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Gov. Kathy Hochul’s administration is challenging federal land-status protections for Seneca Nation properties in Buffalo and Grand Island. He is seeking to remove tax and zoning exemptions, according to the New York Post.
The lawsuit against the Department of the Interior targets a Buffalo site and a separate 207-acre Grand Island parcel. The Nation is building a gas station and cannabis shop on the Buffalo site. The state argues that neither property qualified for the protections under the Seneca Nation Settlement Act of 1990. The Nation disputes that position.
Buffalo development puts tax and zoning authority at stake
Federal officials approved restricted-fee status for the Buffalo property at Miami and Chicago streets in 2023. That designation exempted the land from municipal zoning oversight and local property taxes.
Buffalo Mayor Sean Ryan has separately sought to halt the project in state court. A judge has twice refused to block construction.
The Grand Island property was transferred to the Senecas for $1. The state’s federal challenge seeks to eliminate its special land status as well.
If New York succeeds, the properties could become subject to local property and sales taxes, and state or municipal zoning authority. If the Nation prevails, the parcels would retain the sovereign protections at issue in the lawsuit.
State and Seneca Nation dispute settlement-fund eligibility
The dispute turns on whether the land acquisitions qualified under the Settlement Act and its funding rules.
New York argues that the settlement land-acquisition fund was nearly exhausted long ago and later purchases were ineligible for tax exemptions. According to the state’s position, all but $5 million of the funds were spent on casino properties in Buffalo and Niagara Falls. The remaining money was restricted to housing for tribal members, the state says.
The state also contends that housing financed with those funds must be directly next to the casinos or contiguous with tribal land, and that neither challenged parcel meets that requirement.
The Seneca Nation says the acquisitions lawfully qualify under federal guidelines. It points to wire transfers from an account designated for Settlement Act funds as support for its position.
Ryan Whalen, speaking for the governor’s office in a statement to the Buffalo News, said Hochul respects tribal sovereignty but also has an obligation to ensure development follows appropriate laws and oversight.
“The state believes the Department of the Interior incorrectly qualified these parcels for sovereignty status, and we are confident the courts will agree,” Whalen said.
More from playny.com – Buffalo sues Seneca Nation over gas station project near Seneca Buffalo Creek Casino – Upcoming Seneca Nation Elections Will Likely Delay Gaming Compact Negotiations – Assemblyman: ‘It’s Time’ For New York To Prioritize, Finalize Long-Term Gaming Compact With Seneca Nation
Source: As reported by the New York Post.
