Hearings to focus on casino
Feb 28, 2005

By YANCEY ROY
O-D Albany Bureau

ALBANY — Gov. George Pataki’s proposal for five new Indian-run casinos in the Catskill Mountains goes under the legislative microscope this week amid a flurry of questions and counterclaims and high-priced lobbying.

The governor says the plan will supply the state with much needed cash, end Native American land-claim lawsuits in six counties and bring jobs to the Catskills. Potentially, billions of dollars are at stake.

But not all the tribes support the plan. And so far, legislators have been slow to embrace the deal. Hearings kick off today.

A vocal gambling opponents said he fears it’s a foregone conclusion: that his colleagues will approve the gambling expansion as a way to balance the budget.

“Hopefully, these hearings will be more than just for show,” said Sen. Frank Padavan, R-Queens.

The Sullivan County Legislature — home of all the proposed casino sites — recently voted to back the deal. Besides the New York Legislature, the plan also requires approval by Congress, which may be tougher to achieve.

And there are other factors.

Some legislators note that the other county governments affected by the deal — those in the land-claim territories — haven’t endorsed it yet. In fact, county leaders have requested a meeting with Pataki to discuss the proposal.

Also, some legislators are skeptical because deals with tribes have fallen apart before.

The Oneida Nation of New York, is fighting the deal.

The tribe runs Turning Stone Resort and Casino, which opened in 1993 in Oneida County as the state’s first Indian-run casino. For years, Oneida Nation leader Ray Halbritter negotiated with Pataki to settle the land claims while the administration steadfastly refused to deal with other groups and called them “out-of-state” tribes.

At one point, during the 2002 election campaign, Pataki called a news conference to say he and the tribe made significant progress toward a deal. That day has been long forgotten.

Seemingly out of the blue, Pataki announced deals with the other tribes last fall. Halbritter launched an ad campaign blasting the plan for potentially rewarding out-of-state tribes.

In early February, Halbritter accused Pataki of cronyism. In an address to Senate Democrats, the Oneida leader said the governor’s lobbyist friends would get rich off casino deals.

For example, Plunkett and Jaffe — Pataki’s former law firm — lobbies for the Stockbridge-Munsees. Mercury Public Affairs, headed by Pataki’s former top political strategist, lobbies for Empire Resorts, a casino developer that is working with the Cayuga Nation and the Seneca-Cayuga tribe. (Empire also hired Brian Meara, a lobbyist with ties to the Assembly Democrats.)

Pataki lashed back at Halbritter calling the charges “ridiculous.” In not so many words, the governor said his administration couldn’t wait any longer on Halbritter.

“For four years, we negotiated only with the Oneidas ... and got nowhere,” Pataki said. “In the meantime, there were land claims pending all across the state ... and we wanted to get it resolved.”

Lobbyists and Capitol insiders noted that Halbritter’s tribe was not included for one of the Catskills casinos.

Meanwhile, one tribe that was included will make its pitch to the Senate today. Bob Chicks, president of the Stockbridge-Munsees, a band of the Mohican Indians, said he would tout the potential end of land-claim lawsuits and influx of cash. He didn’t directly address Pataki’s change of view on negotiating with the tribe or Halbritter’s charges.

“We recognize that perhaps the New York Oneidas have a different view than the Stockbridge-Munsees,” Chicks said. The Stockbridge-Munsees’ land claim is just a six-acre parcel within the much larger Oneida land.

Pataki’s plan does offer something for the New York Oneidas: clear title to thousands of acres in New York and the opportunity to add slot machines to Turning Stone — if the state gets a 25 percent cut of slot revenues.

Pataki’s compact with the tribes says the Legislature and Congress must approve the deal by September or it expires. There is one other wild card: the U.S. Supreme Court.

Last month, the court heard arguments in a tax fight between the Oneidas and the city of Sherrill. The case centers on whether Sherrill can collect taxes on land purchased by the tribe. But the court could answer bigger questions about the way Indian lands are governed and taxed. A ruling is expected this spring and some legislators want to delay Pataki’s proposal until the verdict is in.

Casino plan
Gov. George Pataki’s Indian-run casinos’ proposal calls for: