Copyright 2003 - Saturday, December 13, 2003

Landscape changes for Oneidas, neighbors

Questions of taxes, compact arise

By LINDA MURPHY

Observer-Dispatch

VERONA - The controversy that has long enveloped the Oneida Indian Nation and its neighbors has flared again.

As in divorce, much of the ire is focused on money.

As a sovereign nation, the Oneidas have been exempt from paying taxes. Recent legal rulings, however, might make it more difficult for the Nation to keep its money. State and local governments say revenue sharing is only fair.

Last week, the state dropped plans to fight a court case brought by citizens group Upstate Citizens for Equality challenging the compact that allowed Turning Stone Casino to open and operate a decade ago. Groups wanting that compact renegotiated to include tax payments by the Oneidas were jubilant.

But Oneida Nation spokesman Mark Emery said that making payments to the state would jeopardize future economic development at Turning Stone Casino and Resort. Turning Stone made a profit of $70 million last year, according to Nation documents.

It is the region's largest employer with an annual payroll of $85 million.

"In 10 years, the Nation has gone from zero employees to 3,700 today and there are 1,000 more jobs on the way," Emery said, referring to a construction project that includes a high-rise hotel.

Meanwhile, Nation officials met with state negotiators at Turning Stone earlier this month to talk about a gaming compact. Far from reaching an agreement, the meeting ended in stalemate, with both sides crying foul.

As a result of the meeting, Oneida Nation leader Ray Halbritter told a packed room of 1,000 employees that New York state is threatening the Nation's jobs by reneging on the gaming compact.

"I'm telling you and I'm telling the state, we are not negotiating these jobs," Halbritter said in a statement to Nation employees. "If the state takes that to mean that negotiations on other issues are on hold, then that's what it means. The well-being of our employees and their families is not negotiable. This is where we draw the line."

Emery called the state's demand "a shakedown. ... We've been negotiating the land claim for a long time. We were near a settlement, then they throw this out there - it's almost like a deal breaker."

Meanwhile, Upstate Citizens for Equality and its attorney, Leon Koziol, have been planning their steps.

"Gaming as a whole violates the state constitution. If we have to, we'll file a motion in federal court to shut down the casino - it would be an injunction against (casino gambling)," Koziol said. "Halbritter's got a monopoly and he's not paying taxes so he won't settle. This would force Halbritter to be more serious in the land-claim negotiations."

The Oneidas have been in federal court for decades seeking land or compensation for property taken from them improperly two centuries ago. That case has remain unresolved despite countless court rulings and mediation efforts.

But it is the gaming compact and taxes that are center stage now.

Some of the Nation's opponents say a legal ruling with the Mohawk tribe reached in June set the stage for the Oneidas to pay revenue to the state. Emery said that ruling has nothing to do with the Oneidas.

In June, New York's highest court, the Court of Appeals, ruled the St. Regis Mohawk Nation's gaming compact reached with former Gov. Mario Cuomo in 1993 is invalid because it had never been ratified by the Legislature.

The Oneidas' compact was also signed by Cuomo in 1993 and was not ratified by the Legislature. The state cited that ruling in dropping its fight against the Upstate Citizens for Equality lawsuit.

At the same time, the state claims that the Oneidas reneged on an agreement to pay state revenue.

The chief land claim negotiator, John O'Mara, said the Oneidas' played a classic "bait and switch" with the state.

"When the Mohawk's compact was ratified, (the Mohawks) agreed to pay revenue on the slot machines. They were required to install between 800 and 1,000 machines," O'Mara said.

"Two months ago, when the Oneidas went to the Legislature for ratification of their compact, they agreed to pay revenue on slot machines. Then when we met with the Oneidas, they said they had no intention of installing slot machines. ... The ball is in their court. We will not ratify the compact without real revenue sharing. The Oneidas will have to decide the next move," O'Mara said.

Contributing: The Associated Press.