Casino’s future now Spitzer’s decision

New governor not yet tipping his hand

By FRITZ MAYER

MONTICELLO, NY — The future of the proposed casino at Monticello Raceway is now in the hands of newly inaugurated Governor Elliot Spitzer. Former Governor George Pataki could have taken action to move the project forward in his final days in office, but according to an article in The New York Times, Pataki decided not to take the next step out of deference to the incoming governor.

Quoting a senior official in Albany, the article reported that Spitzer was concerned about losing negotiating power if Pataki backed the deal just days before leaving office.

Both Pataki and Spitzer have publicly supported the creation of casinos in the Catskills, but Spitzer has not, in recent months, specifically supported the $600 million facility proposed by the St. Regis Mohawks at the raceway. Town of Thompson Supervisor Tony Cellini said, however, that during a campaign stop at Bernie’s Holiday Restaurant in Rock Hill this past summer, Spitzer told a room full of people that he supported a casino in Sullivan County and he said the raceway was a good location for one.

Where the project stands now

On December 24, 2006, James Cason, an associate deputy secretary with the Department of the Interior, announced that the department completed its assessment of the Environmental Analysis of the casino, which led to a finding of no significant impact (FONSI) to the environment.

If the project is to move forward, Spitzer must issue a letter of concurrence with the decision of the Bureau of Indian Affairs (BIA) that the project is beneficial to the tribe and the community.

Once that hurdle is overcome, the BIA must take into trust for the tribe 29 acres of land at the racetrack - an action that might be complicated by the politics of Indian gaming in Washington, D.C. In a letter to the tribe announcing the FONSI decision, Cason wrote, “The present action is narrow in scope and should not be regarded as suggesting a future commitment to take the subject land into trust or to approve a compact to conduct gaming on that property.” Cason also acknowledged the changing environment regarding off-reservation casinos. He said, “We share the concerns that many have expressed with off-reservation gaming and so-called ‘reservation shopping.’” He said the department will be reviewing the regulations regarding land-into-trust applications, and said, “We anticipate changes to the rules that may result in fewer off-reservation properties being accepted into trust.”

Separate from the land-into-trust issue is the revenue-sharing contract to be worked out between the tribe and New York State. An agreement had been worked out by Pataki, but had not been signed, and Spitzer may want to amend the agreement. Moreover, according to Richard Schrader, the legislative director for the National Resource Defense Council (NRDC), parts of the agreement will need approval from the New York State Legislature. The NRDC, meanwhile, is still considering a lawsuit against the BIA regarding the FONSI decision.

So while the casino project cleared a major hurdle in the past two weeks, there remain significant obstacles in its path, and Spitzer has not yet indicated exactly where he stands on the issue.