Feds refuse to pay $250M; Oneida land claim pact fails (Huge NY Indian land claim)

Syracuse Post-Standard ^ | October 05, 2003 | Glenn Coin

[jalisco555]

The federal government will not pay $250 million toward the Oneida Indian land claim, a move that essentially kills a highly publicized settlement agreement announced last year.

In a one-page letter sent to the land claim mediator, federal negotiators said they have no plans to put up the money. The secret letter, written in August by a lawyer for the Department of the Interior, came to The Post-Standard attention's last week.

That money was the foundation of the agreement announced in February 2002 by state and New York Oneida leaders. Gov. George Pataki said then the three Oneida tribes would be paid $500 million to end the land claim lawsuit. Half of that money was to come from the state, and the other half from the federal government.

Federal Department of Justice officials issued a statement shortly after the press conference, saying Pataki had never contacted them before publicly committing the federal government to the settlement.

After 18 months of discussion among various federal agencies involved in the land claim, Department of Interior lawyer Michael Rossetti wrote the letter withdrawing the federal share. Its contents remained secret, however, because a judge ordered all negotiations related to the land claim to remain confidential.

Rossetti said the government was willing to look at alternative ways to find money for the settlement, but he did not elaborate. Negotiations now have stretched for nearly two decades and have failed to settle the case.

The federal government's decision comes as no surprise to state Assemblyman Bill Magee, D-Nelson, who had been skeptical of the settlement announcement from the beginning.

"It clearly indicates that the federal government is saying they're not going to participate," he said, "which I find disappointing because I think they have a role in this settlement."

The mediator, John Tabner of Albany, said he has received Rossetti's letter, but could not discuss its contents because of the federal court order.

Department of Justice spokesman Blain Rethmeier also said he could not discuss the negotiations or Rossetti's letter.

"We can't comment on a case that's in litigation at this point," Rethmeier said.

Lawyers and representatives of the three Oneida tribes also declined to comment.

The Oneidas charge that the state illegally purchased about 250,000 acres of land in the 18th and 19th centuries.

The U.S. Supreme Court ruled in 1985 the Oneidas had a valid claim, but little if any progress has been made over the past 18 years to reach a settlement. In February 2002, state and Oneida officials held a press conference in Madison County to say the end of litigation was near.

They announced a tentative agreement that would settle land, tax and compensation issues in the complicated case.

The agreement began to unravel almost immediately after the press conference. The two other Oneida tribes, from Ontario and Wisconsin, condemned the settlement and said they were never consulted in advance.

All three Oneida tribes filed the suit together and remain co-plaintiffs.

Federal officials said they, too, hadn't been notified before the crowded press conference that included local, state and federal politicians.

State officials had instead relied on settlement talks conducted under a previous mediator in 1999 and 2000. At that time, a tentative settlement offer called for the federal government to put up $250 million.

Since then, however, the government has seen a change from a Democratic to Republican administration. In addition, projected surpluses have been drained by the Sept. 11, 2001, terrorist attacks and military conflicts in Afghanistan and Iraq.

After the 2002 settlement announcement, Rep. Sherwood Boehlert, R-New Hartford, said he was confident the federal government would kick in its share.

"I have no reason to doubt that the United States will be an active partner in bringing the land claim to a negotiated comprehensive resolution, including providing funds for the financial aspect of a settlement," Boehlert said in a prepared statement in March 2002.

Boehlert's aides did not return telephone calls last week.

[jalisco555]

It's unclear from this article what the implications of this might be to the thousands of people whose properties were threatened by this lawsuit.

[Support Free Republic]

	God Bless Those who Protect our Liberty --- Past, Present and Future.
Please visit the FR Fundraiser

[dennisw]

It's bllsht and outrageous. Indian tribes are reaching the point where they try to evict homeowners and influence the California elction with donations from gambling revenues. RAT party lawyers who are anarchists are behind a lot of these stunts.

RAT party lawyers smooth the way for most Indian casinos.....Then the tribes end up backing the RAT party in California and elsewhere.

[jalisco555]

The Oneidas are awash in money from Turning Stone, still the only casino in New York. New hotels and golf courses are going up all around the place. Can you imagine trying to sell your home with this threat hanging over you?

[Catspaw]

What the Oneidas of Wisconsin did was to buy up homes and land within the boundaries of the reservation as it came on the market.

[dennisw]

The Indian casinos are a national disgrace for many reasons. And 98% of them are helped into existence by RAT lawyers.

[jalisco555]

What the Oneidas of Wisconsin did was to buy up homes and land within the boundaries of the reservation as it came on the market.

If I remember correctly, the NY Oneidas were suing to obtain land where tens of thousands of (non-Indian) people are now living. While most people assumed this was a ploy to get the government to pay the Oneidas off, the homeowners whose properties were threatened had an extremely hard time selling. Friends of ours were unable to sell until last year, when the issue appeared over.

[jalisco555]

The Indian casinos are a national disgrace for many reasons.

True, but they are enormously popular and appear unstoppable. Turning Stone is the largest employer in Oneida County, and perhaps all of Central New York, and it's economic spinoff is huge.

[dennisw]

Turning Stone is the largest employer in Oneida County, and perhaps all of Central New York, and it's economic spinoff is huge................


This casino contributes nothing to our economic well being. It enriches an Indian tribe and I suppose surrounding businesses benefit. Do you have any idea what tax rate it pays if any?

[dennisw]

THE WINNERS:

Native Americans with a huge, new unregulated money maker
The high paid lobbyists who pushed the back room deal
The elected officials who collect big campaign dollars for making it happen
A big victory again for those who circumvent the New York State Constitution to promote their own agenda

THE LOSERS:

Local and New York State taxpayers because Native American casinos:
- pay zero school or local taxes
- pay zero sales tax
- pay zero gross receipts tax
- pay zero occupancy tax
- pay zero gasoline or cigarette tax
- and have no labor or workplace regulation
Local convenience stores who can't compete with tax-free prices
Local restaurants, hotels and motels who can't compete with tax-free prices
The New York State Treasury because of the back room deal to kick back a percentage of the anticipated slot machine take that very probably will declared illegal


Gambling - All of the Problems, None of the Benefits

New Yorkers are traveling to Atlantic City, Foxwood, Connecticut and Niagara Falls, Canada, often by the busload. They're taking their money, leaving it there and coming back to New York with lighter wallets and often-devastated family finances. With these hundreds of thousands of dollars spent every day, none of it stays in New York to help relieve property taxes, to improve our schools, to rebuild our bridges and roads or to reduce the New York State debt. We get only the problems, including bankruptcies broken families and personal ruin, but none of the benefits.

Gambling is not going to go away and New York State condones plenty of it from Race Track Betting to well established institutions like OTB (Off Track Betting), Lotto and Quick Draw and even bingo games. But Casino Gambling, the one form of gambling that can actually attract substantial tourist dollars - especially to economically hard-hit areas like the Catskills and Niagara Frontier - and help rebuild this state's economy has turned into one of those familiar Albany Political Footballs.

Moralizing aside, the fact is New York State already has Casino Gambling. It's called the Turning Stone Casino just outside the Utica area. Turning Stone is a full-fledged casino growing by leaps and bounds and operated by the Oneida Nation strictly for their benefit. Not one cent of revenue for either state or local government is required by law from the Turning Stone enterprise. Not a penny!

Casino gambling is simply too valuable a franchise to just give away to a select group. All of the states residents should realize the revenue benefits of casino gambling ventures. New Yorkers, regardless of their ethnicity, should be given an equal opportunity to compete in the casino gambling industry.

Casino gambling has changed Joliet, Illinois from a rust belt town to wealth belt city. Since the 1990 advent of casino gambling in Joliet, there has been a 38% growth in population, a 6% reduction in unemployment, a 30% reduction in home owner taxes and $100 Million in wages paid to 3400 casino employees while eliminating the city debt.

The citizens of New York need to get the facts, not lobbyist propaganda. Based on those facts, New Yorkers should determine via a statewide referendum on whether or not to allow casino gambling. And it needs to happen soon, before the Albany crowd gets a chance to do another fumble with both your pocketbook and your future.

Help Jack Cheevers Fix Albany and Save New York.

Support and vote Jack Cheevers for Governor in 2002.

[dennisw]

NEW YORK - The state needs to raise money after the Sept. 11th massacres, so the Legislature turned to gambling, including six more tribal casinos and VLTs at selected racetracks. The St. Regis Mohawk Tribe quickly signed an agreement with Park Place Entertainment Corp. to build and operate a $500 million casino and resort complex in the Catskills. The legislation probably violates the State Constitution, because it allows slots, and federal law, because it taxes the tribes at 25%. Gov. George Pataki signed compacts creating tribal casinos without slots, including the fantastically successful Oneida's Turning Stone. (If Mexico legalizes casinos, the Oneidas plan to develop and manage them in Acapulco and Mazatlan.) A state trial court ruled the compacts illegal because the Governor signed without the Legislature's authorization. But Gov. Pataki then signed a compact with the Seneca Nation for tribal casinos in Niagara Falls and Buffalo. Atty. Gen. Eliot Spitzer doesn't believe the casinos will have to close. Sen. Hillary Clinton demonstrated during the campaign that she hasn't a clue about Indian gaming. A state trial judge caused a stir by declaring an "Internet site creates a virtual casino within the user's computer terminal" and may be dragged into New York. Interesting, but irrelevant: this operator was a New York company! A trial court decision allows New York City to license casino day-trips-to-nowhere. The Off-Track Betting Corp. announced plans to set up the first state-sponsored Internet betting site, but the Legislature balked.

[Catspaw]

That type of panic went on when the Wisconsin Oneidas started buying up homes and land on the western edge of Green Bay (the boundaries of the Wisconsin Oneidas reservation encompasses most of the west side of Green Bay--including Austin-Straubel airport and Lambeau field). I don't know if the NY Oneidas will do the same as the WI Oneidas (if I remember correctly, the WI Oneidas were part of the NY Oneidas lawsuit) in how the land within the reservation boundaries is bought up.

What the WI Oneidas have done is, as the property comes on the market, they'll purchase it with a competitive bid. They also do it within certain areas, primarily on the far western part of Green Bay, not the area in west-central Green Bay.

[Eric in the Ozarks]

Ther Mystic Lake casino just south of Minneapolis is another good case study. The Sioux Indians are buying land adjacent to their casino, taking it off the tax rolls of the county. They only agreed to help fix the blacktop highway serving their business when the Scott County threatened to put up a toll booth and collect a surcharge.

[jalisco555]

Do you have any idea what tax rate it pays if any?

It's probably zero. I'm not defending casinos, I'm commenting that they are, in my opinion, unstoppable. And by economic impact I am referring to the thousands of people, mostly non-Indians, who directly or indirectly derive their livelihood from them. These people do pay taxes.

[kenth]

Why are they a national disgrace? Are they more disgraceful than non-Indian casinos?

[jalisco555]

IIRC, things got so crazy that the WI and NY Oneidas were suing each other. I've successfully repressed the details of this. Most people here believe that what the Oneidas were after was money, not land. However now they have so much money from Turning Stone that it's hard to predict what will happen next.

[general_re]

Do you have any idea what tax rate it pays if any?

Dunno, but the state of NY does take 25% of the Oneida's slot machine revenue, as per the casino compact.

[Catspaw]

The WI Oneidas have a ton of money as well. They first started with selling tobacco and a small bingo parlor. They've now expanded to a huge casino with a hotel (a Radisson) and convention center connected to it. They own a bank, convenience stores/gas stations, and a number of other businesses. They've hired Indians and non-Indians. They've also entered into compacts with local governments concerning public services (water & sewer, fire and police--those are mutual aid). Heck, they even have a gate named after them at the newly remodeled Lambeau Field. The benefit the Oneida Tribe of Indians (WI) has is that it's located next to an urban area, not out in the boonies. And they are a political force, no doubt about it.

And yup, the WI and NY Oneidas did sue each other and it was nuts.

[Sacajaweau]

btt

[Rodney King]

Good. Screw the Indians. I am sick of their efforts to become the next big victim class in this country. If they want to have their own nation then fine. We should then put a big fence up around it and be done with them.