Many area officials say they're taking a wait-and-see attitude concerning a proposal to settle Cayuga Indian Nation land claims in exchange for the right to sponsor gambling.

Attorneys for Cayuga and Seneca counties and the Cayuga Indian Nation of New York have presented a proposal to settle all issues relating to the Nation's pending land-in-trust applications with the U.S. Department of Interior.

If accepted by both counties and necessary legislation is passed, the tribe can withdraw its pending trust application and relinquish its right to seek trust status for lands in the counties in the future. In return, the Cayugas will be permitted to designate a specified amount of land in the counties that it would own as restricted-fee lands and would share revenue from a proposed gaming facility with the counties and state.

The location of the gaming facility is yet to be determined, but it could not be located in the counties without approval. According to Brian Laudadio, of Harris Beach PLLC, the state-retained counsel on behalf of the counties, and Daniel French, of French-Alcott, counsel to the Nation, the goal of the proposal is to achieve a mutually beneficial relationship whereby the Cayugas and local municipalities and their residents can coexist as good neighbors, according to a news release from the lawyers who negotiated the proposal for both parties.

Proposal plans include the congressional disestablishment of the Nation's 64,000 acre original reservation.

“This is deja vu all over again. Even though we fought it in courts we're back to where we were before. The Supreme Court threw this case out,” said state Sen. Michael Nozzolio, R-Fayette. “The proponents of this proposal are opening the front door and rolling down the red carpet for Indian sovereignty.”

Nozzolio said he was content when the court originally rejected the claim.

Under the new deal, if a casino is built, the counties will share about $12.8 million a year from the tribe, regardless of the amount of land actually designated as restricted-fee by the nation.

As much as 10,000 acres of land it owns in the original claim area may be designated restricted-fee, up to two-thirds of it to be located in Cayuga County and one-third located in Seneca County.

French confirmed in the news release that the Cayuga's council has authorized Nation representatives to sign the proposal. The proposal was presented to the Cayuga County Legislature and Seneca County Board of Supervisors Tuesday. They are both expected to vote on the proposal at a public meeting in June. The Cayugas have been negotiating with New York Gov. Eliot Spitzer's administration since January.

David Dresser, town of Ovid supervisor and chairman of the Native American Affairs Committee of the Seneca County Board of Supervisors, Seneca's equivalent of the Cayuga County Legislature, said he's in favor of the agreement, but he said he doesn't necessarily want to see a large-scale casino open its glittery doors in either county.

“My hope is it will be in the Catskills - specifically Sullivan County - because they have voted to have more than one casino there,” Dresser said.

The nation already owns land in the two counties. If the federal government agrees to the trust, they will be able to reopen two smaller gambling facilities earlier shuttered following a U.S. Supreme Court decision that said those lands are not automatically sovereign. Union Springs hosted one of the electric bingo parlors.

“We must also realize that one way or the other the Cayugas are going to be our neighbors. I would much rather have them come with a handshake than as adversaries,” he said.

If the proposal passes, and the facilities again may operate, they would provide the revenue to build a large casino, Dresser said.

Dresser said the attorneys involved - Laudadio and French - have worked well with the county legislatures, especially Cayuga County Legislature Chairman George Fearon.

Dresser said they are aiming to have a vote on Tuesday, June 26, giving the two county governments a month to collect input from constituents. Only the county that may host the gaming facility would have to approve the casino.

“On one hand, it avoids serious problems in land being put in trust by the federal government,” he said. “On the positive side it holds county and state harmless and provides them with compensation to offset lost property taxes.”

The agreement specifies how much land the nation could buy. Without the stipulation allowing them three clusters of connected parcels, the tribe could continue to purchase private land, Dresser said.

The Catskills location is perfect because it would draw in people from out of state, as well as residents of New York City. The location near another tribe-operated casino would not pull traffic away from the area.

In Dresser's opinion, a casino in the vicinity of Oneida's Turning Stone would simple circulate money mostly from central New Yorkers, Dresser said, adding that the Seneca County Board of Supervisors is generally against hosting a casino.

Last June, Cayuga County legislators voted 10-4 approving legislation stating that the county doesn't consider casinos to be good or desirable economic development.

Yet, legislators David Pappert, R-Auburn, and Michele Sedor, D-Sennett, who voted against this legislation last summer, said Wednesday they would be willing to review proposals presented to the county.

“It seems like a strong comprehensive proposal,” Pappert said.

Pappert said he will remain “open-minded” about the building of a casino in Cayuga County and would be willing to look at proposals before passing further judgments.

Sedor also said that the Legislature should be willing to review proposals for a venture that could bring more jobs to the area.

“Whenever I'm out, constituents seem much more favorable to this than my fellow legislators,” Sedor said. “It's not just about gambling, it's about jobs, entertainment and hotels. Gambling is just part of the enterprise.”

Fearon declined to comment Tuesday and did not return phone calls Wednesday. He noted earlier this year in his State of the County Address his disapproval for a casino in the county. He said that a casino would not improve the area's economy.

Legislator Ray Lockwood, R-Aurelius, said he has never supported any stand for American Indian affairs.

“But I think this will be the best deal we're going to get,” Lockwood said.

Lockwood said he won't make any decisions until after he talks to constituents and both state and federal officials.

Auburn Mayor Timothy Lattimore said he would support an entity that stimulates economic development.

“Anytime we get an economic development happening in the region, it's going to help us all,” Lattimore said.

However, the tribe Lattimore was working with, the Seneca-Cayugas Tribe of Oklahoma, promised to create 2,200 permanent jobs with benefits and 1,700 union constructions jobs. Also, the nation's representative had vowed to not waive taxes, as well as fund a $10 million capital venture fund.

“So whatever the governor's coming up with, I hope it's similar,” Lattimore said.

The proposal bans the Seneca-Cayugas from having trust-protected land in New York. Lattimore has worked with that tribe since last year to bring a gaming and convention center in Auburn.

Assemblyman Gary Finch first heard of the proposed agreement in the newspaper Wednesday.

“I'm a bit surprised about this. My colleagues Brian Kolb and Assemblyman (Robert) Oaks were in a meeting (Tuesday) in Seneca County and this didn't come up,” he said.

This agreement is subject to legislative approval in Albany.

“With the information I have so far I don't see how I could support this agreement, because I haven't seen any information,” Finch said.

Key points of the agreement

Here are the highlights of the tentative agreement between Cayuga and Seneca counties and the Cayuga Indian Nation. If the counties and state officials approve this proposal, the nation will withdraw its land-in-trust application.

€ Congress would dissolve the Nation's 64,000 acre original reservation.

€ The counties would have to approve any gaming facilities within their borders.

€ Seneca and Cayuga counties would share approximately $12.8 million in gambling revenues no matter the amount of land designated as the tax-exempt property.

€ The counties would get an additional $2.5 million on revenue sharing based on the amount of tax-exempt land the tribe owns.

€ The nation may designate up to 10,000 acres it owns as part of the original claim, up to 6,667 acres in Cayuga County and 3,333 in Seneca County, as tax-exempt. The tax-exempt land can only contain three clusters of connected parcels in each county.

€ The tribe would pay local and state taxes on all other land.

€ Also, it will be subject to laws and regulations, including federal environmental laws.

€ The Secretary of Interiors can not take lands on behalf of the Seneca-Cayuga Tribe of Oklahoma.