John Maxfield Hague, M.S., P.E.

186 Linwood Avenue

Buffalo, New York 14209-2010

(716) 882-5761

www.JMH003@webtv.net

 

8 January 2007 update

To the Editor

ARTVOICE

810 Main Street

Buffalo, New York 14202

 

Re: CASINO DEBACLE

 

During a recent public hearing in City Hall (evening of 26 October 2006), almost unanimous (52/59, or 90%) opposition was expressed to the proposed sale of Fulton Street to the Seneca Nation of Indians (SNI) and also to their proposed casino. …

 

I sat in the front row and took thorough notes on all 59 people who testified.* Only two insiders in planning the casino (#1 & #2),  two construction trades representatives (#7 & #18), and one member of the Common Council who defended the selection of the appraiser (#42) were in favor [shown in green below] vs. 52 in opposition [shown in red below].  There were also two neutral commentors (#49 & #58, who expressed no opinion concerning casinos.) [shown in blue below] …


The proposed sale of Fulton St., which transects the parcel of land near Seneca and Marvin streets—formerly occupied by abandoned H-O OATS grain elevators—that was recently sold to the Seneca Nation of Indians (SNI) for their proposed gambling casino was addressed by ~59 speakers in a hearing at 1301 City Hall. David A. Franczyk, Council President, presided and many of the council members and the Corporation Counsel occupied their normal seats (though few stayed until the end, and the audience came and went).

 

1) After a 6:15P start, Corporation Counsel Alisa Lukasiewicz summarized background of the proposed downtown casino project, that Gov. Pataki decreed in a compact with SNI (late at night and with little or no input from NY citizens) in 2002. The slogan was JOBS JOBS JOBS (a.k.a. JOBS3) and $125 million was to be spent by operating entity Seneca Gambling Corp. (SGC). Several acres were sold to SNI and the historic elevators have been demolished by Empire Dismantlement, all rubble cleared away, & foundation work on casino structures has started.

 

2) 2d speaker (6:20 to 6:33, 333% over the 3-minute limit) was Michael Powers, Esq. of Phillips Lytle LLP, who said he was involved in early planning with Gov. Pataki, Mayor Masiello, the Council, et al. “25% minorities and 8% women would work on the project,” which was thought to be unquestionably beneficial to Buffalo. Also a 3-acre urban park would be built. The question is not the goodness or badness of gambling. “That question became moot in 2002; the casino WILL BE BUILT THERE.”  The issue is “Will Fulton St. be sold, allowing an “A plus casino, or retained by the city, allowing only a C minus casino?” There will be no agreement with “assurances” if Fulton is not sold and no urban park will be built. Buffalo would “earn” (receive a cut of) $5 to 8 million per year for the first 8 years, after which the compact would expire.

 

3) @6:34 NY Legislator Maria Whyte said “a locally based casino would not bring income into Buffalo and would have insufficient return on $$ gambled. This is not sound economic policy. Buffalo has many natural assets, including the waterfront and much high quality architecture.”

 

4) @6:38 Justice Norman Joslin referred to “SCURRILOUS ATTEMPTS TO BYPASS LAWS BY SUBTERFUGE and ignore moral climate with end run around Constitution.” Ethically and practically, something for nothing, equalling greed and the taking advantage of low-income people. He mentioned Gamblers Anonymous (from his court encounters). “We should not compromise cultural renaissance of downtown with Philharmonic, theatre district, professional sports teams, etc. Even if the casino is not found to be unconstitutional, it is still immoral and objectionable.”

 

5) @6:42 Rev. Keith Scott, a pastor in Commodore Perry area said he had to negotiate with gangs in casino site area ~12 years ago and that police had improved public safety considerably. A casino would bring back loan sharks and criminals. Also extra traffic on I-190 interchange and local streets would worsen noise and air pollution. “The casino was planned in the dark & in secret.”

 

6) @6:47 Bob Heffern mentioned 2,000 to 3,000 jobs would be lost vs. 1,000 short-term construction jobs gained (citing Prof. Thompson’s research at UNLV). The casino & possible associated hotel would take taxable business from Adam’s Mark & other local businesses. No Known Response was rec’d from mailing of about 1,000 letters to U.S. Sec. of Interior organized by CACGEC. Also mentioned 71% higher bankruptcy rate in Atlantic City NJ. Casino would be “absolutely a negative factor.”

 

7) @6:50 Paul Brown (a labor leader) said casino would be a world-class building requiring a million man hours, 20% of annual total in Western NY, & understandably commended city for supporting casino so far.

 

8) @6:52 Samuel Herbert (E. side resident) says NOBODY ELSE has ever presented a 1,000-job economic development plan to city officials. “Don’t we have the opportunity to create a job-supporting casino, whether A plus or C minus?”

 

9) @6:56 Anna Kay France (Voice Buffalo) opposes sale of Fulton St., says “more than  $1 million would be funneled into casino & lost. Federal studies show loss:income ratio of 3:1. Major increase in crime >3 years after opening & costs would continue for generations. REAL costs must be considered & leaders must act with vision, foresight & fiscal responsibility!” (Amen!)

 

10) @6:59 Rev. Dan Schifeling, United Church of Christ minister & Voice Buffalo (representing 23 congregations) member, asked rhetorically whether you would like to learn from an M.D. that you have a large, aggressive (A plus) cancer or a smaller (C minus). He described Atlantic City (A plus) as having a small boardwalk, several large casinos, & a HUGE SLUM. A casino would suck $$ out of Buffalo-area community (remember H. Ross Perot?). Problems with youthful gamblers, who are jeopardized by being the most susceptible to gambling addiction, would be worsened with local casino, vs. the distant--thus less accessible--casinos in Canada & Niagara Falls NY.

 

11) @ 7:03, Nancy Kresge said she would like to see city return to its former glory, & noted that casino would be without clocks or windows & totally isolated from surroundings.

12) @ 7:05 Rev. Linda Heffley (sp?) asked: “Will JOBS3 pay a living wage?” Part time jobs that would be common for casino workers carry no health insurance.

 

13) @ 7:07 Dr. Robertt Schulman supplied a document Economic Facts Related to Proposed Casino to Council members and stated that “the widely accepted medical principle DO NO HARM applies to politicians as well as M.D.s. The A B Cs of gambling—addiction, bankruptcy, crime & corruption—should be considered. An ounce of prevention is worth a pound of cure. Now that Albany has failed us, local politicians are responsible for saving city & its citizens from harmful casino.”

 

14) @ 7:10 Steve Siegel, Prof. of Entertainment & Hotel Management at Niagara University, has researched various other gambling venues & found avg. loss of 2 jobs per 3 VLTs. $15,000 per VLT will leave area per year. $1.7 million spent at casino (1% of total revenue) is cannibalized from other businesses; $53 million at other area casinos. More than a million dollars per year of sales tax revenue would be lost. He assembled this exhaustive research project into a thick 3 ring binder given to every Councilmember

 

15) @7:15 Gregory Walt (sp?) (3-year resident & city business owner) feels A plus casino would be more harmful to his ‘tiny little effort’ than a C minus; opposes sale of Fulton St.

 

16) @7:17 an elderly lady from S. Buffalo (Voice Buffalo member) said “Please don’t contaminate Buffalo with a casino!”

 

17) @7:18 Joel Rose said “an A Plus casino won’t bring in many tourists...See the Securities & Exchange Commission filing of 14 Feb. 2006, which says casino will primarily target LOCAL market, Buffalo and suburbs. SEC dictates this honesty; the lies that have been rampant in promotion of this wrongheaded project would be detected & punished. More jobs will be lost than created, see John Kindt & Earl Grinols, see boarded up businesses in Niagara Falls—where promised development did not occur; see Detroit & Atlantic City. Gambling problem has been studied “up to the eyeballs; see NCALG.ORG.” Even if casino comprises only the threatened trailers with slot machines, $125 million will still be invested with or without Fulton St. Leaders should LEAD & impede, not solicit, harmful casino projects!”

 

18) @7:21 Mark Kirsch (Buffalo Bldg. Trades, Local 17 Operating Eng’rs): “We need construction jobs, please approve casino!”

 

19) @ 7:28 Diane Persico: “What a nightmare!” (in relation to garish colored renderings of A plus casino arrayed on easels in front of stage). “$71,687,460 was spent on lottery & Quick Draw in 2002. The proposed Compact has an expiration date, but many on Council don’t know this; we should have a quiz, but it would be too embarrassing! No councilmembers attended the recent conference on casino gambling at Adam’s Mark. Council should be on front page of papers & TV news for having courage to stop the casino!”

 

20) @7:32 Carl Paladino: “I was in at beginning of casino dealings, as a representative of Mayor Masiello; New Orleans had casinos without added hotels & restaurants. Seneca leader Schindler made initial commitments that we agreed on, then he left office; Senecas abrogated all previous agreements, then tried Cheektowaga site, next current 9 acres at H-O OATS site. $75 million per year goes across the bridge to Fort Erie and never comes back. Ontario government owns casinos. Don’t sell Fulton St.”

 

21) @7:32 John Bartley mentioned that food stamp users & poor, prime targets of casinos, are being exploited while wealthy benefit. A county social worker in his office wrote bad checks to cover gambling. Expected income from casino is already in county budget. 5,500 gov’t employees have been laid off in Detroit since 2002.

 

22) Julie Cleary (from Old 1st Ward) “…has been fighting 1 thing & another over last 8 years: Erie County, zoo, ethanol plant in abandoned grain elevators, etc.; many relatives have lived here over generations, last ethnic community” (98% of her church, Our Lady of Perpetual Help, attend mass from neighborhood), “& casino in area would have a terrible effect on us & be wrong.”


23) Maureen Schaeffer, whose family has resided in the Old 1st Ward for 100 years, sympathized with Cheektowaga when considered as casino site. She fought against proposals of Zoological Society years ago. “Crime & increased traffic from casino would jeopardize our neighborhood!”


24) Mary Bartley: “Casino would choke life out of city. One construction season would not compensate for long term loss of permanent jobs. No council members or Mayor attended recent casino conference at Adam’s Mark. WHY NOT? It is deeply disturbing that no studies have been done. No wonder there are 2 control boards! Where is the due diligence? An A plus casino will addict more new gamblers & cause larger increases in crime, divorce & suicide than a C minus. I oppose sale of Fulton St.”

 

25) Charles Grammer (homeowner and Buffalo worker) pointed out contrast between 5 colorful pictures & site map, surrounded by a grey city, as displayed on easels. Out of massive spending extracted from local gamblers, only too small a % would be returned to city. At an earlier casino forum at Science Museum, Carl Paladino mentioned a casino deal somewhere else with better terms. COURAGE, WISDOM & PRUDENCE, as displayed on 3 of 8 columns of beautifully designed Council chambers (Read all the columns sometime.) should be used by community in dealing with SNI or SGC.

 

26) Dennis Bateman, from Bonifacio district, said “Why send money to Albany & NY City, in reverse Robin Hood scenario? Sheriff Pataki steals from the poor for the benefit of wealthy downstate; there are no casinos there.”

 

27) Claudia Schultz of neighboring Elk Terminal Apartments said widening of area streets such as Perry, Scott & Seneca would shrink their living area into a tiny block surrounded by Scott St. & others. How can they have a peaceful environment? She has seen the dereliction & decrepitude in Atlantic City. (She was asked by apartment management to come downtown to fight casino project.) “Please help to fight this project!”

 

28) @7:54 Daniel Warren, plaintiff in an IGRA lawsuit, said “Rights are supposed to be reserved to the people; but casino deal was formalized late at night in 2001, included with 27 other items with no voter input, in egregious violation of 10th Amendment of U.S.  Constitution. Representatives of NY talked about possible methods of compensation for police & firefighters. No debate occurred in NYS Legislature. Good intentions are not enforceable. Nothing is enforceable vs. sovereign SNI.” He submitted a letter concerning a similar controversy in WI.

 

29) @ 7:58 Cecelia Sanchez (founding President of Voice Buffalo) is adamantly opposed to Fulton sale. “City of Good Neighbors is as deeply divided as it was formerly on racial issues, etc. Casino would worsen bad conditions; parochial, shortsighted interests seem to be prevailing”; quotes M.L.K., Jr.  “Economic future seems to be riding on a roll of the dice...”

 

30) Bob Kluck (sp?) (Voice Buffalo) claimed to be a student of history, said middle class is important; the poorer a city is the greater the chance of violence & revolution.

 

31) @ 8:01 Dianne Bennett (Citizens for Better Buffalo) says “Senecas aren’t giving us anything; Project is taking 100% our dollars. No free lunch. They’re eating our lunch; we’ve all been snookered.” (laughter) ‘Take it or leave it.’ No sale of Fulton! Why not wait for decisions on lawsuits? The posters should show the slums of Detroit & Atlantic City. Why accept low appraisal of Fulton St. (too low by >$1 million) ? The house always wins & we are not the house!” (Audience cheers…) Documentation of appraisals has been submitted to Council.

 

32) Irving Rubin, former manager of large highway commission hearings in MI, objects to flashy pictures on easels as inappropriate for this type of controversial proceeding. (N.B., the pictures were removed soon after this comment...) He criticized the “supine, gutless position of Buffalo officials. How come bright people like Mayor and Council accept this project? Nonsense! Millions of vehicles cross the Peace Bridge. Bankruptcy & divorce lawyers and pawnshops will be primary beneficiaries of casino.”

 

33) @ 8:07 Penny Wyatt (small business owner & CACGEC member) said interest rate on loan that financed Niagara Falls SNI casino was 29%; too usurious for U.S. investors but suitable for some foreign (e.g., Malaysian) investors, without federal oversight. “Think long & hard about frightening possibilities with casino! Protect us! You (Council) are our last hope!”

 

34) @ 8:12 Jim Jasinski (sp?) of N. Buffalo raised questions on sale, e.g., “lack of formal site plan, elevations of structures, adequate EIS under SEQRA. He noted inward-facing, windowless design near Fulton St. & disapproved of sales prices. Caveat emptor!”

 

35) @ 8:16 Vicki Patterson said her friend lost home after going to Ft. Erie & becoming addicted to slot machines; also said SNI is separate from Iroquois nation, which opposes gambling.


36) Robert Kresse, lifelong Buffalonian: “Why did mayor & Council not look at the facts?

Paladino knows agreement is not being retained (?) There is no protection, no Jobs3; we are giving away part of ‘our store’ (downtown).” Also discussed Niagara Power Project.

 

37) Ellen Kennedy: “Casino is illegal, end run of NY Constitution, not done deal. Social & economic disaster, not development; small % of slots for a few years if Legislature agrees. Will cause increase in bankruptcies. No unions yet at SNI casino in Niagara Falls. Buffalo should focus on economic development such as Statler area projects recently proposed by Bashar Issa.”

 

38) @ 8:28 Chris Weinert of Kenmore, comes to city daily & dines, so his taxes help city. “Casino IS a moral issue for council. ~5% of gamblers become addicted, prey on rest of community.” The social impact has not been addressed. He mentioned an M.D. friend who told him about two patients who lost everything or attempted suicide because of casino gambling.

 

39) Robert Knoer, Esq.: “Two contentions: 1)’Inevitable’, 2) ‘Benefits’ Both are NOT TRUE. SNI are to be complimented for candor in not claiming spin-off benefits. NY has no law calling Buffalo or N.F. ‘host communities.’ $5 to 8 million req’d for road & infrastructure improvements. Who must provide sewer & water service?” (Not found in his legal research.)

 

40) Bill Lockard (sp?) long term resident, “Planning is needed for waterfront development. Outsiders have negotiated the sale. The larger the casino, the more harm done by unfair tax competition. 2 or 3 jobs lost for each casino job. This is not sound planning”

 

41) Janet..........? of Eggertsville: “Agreement with SNI does not protect Buffalo; Fulton St. appraisal should be revised.”

 

42) Council Member R.A. Fontana: “Council chose 1 of 3 candidate appraisers.”

 

43) Robert Tekkie (sp?) “IGRA applies only to Indian land.” Discussion of land issues in Sherrill NY (location of wind turbine farm): Supreme Court ruled that generations have passed since Indians lost land ownership, & tribe can’t regain sovereignty by purchasing their former land. “Is council going to follow example of President Jackson as he dealt with gold discoveries, with Supreme Court deporting Indian tribes west from discovery areas?”

 

44) Barbara Sheepen (phonetic sp?) (18-year resident): “Don’t sell Fulton! I love Elmwood village neighborhood & casino would send it downhill...”

 

45) Linda Nonny (sp?), Esq. 20 year attorney in Elmwood Village: “Good things have been happening; don’t make wrong decision & turn good trend around. I can’t imagine Council approval…”

 

46) Tim Sherry, C.P.A. (of Lancaster CONCERN group), “We fought Cheektowaga SNI site partly from fear of drunken driving …; pushed for SEQRA study. Fulton St. should not be sold without SEQRA study!

”

47) Adam Walters, Esq.: “It is not inevitable! I put in 1,000s of hours of study, looked at old NY studies. Even Carl Paladino, after selling 9 acres, is against it now!”

 

48) Tim Sakas (sp?) (owner of The Hatch) “I had to get 3 appraisers, at cost >$1,000. I own 68 apartments, that are hard to rent, on Richmond, Ashland, Norwood, Linwood, downtown. Recent tax increase was 140%. Get better lawyers, screw SNI to wall!”

 

49) Monica..........?  Discussed her city property problems, which seemed irrelevant to casino & Fulton St. issues.


50) (inaudible name) “Malcolm X said ‘Don’t seek justice from a crook,’ & ‘If you can’t do it with brilliance, use B.S.’  Councilmen have dined with the Senecas, why not with the people? There is a stench of arrogance, with the deal already cut. Say NO & talk to the people! Don’t sell Fulton.”

 

51) Louis Clay (18-year resident, British): “HSBC thinks property values will decay if casino is built; project is a dog! Buffalo is beautiful. If you don’t kill it right away, Council members will be associated with a bad project. If you sell Fulton St., what will your next job be?” (Applause…)

 

52) H. Graham of Lakefront Blvd., retired from several national companies: “Macro viewpoint should be: Will new businesses & residents be attracted to Buffalo? Good companies will tend to avoid casino cities. This is worst possible deal; no sale!”

 

53) Dave Bradley of University District: “Best investment for organized crime is a casino, good for laundering of stolen money. Crime & business nexus exploits suckers. A few zeroes should be added to Fulton St. price to cover massive future losses. You are buying tickets on a hell-bound train.”

 

54) Allen Coniglio: “How could ANYONE vote for this? Incomprehensible; Council has not done homework. Appalling; shameful leadership, absence of debate. Council should search souls.”

 

55) Bruce Jackson: “DONE DEAL is a profound lie, as with Peace Bridge issue, in which Mayor, Council, et al. stopped a stupid project & should do the same here! I hope you have the courage to stop casino project.”

 

56) John Hoffmann (former CCHR Chair) offered two suggestions:

“Why not wait for outcome of lawsuits before deciding on Fulton St. sale?”

“Concerning need for jobs, construction workers should convert Memorial  Auditorium into a youth center.”

 

57) Ms. T. O’Brady told about a non-gambling friend who would often go to buffet at N.F. SNI casino, taking much business from local restaurants.

 

58) Carl...........? (“55 years old”): Mentioned false claims of weapons of mass destruction before Iraq invasion & hearings about Erie Canal reconstruction in which it was erroneously claimed that Onondaga limestone would explode if unearthed (which has not happened).

 

59) Last comment @ 9:22: …..? Siegal summarized her count as 53 against, 3 for, 3 neutral. “Please listen to all the arguments!”

*My “transcript” of the hearing could not, unfortunately, be compared to an official transcript because none is available. Recordings were made in CD and DVD media, but financial and staff shortages in City Hall prevent conversion of electronic media into the traditional pages of text.

[However, the audio recording can be found here.]