Mohawks say Empire pulling out of Catskill casino project

By The Associated Press

Thursday, February 7, 2008 9:51 AM EST

ST. REGIS MOHAWK RESERVATION - The St. Regis Mohawk Tribe charged Wednesday that Empire Resorts has “abandoned” their joint casino project at Monticello Raceway in the Catskill Mountains.
The tribe accused its Monticello-based partner of breaching their gaming agreement and said it was “committed to aggressively pursuing any and all appropriate legal remedies to protect the interests of the tribe.”

Mohawk spokeswoman Leslie Logan said tribal chiefs were unavailable to comment on the latest twist in the long-running attempt to open an off-reservation casino in the Catskills, a frustrating saga that has continued for more than a decade.

Located 90 miles northwest of New York City, the casino and entertainment complex was to feature approximately 125 table games, 3,500 slot machines, 24 poker tables, and numerous restaurant and retail venues.

It was expected to create more than 3,000 permanent jobs. According to a statement from the Mohawks, Empire notified the tribe in a letter Tuesday that it was pulling out of the $600 million-plus project.

Empire Resorts issued a news release late in the day Wednesday saying it has not abandoned the Mohawk casino project in Monticello and has no intention of doing so. But it said it is “exploring additional business proposals” while awaiting the outcome of litigation challenging a federal rejection of the Mohawks' casino plan.

The release said Empire and Concord Associates are discussing the joint development of a 160-acre parcel in Kiamesha Lake, which may involve the relocation of Empire's Monticello Raceway and video gaming operations to that site, three miles northeast of Monticello.

Last month, the U.S. Department of Interior rejected the Mohawks' plan to open a casino at the Sullivan County track after deciding the gaming site was far from their northern New York reservation, which straddles the U.S.-Canadian border.

The agency said it was concerned the faraway location could cause an exodus that would cripple the Akwesasne tribal community, both economically and socially.

The agency also rejected a Catskills casino plan submitted by the Stockbridge Munsee Tribe of Wisconsin.

The Mohawks have filed a lawsuit challenging the agency's rejection of its application.

The Mohawks and Empire Resorts also had an agreement to build a Catskills casino in the late 1990s, but that deal, too, unraveled when the tribe inexplicably spurned Empire for another developer, Park Place Entertainment.

A tribal council ended up suing Park Place for its interference in 2000, and won a $1.8 billion default judgment in tribal court, which has since grown by another $1 billion in interest. Park Place has since been acquired by Harrah's Entertainment Inc.

The tribe has sued Harrah's in federal court to enforce the tribal judgment.

Vernon Downs owner says he'll close casino Monday

VERNON - The principal owner of Vernon Downs says he'll close the racetrack's casino on Monday, putting about 300 people out of work.

Jeff Gural tells a newspaper that he'll keep the casino closed until the state Legislature passes a bill that would give the state's eight race track casinos more money. A bill Gural supports met with heavy opposition this week in a key Assembly committee.

Gural says he hopes the shutdown will force the state to take action. The Vernon Downs casino generates about $560,000 a week in revenues, half of which goes directly to education.

John Charlson, a spokesman for the state lottery, says Gural's attorneys notified the state that the track's casino will be closed at 1 p.m. Monday.

- The Associated Press

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