Niagara Gazette

Local News

February 25, 2013

State to forward $2.5M to Salamanca until Seneca dispute ends; no similar deal for Falls


Niagara Gazette — This will be the second time that Salamanca has received an injection of cash from the state since the Senecas stopped making payments to New York in 2010, contending that the state was violating the gaming compact's exclusivity clause. Salamanca received a $5 million advance of its casino funds in 2011. About $20 million has been withheld from Salamanca during the dispute.

Mayor Paul Dyster said the state has made offers to help the city, pointing to an offer from the New York Power Authority to accelerate aid from the Niagara Power Project relicensing agreement.

The offer would have a delivered a lump sum payment to the city of $13.4 million, converted from the $850,000 per year the city receives from NYPA as part of the relicensing agreement. The city would receive $37.4 million over the remaining 44 years of the agreement, but the spin up would also include a clause that would allow the city to repay the money and return to the original agreement.

That deal was declined by the Niagara Falls City Council in November. Some council members characterized the deal as a one-time cash grab that would put the city at risk of losing out on the long-term benefits of the agreement.

Dyster said the offer was made with the understanding that the arbitration would conclude by mid-year, as sources close to the situation have maintained, meaning the money would be available to repay the power authority and return to the original agreement. And if the arbitration concludes as expected or is settled out of court, the Falls could avoid cash flow issues without using any of the NYPA money.

"The NYPA deal was intended as a way of filling a gap in the 2013 budget," Dyster said.

By including anticipated casino revenues in the budget the city reasserts its right to the approximately $60 million it is owed, Dyster said.

Text Only | Photo Reprints
Local News
Featured Ads
Seasonal Content
House Ads
AP Video
Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kerry: No Deal Yet on 7-Day Gaza Truce Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites
House Ads
Night & Day
Twitter News
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Front page

Do you think cigarette sales to non-Native American customers should be taxed on reservations?

Yes. Items should be taxed like they are everywhere else.
No, the indian reservations are sovereign land and they are selling them on their land.
Not up to me. Native Americans decide the rules on their land.
Don't care. Smoking isn't good for you.
     View Results