Both Park Place and the St. Regis Mohawk Tribe are working closely with the federal, state and local authorities in securing all the necessary regulatory approvals, Park Place officials add. Scott LaPorta, chief financing officer for Park Place, says that the company and the St. Regis Mohawk Tribe will be working simultaneously in an attempt to expedite the approval process. He tells GlobeSt.com, "It's been indicated that it could take a year to obtain approvals (from the Bureau of Indian Affairs) but we are hopeful it will be less than that."

Besides local building approvals that must be won, the St. Regis Mohawks must also enter into compact with New York State that would grant approval for the Tribe to develop a casino at the Kutsher's site. Additional applications will be filed with the National Indian Gaming Commission for approval of the agreements between Park Place and the Tribe, company officials say.

"We are pleased to join the St. Regis Mohawk Tribe in developing this gaming facility," says Tom Gallagher, president and chief executive officer of Park Place. "We believe this project will provide a much-needed benefit to the economic well-being of the members of the Tribe as well as being a major catalyst for future growth in the economy of Sullivan County and the state of New York." Park Place officials say the firm plans to build a 750-room resort that will include 165,000 square feet of gaming space, 15,000 sf of meeting space, eight restaurants and a spa.

While some see this project as a savior for the troubled Sullivan County economy, the Park Place/St. Regis Mohawk joint venture has also sparked some controversy as well. Specifically, in November of last year, Catskill Development filed a $6.3 billion lawsuit against Park Place for unlawful interference in its plan to develop a Native American casino in the Catskills.

The suit charged that Park Place induced the St. Regis Mohawk Tribe to terminate a contractual agreement it had with Catskill Development to build a casino at the Montiecllo Raceway site. Also, a St. Regis Mohawk Tribal Court recently ordered Park Place Entertainment to pay approximately $2 billion to a dissident group of Mohawk Indians.

LaPorta says the company considers both cases "without merit" and does not believe either will have any impact on the approval process for this casino. He adds, "We believe that they are a dissident group within the Tribe and it is our understanding that they have no formal authority to form a court and they are not recognized by the Bureau of Indian Affairs." He emphasizes the company has no intention to pay the $2 billion assessment handed down by the tribal court.

Park Place worked closely with the Tribe in the preparation of the application and has entered into a letter of agreement to develop and manage the casino for an initial term of seven years. Park Place will receive 30% of the net cash flow from operations, commencing with the opening of the casino, officials say. The company also reports it has signed a consulting agreement to advise the Tribe in operating its existing Akwesasne Mohawk casino in Hogansburg, NY.

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Tribe Files Application for Sullivan County Casino

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