TUSCON, Arizona - TThe Tohono O'odham Nation plans to tear down its original, bare-bones Desert Diamond Casino complex at 7350 S. Nogales Highway and replace it with an opulent casino, 200-room hotel and restaurants.

Desert Diamond CEO Joe Calabrese estimated the project's total cost at $80 million.

"The resolution to build this project just recently passed the Tribal Council," Calabrese said. "We hope to break ground this year. We're working on designs, but haven't chosen one.

"The construction will occur in increments so that we never have to close the casino down completely. Gaming won't be disrupted."

The O'odham also own a more glamorous Desert Diamond Casino, just east of Interstate 19 at Pima Mine Road, that opened four years ago. That property has three restaurants with indulgences like champagne buffets and a 2,400-seat hall that hosts boxing matches and concerts. It cost $52 million to build.
And near Why, about 100 miles west of Tucson on the western edge of the Tohono O'odham Nation, the tribe operates the Golden Ha:san Casino, which opened in 1999.

The original casino, just south of East Los Reales Road, began life in 1984 as Papago Bingo. Casino gaming was added in 1993, the same year the U.S. Interior Department approved gaming compacts between Arizona and tribes.

The Nogales Highway property consists of a huge, white, oblong tent abutted by concrete bunkers. More than 800 gambling machines are packed inside. The main interior decorations are vibrant murals of javelinas, mountain goats and mountain sunsets painted on the tent walls.

Tohono O'odham Nation Chairwoman Vivian Juan-Saunders said the Tohono O'odham council debated whether to tackle such an ambitious project in a still-faltering economy.

"We decided all economic development involves some risk-taking," Juan-Saunders said. "We realized we need to diversify our operations to include more entertainment. Some people go to casinos because they love gaming. But many people go because they just want to socialize."

"We're going to have a 300-seat buffet and a venue for live music. We also want to add things for the community, like a coffee shop, convenience store."

Juan-Saunders wants the new casino to be fully open for business in fall 2006.

Will all this mean more competition for the Pascua Yaqui Tribe's Casino Del Sol?

"Of course!" replied Casino Del Sol marketing director Melissa Ward.

The 75,000-square-foot Casino Del Sol, at 5655 W. Valencia Road, opened in 2001 with an interior modeled on a fantasy of a Tuscan village. The ceiling is decorated with a sky mural. It has more than 990 gambling machines and also offers blackjack, poker and bingo.

The complex also contains a retro diner and an elegant restaurant. And it boasts a 4,800-seat amphitheater, which Ward believes will give Casino Del Sol a competitive edge.

"We've tried to set ourselves apart from other casinos with entertainers who have nationally recognized names and huge followings," Ward said.

She named a few of the acts that generated generous buzz.

"Van Halen reunited and played here and Toby Keith was a huge hit," Ward said. "And Tom Jones will be singing here."

The state, Tucson and Pima County also have a stake in the success of the new Desert Diamond project since Arizona gaming tribes must pay a percentage of their earnings for civic improvements.

According to the Tohono O'odham Nation's economic impact report for last year, casino operations generate more than $800,000 in state taxes and over $8 million in federal taxes annually.

When salaries, subcontractors and purchases are combined, the report said, Tohono O'odham casino operations inject over $75 million into Southern Arizona's economy each year.

Last month, the Tohono O'odham Nation announced that it had contributed $646,292 to the city of Tucson and Pima County as part of the revenue-sharing program that resulted from Proposition 202, which voters approved in 2002.

The funds will support more than a dozen programs in health care, education and public safety. The city will receive $331,000 and Pima County will receive $315,292.