Questions from the Rochester-area public rained down this past week as soon as the Seneca Gaming Corp. announced that it had bought a large plot of vacant land in Henrietta for a casino and hotel.
For years, there has been speculation that the Seneca Nation of Indians, which already runs three casinos near Buffalo, would open one in Rochester. The land purchase intensified the questions, crystallized the optimism — and stirred the concerns.
Some see a local casino as an economic boon to a struggling upstate region. Some see it as a convenient, dangerous and expensive escape that could worsen gambling addictions.
Friday: Supervisor, Town Board to oppose proposed casino
A local casino is a long way from reality. But it's not too early to raise questions and provide whatever answers are available. Some of the questions were derived from reader comments on the Democrat and Chronicle's Facebook page.
What happened?
The Seneca Gaming Corp., acting on behalf of the Seneca Nation of Indians, purchased 32 acres in the town of Henrietta for a casino and entertainment complex. The plans include a restaurant, a hotel and other retail. The price for the vacant land was $2.7 million. The property is on Clay Road near the busy thoroughfares of Jefferson Road, East Henrietta Road and Interstate 390. The land was owned by Uniland Development Co. of Amherst, Erie County.
Is the location all commercial or are there residences nearby?
The chosen site for the casino is close to one of the busiest retail sectors in Monroe County. There are several shopping complexes in the vicinity, including The Marketplace mall. But there are homes and apartments near the purchased land. The land is zoned for industrial use.
Monday: Senecas buy 32 acres in Henrietta for possible casino
Who are the Senecas?
The Seneca Nation of Indians is the westernmost and largest of six Native American nations in New York comprising the Iroquois Confederacy or Six Nations, a democratic government that predates the U.S. Constitution.
Are the Senecas a separate country or are they part of the United States?
The 1794 Treaty of Canandaigua with the U.S. government recognizes the Seneca Nation as a sovereign nation. The treaty ensures that Seneca property and activities are not taxed and that the Seneca have title to their lands forever.
Do the Senecas have other casinos in New York?
The Senecas operate three of the five Indian casinos in New York state. They are the Seneca Niagara Casino & Hotel in Niagara Falls; the Seneca Allegany Casino & Hotel in Salamanca, Cattaraugus County; and the Seneca Buffalo Creek casino in Buffalo.
Is the opposition organized?
It's been so for years. It spans the public and private sectors with the argument that casinos wreak more havoc on families than they improve local economies. Former Rochester Mayor Bill Johnson is part of the No More Casinos Coalition, funded by Western Regional Off-Track Betting and Finger Lakes Gaming and Racetrack. Other opposition groups include the Upstate Citizens for Equality and Citizens for a Better Buffalo.
Wednesday: Casino critics overwhelm Henrietta Town Board meeting
What about the town government?
Supervisor Jack Moore and three Town Board members say they oppose the casino. Moore said he will introduce a resolution of opposition on March 19. Seneca Gaming spokesman Philip Pantano said the company was surprised and disappointed, but he gave no indication how the resolution might affect the proposed casino.
Henrietta residents packed a Town Board meeting on Wednesday, and dozens voiced their opposition to a proposed casino near Interstate 390.(Photo: Donyelle Davis, staff photographer)
Can the Senecas build casinos without government approval?
Sovereignty aside, casino siting has been a collaborative process over time. As part of a 2013 compact reached with Gov. Andrew Cuomo, the Senecas obtained exclusive rights to provide casino gaming west from state Route 14, which is located in the Finger Lakes, to the Pennsylvania border. A 2002 compact calls for three casinos, meaning the Senecas must amend the compact to allow a fourth casino, which would be the Henrietta complex.
Tobin: Senecas' land purchase raises eyebrows
How might the compact be amended?
It's not a straightforward process. To amend any of the compacts with the state, the nation must first get a thumbs-up from the federal government. The changes then must be negotiated with the governor and passed by the state Legislature. Localities have no veto right, but the Seneca Gaming Corp. indicated it would not proceed in Henrietta if the community is opposed. Members of the Seneca Nation itself could say no to a fourth casino. Basically, there are a lot of ways to say no to this proposal.
How long could the review process take?
It could take several years. The Senecas began planning for a third casino in 2004. Efforts to locate it in Cheektowaga, a Buffalo suburb, failed. A temporary casino opened in downtown Buffalo in 2007. The finished Buffalo casino opened in 2013. Because the tribe must amend the state compact with both federal and state approval, opening a Rochester-area casino could take even longer.
What about last year's referendum approving up to seven state-sanctioned casinos? How does that affect the Native American casinos?
To get the nation to support the referendum, Cuomo worked out exclusivity rights for the Senecas — the Finger Lakes to the Pennsylvania border area — as well as a new revenue-sharing accord. There is a separate, non-tribal effort underway to locate a casino in Tyre, Seneca County, led by Rochester developer and shopping mall magnate Thomas Wilmot Sr. This proposed $350 million hotel and entertainment project is only 42 miles down the Thruway from the Henrietta property.
How does tribal casino revenue-sharing work?
The Senecas pay the state 25 percent of its net slot machine revenues from each of its casinos. The state returns at least 25 percent of those dollars to the host community. Also, 10 percent of the state's share is to be distributed to counties within the exclusivity zone that do not otherwise receive a share. That means Monroe County receives a cut from the existing three casinos, no matter what happens in Henrietta. According to the Senecas, the nation has paid the state close to $1 billion in casino revenue-sharing payments. That has resulted in hundreds of millions of dollars going back to host communities.
This map shows the purchased parcels in green. The Marketplace mall is at left.(Photo: Steve Orr)
Is the Seneca Gaming Corp., which bought the Henrietta property, subject to local taxes?
According to the Senecas, the Seneca Gaming Corp. is exempt from state and federal income tax, as well as sales tax. As of now, the purchased land remains on the local tax rolls. If the Senecas go ahead with the Henrietta plans, the "nation will follow the federal process for addressing the status of the property," according to a Seneca statement. The Senecas say they "propose a development process that would see other local developers develop complementary amenities on the site, including potential hotels, restaurants and retail. Those developments would generate additional state and local tax dollars and further contribute to the local economy."
What about jobs?
The news release announcing the Henrietta sale declared that the development could create "approximately 5,000 direct and indirect jobs, including 2,000 on-site jobs." However, the same release says the existing three casinos employ 4,000 people. Seneca leaders say nation members are not given preference in hiring.
What about the racinos?
The racinos are gaming rooms built at racetracks, hence the name. Batavia Downs Gaming in Genesee County and Finger Lakes Gaming and Racetrack in Ontario County both have racinos. Racino slot machines are called video lottery terminals because, unlike slots, players do not compete against the house. VLTs are linked to a central computer maintained by the state Gaming Commission. New York's effective tax rate on VLTs is 67 percent, one of the highest in the nation. Approximately 46 percent of that is dedicated to education. According to the Senecas, their exclusivity rights in western New York "have absolutely no impact on what other operators pay to New York state. Zero."
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