Indian Reservation - Financial Impacts
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The city has extensively evaluated the impacts of an Indian reservation within its community. This information, combined with an economic impact study by Elliott Pollack & Company finds that, even under the best case scenario, the cost of this proposal to the city of Glendale and its citizens would be significantly higher than any benefits associated with the proposed casino and resort.
Tax revenue – Business located on reservation lands are not required to pay state, county or local sales taxes. As a result, the proposed project will contribute no sales tax revenues to the City.
Cost of city services – The city’s cost to provide basic services to the site could be substantial, including the construction of a new fire station. On-going costs for public safety could be as high as $3.5 million annually and additional water, wastewater and traffic issues would create added costs. It is difficult for the City to project the actual costs that would be incurred as a result of the proposed development. The Tribe has refused to discuss its development plans until after a reservation is created and they are able to assert their claim to sovereignty. In light of that claim, even if an agreement is reached with the Tribe to pay for these services, the City would be precluded from enforcing that agreement in state or federal court. Therefore, the provision of services to the proposed reservation creates a risk to the city that would be borne by existing rate payers.
Impact to local businesses – 670 businesses employing over 10,500 people are located within two miles of the proposed reservation site. Studies have shown that casinos produce a spending substitution effect where casino patrons decrease their spending on goods and services to reserve discretionary income for gambling. According to an Elliott Pollack study, it is estimated that in this situation, the substitution effect could be as high as 75%, a devastating impact to many local and surrounding businesses.