Niagara Falls wary of ruling on Buffalo casino
$500,000 set aside for private attorneys should Skretny ban affect its interests
NIAGARA FALLS — Mayor Paul A. Dyster and the City Council bolstered the city’s budget Monday by $500,000 to hire private attorneys after a federal judge ruled last week that a casino in Buffalo can’t legally operate on land owned there by the Seneca Nation of Indians.
In a memo to the City Council, Dyster said he believes that it is “prudent” for the Falls to begin the process of retaining an attorney with expertise in casino issues “in light” of last week’s ruling by U. S. District Judge William M. Skretny.
The Seneca Niagara Casino & Hotel has operated in Niagara Falls for more than five years without a significant challenge to its legality, but Falls leaders said Monday they want to be prepared.
“This is obviously a very important issue for the city, and the city should be prepared to defend its interests, whatever does or doesn’t happen in the future,” Dyster said.
Skretny issued a decision last week that found that a nine-acre parcel owned by the Seneca Nation in Buffalo is sovereign territory, but is not eligible for an exception to federal Indian gaming law that would allow the Senecas to operate an off-reservation casino on the site.
The legal challenge to the Seneca Buffalo Creek Casino and Skretny’s ruling focused only on the Buffalo parcel, but Seneca Nation land in Niagara Falls was acquired in much the same way as the Buffalo site.
Although casino opponents quickly challenged federal approval of the Buffalo casino, there was no similar lawsuit filed against the Niagara Falls casino before it opened.
“We don’t know what may come up, but just based on the fact that there are questions out there, we need to have expertise in place,” said Councilman Charles A. Walker.
Dyster declined to further explain what legal action the city could face regarding the casino and referred to a three-sentence memorandum he sent to the Council requesting the funds.
“I’m trying to avoid encouraging any speculation about this,” Dyster said.
The Falls receives millions of dollars of Seneca Niagara Casino slot machine revenue from the state each year and has already borrowed more than $50 million for projects that city leaders intend to repay largely with casino proceeds. The bulk of that money was borrowed for a $45 million project to construct a new courthouse and police station.
The action taken by the City Council on Monday allocated the $500,000 to the Law Department from the city’s fund balance, but does not require city leaders to spend the money. Dyster said the city has not yet retained an outside attorney with casino expertise but will begin researching potential counsel.
Prior to Monday’s vote, the city’s budget line for undesignated legal services was $50,000.
In other action Monday, the Council:
• Transfered $45,000 from a contingency budget line for retiree buyouts to the Police Department to increase police presence on Third Street. Police Captain John DeMarco told the Council that the department has attempted to quell fights outside Club New York on Third Street with additional officers and is working with the property’s owner to address problems that have occurred after the bar closes on weekend nights.
• Learned that the Niagara Tourism and Convention Corp. fielded 37 percent more phone inquiries from tourists in 2007 than in 2006. NTCC President John Percy said that the agency believes the inquiries increased because of an expanded advertising and marketing campaign. Additional money that was available from hotel occupancy taxes and increased casino revenue helped fund the broader marketing effort.
• Transferred $115,500 from the city’s casino funds to the Urban Renewal Agency to help pay for a series of grants and low-interest loans the agency has already voted to give six local businesses for renovation work and expansion projects. The grants and loans — which totaled $260,500 — are slated to go to Player’s Bar and Grill, Stadium Grill, Michael’s Restaurant, Como Restaurant, Advance Care Physical Therapy and a new restaurant to open on Third Street.
