In 2002, Gov. George Pataki executed a plan that introduced a 50-acre tax free nation into the middle of an American city. It was part of the Seneca Gaming Compact and the city was Niagara Falls. The objective: to use a trick of truth by skirting the New York State Constitution that made gambling illegal for New Yorkers by making the 50 acres not part of New York anymore.

Talk about stupid: It was illegal to gamble in New York, so we took a piece of land out of New York State and gave it to a sovereign nation so that New Yorkers could gamble on what used to be New York land.

Plans called for nearly 250,000 square feet of new construction (see picture right) in addition to the convention center casino, and a lavish interconnected complex of hotels, entertainment venues, restaurants and other attractions that would give visitors to Niagara Falls many reasons to come for an extended stay. Nothing like that was built.

Today, it looks like the Senecas never intended to make Seneca Niagara a tourist destination but are content to target locals. Instead of fully developing their 50 acres in the cataract city for tourism, the Senecas built casinos in Buffalo and Salamanca, targeting locals. Their casino business model has been described by industry insiders, like Mickey Brown, their first manager, as “the grind,” operated mainly for locals, who regularly lose money, on small bets, year in and year out.

Now they have a RFP for a gas station and convenience store that, if built, will drive out competing convenience stores and gas stations. What’s next, a tax free mall? One has to wonder when people will realize that a tax-free nation in the middle of their city will sooner or later destroy every business.