We all know how casino payments to the city work, right? The casino pays the State of New York 25% of their slot machine revenues for exclusivity rights to a certain region of the State. The State then allots 25% of that amount to the Host Communities of Niagara Falls, Buffalo and Salamanca. In Niagara Falls, another 25% is deducted for certain mandated expenditures. The remaining 75% is then put in a Tribal Fund for such uses as, reimbursing the city for loss of tax revenue, extraordinary health & safety and infrastructure expenses, and Economic Development.

The contract for exclusivity is a contract that is mandated by federal law between the Seneca Nation and the State of New York. The law (99H) which distributes “Tribal Funds” is a State Law negotiated by our State Representatives. The Seneca Nation is not required to negotiate with a municipality because, for one thing−the municipality would not have the wherewithal to grant exclusivity. A change to 99H would have to take place in the New York State Legislature.

Whether we like it or not, those are the rules we have to play by. What we can change is the way we handle our share of the money, which−whatever you may or may not agree with−is pretty “Willy Nilly” at this point

First of all, let’s look at the loss of tax revenue. I am not sure exactly how this is computed, but it should be based upon the present value of the land. In other words, if the land is valued at $250,000,000 the amount going to the CITY BUDGET should be around $7,500,000. That is the amount the city would have received if this land was privately developed and… that is the amount the city should be using to maintain the city, including such things as: remodeling fire stations and Economic Development Department salaries–basically any expense that is connected to the overall operating expense of the city that is not directly connected to the cost of Casino operations.

The remainder of the casino funds should go towards incentives that “Create Wealth” and increase the city’s tax base so that we can improve our “Standard of Living” and meet the rising costs of city government without future tax increases.

Dan Davis
Niagara Community Forum

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