State Resisting Sharing Of Promised Seneca Niagara Casino Revenue To City Of Niagara Falls

Schumer Urges Pataki To Sign Pending Casino Revenue Sharing Memorandum Of Understanding

Senator: Money Needs To Be Funneled Directly To Niagara Falls For Economic Development

U.S. Senator Charles E. Schumer today called on New York State to release the Seneca Niagara Casino shared revenue funds for Niagara Falls redevelopment. New York State has not released promised revenue funds from the Seneca Casino meant to be shared with the local community. The compact that allowed the Senecas to build the Niagara Falls casino and two others in western New York gives the state up to 25 percent of slot machine profits. The host communities, in turn, get 25 percent of the state's share, or 6.2 percent. Schumer urged Governor George E. Pataki to sign the Memorandum of Understanding (MOU) regarding the sharing of revenue from the Seneca Niagara Casino between the State of New York and the City of Niagara Falls.

“Now is the time to make revenue sharing a reality, ensuring considerable local control over which projects receive funding,” Schumer said. “The Niagara Falls community has substantial community and economic development plans in place that depend on this promised casino revenue. The State must step up to the plate and share the casino revenue with the city as promised to do in the compact.”

An agreement on how the local share of the casino revenue should be allocated was reached in November of 2005 providing funds for projects in the city of Niagara Falls, the Niagara Falls International Airport, Memorial Medical Center, the Niagara Tourism and Convention Corporation and the Falls School District. Schumer said today that a prompt agreement on the pending MOU would be a vital step for key regional economic development projects, including an exciting new affordable housing initiative. Absent the signed MOU, the City of Niagara Falls cannot move ahead with plans for development that depend on casino revenue. Schumer supported efforts to create a casino in Niagara substantially because of the significant local support based on the promise of revenue sharing from future casino profits.

Affordable housing is a second area that stands to greatly benefit from a promptly executed MOU. In 2003, along with Fannie Mae and local partners, Schumer unveiled an initiative, known as Employer Assisted Housing (EAH) to boost homeownership in the City of Niagara Falls for Niagara Falls' teachers, police officers, firefighters, as well as employees at Mount St. Mary's and Memorial Hospitals, and Niagara University. This program, done in partnership with Fannie Mae's Western and Central New York Partnership Office and the City of Niagara Falls, is an important element in the efforts of Niagara Falls to stabilize its neighborhoods and revitalize the surrounding communities of these institutions. EAH programs also help employers attract and retain quality employees which are vitally important for a struggling city. EAH programs require a local match to fund the program. In this instance, Niagara Falls intended to use casino revenue as its match, but without the MOU signed it has no ability to fund the program.

In a personal letter to Pataki, Schumer wrote, “I know you are committed to working with local partners to implement a casino revenue sharing program that builds a better future for Western New York. I hope that you will move forward with the MOU with all due speed so that that the City of Niagara Falls can proceed with its economic development and affordable housing plans.”

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