The Niagara Casino Authority

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The Niagara Casino Authority

• David Benz Law

• Phillip Nicely Law

• Peter Sorgi Law

• Peter Talty Architecture

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The 2 Main Objectives of WNY regarding the
Relicensing of the Niagara Power Authority.

• 1. Keep more power at a lower cost to create and
  retain jobs.

• 2. Increase tax bases by having the Power
  Authority make Payments In Lieu of Taxes.

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The Solution Build A Casino
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Our Scenario  The Creation of a Public Authority
to construct, operate and manage a casino in
Niagara Falls, USA
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How does a government run casino in Niagara
Falls, USA relate to the Relicensing of the
Niagara Power Authority?
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Casino's Profits will be invested into Niagara
Falls and entire Region.

• Without the burden of PILOTS, Niagara Power
  Project can focus on allocating more power to the
  Region.

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All Profits of Casino get invested into Niagara
Falls and the Region

• 25  The host municipalities and school
  districts of Niagara Power Project and the
  Niagara Casino Authority

• 25  Niagara County

• 25  Split proportionally by population to the
  remaining 7 WNY counties

• 25  Community Trust Fund - money to be granted
  to community organizations.

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Why a Casino?

• Casinos make money - (Ontario, Las Vegas)

• Casino can be Catalyst to Niagara Falls, USA
  revitalization, as well as the entire region.

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The Case for Casino Gambling
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Casino creates jobs and concomitantly enhances
tax base

• Casino Niagara employs 3,600 people

• Niagara Casino Authority would have residency
  requirement

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Casinos a proven way to bring money into a region

• Atlantic City - 3.8. billion annually

• Las Vegas - 3.5 billion annually

• Ontario - 1.5 billion (Canadian) annually

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Casinos draw people into region

• Las Vegas cities ranked 1,2 and 6 in population
  growth

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Has anything like this been done?

• Ontario's 3 casinos bring in approx. 1.5 billion
  annually accounting for 3 of its budget revenues

• 27,000 new direct and indirect jobs

• 2.4 billion in new economic activity

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Niagara Falls, Ontario

• remarkable growth in tourism

• hotel occupancy up

• same-day car trips up 25

• 1996 - 9 million visitors spent 169 million

• 1998 - 11 million visitors spent 1.2 billion

• 1.3 billion in new economic growth

• 6,000 new direct and indirect jobs

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Will it be successful on American side?

• foster competition and increased tourism

• Las Vegas competition example - 58 casinos bring
  in 3.5 billion annually

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Environmental Impacts?

• potential problems - more people and more traffic

• Niagara Falls relies on tourist industry

• hotels at 60 occupancy

• infrastructure designed to support 2 million
  people

• proposed site is a parking lot

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Examination of Building a Casino in Niagara Falls
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If we are to build a Casino
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How is this area functioning?
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Support Services Activities
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Features - Support - ParkConcentric Usage
Features Attractions
Park
Support Activities
Park
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Main arteries of Traffic
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Successful TransitionBetween Park Business
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Further AssetsPark Businesses Niagara 3rd
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Urban VoidsBetween Businesses Residential
areas
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Our ProposalAdding to the Existing Attractions
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Beginning to Fill the VoidBuilding on existing
strengths
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Resulting inincreasing need for support
services
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Extending the planPedestrian Perspective
Transition
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The Legal Process
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I. Legalization of gambling in New York State

• Art. I 9 of the NYS Constitution prohibits
  gambling

• Art. XIX of the NYS Constitution provides for
  amending

• requires passage in both the Assembly and Senate
  in two successive state Legislatures

• also requires subsequent approval in state and
  local referendums

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II. Establishment of a Casino Authority

• Municipal Home Rule Law Art. 5 40 provides for
  the establishment of local authorities by the
  state legislature

• 40 provides that two or more municipalities may
  initiate a Home Rule Request

• the municipalities initiating the Home Rule
  Request must first approve the proposed law

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III. City vs. Regional Authority

• 2 Art. XII of the State Constitution provides
  that an act of the State Legislature can not be
  special or local either in its terms or in its
  effect

• a City Authority allows control of such an entity
  to reside exclusively in the City of N.F.,
  provide for the retention by the City of all
  revenues

• a regional authority is less likely to run afoul
  of section 2 art. XII

• Establishment of a Regional Authority is likely
  to garner more lobbying support.

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Establishment of a Regional Planning Council

• a Niagara-Erie Regional Planning Council could
  facilitate the coordination of lobbying efforts

• establishment of such a council simply involves
  an agreement amongst the subject municipalities

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V. Structure of the Authority

• The Niagara Region Casino Authority would be
  given the authority to issue project specific
  revenue bonds to finance construction of the
  casino

• Revenues generated by the casino would be used to
  pay off those outstanding bonds

• The trust indenture would provide for the
  distribution of revenues generated from the
  casino insuring that all municipalities in the
  region get a slice of the pie

• the Erie-Niagara Regional Planning Council could
  be involved in drawing up the trust indenture

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Thank You
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