Host Communities Screwed by Seneca

It is worthy to note that communities lacking a separate "host agreement" will be successfully screwed should the Seneca prevail.

Fall River officials and others blindly believe their increased 'host costs and impacts' will be fully funded (not having conducted an independent cost and impacts analysis).

A word to the wise should be sufficient.

Casino Talks Break Down
December 16, 2010 - By Sharon Turano

A break down in talks between New York state and Seneca Nation officials regarding three Seneca-owned casinos may leave Salamanca officials with little to discuss when they meet Tuesday to review an agreement proposed to them by Seneca Nation officials enabling the city to receive millions of dollars it receives each yet for hosting the Seneca Allegany Casino.

The state and nation have been at odds, with both alleging the other has violated terms of an agreement they have for the Western New York casinos' operations.

The nation has said the state violated the exclusivity portion of the pact, which prohibits other gaming devices in a certain radius of the casinos and therefore voted not to pay the state an annual share the compact specifies. By not making the payment, state officials have said the Senecas violated the pact.

The disagreement left cities like Salamanca without a share of the money the state annually receives. Robert Odawi Porter, nation president, is proposing the Senecas and Salamanca establish a joint governing body to administer money the nation would pay the municipality.

While city leaders planned to meet Monday to discuss the proposal, the state notified Seneca officials they will ask an arbitration panel to find the tribe "materially breached" the compact by not paying the state its annual share, which could leave Salamanca officials without future payments if there is no agreement in place between the nation and state.

State officials could not be reached to comment Tuesday regarding the reported break down in talks, however, Richard Nephew, chairman of the nation's Tribal Council said, "It is now clear that this matter is only resolvable through arbitration and the nation welcomes it."

"The nation trusts that a fair-minded panel of arbitrators will identify that the state has been in violation of our right to exclusivity under the compact given the introduction of the following devices in Western New York: video lottery terminal devices at racinos, Moxie Mania devices at bars and restaurants, and 'slots' at the 'casinos' at Hamburg Fairgrounds, Batavia Downs and Finger Lakes Racing,'' Nephew said. ''Because of this, the nation has been relieved of the obligation to make exclusivity payments. Through arbitration, we hope to get answers to our questions on why the Paterson Administration ignored the issues for so long."

Once arbitration is requested, the compact outlining casino operations states, the state and nation will select an arbitrator, with the two arbitrators then choosing the third member of the panel. The panel's decision is final.

"The state may feel as though it has reached an impasse with the Seneca Nation, but the nation has done everything according to the letter of the gaming compact to deliver its end of the bargain," Nephew said. "Let us be clear: the nation's decision to whithhold the exclusivity pyments is based on the state allowing casino gaming machines within the nation's exclusive jurisdiction," he said, adding there are also other issues the state and nation have to work out in relation to the casinos operations such as payment for state police background checks on employees and accounting.

Nephew said a report by state officials linking the state's attempts at taxing nation sales to not paying the annual casino share are "two completely separate and distinct, unrelated issues."

"Outgoing Gov. Paterson knows this but keeps trying to tie the two together," he said, adding the nation can only hope for better relations and improved reasoning with Governor-elect (Andrew) Cuomo."

If there is no agreement for a casino, questions remain as to what would happen to the casinos or the municipalities that get money for hosting them.

Salamanca Mayor Jeffrey L. Pond Sr. said Tuesday he likes the concept Porter proposed of a joint government to carry out some services for Salamanca residents, both Seneca and non-Seneca, but has concerns with the proposed agreement given the city's Common Council to consider. He said the council will meet in a closed-door session Tuesday to look at that proposal.

The stalemate between the state and Senecas may impact those discussions. During Porter's introduction of the proposal to city officials, he warned of the matter between the state and Senecas resulting in no agreement that provides funding for the city.

"If the nation prevails in its dispute with the state, there is no obligation to ever make exclusivity payments again, which means that the city will never see local share dollars again," Porter said, requesting the city choose to work with his government instead.