Catskills casino fight may go on, despite major court setback

By Amaris Elliott-Engel / The Citizen

Wednesday, June 29, 2005 10:43 AM EDT

This spring, the Catskills' Sullivan County looked like it would become the Mecca for casino patrons in the Northeast.
But that potential bonanza of blackjack tables and electronic slot machines frittered away. First, Gov. George Pataki withdrew legislation to settle five Indian land claims in exchange for five Catskills casinos following the Supreme Court's Sherrill decision.

Last week, proposed legislation to approve the Akwesasne/St. Regis Mohawks' casino project was tabled without final approval by the state Legislature.

And Tuesday, the land claims for two tribes with casino aspirations -- the Cayuga Nation of New York and the Seneca-Cayugas of Oklahoma - were overthrown by the U.S. 2nd Circuit Court of Appeals.

Both Sullivan County casino backers and casino opponents said they don't think this means the casino fight is over in the Catskills.

"It's almost like a soap opera: The saga of casinos in Sullivan County," said casino-supporter Jim Barnicle, mayor of the village of Monticello, which would have hosted one of Pataki's proposed casinos. "You're waiting for the next chapter of the casino. I don't think we're at the end of that. Other deals can be made. Other tribes can change sites and make deals with other casino developers."

Casinos have long been touted as potential economic development panacea for counties with dwindling resort economies.

Casino-Free Sullivan County chair Dick Riseling said he expects casino legislation to be revived within a special legislative session in Albany during the next three months.

"You can see this is not going to die, and this is going to go forward," Riseling said.

Sullivan County's State Sen. John Bonacic, R-Mt. Hope, said the court decision against the Cayugas and the Seneca-Cayugas would allow Pataki to negotiate casino projects without the associated problems of Indian tribal negotiations.

Bonacic has long supported casinos in the Catskills with the requirement of tribes paying into community funds.

"It appears that the recent New York court decision is good news for taxpayers. Now Gov. Pataki can go forward without worrying about land claim settlements or sales tax parity issues. It's strictly a casino transaction and who he wants to do business with," Bonacic said.

Staff writer Amaris Elliott-Engel can be reached at 253-5311 ext. 282 or at amaris.elliot-engel@lee.net

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