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The Julian News
Julian , California
July 11, 2012     The Julian News
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July 11, 2012

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The Only Weekly Newspaper Serving the Backcountry Communities of Julian, Cuyamaca, Santa Ysabel, Shelter Valley, Mt. Laguna, Ranchita, Sunshine Summit, Warner Springs and Wynola. Volume 27 - Issue 48 Wednesday July 11, 2012 Julian, CA. INSN 1937-1t416 Casino Bets On Bankruptcy compiled by Michael Hart Opening night at the Santa Ysabel Casino in April of 2007 Julian News file photo Santa Ysabel Resort and Casino has filed for bankruptcy protection as it faces threats of foreclosure from the Yavapai Apache Nation, which had lent the lipay Nation of Santa Ysabel(Then the Santa Ysabel Band of Mission Indians) more than $9 million and owes the County of San Diego more than $3 million plus more to other creditors, filed for bankruptcy protection Tuesday(7/3) in federal bankruptcy court Southern District of California Casino General Manager David Chelette said through a Press Release; "the strategic reorganization will have no discernible impact on employees or customers. All casino operations, promotions and payouts will continue unaffected." Chelette added the move will enable the casino to right-size its debt and ensure its Iongterm viability. "This proactive step enables us to protect the jobs of our employees, which are vital not only to them and their families, but to the local economy as well," he said. In February, a tribal court that governs federally recognized tribes granted the Yavapai Apache Nation a judgment for more than $9 million. Executives at Santa Ysabel, which began operations five years ago, said this week that the Yavapai Apache Nation's move to collect on the judgment would cause it to shut down, putting its 120 employees out of work, according to court papers. The bankruptcy case, which gives the casino some legal breathing room, was filed to "preserve the local community jobs, restructure the debts and preserve the estate for the benefit of all creditors," the facility's atto ys said in court papers. The facility was built with a $26 million loan from J.P. Morgan Chase & Co. and $7 million from Yavapai Apache Nation. The Yavapai Apache Nation later took over J.P. Morgan's debt related to the project, according to court papers. The debt to the Yavapai is not mentioned in the bankruptcy filing. The casino also has $1.3 million in unsecured trade debt. If forced to shut down, the casino said, an auction of most of its property would bring in about $250,000. Gambling company IGT has the first lien on its machines. The casino has struggled since in opened five years ago because of its remote location in the backcountry. Several other, larger Indian casinos are much closer and easier to reach from population centers. The 35,000-square-foot casino features 350 slot machines and various table games. "By contrast, most of the other North County Indian casinos are far larger and offer 2,000 machines each. The bankruptcy filings list the casinos 20 largest creditors, with the County being the largest at slightly more than $3 million. In 2005, the lipay Nation of Santa Ysabel entered into an agreement with the county as part of its compact to operate a casino. The agreement was for the tribe to contribute funds annually for off-site improvements and services, such as an additional deputy sheriff, any criminal prosecutions that could arise from its operation, contributions to a problem gambling fund, and emergency response to traffic accidents. Attorneys for the casino said it hasn't been able to make the monthly $50,000 payment it promised to the county for law enforcement and other services. Under the terms of the agreement, if a dispute were to arise it would go to binding arbitration. That happened late last year, and a few months ago the tribe was ordered to pay the county the money. The process of freezing the tribe's bank accounts began in April, but a judge stopped it when the tribe argued that some of the accounts have nothing to do with casino operations. A hearing to determine what accounts could be seized was scheduled for later this month. The tribe argues that the agreement with the County was made based on projected income from a larger casino and a resort that was never built, and is therefore unfair. Last month, Judge Lorna Alksne stopped the County from taking any more action to collect the money until the court can decide whether government funds were seized. Alksne also ordered a debtor's exam, which is a process that would allow the county to ask questions of the tribe about its bank accounts. A meeting was scheduled to be held between the tribe and the county this week to begin that process. "If they sweep everything, the way they've already done ... the casino will close," said Santa Ysabel attorney Geoff Hash, according to a courttranscript. "That's 120 employees out of a job." Among 19 other unsecured claims listed in the filing is more than $500,000 owed to Native American Meagajackpots of Los Angeles; almost $250,000 to International Gaming Technology; and $100,000 to the state's gambling control commission. Jutian, CA. 92036 Change Service Requested PERMIT NO, 30111 JULIAN, CA Jl II'l"h'h'hhh,l,,h,h,hl,,I,hlh,,,Ih,,,lll,,,hhhl Small Town Papers TFN 217 W Cota St i / Shelton WA 98584-2263 Every body wins at the 4th of July Parade, the participants II win, they get their 15 minutes of fame orr the route from one end of town to the other. The local folk win, getting to see their friends and neighbors being honored or, in some cases, making fools of themselves. The town wins by attracting people from all over the county to see our patriotic celebration. We saw a slight drop in the number of participants, at least as entries, 55, the total number of people waving along the parade route still seems fairly constant. There were the horses and bicycles, planes flying over, patriotic songs ... in other words it was a very Fourth of July kind of day. We had one thing that others didn't have and that was the community spirit that is always on display. Ohh's and ahhs for all the participants,, applause for the special ones and big cheers for those who deserved it. The best part is we have a parade, then we do BBQ (at the American Legion of course) a little dancing, some more BBQ, maybe desert and we still, have time if the spirit moves us, to head down the hill to any of the fireworks displays that are offered (Ramona is only 30 minutes, but we did talk to some who went to San Diego Bay only to be disappointed) Some city folk like to make fun of our little parade, some locals always think its too hot, some are always surprised that every year we pull it off (that would be the entire parade committee). -One again we- patriotism, waved the flag,' " had one heck of a lot of fun, well most of us anyway. If you can't enjoy a good parade, some great BBQ and time with family, neighbors and friends ... you just don't know what good times are. Thanks again Julian, for a fun Fourth of July ... lets do it again next year! Michael Hart Parade viewers greeting the flyover during, the pre-parade activities. Classic Motoring Show Sunday photo by Dr. Merrick - Honor, ng SCORE Baja 1000 Two of the parades favorite entries will be on display this weekend at the Classic Motoring Show - Sunday Starting at noon out at Menghini.. photo by Joseph Munson Since the inaugural event in 2005 the Julian Classic Motoring Show continues to provide motoring enthusiasts the perfect venue to showcase their love for classic motor vehicles. In 2012 we continue to provide a glimpse into another motor racing venue by celebrating the 45th running of the famed Baja 1000 desert race. Known worldwide, the SCORE Baja 1000 had its beginnings here in San Diego County in the late 60's. We are honored to have as this years Grand Marshall a man who epitomizes this venue, Ivan "lronman" Stewart, one of the most highly acclaimed and most famous members of this proud racing fraternity. Again we will feature in addition to some of the famous trucks, buggies and motorcycles of the early days of this great international event, a vast array of famous racing and touring marques, including but not limited to Ferrari, Maserati, Porsche, Shelby, and many others. A true mixture of the excellence of 20th Century motoring. Set against the backdrop of Volcan Mountain and surrounded by Julian signature fruit orchards, the Certainly the most famous Off Road racing event in the world. We are honored to have as this year's Grand Marshal Ivan "lronman"Stewart one of the most accomplished and famous of the Baja 1000 "pilots"! Come and experience the "early days" of "BAJA ,1000" and Menghini Winery again serves as our location offering motoring fans a one of a kind experience featuring fine cars, savory foods, live entertainment, famous guests and a host of sight seeing adventures within the historic gold mining and apple area of Julian. stroll amongst the Trophy Trucks, Baja Buggies, and Motor- cycles that braved the passage down the coast from Ensenada to La Paz and meet the drivers who made the race what it is! We, of course, are inviting all sports cars, vintage and exotic, vintage motorcycles and race cars to be a part of this great event. For the third year, the Ferrari Club of San Diego and Cavallo Motorsports will be hosting their annual "Surf to Pines" rally Saturday, July 14th. The show which benefits the Julian Medical Association and has drawn participants from California, Arizona and as far away as New York will be scaled back to only one day. Although some early arrival may still park their cars on Main Street on Saturday the main viewing will be limited to the Show at the winery. Admission is only $5.00 gate will open at 11am, cars will be parked for viewing, owners will be available to answer questions and gear heads will be in garage heaven with the display of vintage, classic and one time racing machines on display through out the winery's orchard. ...... : ::!:: : ........ .............. ,o,, : Commerce Business Mixer - at ' s ............