NIAGARA FALLS, N.Y. (WIVB)- Governor Andrew Cuomo’s administrating is taking a hard stance with the Seneca Nation over casino revenue payments.
Five months ago, the Seneca Nation announced they would no longer pay the state more than $100 million a year. The Nation argues the contract signed with the state in 2002 only required the payments for 14 years.
On Monday, Gov. Cuomo’s office said if the Seneca Nation does not resume payments, the state will consider allowing a non-Seneca casino to be built in Niagara Falls.
“The Governor is turning to threats against the thousands of local jobs the Seneca Nation’s gaming operations have created in Western New York,” said Phil Pantano, a spokesperson for the Nation in a statement.
He went on to say, “..for his part, President Gates has expressed his willingness to have such a meeting, time and again, for five months. For the state, public insults, canceled meetings and threats seem to win out over productive dialogue.”
President Gates said Monday night that Governor Cuomo has cancelled two meetings in the past few months.
“Obviously we would prefer a situation where there was a negotiated settlement, we want to be good neighbors to the Senecas,” said Niagara Falls Mayor Paul Dyster.
He said, however, he believes Gov. Cuomo has the city’s best interest at heart.
“As it stands right now I think these discussions are at a very difficult point and I suspect they could break in one direction or another here in the short term,” said Dyster. ““With the hardline position seeming to dominate on the Seneca side there was always the possibility the state would play this card.”
The Seneca have paid the state an estimated $1.4 billion since 2002, according to the Nation.
The state, in turn, sends millions of dollars back to the cities of Niagara Falls, Salamanca and Buffalo.
According to Dyster, the city’s 2017 budget included $11 million of casino revenue.
“The City of Niagara Falls is standing to lose the most of everybody here,” said Kenny Tompkins, a city councilmember. “The Governor needs to quit grandstanding and the Governor needs to sit down and negotiate.”
He said he’s frustrated the city is caught in-between the two sides.
“Our Governor is very much letting the citizens of Niagara Falls, Salamanca, and Buffalo down by not taking an aggressive stance and meeting with these people and seeing what they need,” said Tompkins. “Let’s get it straightened out.”
On Monday, Gov. Cuomo cancelled a meeting planned for Tuesday with the Seneca Nation.
His counsel said in a statement it would be inappropriate to meet while an investigation is underway over accusations the Nation eavesdropped on state gaming officials. The Erie County District Attorney is investigating the claims.
Seneca Nation President Gates released a statement in response saying it is an unrelated issue that is a year old and shouldn’t prevent the two sides from meeting.