Impasse over gaming ends land negotiations in New York

Sunday, March 12, 2000 | 11:04 a.m.

U.S. Judge Neal McCurn on Friday declared an impasse in negotiations between the Indians and New York State. That came after state officials refused to drop from the talks a lawsuit filed against the nation over slot-like gaming machines at the Turning Stone Casino in Verona.

The state's stand exasperated the court-appointed mediator, the Indian nation, and people living on the 250,000 acres of disputed land. All now expect a lengthy and costly federal trial.

"I am frankly disgusted that the state of New York could not find a way to sign a stipulation which all the other parties signed that would have kept this process moving forward and probably gotten settled," said Ronald Riccio, the Seton Hall law school dean appointed to mediate the talks a year ago.

On the table were lands in Madison and Oneida counties, and sales and property taxes, casino gaming and sovereignty.

None of the issues outside the land claim would be resolved in a trial, which would focus on the amount of damages owed the Oneidas by the state. McCurn suggested removing all the side issues from the discussions except the lottery machines. All the parties except New York State agreed.

Gov. George Pataki's office said dropping its 1995 lawsuit over the gaming machines would have been unfair to taxpayers. The state has claimed the Oneida's lottery machines were never approved. "We are going to continue to fight this lawsuit," spokesman Michael McKeon said.

"We feel that the judge is trying to tie our hands, and we will not consent, because we want to protect the landowners and taxpayers," McKeon added.

The state purchased the land from the Oneidas in the 18th and 19th centuries and the Oneidas, who live in Wisconsin, Canada, and New York, filed a lawsuit over the transaction in 1974. The U.S. Supreme Court found in 1985 that the land was seized in illegal transactions and ruled the Oneidas are entitled to compensation.

In 1998, the federal government sided with the Oneidas and filed an amended complaint naming 20,000 landowners as defendants.

Negotiations which began a year ago hit a snag publicly in the fall over several issues. Oneida Nation representative Ray Halbritter accused the counties of jeopardizing negotiations by taking steps to foreclose on tax delinquent Oneida-owned land. The state and counties accused Halbritter of ruining negotiations by seeking the federal government's approval to serve liquor at the Turning Stone Casino.

A three-day gathering at Riccio's Seton Hall Law School office in January renewed optimism that a settlement would be reached. All parties said they wanted to continue settlement talks for a few months longer.

McCurn, who just finished presiding over the Cayuga Indian Nation land claim trial, which ended in a $37 million recommended award for that tribe, had ordered lawyers to appear in court Friday in Fort Myers, Fla., where he was acting as a visiting judge. McCurn had asked lawyers to argue why negotiations should continue after Riccio submitted a confidential report detailing the talks.

Under the proposal that failed Friday, state and federal governments would have paid the Oneidas $500 million. The deal would have also allowed the sale of about 1,000 acres of land somewhere in New York to the Oneidas and would have required the Indians to promise that people would not be forced from their homes.

McCurn asked Friday that all the parties spend another 60 days negotiating that offer, and all but the state agreed.

Few parties held out much hope for further talks.

"I suppose it could always be revived if the state of New York comes to its senses," Riccio said. "Otherwise, it's going to trial."

"It's a rotten deal," said Rocco DiVeronica, Madison County Board of Supervisors chairman. "You know how many people have been working on this, and it ends up being a casino gaming problem and not a land claim problem?"

Friday's decision disappointed, but did not surprise, some of the landowners sued by the Oneidas.

"I don't blame the Indians as much as I blame the politicians," said Ronald Siderine, a Sherrill resident. "This is something I think could have been settled a long time ago."

Siderine said that before building his home in 1990, he contacted public officials about potential problems with the claim. They assured him there would be no problems despite the unresolved claim.

"They let people build houses and start their lives here and nothing was ever said," he said.