The ongoing dispute between the Seneca Nation of Indians and the State of New York over casino money is hitting home in Niagara Falls -- and hitting it hard. The city is pursuing legal action over the matter.
"The quality of life is going to be affected," City Council Chairman Sam Fruscione said.
The city last week yanked funding for a grassroots project because the city's casino cash coffers are bare, and that's just the beginning of cuts that will be made because the Senecas are withholding about $350 million in revenue-sharing payments from the state and because the Dyster administration blew what remained of the casino money on other projects.
The city's six business districts and their revitalization coordinators will no longer get their $12,000 each in appropriations for acting as liaisons between the business community and the city.
"That's just the beginning of many cuts that we're going to see because there's no casino cash coming our way," Fruscione said.
Next on the chopping block will be cuts to the Economic Development Department.
"After that, we have the ZOOM team (the city's clean neighborhoods project), they're at risk, and then road repair, demolitions, and tree removal. That's all funded by casino cash," Fruscione said.
The city will be going "back to basic services," he said, like filling potholes, snowplowing, and the like.
Of pursuing the casino funds, he said, "Whatever the mayor is doing is not working. It's not even getting recognized. The Council is going to take it in our own hands."
Dyster said his administration is "not quite there yet" regarding legal action.
But Fruscione said he and Council members have begun sitting down with Corporation Counsel Craig Johnson and City Council Attorney Morton Abramowitz on the matter.
"We're going to devise a plan of attack. We'll work with anyone. I want to find out what our options are," he said.
Johnson said possible legal action is about two or three weeks away.
"What the Council wants is to ensure that these funds can be returned to the city of Niagara Falls as soon as possible," Abramowitz said. He said under the current agreement, the city is considered a third-party beneficiary. With a possible amendment to the agreement, the Senecas could possibly pay their revenues directly to the city.
"The city shouldn't have our funds held back because of the (dispute between the state and the Seneca Nation)," Abramowitz said.
Fruscione was critical of Dyster's "nice guy" approach.
"Sometimes the nice guy comes in last," he said.
In early 2005, when the state wasn't speedy in making casino revenue payments to the city, then-mayor Vince Anello threatened to blockade the city road providing access to the Seneca Niagara Casino. The funds suddenly appeared about 10 days later.
"On the City Council agenda on Jan. 23, there will be a resolution creating a committee to lobby the governor and the Senecas to release the casino cash directly to the city of Niagara Falls," Fruscione said. "There will be three people on the committee, appointed by the City Council. We're going to accept applications for a 30-day period. The people we're looking for are people with lobbying experience, Albany experience and government experience.
"There may be minimal funding for a lobbyist in the future," Fruscione said.
As for the revitalization coordinators, Fruscione said it was a necessary move.
"That was our first step. They make the same as the salary for a councilman -- $12,000," he said.
"Sure, we're upset," said Ernie Lucantonio, revitalization coordinator for the Pine Avenue Business Association. "Hopefully, they'll get that casino cash going and we'll get reinstated."
"It's a shame that the city can't find the money," said Niagara Street Revitalization Coordinator Ron Anderluh. "They seem to find the money for other things. I think it was a big mistake."
Councilman Glenn Choolokian was critical of Dyster's passivity in pursuing the Seneca funds.
"It's been two or three years. Do you have a plan? Are you going to be vocal about this?" he asked of the mayor. "This should have been addressed earlier. It seems like everything is last second.
"They blew all the money, about $100 million between the casino money and the Power Authority money, and now whatever this Council has to do to resolve the casino issue, we're going to do," Choolokian continued. "I think we have to move forward with legal action. We're going to be aggressive."
Meanwhile, the Senecas continue to rake in the cash at their casinos in Niagara Falls, Buffalo and Salamanca, while withholding about $340 million in revenue from the state -- revenue they began withholding in 2009, claiming New York was violating the terms of the gaming compact that gives the Senecas exclusive rights to casino gaming in Western New York.
State Sen. George Maziarz, who met briefly last week with Gov. Andrew Cuomo, State Sen. Mark Grisanti and Assemblyman John Ceretto, would only say that "discussions are ongoing" between the state and the Senecas. He declined further comment.
Cuomo's press office in Albany did not return numerous requests by the Reporter seeking comment. The Senecas last month agreed to binding arbitration concerning the dispute.
Cuomo is pushing for a dramatic expansion of casino gambling in New York state.
State Assembly Speaker Sheldon Silver (D-Manhattan) said earlier this month that he "wouldn't necessarily mind" if non-Indian casinos were permitted in Niagara Falls. Such a development would, he acknowledged, breach the exclusivity terms in the gaming compact, according to the Buffalo News.
Last fall, the Senecas were set to move on a deal to release $70 million of the money to the host cities caught in the dispute between the tribe and the state. That tentative deal fell apart during a bitter session between Seneca Nation President Robert Odawi Porter and some Tribal Council members, the News reported.
In August, Ceretto and Grisanti introduced legislation to return a greater portion of the revenues collected by the state from tribal casinos to local municipalities. Their legislation, which amends the Tribal State Compact, would allow municipalities to collect up to 50 percent of the net earnings from electronic gaming devices. Under current law, municipalities may only collect up to 25 percent of the net drop from these machines, while the remaining 75 percent goes to the state.
"Local municipalities continue to bear the brunt of the cost of maintaining the infrastructure that casinos rely on," Ceretto said. "It is only fair that localities receive more funding from the casinos in order to pay for these services and upgrades, while reducing the strain on local taxpayers."
Ceretto said, "This additional funding would also help localities bolster the region's tourism industry and help promote economic growth."
Grisanti said, "This important legislation will double the amount of revenue being received by the city of Niagara Falls. This means more money for the important economic development engines that are key to revitalizing this city. The Niagara Falls casino money represents an important resource to move along projects that will serve as linchpins of our area's continued growth."
Ceretto and Grisanti argue that the legislation would put an end to the state's practice of collecting the lion's share of casino revenue, shortchanging local municipalities, and would ensure that the increase in local revenue is used for regional improvements, instead of being sent to pad Albany's coffers.
E-mail Ron Churchill at ronchurchill@yahoo.com.
| Niagara Falls Reporter | www.niagarafallsreporter.com | Jan. 17 2012 |