A settlement was proposed by Marin County Superior Court in a lawsuit against the city of Richmond attempt to build a casino in Point Molate shores. The East Bay Regional Park District and Citizens for East Shore Parks filed the lawsuit in 2004, claiming that the city confirmation of the casino project was illegal, since a report about the affect on the environment was not prepared. The state law requires preparing such a report before approving casino building.

Attorney General Bill Lockyer proposed a settlement to the city of Richmond representatives on Friday. According to the proposed settlement, the city of Richmond will maintain discretion to make a decision how to use the 350 acre parcel, and it will not be obligated to the casino project or to the casino developer. In this case, the city can reject the casino project without having to give the land to the casino developer.

The city of Richmond agreed to complete the report on the environmental effect of the casino before making any decision about the casino plan.