Casino Construction Suspension
Now that the Senecas have suspended construction on both their embattled Buffalo Creek Casino and an expansion on their Salamanca site, the question is for how long and why.
Seneca Gaming Corporations (SGC) Public Relations Manager Philip Pantano says that the time frame is indefinite and the reason is based on a downturn in casino operations across the country, though he says the Seneca facilities have experienced growth of double-digit increases in the last two quarters.
The amount saved per day in halting construction on the projects totals a whopping $300k. Pantano assures us that in regard to the lawsuit against the Buffalo Creek Casino in which Judge William Skretny has directed the National Indian Gaming Corporation (NIGC) to shut down gambling at the Buffalo site, "The decision would have been made regardless of NIGC."
When asked if this was a pronouncement on the local economy, Pantano replied, " In building a project of this magnitude, we were not relying on the local economy. We have a national audience, and the state of the economy in the current market conditions show that continuing at this time would not be prudent. The interest rates are astronomical."
The SGC, having financed the first third of the $333 Million project, would be looking for outside financing on the completing two-thirds of the project, something Pantano said the SGC would be looking at options for in the near future.
"The investment community is looking favorably on our decision," Pantano said. "We're viewed as being very strong amongst our peers in the gaming community." He went on to explain that lay-offs and shelved projects are not uncommon at this juncture in the country's poor economic times.
"We're taking this proactive measure while we're still strong," Pantano said, pointing out that casinos across the country are struggling with the state of the economy and competing for a smaller pool of recreational dollars.
"There's a Boyd casino in Las Vegas that was halted $2 Billion into a $4.8 Billion project. Pinnacle Entertainment in Atlantic City has shelved construction on a project there, and the CEO is quoted as giving 50-50 odds on whether the project will happen," according to Pantano.
As for speculation that the suspension of these two regional projects was a direct result of the pending NIGC decision to deem gambling illegal at the Buffalo site, Pantano said it simply is not true. "We watch the economy closely," he said. "This decision was several weeks coming even though we continue to operate strongly."
The answer to how long the construction will be halted has not been determined, but will be related solely to the economy according to Pantano.
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crisa
"Suspension" is another word for stall, get a new plan, litigate toward oblivion. But heck, its better than rioting in the streets!
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wingking
I wonder what the status of the building project had ben if the Senecas had built in Cheektowaga as they'd originally planned. I distinctly remember the cover of the Buffalo News of Carl Paladino's wild celebration when the Cheektowaga casino was prevented by legal manipulation..
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bobbyraz49
Legal manipulation...Hmmmm. How about all those in favor of a casino get together and SUE the Seneca's ? They are not giving us what they promised in their time frame !
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crisa
WATCH OUT! Its an invasion of humungous spores! Of is it an actual portrayal of actually dirty money?
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crisa
What ever else the Seneca's leadership might be willing to portray as their words concerning takeovers, I hope it won't be that they do what they do because of what the white men did to them. After all, before whites appeared on their land, the Senecas wiped out at least the Iroquois! I was surprised to see that in print. Who in the Nation let that get into print? (Naz drovya, panya, Iroquois. I can say it but I can't spell it. Does anyone remenber the first Genny Girl?)
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crisa
(My cell rang. Response: I think it means "to your health, mam! Said as a guy picks up his tankard and toasts the gal who just served him his beer. That gal wasn't Genny though. Genny was serving Genesee.) (I didn't get a cell call on my personal cell phone (which is a Tracfone and fits in our budget so well)--I mean the cell others pay for.)
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vgs
bobbyraz - they did give us what they promised, a casino in a liitle blue tin shed, now instead of continuing with the big casino they can just create a huge gas station and tobacco depot and there is nothing we can do about it.
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NewBuffalo
at least they are business smart (unlike issa's city tower joke).
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crisa
As I take up a small strip of bandwidth, I also creates new hits, so this is OK, right? Besides that I am enjoying myself, that is.
I am dead set against casinos. No one cared to know that about me though. It doesn't do any good to be on-topic dead set now...
What we do do is go to the Erie County Fairgrounds to that casino. Purse a $20. Lose a twenty but gain a fiver. Works for us! Its our winter sport. Four cylinders also makes it cost-effective. (We don't go to America's Fair though because to do so would make no sense.)
Everyone. Have a fabulous and safe Last Days of Summer Stuff Before School Starts Weekend. Bye bye
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gaustad
Senecas are clever and manipulative.Throw up a small structure and tease everyone with it.
Casino in Niagara Falls is still packed with the same drug dealers, disabled people, and welfare recipients that are usually in there smoking and drinking. I don't think a slowing a economy is a good enough reason to stop construction in this region.
Vegas, yes. People fly in and out of Vegas every day.
Decision is a little too coincidental.
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benfranklin
During this pause in building perhaps some that are so 'anti-Seneca' will rethink their position. Words, plans and statements (from the Seneca's) can be manipulated for consumption by the general public. Actions (like stopping construction) have an honesty that words can't match. For those that think the casino agreement is a license for the Seneca's to print money... it might be those bills coming off the press are ones, and not hundreds.
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nyc
'anti-seneca'?
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MJWorthington
"anit-sovergn-nation-monopoly-on-high-stakes-gaming"
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bfloghost
Just curious, does E-C-B only write on topics that are guaranteed a high degree of feedback?
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TranspoGuy
Pro-Seneca Street, Anti-Seneca Casino
Anyone else down?
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mbhxam
At least they're not burning tires!
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tjhorner1
Not to argue for or against the casino, or say that the Senecas should or should not have started on their casino before the courts had there say, But....
The only thing worse that empty buildings and empty storefronts in our downtown, is empty, uncompleted buildings downtown. Now we have monuments not only of economic success of the past that has passed us by, but also economic progress of the future that appears will be no more....
And furthermore, I doubt the city can enforce any code violations that an incomplete structure may incur, since the structure is on sovereign land.
Only in Buffalo....
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MyNameWasTaken
Quick, someone tell the feds! Looks like they just found a new supplier for the steel they been having such a hard time getting a hold of for their court house.
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newskylinebuffalo
Bass Pro won't happen without the casino? Puha! Quite contrare.
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vikings63
Well all those better for Buffalo people, I Hope there happy now. Let me tellyou idiots something that think they know it all?? First off what does that stupid lawyer from Albany know about Buffalo and whats best for it?? Without this Casino going forward you will find out it wont be long that the Bras Pro shopp will close or it might not even come now after it foinds out the casino is closing. Also all that junk they are planning on putting under the skyway will also be hurting from the casino not going up. And as for Benderson his hotel he wants to put up under the sjyway think twice because its not going to do well now. These better for Buffalo people dont know ther headfs from the as.... because if they did and maybe got out of town once in a while they would realize that casino is what brings people to the citys,just like the guy told you in the message to the news, they was not not worrying about the local people as muc they was looking at outside Of New York state and when they come it brings them to other places in Buffalo also, like resturants, waterfront,clubs, musiums etc. So they better only hope that they senecas cont with this project soon or Buffalo will never recovery and will always be the laughing stock of the country. Oh yea if you get outside of New York you would Know that Buffalo is the laughing stock of the country. So why to go Better for Buffalo idiots because even though in my opinion, they say its because of the economy, Yes that might be partly true but I also think the court ruling had a part in it too and they want to make siure if this goes forward it wont be shut down ever, and until they are 100% sure they are not going to move forward. By the way i would love to know what the plan for the future of Buffalo, does the better for bufalo people have planned??? It seems they like to stop everything but never come up with anything?????
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sonyactivision
The casino boom is over. Smart, well-conceived projects will always do well but most others are either going to languish or die off altogether. In an age of $4 a gallon gas, who has money to gamble? The Senecas made a good call but if the cranes are stilled for more than a year, they should consider cutting bait and selling it off to somebody else.
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gaustad
Bass Pro will not build for at least another 5 years if ever!
Please someone tell me why one would think otherwise.
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skarnath
There should be more to this story. In the conventional development world, no project starts construction until 100% of the construction financing is firmly in place. Price increases in materials generally result in requests for change orders, not shutting down the job. A little investigative work by BRO would be helpful.
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MisterAmbivalent
Their SEC FIling from August 13th indicated that this was a possibility.
http://www.sec.gov/Archives/edgar/data/1296785/000110465908053073/a08-19244_110q.htm
"In March 2008, the Company completed a 109 slot machine expansion (for a total of 244 slot machines) of the temporary Seneca Buffalo Creek Casino. Construction of the permanent Seneca Buffalo Creek Casino and Hotel commenced in March 2008 and it is anticipated to open in Summer 2010. The permanent complex is expected to initially feature 90,000 square feet of gaming space with 2,000 slot machines, 45 table games and a 22-story all suite hotel with approximately 206 rooms. Planned amenities include a pool, spa and salon; four restaurants, meeting rooms, a retail outlet and a 2,200-space parking garage. We continue to monitor increases in the costs of construction and materials and their impact on the original budget. As of June 30, 2008, the Company has paid $35.1 million on the construction of the permanent casino and hotel.
In July 2007, the Company commenced construction of the Seneca Hickory Stick Golf Course, an 18-hole Robert Trent Jones II designed golf course. The golf course is located in Lewiston, New York and is approximately 10 miles from the Seneca Niagara Casino and Hotel. Completion of the golf course is currently scheduled for late fall 2008. To allow for proper grow-in of the course it is anticipated that the earliest the course would be open for play would be late summer or early fall of 2009. The decision as to when to open the golf course for play will depend on how well the course matures in the 2009 growing season. The total cost to construct the golf course, club house and related amenities is estimated to be $25.5 million.
The planned expansion projects at Allegany and Buffalo Creek, and the golf course development in Lewiston, New York, will require significant capital outlays. The ability to complete these projects by the targeted dates, or at all, will depend on various factors including cash flow from operations, the availability of external financing with regard to one or more of the projects, certain Nation and other governmental approvals, the effects of legal and/or administrative proceedings, and adherence to projected construction timelines. In light of greater demands on our available cash, increased competition and challenging economic and capital market conditions, the Company, in consultation with the Nation, continues to evaluate the scope, phasing and timing of its expansion plans on the Allegany and Buffalo Creek territories, and is reassessing the scaling and scope of its clubhouse design for the Seneca Hickory Stick Golf Course. The Company believes that it is early enough in the design and construction process to accommodate appropriate changes to its plans, if necessary."
It would appear that banks will not finance the prject right now due to high materials cost, capital market fundamentals, and a general malaise in the gaming market. This was noted as an issue way prior to the Skretny ruling.
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JohnMarko
My take:
The "wonderful corporate citizens" the Seneca gaming people are (what a steaming pile THAT concept is!!!) are just trying to run out the clock on the minimial and soon to expire revenue-sharing agreement they currently have in place.
Delay long enough, and they can have their monopolistic money maker in place AND keep ALL - 100% - of their profits witihout having to share ANY of it with the local community that will be left holding the bag for all the destitute detrius left to rot on their own just outside the glittering gate of gaming...
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Quijibo
The site should be returned to the people of Buffalo and should be used for the common good of all. The Senecas should pay a substantial fine for abandoning the project and should be required to pay a portion of the Niagara Falls Casino profits to the City of Buffalo for not upholding their commitments. We should allow the City Government to run the casino and funnel all profits directly back to the people.
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Bufago
wendt foundation gamblewas a sucker bet...
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