Tribe ‘walking away’ from Empire Resorts casino deal

William Kates

Tuesday, Jan. 4, 2005 | 8:40 a.m.

SYRACUSE, N.Y. -- The Cayuga Indian Nation of New York will not renew its development contract with Empire Resorts to build a casino in the Catskills, a tribal spokesman said Monday.

Cayuga Nation spokesman Clint Halftown said the tribe is "walking away" from the deal because the developer "has failed to deliver on promises" to win federal approval for a $500 million casino at Monticello Raceway, about 90 miles northwest of New York City.

In a statement, Halftown said because the tribe was not renewing its contract with Empire Resorts, a proposed land claim settlement with New York state was no longer valid, either.

Empire's vice president, however, disputed Halftown's comments.

"We don't believe Clint Halftown is acting as a representative of the Cayuga Nation," said Empire's Charles Degliomini. "He has not given official notifications to our office or the governor's."

The exclusive contract between the Cayugas and Empire expired Dec. 31. However, Degliomini said Empire received a letter from the Cayugas on Monday that said the nation was extending its contract with Empire through June 2005.

Degliomini also maintained the agreement Empire has regarding the land claim remains in effect.

Halftown, whose authority has been challenged by traditional tribal members, could not be reached for further comment. Martin Gold, the tribe's attorney, declined comment.

Under an agreement announced in November, the Cayugas said they would drop their land claim in exchange for a state compact to operate a Las Vegas-style casino in the Catskills. They also would receive at least 2,500 acres, and as much as 10,000 acres in the Finger Lakes region.

The proposed settlement would have allowed the state to continue its appeal to lower -- or have dismissed -- the $247.9 million federal court judgment obtained jointly in 2001 by the New York Cayugas and the Seneca-Cayuga Tribe of Oklahoma.

A federal district court judge set the $247.9 million award after ruling in 1994 that the state had illegally purchased 64,000 acres of reservation land in Cayuga and Seneca counties more than 200 years ago.

In separate pacts, the state also reached casino-land claim agreements with the Seneca-Cayuga Tribe of Oklahoma, the Oneida Indians of Wisconsin and the Stockbridge-Munsee Band of Mahicans, also from Wisconsin.

Gov. George Pataki's office had not received any official word from the tribe as of late Monday, said spokesman Todd Alhart. He said the turn of events was surprising since Halftown had made public statements only last week about the tribe pressing forward with its plans.

The New York Cayugas and Empire officials said in May the Monticello casino project was on track. Empire Resorts said it was awaiting a final review by the U.S. Bureau of Indian Affairs of its application for the transfer of 30 acres for purposes of building a casino and resort.

The development agreement was for an initial period of 14 years and would have required the Cayugas to give a share of their profits to the state.