Seneca Niagara Casino in Niagara Falls, New York
NIAGARA FALLS, N.Y. - Tourism momentum in the Falls could be at risk, and local leaders say it's all because of the Seneca Nation of Indian's fight with the state.
That big casino in the middle of downtown Niagara Falls should be paying out in more ways than one. To build there, the Senecas agreed, every year, to give millions to the state, which then hands out some of the money to the city and several local agencies.
The Senecas say they started withholding the casino money when the state allowed "Racinos" in Batavia, Hamburg and in the Finger Lakes. The Senecas say that violated the exclusive zone that restricted Class 3 gaming West of Geneva to the Senecas.
Local leaders say the Senecas are withholding because of the state's collection of taxes on Indian-sold cigarettes, a charge the Seneca's spokesperson called "a lie." He said the casino money had nothing to do with cigarettes.
Either way, all of this began at a time when tourism is starting to take off in the Falls.
"Perhaps most tragic, NTCC, our county-wide tourism promotion agency, has had to cut back on personnel," Niagara Falls Mayor Paul Dyster said. "They've had to cut back on their advertising as a result of the non-delivery of the Casino revenues."
The City itself is owed more than $50 million. It needs the money for all sorts improvements.
"At some point, as the bills come due for capital projects, you reach the bottom of the barrel and I'd have to say we're getting close," Dyster said.
As for the cigarette battle, the Senecas have offered solutions. Last year they offered to pay the money directly to the city and other agencies... until the cigarette tax fight is resolved. But Governor Paterson wouldn't go for it, and Governor Cuomo has yet to act.
2 On Your Side asked New York State Senator George Maziarz, who represents part of Niagara County, about the dispute.
"Is there any way to put pressure on the governor to get this taken care of quickly?" 2 On Your Side asked. "Actually, I don't think this is going to take pressure," Maziard responded. "I think it has to be legally do-able... (Buffalo) Senator (Mark) Grisanti and I have met with the governor's senior staff people as late as last week. We met with the governor, Senator Grisanti and I, actually twice on this particular issue alone, and unlike the Paterson Administration, this administration has sent all of the positive signals that they want to work this out."
Maziarz said he thinks the situation will get fixed in the next two to three weeks.
Another major reason to get this solved now?
According to Senator Maziarz, Niagara Falls Memorial Medical Center, which also relies on casino funds, has a bond payment due next month. Maziarz says the state should not put the hospital in a position to potentially miss that payment.
You Might Be Interested In