Shinnecock Indian Gambling Authority speaks at LIREG event

Members of the Shinnecock Indian Gambling Authority (SGA) said recently they would like to build three Conn.-style casinos on Long Island, one near their reservation in the Hamptons, another in central Suffolk County and a third in Nassau County, close to New York City. Speaking to about 150 executives at a meeting of the Long Island Real Estate Group (LIREG) at the Cold Spring Country Club officials of the five-member panel said they haven't decided on any sites yet or the size and scope of any casino projects and would not discuss specific locations until after challenges to federal recognition are settled. The Shinnecock own about 900 acres in Southampton and Hampton Bays and published reports said they are considering sites in Riverhead, Brookhaven and Uniondale, next to the Nassau Coliseum. The officials told the LIREG gathering that they hoped to reach a compact with New York similar to the one the state has with the Seneca tribe, which allows three casinos. They said casinos would add thousands of jobs to Long Island's construction and tourism industries as well as providing tax revenues. The Seneca operate three western New York casinos, in Niagara Falls, Salamanca and Buffalo Creek, employing more than 3,500 people. The tribe's three casinos together account for more than 6,500 slot machines, 140 table games, 800 hotel rooms and other related amenities. The proposed Shinnecock casinos would not pay local real estate taxes but would share revenues under a Payment in Lieu of Taxes (PILOT) agreement with the state. The state would share its portion of the revenues with localities. Hunt said the Shinnecock don't plan to bring Atlantic City-style gambling to Long Island, but would model their casinos on the Indian-run casinos in Connecticut, Mohegan Sun and Foxwoods. He said the tribe hoped to develop a high-stakes Monte Carlo-style casino "close to their homeland" in the Hamptons. Philip Brown, secretary of the gaming authority, predicted that properties near the casinos would rise in value. "It's going to drive the real estate market in those areas," he said. "It's a business that feeds and grows the local economy around it." Joan Williams, another vice chair, said Long Island residents want to gamble and fill planes headed to Las Vegas at Islip MacArthur Airport. Long Island casinos "would keep that money here," she said. Leaders said the group is reaching out to the real estate community to gain support for their projects. "Help us help you to get the real estate industry booming," Brown told the group. "We are one of the engines for bringing a strong economy back to Long Island." Brown said, noting that both the Shinnecock and local communities would win from proposed casino developments. Brown said the Shinnecock might build residential and commercial at casino sites to provide housing for employees and services, depending on the size of the site. He also said the authority would consider leasing land to private developers. Density and zoning matters at any site acquired by the Shinnecock would be determined by the tribe, but would exceed local regulations, Karen Hunter, treasurer of the gaming authority said, noting that they are interested in obtaining local support where they build. Requirements for a casino site, Brown said, are a minimum of 35 acres, easy accessibility, no history of contamination, an existing infrastructure and acceptance by potential neighbors in the community. "We'd like to get as much [land] as we could," he said, adding that they are considering public lands as well as private properties, but would avoid residential areas. He said the tribe has met with various banks and investment firms to discuss mechanisms for financing casino development projects. The firms included Bank of America, Merrill Lynch, Deutsche Bank, Jeffries & Co. and Sovereign Bank. The tribe's partner in its gaming ventures is Detroit-based Gateway Casino Resorts. Barre Hamp, vice chair of the group, said a legal challenge by a Connecticut group to federal recognition of the Shinnecock "is more of a speed bump in the road than a stop sign." Besides its casino plans, the Shinnecock have more than 3,600 acres in land claims worth more than $1.2 billion, including the Shinnecock Hills Golf Course and the former Southampton College, according to published reports.