Gov. Hochul is moving to strip the Seneca Nation of its sovereign control over parcels of land in Buffalo and Grand Island, targeting a site where the tribe is building a controversial gas station and pot shop.
New York officials moved against the Department of the Interior Friday to eliminate the special federal status that would allow the Seneca One Stop project to operate outside municipal building codes, local zoning laws and state property taxes.
The twin lawsuits take direct aim at the contested construction site arguing the land was never legally eligible for sovereign protections under the Seneca Nation Settlement Act of 1990 (SNSA).
DOI officials approved restricted-fee status for the property in 2023, exempting the land from municipal zoning oversight and local property tax rolls.
The Buffalo land parcels at Miami and Chicago streets have enraged Buffalo Mayor Sean Ryan, who took the Seneca Nation to state court in an attempt to halt the project, but a judge has twice refused to block ongoing construction, according to the Buffalo News.
Now, Hochul’s administration is taking the fight directly to federal court, challenging both the Buffalo designation and a separate 207-acre parcel on Grand Island that was transferred to the Senecas by a frustrated commercial developer for just $1.
The state argues that the finite pool of land-acquisition money authorized under the SNSA almost dried up decades ago, rendering future property acquisitions ineligible for tax breaks.
In its filings, the state contends that under the tribal-state gaming compact, all but $5 million of those settlement funds were expended to acquire casino properties in Buffalo and Niagara Falls — Seneca Buffalo Creek Casino and Seneca Niagara Resort & Casino, respectively — with the remaining $5 million restricted strictly to tribal member housing.
Housing built with these funds must be directly next to the casinos or contiguous with tribal land.
Neither the Buffalo nor Grand Island locations fit that criteria.
The Seneca Nation maintains that the purchases are lawfully qualified under federal guidelines, pointing to wire transfers drawn directly from an account designated for “Settlement Act funds” and arguing the parcels fall within qualifying historic areas.
If the state wins, it will be able to collect local property and sales taxes, and determine how the land is zoned.
If the Seneca Nation wins, both parcels will remain permanently sovereign and exempt from local taxes, allowing the tribe to build and operate without city or state oversight.
“Governor Hochul is committed to a strong, productive relationship between the state and the Seneca Nation and she respects the principles of tribal sovereignty,” Ryan Whalen, a spokesperson for the Governor’s Office, told the Buffalo News in a statement.
“The governor also has an obligation to protect the interests of all western New Yorkers, including ensuring that development in their communities follows appropriate laws and oversight,” the statement continued.
“The state believes the Department of the Interior incorrectly qualified these parcels for sovereignty status, and we are confident the courts will agree.”
The Governor’s Office, the Department of the Interior and its Bureau of Indian Affairs, the Seneca Nation, and the Buffalo Mayor’s Office did not immediately respond to requests for comment.
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