Southern Arizona's Tohono O'odham tribe on Thursday moved a step closer to winning its contested bid to build a casino near Glendale's sports and entertainment district.
The U.S. Department of the Interior reaffirmed its decision that the tribe's land at 95th and Northern avenues is not within Glendale's city boundaries.
The 54 acre parcel is poised to become part of the Tohono O'odham Reservation, where the tribe could build a casino if it clears the remaining legal hurdles.
The decision was issued by Kevin Washburn, Bureau of Indian Affairs assistant secretary.
The state, Glendale and the Gila River and Salt River Pima-Maricopa Indian communities have opposed Tohono O'odham's proposed West Valley casino and filed legal challenges.
Tohono O'odham Chairman Ned Norris Jr. said the ruling will allow the tribe to replace land that was flooded by a reservoir.
"The nation is eager to move forward to use our replacement land to create thousands of new jobs in the West Valley," Norris said.
Federal legislation allowing the Tohono O'odham to acquire replacement land excluded property "within the corporate limits" of a city.
The Valley tribes argue that a 2002 gaming compact barred additional casinos in metro Phoenix.
The Gila River tribe has three Valley casinos south of Phoenix, and the Salt River tribe has two casinos east of Scottsdale.
The Tohono O'odham tribe has three southern Arizona casinos.
Gila River Gov. Gregory Mendoza said Tohono O'odham's proposal "poses a direct threat to the balance of tribal gaming in our state."
Salt River President Diane Enos said that the federal ruling could lead to the Tohono O'odham establishing other reservation pockets on county islands in the Valley on which to build casinos.
The two tribes are pushing for federal legislation to block additional tribal casinos in metro Phoenix.
The U.S. House of Representatives passed a bill to do that last year, but the Senate did not act on the measure.
Arizona Sens. John McCain and Jeff Flake have scheduled a Senate hearing July 23 on the American Indian gaming bill, according to a statement issued by the Salt River tribe.
The Tohono O'odham tribe bought the potential casino site in the early 2000s.
The land is surrounded by Glendale on three sides and Peoria to the north, but is not within the boundaries of either city.
The tribe is seeking reservation status for the site to replace more than 10,000 acres flooded in 1978 by the Painted Rock Dam west of Gila Bend.
The tribe announced its plans to seek reservation or trust status for the West Valley site in 2009.
The state and the two Valley tribes filed a federal lawsuit in 2011 arguing that the 2002 Indian gaming compact bars additional Valley casinos.
A year ago, U.S. District Court Judge David Campbell ruled in favor of the Tohono O'odham tribe, saying there is nothing in writing that bars another local casino.
The 9th U.S. Circuit Court of Appeals also sided with the Tohono O'odham but asked the Department of the Interior to further clarify the issues of whether the tribe's 54 acre site is within Glendale.
The Department of the Interior concluded that the land is not within Glendale's limits.
That clears the way for a final ruling from the 9th Circuit Court on the compacts governing Indian gaming and the issue of additional casinos in metro Phoenix.
The Gila River tribe, in a statement, said it will review the Interior ruling to decide whether to take further legal action.
Glendale Mayor Jerry Weiers said in an e-mail that he hadn't read the ruling and that he needed time to "review it and receive advice from the city's legal counsel to better understand what this means to the city of Glendale."
The Tohono O'odham tribe said its West Valley casino would generate about 3,000 jobs and $300 million in annual economic impact.
Arizona Republic reporter Kaila White contributed to this article.
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