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Buffalo’s bills are not the only beneficiaries of the $564.8 million in long-term casino revenue that Gov. Cathy Hochul from the Seneca Nation was drafted this week.
While Hochul spent most of the money for the new stadium bills, the cities of Buffalo, Niagara Falls and Salamanca benefited. The state will send $34.8 million in cash from the Senecas to the city of Buffalo, the governor’s office said. Meanwhile, Niagara Falls will share $38.9 million and Salamanca will share $16.4 million with Cattaraugus County.
Buffalo Mayor Byron W. Brown, for one, was happy Hochul finally got that money from the Senecas.
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What Hochul did was that they could force their creditors to pay each other. Relying on the state debt collection law, he approached KeyBank and asked for a deposit in the Seneca account until they paid their state money.
The move meant that starting a week ago, many Senecas could not access their money through ATMs. In the meantime, he cannot meet the three bills or pay any other bills.
Faced with a dire situation, the Council of the Seneca Nation decided last Monday to send payments to the state.
But the Seneca did not like it. Tribal President Matthew Pagels said the governor turned the long-controversial settlement into a “redemption bill.”
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“I think it’s good that the Seneca Nation has finally decided to send this money to the state,” he said. “We have been waiting for this money for years, we will put it to good use.”
The bill spans five years — from 2017 to 2021 — so the Seneca insist they no longer have to share with the state in operating revenue.
Under a 14-year agreement the state and the Senecas created in 2002 for three casino units, the Senecas agreed to send 25% of their slot money to the state over the course of the seven-year deal.
What was included in the provision of the broad seven-year renewal, Senecas stated that there was no provision to share the revenue with the state renewal.
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The judges repeatedly ordered the Senecas to dissolve the republic, but the tribe refused to do so until Hochul forced his hand.
That 2002 casino agreement called for the Seneca to receive about 25% of the state’s money to be shared with the casino communities of the tribe. This meant that, since the Seneca refused to pay public money, the communities also lacked the idea of money.
Brown points out that breathing isn’t even scary. For one thing, the state sends money to the city to cover any expected casino losses. And another city was flooded with federal aid money last year.
The absence of slot machines has a major impact on Niagara Falls, where it was targeted to cover about 10% of the city’s budget in the late 2010s and a little less. The state came up with some money to help plug a budget hole in Senecas funding, but Mayor Robert Restaino said the remaining deficits combined with the pandemic have put a lot of pressure on them. City budget. In the year 2020
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The city has faced some staff shortages since then and finished 2020 with a deficit, but last year saw a boom in tourism in the city, Restaino said.
The president of Niagara Falls was not so eager as Brown, but he was moving to force the Senecas to pay their debts.
“As a lawyer I take the tools available, and so I’m not going to second-guess the ability or the power to use public laws to take advantage of” trying to collect a debt, Restaino said.
But he also noted that it is important for the Senecas and the state to move past the settlement of the dispute and begin negotiations on a new casino agreement, with the current one set to expire at the end of next year.
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“We still have to maintain relations with our neighbors – and the Seneca Nation has 51 acres of land in the city of Niagara Falls,” Restaino said. “So what we have to do, and what we will continue to do, is to maintain a good working relationship.”
In Hochul’s motion to force the tribe to pay, Restaino added: “Do I want this to come? Of course you don’t want to see this happen.”
A day of pain as the day begins. We dig into all the news to give you a short and detailed look at the week’s headline features and must-read stories.
Jerry Jeremsky, who has covered the Washington Buffalo News since 1989, is a lecturer at Mary’s College of Journalism at Philip Merrill University.
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After 20 years of work, many of them filled with conflict, the State of New York and the Seneca Nation of Indians are about to successfully begin negotiating a casino treaty that will expire at the end of 2023. It is likely to be difficult, but it does not mean that it is shameful, and in this respect the Senecas makes an important beginning.
Patrons play slots safely at Seneca Buffalo Creek Casino in June 2020 as the facility closes amid the Covid-19 pandemic.
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