Jun 29, 2004

The agreement that allowed Turning Stone Casino Resort to open 11 years ago is invalid, state Supreme Court Justice James W. McCarthy has ruled.

While Oneida Nation leaders downplayed the ruling's impact, Nation foes and local political leaders rejoiced in what they saw as a significant step toward resolving issues including the land claim and taxation of products sold by American Indian businesses.

The Oneida case was brought by Scott Peterman and United Citizens for Equality, which said the casino has had a negative effect on the non-Indian community, including an erosion of non-Indian businesses that have trouble competing with the tribe.

UCE challenged in court the legality of the Oneidas' gambling compact with the state, arguing that it never was approved by the Legislature as required under federal laws allowing Indian casinos.

McCarthy ruled from Oswego that then-Gov. Mario Cuomo "exceeded his authority" by entering into the 1993 compact with the Oneida nation without legislative approval.

What effect, if any, the court decision has on the

sprawling casino resort that attracts 4.2 million visitors a year is uncertain. Turning Stone has grown to include a massive casino, three championship golf courses, three luxury hotels, a European spa, a convention center, a cabaret-style showroom and an events arena.

"The Nation's compact is valid under federal law," Nation spokesman Jerry Reed said Monday.

He said the state Supreme Court had previously declared invalid a similar state compact with the Mohawk Indians for a Northern New York casino, but last week the state Legislature approved the Mohawk deal retroactively.

"The (Oneida) Nation is confident the Legislature will do the same (for the Oneida Nation compact)," Reed said. "It's no big deal."

But Leon Koziol, the Utica lawyer who argued the Oneida gaming compact case, said the ruling could be the hook UCE needs to ask the National Indian Gaming Commission to revoke Turning Stone's operating authority.

Koziol stopped by the organization's meeting Monday night in Oneida. He was received with cheers and a round of applause. He advised the 60 attendees that they have several options when it comes to getting action out of the court decision.

"I would pursue them very vigorously," he said. "You're in the driver's seat now."

Vernon resident Judy Bachmann said the group should draft a resolution and send it to county legislators.

"We've been telling them for how long that what they're allowing to happen in our back yards is not right," she said.

Oneida County Executive Joseph Griffo and Madison County Board of Supervisors Chairman Rocco DiVeronica also said the court ruling is a bigger deal than the Oneidas think it is, and could rejuvenate the stagnant Oneida Indian land-claim negotiations.

Griffo said Monday he has urged Gov. George Pataki and state legislators not to act precipitously on a new Turning Stone gaming compact.

"Anything on the table from court rulings should be made part of a final land claim settlement," Griffo said, including authority to run Turning Stone. "It's an opportunity to bring everyone back to the table."

DiVeronica said he hopes the court ruling makes Oneida Nation leaders "realize they have a chance to lose" and pushes them back to negotiations.

"That would be the end of our problems in Madison and Oneida counties," he said.

Koziol concurred:

"Our ultimate objective is to get the land claim settled and get payments from the Oneidas for local infrastructure costs."

The Nation does not share profits from gambling with local governments and it does not collect state or local sales taxes on goods sold at its businesses.

Pataki's office released a statement Monday afternoon, saying, "We will review the decision and make any comment when that is complete."

A statement by state Sen. Nancy Larraine Hoffmann, R-Fabius, said there should be no new compact agreement unless the Oneida land claim is dealt with at the same time.

Contact R. Patrick Corbett at pcorbett@utica.gannett.com

Contributing: The Associated Press

Nation takes ruling in stride

COMPACT RULING

E New York state Supreme Court Justice James McCarthy ruled that then-Gov. Mario Cuomo "exceeded his authority" by entering into the 1993 compact with the Oneida Nation without legislative approval.

E Another agreement with the Mohawk tribe met the same legal fate a year ago in a ruling by the state's highest court, the Court of Appeals. Both chambers of the Legislature did not ratify the pact until the state Assembly completed final legislative action earlier this month.

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