Indian-owned gas stations rankle some in Oneida
Feb. 2, 2001

By R. PATRICK CORBETT
Observer-Dispatch

ONEIDA — Indian-owned gasoline stations now outnumber non-Indian-owned stations 4-3 here, a striking sign of the growth of the Oneida Indian Nation’s business enterprises.

Some local businesses and some opponents of the Nation’s 250,000-acre land claim are disturbed by the change in this city of about 10,000 people. But an executive of the Oneida Indian Nation said there is no scheme to create a gas station monopoly in the city named for the tribe.

The purchases of gasoline stations are part of a greater business plan to make the Nation economically stronger, said Dick Lynch, the Nation’s chief operating officer for services and operations.

“Since we opened the first smoke shop, our idea was to create opportunity for the Nation and the community,” he said.

The Nation has created 3,000 jobs in the past decade, many of them at the Turning Stone Casino Resort in Verona.

Operators of the non-Indian gas stations don’t share Lynch’s enthusiasm. They say the Oneidas are cutting into their business.

“Our business was hurt a lot” by the growth of Oneida Nation holdings, said Nicole Madore, an assistant manager trainee at the Red Apple Kwik Fill station at Main and Elm streets.

She said it wasn’t competition from cheaper gas that hurt, but “a lot of rumors that we were closing or being bought (by the Oneidas).”

“We aren’t,” she emphasized. “We’re still Red Apple.”

The Oneida Nation has operated SavOn gas stations for many years. Two of them are in Oneida — on Route 46 and Lenox Avenue East.

The Nation also operates the Oneida Mart store on Lenox Avenue West and the Plaza Mart store on Route 5 in Oneida.

Oneida Mart and Plaza Mart sell regular unleaded gas for $1.479 per gallon, savings of 4 to 10 cents for drivers who gas up there instead of at non-Indian pumps.

The comparable price is $1.549 at Red Apple, $1.579 and at the Byrne Dairy store at Lenox Avenue and Broad Street, and $1.519 at the A-Plus station at Main Street and Route 5.

The Nation purchased three of the stations from previous owners, Oneida Mayor James Chappell said. The Route 46 station was started by the Oneidas.

The mayor said while the threat to competitors is real, a bigger problem is the threat to the city’s tax base.

The Oneidas don’t pay sales tax or property tax on their holdings within the boundaries of what they claim is original Oneida land. That includes the city of Oneida.

“They’re going to refuse to pay property tax, and any sales tax that used to be generated at the (gas stations) won’t be coming to the city,” Chappell said.

The city stands to lose more than $2,000 a year in property taxes “on the latest station they bought” on the east side of town, he said.
He has not calculated yet what the sales tax impact could be.

The gas station score was 4-4 until last week when Loosman’s, the oldest continuously operating gas station in Oneida, closed for unspecified economic reasons. The Oneida Nation said it has not purchased that station.

Chuck Walsh said Thursday he owned the Sunoco Station on Lenox Avenue until about three years ago, when he decided to retire and put the station up for sale.

He said the Oneida Nation simply made the best offer for it.

Chappell told a different story.

“It was made clear to him (by the Oneidas) if he didn’t sell, they’d open a place right across the road,” he said.

The Oneidas, however, stress that they buy property only from willing sellers.

Walsh had no comment when he was asked what he thought of the spurt in Oneida Nation stations in the city.

Customer reactions vary. Some people refuse to buy Oneida Nation gasoline until the Oneida land claim is settled. Others look only at the price of gas.

Tony Green of Kirkland was pumping gas at the Plaza Mart on Route 5 Wednesday.

“I don’t even think about it (the land-claim issue) any more,” he said. “I drive 62 miles a day back and forth to work, and I buy the cheapest (gas) I can get.”

Over at the A-Plus, Sandi Bellinger from Lenox said she still avoids the SavOn stations because of the land claim and related issues.

“I won’t do business with the Indians until they start paying taxes like I do,” she said.