State halts transfer of Niagara Falls convention center pending Federal approval of gambling deal

G. Stanford Bratton

A last-minute agreement between state officials and Indian casino gambling opponents was reached today, averting a showdown in the Appellate Division of State Supreme Court over the plans of the State and the Seneca Indian Nation to begin a $100 million overhaul of the Niagara Falls Convention Center to convert it into a gambling casino that would be operated by the Tribe. State official agreed to delay transferring formal title to the Center to the Tribe until and unless federal approvals are formally issued for the project. The Tribe will, however, be allowed, at its own expense, to make general repairs to the building within the "scope of work" defined in a License Agreement entered into between the Tribe and the Empire State Development Corporation, which holds formal title to the Convention Center.

"The scope of work" includes life safety improvements, repairs to the roof, the mechanical, electrical heating, ventilating and air conditioning systems, pedestrian and parking areas, food and beverage facilities, and permits the raising of the floor to facilitate the distribution of power, but nothing permits gambling or the installation of gambling equipment.

"I am satisfied with the agreement. This is, however, by no means the end of the litigation. For now, it prevents the State from going too far down the road before we find out if this whole project is illegal. That is ultimately a matter to be decided both by the U.S. Department of the Interior with respect to federal issues and the courts of this State with respect to New York's Constitutional prohibitions against gambling. This agreement will ensure that the State is not stuck with a $100 million 'white elephant.' If it ultimately turns out that the casino cannot be legally operated. If the tribe wants to go ahead and expend that kind of money at their own expense and peril, that's their decision. I wouldn't take such a risk, but that's not my decision to make," said Cornelius D. Murray, the Albany lawyer who represents several individuals and coalitions opposing Indian Gambling Casinos in New York State.