be a potential $8-$10M estimated annual reduction in critical local funding to the City of San Pablo as a result of this mega casino project.

Preliminary Concerns on Environmental Impacts
In our opinion, it is very clear that the proposal has the potential to create significant adverse environmental impacts that must be further studied and mitigated. The site is located beyond the urbanized area of the City of Vallejo in an area that lacks urban infrastructure and is characterized by steep unstable slopes, grassland, and areas of sensitive oak woodland habitat .

The project itself would be of disproportionately high impact and intensity, consisting of an eight - story structure with restaurants, bars, and ballroom for events, open 24 hours, 7 days a week, year- round. The proposed casino building would contain over two million square feet ( i.e. 2,209,970 square feet), and over 4,000 parking spaces. Of the eight stories, all or portions of seven floors would be dedicated to parking, with floor 5 containing the casino facility itself. There would be a total of 10 bars/restaurants on this level, with the remaining area devoted to gaming. Floor 6 would contain a Grand Ballroom and parking. The project would further include 24 housing units and a new, Tribal Administration Building of 12,555 square feet. The massive building would step- up Amy Dutschke, Regional Director
Bureau of Indian Affairs, Pacific Regional Office
Date of Transmittal: July 22, 2024
Re: Comment Letter - Notice of Availability/Environmental Assessment for the Scotts Valley Casino and Tribal Housing Project from the City of San Pablo, CA

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along the hillside, creating a major visual impact in what is currently an undeveloped grassland hillside in Vallejo, CA.

Preliminary Concerns on Land Use Impacts
In terms of land use impacts, just the southernmost portion (about 15% + of the site) of the 160- acre parcel is planned for urban development in the 2040 City of Vallejo General Plan, which shows this area as future Business/Limited Residential, and the remaining 85% + is shown as Parks, Recreation and Open Space. Intensifying the entirety of the site to an eight-story, high-density 24- hour commercial development with regional draw is a significant deviation from the projections of this General Plan and in itself must be considered a significant environmental impact. The alternatives analysis for the future EIS should consider locations which are less of a deviation from the carefully planned land uses foreseen in Vallejo. Other locations that would not result in exurban expansion and growth inducement should be investigated. Due to increasing environmental concerns, wildfire hazards, and limited water supply, intensive greenfield development on the urban edge should be avoided, especially in areas that lack transportation alternatives.

The site itself may be unsuitable for the scale and type of development proposed. The proposed site consists of rolling hillsides with grassland, marshland, oak woodland, and natural drainageways. The geological study contained in the Environmental Assessment shows that there are at least four (4) landslides existing on the site, including underlying those areas which are proposed for the eight-story casino building and the casino housing. It should be noted that San Pablo also has portions of its planning area that consist of unstable hillsides. These areas have been zoned for Open Space in order to avoid the significant environmental impacts of slope instability and the loss of property and life that can result. The City of Vallejo also understands the danger of development on these hillsides and have wisely planned for Open Space in this area, a future land use designation with which this project would directly conflict. The geologic characteristics and natural hazar ds present at this site create the potential for significant environmental impacts that may not be practically mitigated.

With respect to hydrologic resources , the site plan would result in the elimination of existing natural drainageways that cross the property, as well as areas of wetland. In terms of biological resources, the site contains a variety of natural habitats and its development would potentially adversely affect several Federal endangered and State-Listed special status species, such as the California red -legged frog and the Callippe Silverspot Butterfly . Providing a reserve is a poor substitute for the naturally occurring habitat present on the site that would be destroyed by the proposed project.

With over 2,000,000 square feet of building and 4,000 parking spaces, the project would result in a projected 8,500 trips per day with significant unavoidable traffic and circulation impacts .

Unlike the San Pablo Lytton Casino, the proposed location offers little to no opportunity for access using modes other than personal vehicles, such as public transit or pedestrian access. This will result in a huge increase in traffic volumes and significant impacts on the levels of service for surrounding intersections. The analysis contained in the Environmental Assessment (EA) does not include any assessment of vehicle miles traveled (VMT) which is the current statutory requirement for traffic impact analysis in California and the state of art for traffic assessment. How many more Amy Dutschke, Regional Director
Bureau of Indian Affairs, Pacific Regional Office
Date of Transmittal: July 22, 2024
Re: Comment Letter - Notice of Availability/Environmental Assessment for the Scotts Valley Casino and Tribal Housing Project from the City of San Pablo, CA

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VMT would this project add to the area and what are the mitigation measures that can reduce this level? Are there Transportation Demand Management techniques that should be applied? The potential impact on regional air quality and climate change through greenhouse gas emissions from trips generated to and from the site demands further study. The analysis in these areas should be expanded to reflect these analysis methods as part of the EIS.

The project would require up to 431,000 gallons of water per day and would potentially depend on on-site groundwater, a precious resource which could deplete water availability elsewhere and impair future agricultural uses in the region. There are similar concerns if water service is sought to be provided by the City of Vallejo. According to the City of Vallejo’s 2020 Urban Water Management Plan, the City of Vallejo under current conditions would barely be able to meet water demand in an increasingly likely five -year drought scenario. The immense water usage of the proposed project would push the City’s water demand well over what it can provide in this circumstance. Close to 300,000 gallons of wastewater would be generated each day and would likely require an onsite wastewater treatment facility, producing quantities of sludge and brine that will need to be transported off-site for disposal. The regional implications of these impacts should be studied further in the EIS.

The project also has the potential to strain other local services. Most notably, the City of Vallejo has a police force of just 47 (including 34 patrol officers) to provide protection to its 96,000 residents. In fact, in July 2023, the City of Vallejo declared a state of emergency over police shortages. The addition of the casino with the high potential for crime-related activity could further strain local police and compromise its ability to service residents of the area. With respect to fire protection, the site is within a high Fire Hazard Severity Zone with local responsibility (LRA FHSZ), and epitomizes the urban wildland interface that has been the cause and focus of the State’s crisis of wildfires experienced in recent years. Protecting a development of this magnitude is likely well beyond the capability of local fire agencies.

A review of the EA shows many areas that require further environmental analysis should be conducted. It is unsupportable to find that a project of this scope in this location would not result in significant environmental impacts.

Request for Environmental Impact Statement (EIS) Review Therefore, we strongly urge BIA officials to require the preparation of an appropriate Environmental Impact Statement (EIS) focused on the potentially significant impacts of the proposed project, including socio- economic conditions and environmental justice, land use, geological stability and wildfire hazards, public services and utilities, transportation and circulation, air quality, biological resources, and cultural resources.

The City of San Pablo looks forward to participating in the continued environmental review and development review processes to ensure that our formal interests are taken into consideration.

Please feel free to contact San Pablo City Manager Matt Rodriguez directly at (510) 215-3016, or via email: [email protected] to expand on these matters as expressed by the City of San Pablo.

Amy Dutschke, Regional Director
Bureau of Indian Affairs, Pacific Regional Office
Date of Transmittal: July 22, 2024
Re: Comment Letter - Notice of Availability/Environmental Assessment for the Scotts Valley Casino and Tribal Housing Project from the City of San Pablo, CA

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Thank you for the opportunity to articulate our formal concerns over the EA for the proposed Scotts Valley Casino and Tribal Housing Project.

Sincerely,

PATRICIA PONCE, MAYOR

CITY OF SAN PABLO

cc: Honorable Tribal Chairperson Andrew Mejia and Lytton Rancheria Band of Pomo Indians Congressional Representative John Garamendi, D-8th District State of CA Assemblymember Buffy Wicks, D-14th District Contra Costa County Supervisor, John Gioia, District #1 San Pablo City Council
Matt Rodriguez, City Manager
Brian Hickey, City Attorney
Elizabeth Tyler, Community Development Director

Amy Dutschke, Regional Director
Bureau of Indian Affairs, Pacific Regional Office
Date of Transmittal: July 22, 2024
Re: Comment Letter - Notice of Availability/Environmental Assessment for the Scotts Valley Casino and Tribal Housing Project from the City of San Pablo, CA

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