Five or none

Pataki spells out a “take it or leave it” deal for Sullivan

By DAVID HULSE

MONTICELLO, NY — Not only is Governor George Pataki expecting local support for his controversial plan for five Indian gaming casinos in Sullivan County, he wants that support to be unanimous, Pataki advisor Greg Allen told the county legislature during a January 7 appearance.

“There’s going to be a battle in Congress. Republicans, Democrats…Sullivan County, Cayugas and the rest…. New York has to speak in one voice to get it through. This is a statewide issue,” Allen said.

The governor’s senior Indian gaming advisor said that if Sullivan wants any casinos, it is going to need to support land settlements that will authorize as many as five, because federal authorities will not readily support expansion of off-reservation casinos. “The Department of Interior wants a package for all claims,” Allen said, “settled in a way not impacting the federal budget.”

Authorizing legislation would include federally held trust lands in Sullivan where casinos would be located, he said.

Allen referred to pending federal legislation, proposed by Pataki, which would authorize settlements of hundreds of millions of dollars worth of state liabilities stemming from Cayuga, Oneida and Mohawk tribal land claims in several upstate counties. The legislation, which is expected to be considered by Congress next month, includes state and federal approvals for five Indian gaming casinos in the Catskills, two more than Pataki endorsed in 2001 state legislation.

The Cayugas have already won a $247.9 million court judgment on their claim. The claims are related to a series of illegal 18th century treaties that New York used to acquire Indian lands.

Pataki came to office in 1995 opposed to any expansion of the Mohawk and Oneida Indian gaming compacts adopted in 1993 by the Cuomo administration. Pataki initially ignored Oneida compacts, and later Mohawk gaming proposals for Monticello Raceway. When the state deficit soared after a recession and the September 11 attacks, the governor reconsidered.

Allen said casinos have since become the focus for settling the land claims while finding a way to “bring economic opportunities to Sullivan County.”

Three tribes have spent several years seeking individual local, state and federal approvals for county casino projects. Allen said that the combination of five settlements in the Pataki legislation “is the greatest way to insure success in Congress,” where “many national interests will come into play,” he said.

The state is sweetening the 2001 deal for the county by adding required project environmental review and a requirement that the tribes negotiate acceptable “service agreements” with the county. Given the $15 million model already in place, Allen said those agreements would bring in $75 million in new revenues.

Suggesting that five casinos would require bigger schools, more infrastructure and create quality of life issues, Legislator Rodney Gaebel asked if the county was going to have an opportunity to negotiate and express concerns before the proposal moves ahead. “Assessments, school and land taxes will go higher for rural people. Those with the biggest changes are going to get the least out of it. If you can’t minimize that, it’s going to be tough to get support for five,” he said.

Allen said the state wants comments quickly and that all the projects’ approvals should be in place by September 1. “We’d be willing to sit down and discuss how the state can address other issues,” he said.

Legislator Ron Hiatt also pressed the school-funding question. “Will the state contribute? Can we get something in writing?”

Allen said he could not predict future state budgets. He referenced the May 2004, Spectrum report on gaming impacts in Sullivan, saying that he understood that the $75 million in service agreements would address educational impacts.

“If the state uses the county as a vehicle, it ought to be willing to pay the fare,” Hiatt responded.

The Spectrum report projected $66 million in new county costs for three casinos but did not address costs for five.

Legislator Jodi Goodman said service agreement money would not cover educational costs for nine school districts, a new jail, other public safety issues and a hospital. “I want the governor to spread [casino authorizations] out, so others have a piece of the pie,” she said.

Legislator Leni Binder complained that Sullivan will see no money until a casino opens, and new county costs would be front-loaded before that happens. She said the state should offer support based on the scale of eventual development.

Regarding infrastructure needs, a state Department of Transportation (DOT) official, who accompanied Allen, said DOT is working with a “very uncertain funding horizon,” to provide a 10-year upgrade of Route 17/I-86, which does not include additional lanes.

However, planned widening of Route 42, Pleasant Street and Broadway in Monticello, could begin in the coming contract year.

The legislature invited spokespeople from local pro- and anti-casino interest groups to make presentations to Allen, but the state advisor did not stay to hear them.

The federal legislation would need to be duplicated on the state level for final approvals. Senator John Bonacic and Assemblywoman Aileen Gunther attended Allen’s appearance.

Bonacic said afterwards that he has not seen the new legislation and has advised the county legislature not to vote on anything until that legislation is introduced. He said he would not support any new legislation “without a strong home rule measure. I want the people closest to the people to decide,” he said.

Gunther recalled her support for three casinos in the 2001 state legislation and felt that approving five does not necessarily mean that five will be built. “We don’t know all the impacts yet. It’s like planning for college. There’s a million pieces to be planned and we’re not there yet,” she said.

Representative Maurice Hinchey last commented on latest state casino deal in December, when he said he would support casinos “only in such circumstances as the community wants and approves.”

He characterized Pataki’s last deal as a “desperate attempt to raise revenue to finance the court-ordered bailout of New York City’s public schools, not a sincere effort to improve the economy or quality of life in Sullivan and Ulster counties.”

The county legislature will conduct an informal hearing to collect additional comments on the casino proposal on January 13 at 5:00 p.m. at the Monticello High School.