Letter from Picente to NYS Liquor Authority

May 6, 2010 -- Oneida County Executive Anthony Picente recently sent the following letter to the New York State Liquor Authority.

Dear Chairman Rosen:

As the Chief Elected Official of Oneida County, I am writing in support of the license application of CD Food and Beverage Incorporated.
It is for a variety of reasons that will have a profound effect on this region and Oneida County that I offer my support. This application, while allowing the legal serving of alcohol at the Turning Stone Resort and Casino, will also provide a substantial amount of revenue for this county by addressing the long-standing issue of sales tax collection from the Oneida Indian Nation Enterprises.

In regard to the issuance of the license, I have long advocated for a complete and regulated process for the handling of alcohol at that venue. It has been a concern that goes back to when patrons were allowed to carry in their own alcohol to events. It is also a concern when numerous catering permits are issued on a weekly basis and, while they are regulated, do not cover the entire resort, and leave open the possibility of gaps in enforcement.
The licensing of one entity, in this case CD, whose family ownership of various hospitality businesses in Oneida County brings with it a long history of responsible and competent service, will address the proper and legally regulated distribution of alcohol at the resort. I believe it should be, in the eyes of the State Liquor Authority, what will best serve those who patronize the resort and what will address overall public safety issues of an entire region.  As noted, the first and foremost mission of the authority is for the “protection, health, welfare and safety for the people of the state”.  The issuance of this license to a respected and responsible party, I believe, addresses that goal.

In terms of other advantages that this approach brings, there are many. The revenue stream that the County will see as a result will assist us in a variety of ways. This resort is the major tourist attraction in Oneida County and Central New York. As such, the activity and dollars generated there have never yielded any revenue to the County or State. Disputes regarding taxation have been clogged in the courts for many years. Granting this license to CD will change a landscape that has long been debated and can now be resolved on one major level. For years residents and officials have looked for ways to collect sales tax on Nation activities. There have been attempts at balancing sovereignty and tax collection and this arrangement accomplishes that. People constantly tell me “it doesn’t matter how it is generated as long as some revenue is collected”. To those I say: here is that way.

In May of 2009, I proposed a settlement between the County of Oneida and the Oneida Nation. While the substance of the deal is too complex to put in detail here, it primarily addressed land and property tax issues and the deal was contingent on State approval of, among other issues, a liquor license. The deal had with it a $55 million settlement on property taxes. It was rejected by the County Legislature for two main reasons: one had to deal with a land cap (a federal issue), the other the collection of sales tax. The lack of recurring revenue in the proposal was a major bone of contention. As you are aware, only the State of New York has the ability to impose, collect and enforce sales tax collection. Once again, the ability to collect from Indian Nations has eluded numerous Governors and Legislatures. The means by which the CD proposal addresses those collections cuts to the very nature of what is needed to resolve many of the issues that have plagued the relationship between the Oneida Nation, the County and the State. At the end of the day, the law will be adhered to by a respected and responsible family owned business and a revenue stream will be established to address the concerns of government and its people.

This agreement, if furthered through the issuance of this license, can be the catalyst to resolve other issues with the Nation and open up what was lost last year as an opportunity for partnership and an end to years of costly litigation.

Just days ago, the Second Circuit Court of Appeals ruled that, while the Oneidas can be subject to taxes, there is no remedy to the enforcement of that collection. It was another in a series of defeats for the County and the State in their challenges with the Nation. Our next step is with the U.S. Supreme Court which has ruled similarly in other challenges throughout the United States. I, for one, am tired of the litigation. We will continue to protect our County as needed in this issue but we are, despite what others might say, running out of both time and courts for any substantial victory. If we should be successful, I am not sure what that victory might mean if we are prohibited from any enforcement due to recognition of sovereignty of Indian Nations by the Federal government.

It is time to move on an issue that has gone on for too long. If the SLA has been willing to give catering permits for various events, wouldn’t it just make sense to have one entity cover the entire operation?

New York State is in dire financial straits. Sales tax revenue on the County books is flat, meaning little or no growth. Those of us in local government are under constant pressure to deliver more services without increasing property taxes. The amount generated by this endeavor could mean the difference between raising property taxes to meet the cost of essential services and having the revenue to provide meaningful relief to our beleaguered taxpayers. Furthermore, the generation of revenue for Tourism through Bed Tax collection, can assist our region to further promote and attract more people and activities and enhance our efforts for economic development.

In short, the County needs the revenue that would be generated by this arrangement. We need the creativity that this provides to move toward resolving more areas of interest between the County and the Nation. We need to have alcohol regulated completely and properly by an experienced and reputable business.
I urge you to approve this license for the betterment of a region and the State of New York.
Sincerely,

Anthony J. Picente, Jr.
Oneida County Executive