Regional January 3, 2009 10:00 AM

Senecas to Build Catskill Casino

With a note that there is no further information and that no interviews would be granted regarding this latest bit of news, the Seneca's revealed their intention to build a new casino in the Catskill Mountain region of New York. The Senecas released Public Relations Director Phil Pantano in the latest round of layoffs this past December along with over 200 workers as seen in this Business First article.

After suspending construction on the Buffalo Creek Casino Site and expansion on the Salamanca site due to "a downturn in the economy," the Senecas see the Catskill project, in partnership with a Michigan development company, as a more viable money-maker.

Though no mention is made of overall casino cost, the release predicts the amount local and state governments can expect to receive from casino operations, extracted mostly from out-of-state residents. Within the release, mention is also made of the ongoing dispute with a bill signed by Governor David Paterson that would enforce the collection of excise taxes on cigarettes sold on Indian-owned land.

The release is as follows:

SENECA NATION, CATTARAUGUS TERRITORY, Jan. 3, 2009 - The Seneca Nation of Indians and a Michigan company have an exclusive agreement to develop and manage a Class III gaming resort in the Catskill Mountains region of New York that is projected to produce annual revenues to state and local governments of $160 million when it's complete.

Nation President Barry E. Snyder Sr. said today that the Seneca Nation has had the exclusive agreement for the last 18 months with Rotate Black Gaming Inc. to develop and manage the region's first major casino, 80 miles north of New York City in Monticello.

The estimated payments to New York governments would exceed the annual total of what is paid to governments by the Nation's three existing casinos in Niagara Falls, Buffalo and Salamanca in Western New York.

"The Nation views development of a Catskills casino with the state as yet another example of 'win-win' economic development, like the Nation's existing Class III facilities, which have generated more than 4,000 jobs and $300 million in direct payments to the state," President Snyder said.

In 2002, the state Legislature authorized development of three Indian casinos in the Catskills region. The Seneca Nation has long had an interest in the Catskills as an opportunity to establish a Class III gaming facility in proximity to the New York City, northern New Jersey, western Connecticut and northeast Pennsylvania markets. The casino would be expected to generate significant income from out-of-state residents.

The Nation has not yet approached Gov. David A. Paterson regarding this proposed venture, but plans to do so in the future. State efforts to impose taxation on treaty-protected commerce taking place on existing Nation territories serves as an obstacle to immediate progress.

Rotate Black acquired a 63-acre parcel of land in the Town of Monticello near Route 17's Exit 107 and is in the process of transferring that land to the Nation.

The Nation will hold the land in "fee status" and pay taxes on it until the United States puts the land in restricted fee or trust status.

The Nation is not utilizing the provisions of the Seneca Settlement Act to acquire this land.

The Nation is acquiring the land in anticipation of a change in national policy by the incoming administration of President-elect Barack Obama regarding gaming on newly acquired territories. The Bush Administration established a firm policy against so-called "off-territory" gaming two years ago and all such proposals nationally have been stymied ever since.

Rotate Black projects that a fully developed Catskills casino will generate approximately $160 million in exclusivity fees to state and local governments, which is greater than what is currently being paid state and local governments under the Nation's existing Class III compact for its three Western New York casinos. No other Indian nation in the state provides such sizable payments to state and local governments. Further, development of a Catskills gaming resort would have economic benefits for Western New York, as well, providing the Seneca Nation with revenue to invest in and around its other resort casinos.

Unlike the bailout plans from Washington for the financial and auto industries, a Seneca Nation Catskills casino would cost the federal, state, county and local governments nothing.

The envisioned casino project is slated to include an all-suites hotel, enclosed pool environment, multiple restaurants, banquet facilities, food court, and spa. The development has been designed by Friedmutter & Associates, in conjunction with Perini Construction.

Rotate Black, publicly traded on the NASDAQ, is headquartered in Petoskey, MI and has experience in both Indian and non-Indian gaming. The company expects to complete a $70 million casino development in Dayton, NV in 2010 and is also in partnership in Goa, India to acquire a five-star resort there.

The Nation's Tribal Council established the Seneca Catskills Gaming Corp. as its development arm for this venture. The corporation is chaired by Kevin Seneca, the Nation's former treasurer.

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Senecas to Sign Direct Payment to Sullivan County from Buffalo Rising on May 13, 2009 11:21 AM

Today at noon, the Seneca Nation of Indians will sign an agreement that will authorize direct payments to Sullivan County for the New York State share of casino revenues expected from the yet to be financed or built $1.3 Billion casino in the Catskill ... Read More

Boobs. from Boobs. on December 29, 2009 7:08 PM

Boobs. Read More

Comments

16 Comments Leave a comment

QueenCity

January 3, 2009 10:18 AM

The Senecas cant just put a casino in the catskills unless they have a similar compact with the state. As far as I know, the governor has made no compact with the Senecas for the Catskills.

For instance the revenue sharing between the state, city and seneca's is only for SLOTS and ONLY for (I think) 15 years.

Technically the Senecas have satisfied their requirement to have broken ground and started slots...so technically the clock has already started running on that 15 year time period. IS ANYONE ELSE GETTING THE FEELING THAT THE SENECAS WILL ONLY BE INTERESTED IN BUILDING THE BUFFALO CREEK CASINO WHEN THE REVENUE SHARING TIME LIMIT HAS EXPIRED AND THERE IS NO MONEY IN IT FOR THE CITY OF BUFFALO OR THE STATE OF NY.

Think about it!

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whynot

January 3, 2009 11:33 AM

We should expect tremendous gains in rights for First Americans, this will include the expansion of legal gaming on native property, the subsidization of wind farms and hydro power generation on native lands, and a significant expansion of health care benefits. Several native nations, including the Seneca, have projects on hold while they await subsidies and benefits from the Federal Government under the Obama plan.

There is speculation that there may be a shift from state to federal rights for First Americans under Obama, as indicated during Obama's speech to the Crow Nation last summer. This would level the playing field for all native nations, especially those that are still limited by oppressive state laws.

We will see what happens with the Buffalo Creek, I expect that we will see a much more favorable operating environment for the Seneca Nation coming in the next 24 months.

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14216

January 3, 2009 1:02 PM

Far better to subsidize green industry as opposed to the gaming industry.

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whynot

January 3, 2009 3:37 PM

I agree.

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whatever

January 3, 2009 4:44 PM

Although both gaming and wind power should be legal, neither of those should be subsidized by NY state government.

Excellent op-ed about the infeasibility of wind power and the ripoffs related to it:

http://www.buffalonews.com/149/story/538137.html

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14216

January 3, 2009 7:42 PM

Thank you for the link. And I agree that there are issues with wind power. But, green industry need not only be limited to wind power.

In a perfect world, one would hope that our government would not have to subsidize any of these activities. But, we are in a new era and subsidizing the development of sustainable energy resources is far better than subsidizing the gaming industry and investment bankers.

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RaChaCha

January 3, 2009 12:01 PM

Thanks, BRO, for putting up this news. Very strange that the Buffalo News has no coverage today either in print or online - especially given that the Albany Times-Union had the news online yesterday. Their coverage is here:

http://www.timesunion.com/ASPStories/story.asp?StoryID=756185

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al labruna

January 3, 2009 12:11 PM

Good luck with that.

That casino proposal has been bouncing around for a decade. the Mohawks quit the deal in frustration, then Trump was supposedly going to move in, now the Keepers of the Western Door are moving back east to try their hand.

Come to think of it, that isnt quite the Seneca's historic territory.

Has anyone been to Monticello? It not really adjacent to anything. Is this a scheme to get more visitors to the raceway?

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QueenCity

January 3, 2009 3:37 PM

first americans...Im sorry is there something in the US constitution that recognizes seniority regarding citizenship.

Do those who were here 1,000,000 years deserve more than 10,000 years?

Do those who were here 1,000 years deserve more than those arriving here more than 100 years?

Do those who were here more than 100 years deserve more than those gaining citizenship 10 years ago?

Sorry but there is no such thing as First Americans, and there is no special citizenship granted based on seniority other than the self administration granted reservations but they still must obey both federal and state laws. I dont think any President or Congress is going to allow States Rights to be usurped by the federal government and have it pass the US Supreme Court.

And who exactly is paying the taxes for all these so called subsidies amerian indians are demanding? As far as I know its not american indians paying taxes....pay your taxes and we can talk about healthcare and other benefits.

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whynot

January 3, 2009 4:07 PM

Sorry Chris, I know that this is a challenge for your bigoted mind. There is no special treatment for the First Americans, in fact the opposite is true. Opportunities for development and advancement have been continually stifled through federal and state laws that favor non-Native Americans over the First Americans. This was discussed frequently by Obama during his campaign, he even went as far as to participate in ceremonies with several nations and has become an honorary member of the Crow Nation.

Take a look at Barack Obama's campaign platform and plan for his term and you will see that in fact the President and Congress are looking to change some of the repressive State and Federal laws, looking to undo some of the damage that more than two centuries of oppression, abuse, and genocide have created.

These programs, like all welfare and social support programs, are paid for by the taxpayers of the US. We do not segregate support for any group except the Native Americans. This is what Barack Obama has promised to change, bring everyone to the same level for support and services.

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PaulBuffalo

January 3, 2009 6:18 PM

Al labruna is correct that this project has been discussed for ten years and there have been a number of players through the developer turnstile.

This was a big story in the NYC area because the proposed casino was expected to be an alternative for gamblers that trekked to Atlantic City, so the revenue potential was considerable.

If I remember correctly, though, the Federal government rejected earlier proposals because the actual Native American reservations were nowhere near Monticello. If true, why would the Senecas have a better opportunity since they're even further away?

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QueenCity

January 3, 2009 6:26 PM

whynot, Im not against native americans receiving the same access to welfare and social support programs.

But then there should be no argument about paying business and sales taxes, particularly to non-native customers.

to set the record straight, I dont have a problem with indian reservations. I think that the tribes in the Dakotas are doing AMAZING work restoring prairies, pure bred Buffalo, prairie dogs, native birds, etc...and they have found that its a very lucrative business too. There are many incredible ways such as the above which prove are both ecologically, financially and culturally in the interest of both US citizens and native americans.

American Buffalo/Bison are examples of culturally unique needs of native americans, their health and their culture to which tribes and reservations serve.

And there are plenty of businesses that can be located on indian reservations...but they should follow state and federal laws, environmental regulations, etc.

I dont want native americans to have higher propensities to diet related illnesses, illiteracy / drugs / alcoholism / unemployment due to the social isolation of reservations.

(no, I do not consider gambling casinos to be perpetuators of indian culture...from what I understand it creates a super-wealthy class, a minority dividend subclass and a vast population of the tribe exempt outsiders).

(Furthermore, shooting/burning cars on the I-90 expressway because it passes thru native american land whenever there is a dispute with the state is not something that I tolerate easily.)

I simply diverge from such support when it comes to native americans renouncing their US citizenship, refusing to pay taxes, seeking exemptions from state and federal laws, etc.

Sorry if that makes me a bigot...but thats how I feel.

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truestar

January 3, 2009 9:38 PM

Always attacking the native people regarding taxes and gambling is hard to understand. As an upstate New Yorker we have been getting very little in return for the enormous amount of taxes levied on us. Our state is in a state of collapse because it relies on monies generated on Wall Street, gambling disguised in the form of speculation and manipulation. The result.....more !@#$%^&* taxes.

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sonyactivision

January 3, 2009 11:39 PM

Yeah, casino gambling is the worst thing to ever hit NYS, even after the Wall St. meltdown, the near-total loss of our industry and countless other businesses due to high taxes and foreign competition, and all the other crap that's befallen the poor sweet innocent New Yorkers who must be sheltered from the evils of dinging slot machines and second-hand smoke.

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truestar

January 4, 2009 6:02 AM

the sucking noise that runs down the line from Buffalo to Albany and eventually into the Big Rotten Apple isn't very pleasant....especially when followed by the deep sinister laughing that accompanies it....

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assaroni

January 5, 2009 2:57 PM