Latest casino cash payment threatens squabbles
Controversies are simmering over casino revenue.
A potential lawsuit still looms over Niagara County's cut of local casino revenue after state legislation pushed by Assemblywoman Francine DelMonte, D-Lewiston, redirected the money to Niagara Falls.
Now, a second row could be brewing. Niagara Falls Councilman Sam Fruscione said Monday he plans to ask the City Council next week to freeze casino revenue for the Niagara Tourism and Convention Corp. until it hands over more details about its budget.
The city could face financial penalties if it fails to disburse the casino revenue to the NTCC within 35 days of receiving it from the state.
Here's how the latest casino revenue payment from the Seneca Niagara Casino & Hotel in Niagara Falls breaks down:
The Seneca Nation of Indians now pays 22 percent of its slots revenue to the state on a "semi-annual basis" in exchange for exclusive rights to operate full-scale casinos in Western New York.
According to the state's Division of Budget, the Seneca Nation in April paid the state $39.3 million of the slots revenue from the Seneca Niagara Casino. It also paid $15.3 million from the Seneca Allegany Casino and $3.6 million from the Seneca Buffalo Creek Casino.
Of the Seneca Niagara Casino slots revenue, the City of Niagara Falls is slated to receive $10.07 million this week, City Controller Maria Brown said Monday.
The city then has 35 days to pay out portions to four local agencies: a project to construct a new terminal at the Niagara Falls International Airport will receive $705,176. The Niagara Tourism and Convention Corp. is slated to receive $604,436. Niagara Falls Memorial Medical Center and the Niagara Falls School District will each receive $554,067.
The city has also dedicated the following amounts: $2.36 million will be used for half of the casino revenue in the city's 2009 budget for debt, public safety and loss of tax revenue for the casino property; another $1 million has been set aside for the HOPE VI project to construct new public housing; about $1 million has been dedicated for special projects; and $850,000 will be used for economic development, Brown said.
That leaves about $2 million left for Niagara Falls to spend as officials see fit.
-- Denise Jewell Gee
Can we make any sense of the Buffalo Casino and its failure to be completed? Salamanca with its tiny population shows where it is at.
Posted by: Jim Goodguy | July 07, 2009 at 07:44 AM
Salamanca isn't Buffalo. Salamanca didn't have hotels, restaurants, entertainment venues before the casino. Detroit is a good example of having a casino move in only to suck the life out of the city. I have zero faith that the politicians favor the casino out of any real logic or planning. These city pols are the same people that wanted to stick a suburban mall on the harbor, a cookie cutter hotel on prime waterfront property, while the county pols veto a board that will streamline and reduce government with central planning.
It's obvious our politicians don't have the faintest clue about the impact of a casino on the city, nor do they care.
Posted by: Dan | July 07, 2009 at 08:16 AM
Regarding Buffalo Creek Casino, Detroit is a great example... and so is Seneca Niagara - There have been more businesses that have closed in that area than opened since that casino opened. Exactly what Buffalo needs... just kill off what little we have while stifling future business. Brown can't dare go against the Unions and Collins is focused on counties the pennies we get compared to what the area loses.
Posted by: Bflo10 | July 07, 2009 at 09:46 AM