Seneca Gaming edging closer to gas station project;
selection of vendor appears to have been made

How far will Governor Cuomo go to try and block Seneca on their plan to create a tax free gas station and convenience store on their casino property in Niagara Falls?

Robert Odawi Porter, President of the Seneca Indians, is exploring plans for a tax free gas station, smoke shop, beer and convenience store on Niagara Street, on part of a sovereign nation that used to be Niagara Falls.

The Seneca Gaming Corporation has apparently made the selection of a developer to design the upscale convenience store and gas station on Niagara Street next to the casino parking ramp, the Niagara Falls Reporter has learned. 

We reported exclusively two weeks ago that Seneca Gaming had issued RFP’s on May 21, with a return date of June 15, for a tax-free gas station and convenience store project at 621 Niagara St. and next door at 765 Niagara St.

 In the last few days, a developer who responded to those RFP’s has been advised by email from Seneca Gaming that its subcommittee has “completed an extensive scorecard/evaluation with the Gas Station Planning proposals.”

The email concluded that at the end of the day the particular developer “was not chosen,” a clear sign that another developer has indeed been chosen for the project, according to sources knowledgeable in the RFP process.

 Seneca Gaming officials said at one point (after our story was published) that the RFP process was just a way to get some information “from an expert….we’re just trying to get some facts.” Well, it looks like they now have gathered the facts and have made their decision on who will design the project.  How many developers responded to the bid solicitation is unknown. In the email response to one developer, Seneca Gaming apologized for the length of time “our vendor selection process has taken.” Remember, the return date was June 15th.

Meanwhile, as a result of our initial story, the Cuomo Administration has weighed in, citing “recent media reports” about the RFP’s that we reported on exclusively.

In a letter Aug. 9 to Robert Porter, president of the Seneca Nation, a top aide to Gov. Andrew Cuomo said he shared the community’s concern about the potential impact on small businesses that the gas station might have, particularly in light of the fact Niagara Falls has not received a dime from the Nation’s $600 million in annual casino revenues—tax free income that could be used to create tax free businesses to compete with local small businesses who pay taxes.

 Howard Glaser, a senior policy advisor to the governor, also cited language in the compact between the state and the Seneca Nation that says the “gaming facility site would be utilized for gaming and commercial activities traditionally associated with the operation of a casino facility” and was intended to insure that local businesses would not be placed at a competitive disadvantage.

 Porter took offense at the letter from the state, saying the compact “does not prohibit non-gaming amenities,” and the conclusion in the letter “is not consistent with the development that has occurred thus far, and to suggest otherwise is absurd.”  Porter also called on the state to stop violating the compact with its three Western New York casinos, the issue that is at the heart of the gaming dispute and has held up payments of casino revenues to localities since 2009.  Niagara Falls is owed nearly $60 million and is struggling to meet its obligations.

 The Senecas have so far rejected offers by the state to make direct payments to Niagara Falls which Glaser reiterated in his most recent letter, saying that such payments would be credited to the exclusivity payments to the state currently being withheld by the Senecas. 

 Niagara Falls City Council Chairman Sam Fruscione came out with his own letter supporting the Cuomo Administration’s concerns about the impact of the gas station and also urging that Niagara Falls receive its share of casino revenue “with one such option to be direct payment” to the city from the Seneca Nation, as offered by the state.

 There’s no indication that’s about to happen as the dispute continues, and now it appears Seneca Gaming has advanced its plans for a gas station/convenience store with the selection of a vendor to do the work.

 The question may now be who is going to blink first.  If Seneca Gaming follows through with the gas station project on casino property, what will be the state’s response? 

The letter from the Cuomo aide appears to have had little impact and the dispute over the video terminals at Buffalo, Batavia and Finger Lakes continues.  There was a temporary cease-fire over the roadwork dispute through the Allegany Reservation, but nothing else has been settled and the tough talk continues.

Meanwhile, as the Seneca Nation appears to be moving forward with the gas station project, Niagara Falls continues to dangle in the wind despite the governor’s measured efforts and the concerns of the city’s elected officials, including Mayor Dyster.
 The Niagara Falls Reporter is calling on the area’s state elected officials to get involved before the gas tanks are in the ground and small businesses in Niagara Falls go under.