shinnecock nation gaming authority timeline 2001-2012
DESCRIPTION
Timeline of activities (both historical and future) that lead to Federal Recognition of the Shinnecock Indian Nation of New York and plans to establish gaming enterprises in New York, namely on Long Island, in partnership with Detroit-based Gateway Casino Resorts. Oklahoma-based Ong Enterprises (affiliated of convicted businessman Ivy Ong) transferred its interest to Gateway Casino Resorts, a casino syndication first organized by Michael J. Malik, Sr. (Mike Malik) and Marian Ilitch (Mrs. Michael Ilitch). Covers activity beginning in 2001 and those planned through 2012 including negotiations with Governor Andrew Cuomo and approval of a negotiated Compact by the New York Legislature.TRANSCRIPT
47 SNGA Gaming Update November, 2011
TIMELINE
Contract Negotiations, Project Progress & State Gaming Timeline
DATE DOCUMENT DESCRIPTION
2001-10-29 Passage of Ch. 383 of laws of2001 in NY Legislature
Authorizing use of video lottery terminals(“VLT”) at Aqueduct
2003-04-17 New York Racing Association selectsMGM-Mirage to operate its VLT’s at Aq-ueduct
2003-04-29 Appointment of the ShinnecockNation Casino at WestwoodsBoard of Directors
Tribe confirms appointment of Boardmembers
2003-05-01 Development/Management Agree-ment between the Shinnecock Na-tion Casino at Westwoods Authori-ty and Ivy Ong and Ong Enter-prise, LLC
Contract to develop, construct, managecasino
2003-05-19 First Amendment to Development/Management Agreement betweenAuthority and Ong
acknowledging ongoing discussions re:appropriate gaming sites and grantingOng development rights to first gamingsite wherever located
2003-05-19 Shinnecock Indian Nation Eco-nomic Development Policy; Reso-lutions creating Shinnecock NationCasino at Westwoods Authority &Shinnecock Indian Nation GamingCommission; Enabling Agreementbetween Shinnecock Indian Nationand Ong
Resolutions creating Gaming Com-mission (to regulate gaming) & Au-thority (to plan, design, operate casinoat Westwoods)
Enabling Agmt to allow the Authorityto enter into a Development Agmt,Mgt Agmt, and Loan and SecurityAgmts with Developer (Ong)
2004-01-31 Addendum [amending]Shinnecock Gaming AuthorityResolution, Gaming EnablingAgreement, Casino at WestwoodsAuthority Resolution, WestwoodDMA
Powers of Authority expanded andname changed to Shinnecock NationGaming Authority
Scope of gaming explicitly expandedbeyond Westwoods site
Waiver of immunity/remedy forbreach
2004-03-19 Assignment and Assumption ofDevelopment/Management Agree-ment and Enabling Agreementfrom Ong to Gateway
Enter Gateway
SNGA Gaming Update November, 2011 48
2004-03-19 First Amendment to Addendumand Development/Managementand Enabling Agreements
Amendment to Contract increasing oper-ating expenses from $40k/quarter to$1,603,278 over 18 mos. (not to exceed$91k/month)
2004-03-19 Contingency Escrow Agreement Establishing escrow acct funded with$500k to reimburse Nation for fundswithheld for projects historically fund-ed by state or fed govt
Limited waiver of sovereign immunity2004-03-19 Consulting Agreement Between
Nation, Authority, and GatewayAgmt for Gateway to be selected as con-sultant to perform or assist in performingtasks related to design, development,and construction of casino(s)
2004-03-19 MOU Between JEM Star Enter-prises, LLC (“JSE”), Cyrus Keeferand Gateway
Acquiring rights of JSE and assigningcertain payments and obligations to JSE
2004-09-08 Letter Agreement signed by M.Malik and F. Bess re consent andwaiver as to timing of certain tasks
Agmt to postpone advancement of pro-ject funds and recommendation of an ar-chitect together with additional taskspending site selection
2004-12-18 Resolution Trustees Trustees directed to conclude to finality,federal acknowledgement, land claim,gaming rights, approvals and global set-tlement if necessary
2005-06-15 Guaranty Agreement [Shinnecock/Gateway]
Agmt of Gateway to fund land claim liti-gation; Gateway places $500,000 intoescrow account.
2005-06-21 Letter from M. Malik to Authorityconfirming waiver of right to en-force Para. 2.2 of DMA
Agmt to waive right (for 2 wk period) tonegotiate a new sum to be paid for ad-ministrative purposes
2005-07-05 Letter from M. Malik to Authorityconfirming waiver of right to en-force Para. 2.2 of DMA
Agmt to waive right (for 2 wk period) tonegotiate a new sum to be paid for ad-ministrative purposes
2005-07-17Letter from M. Malick to Authorityconfirming waiver of right to en-force Para. 2.2 of DMA
Agmt to waive right (for 1 wk period) tonegotiate a new sum to be paid for ad-ministrative purposes
2005-07-25 Letter from M. Malick to Authorityconfirming waiver of right to en-force Para. 2.2 of DMA
Agmt to waive right (for 10 day period) tonegotiate a new sum to be paid for ad-ministrative purposes
2005-07-25 Travel Policy between Authorityand Gateway
Dictates what percentage of Gateway’stravel cost will be calculated as reimburs-able development cost
2005-08-05 Letter from M. Malick to Authorityconfirming waiver of right to en-force Para. 2.2 of DMA
Agmt to waive right (for 6 mos.) to negoti-ate a new sum to be paid for administra-tive purposes
2005-11-01 Second Amendment to Addendumand Development/ManagementAgreement and Enabling Agree-ments
Agmt for Gateway to provide $1,020,000over 12 mos. ($85k/mo) for operating ex-penses of the Nation and Authority
49 SNGA Gaming Update November, 2011
2006-08-09 Amendment to DMA Agmt for Gateway to reimburse fundsto Federal Recognition Account andpay funds necessary to obtain federalrecognition up to $2.5 million with co-approval and mutual agreement forexpense of funds or any amountsover $2.5 million.
Provides Gateway with right of firstrefusal for mgt agmt
2007-03-28 Letter agreement signed by M.Malik, K. Hunter, J. Williams & B.Hamp re budget matters
Agmt to continue payments as providedfor in the Nov. 1, 2005 Second Amend-ment provided that parties meet 6 mos.into period to revisit level of payments
2007-11-25 Amended Guaranty Agmt Providing for return of $500k contingencyescrow to M. Malik in exchange for hisagreement to commit to pay costs of landclaim litigation.
2007 MGM-Mirage abandons Aqueduct project
2008-10-10 Governor Paterson selects DelawareNorth to run Aqueduct
2009-03-11 Delaware North officially deselected asthe VLT operator for Aqueduct pursuantto its inability to make agreed-to, upfrontpayment
2010 Draft Shinnecock Indian Nation/State of New York Gaming Com-pact
Draft gaming compact submitted to Stateby Trustees
2010-01-29 Aqueduct Entertainment Group selectedto run Aqueduct. Deselected in March 9,2010.
2010-05 Agreement between Nation andGateway to increase monthly pay-ments from $85,000 to $130,000.
Gateway makes increase in monthly pay-ments from $85,000 to $130,000 backingdate increase to April 2010.
2010-07-26 Letter from J. Peebles to L. Bol-drey re: Gateway contract pro-posed revisions
Sets forth proposed terms for new con-tract.
2010-08-03 Genting New York selected to run Aque-duct
2010-09-20 Letter from J. Hanselman to J.Peebles re: response to proposedcontract revisions
Responds to July 26, 2010 letter; rejectsalmost all terms proposed in July 26,2011 letter.
2011 Jan.—March
Bills introduced into NY State legislatureto amend NY State constitution to allowcasino gaming.
2011-03-17 Letter from J. Peebles to J. Han-selman re: Gateway contract ne-gotiations
Responds to Dykema September 20,2011 letter from J. Hanselman; requestsrevisiting the terms set forth in the July26, 2010 letter sent by J. Peebles to L.Boldrey. The letter makes 3 points;
SNGA Gaming Update November, 2011 50
1) size and scope of proposed project, 2)non-obligated advances of developmentcosts should be increased in recognitionof new size and scope of project; and 3)requests that Dykema specifically re-spond to seven areas. (See March 17,2011 letter.)
2011-03-25 Letter from J. Hanselman to J.Peebles re: response to proposedcontract revisions
Response to March 17, 2011 letter fromJ. Peebles; sets forth Gateway’s positionthat purpose of updating agreements wasto fill-in gaps where the scope of the pro-ject was not reflected in original agree-ments or where terms where provisionsneeded to meet IGRA requirements.Sets out position in 9 areas, again reject-ing provisions of July 26, 2010 letter.
2011-05-16 Terms sheet from J. Hanselmanto J. Peebles/D. Houck re: DMAbet SNGA and Gateway
Outstanding issues: Term Percentage management fee Number of facilities Buy out provision Ancillary businesses Monthly payments Non-gaming land/Southampton Col-
lege2011-05-20 Terms sheet from Nation to Gate-
waySame as above
2011-05-24 Continued exchange of term sheetprovisions between parties
Same as above
2011-06-04 Continued exchange of term sheetbetween parties
Same as above
2011-06-10 Same as above Same as above
2011-06-16 Term sheet signed by Nation rep-resentatives
Term sheet signed includes: 1) increasemonthly administrative payments to Na-tion from $130,000 to $250,000; 2)agreement to assist Nation in pursuit ofacquiring Southampton College site (first$500,000 gift/not project cost); 3) Gate-way agrees to write off interest paymentson development cost from 2003- Oct, 1,2010; decrease of management fee from
51 SNGA Gaming Update November, 2011
35% to 28%; 4) contract covers 3 facilitieswith timeframes for start of construction;5) address completion guarantee(Gateway to provide 5% above 10% setaside from financing required by WallStreet and 5% of project cost); 6) Gate-way to provide gap financing of 10% oftotal project cost upon specific conditionsthat allow Gateway wide discretion inwhether it provides gap financing.
2011-07-01 FPM forwards proposed agree-ments to Dykema.
Documents forwarded to L. Boldrey andJ. Hanselman from T. Kincaid: Development Agreement Land Acquisition Agreement Developer Security Agreement Shinnecock Management Agreement Developer Creditor Agreement Shinnecock Non-Interference Agree-
mentJuly [Need Date] Tribal Meeting to present provi-
sions of term sheet.J. Peebles, J. Lamb, and D. Houck attendTribal meeting. Issues raised by Coali-tion for Answers members; mainly dia-logue among Nation.
2011 July/ August[Need Date]
Tribal Meeting Motion placed on floor to bring provisionsof term sheet back to Nation before moveforward with Gateway contract.
2011-08-16 Community Meeting Educate Nation regarding contract nego-tiations; how we got here; what termsheet provisions are; what risks are go-ing forward.
2011-Sept./Oct. *Hearings before the New York StateSenate on the future of gaming in NewYork.
2011-10 Aqueduct racino opened
2011-12 Belmont / Nassau County Negotia-tions:• Community support• Negotiate with State regardingland transaction
Suffolk County Negotiations: Finalize site location and begin nego-
tiations with land owner. Meet and have substantially identified
key issues that will be required forCounty Agreement/Municipal ServicesAgreement (MSA) and mitigation.
SNGA Gaming Update November, 2011 52
???? Nation State Compact Negotiations: By this date meet with Governor’s Of-
fice to review draft proposed compactand identify outstanding issues for ne-gotiation; confirm site locations anddemonstrate local support.
Belmont / Nassau County Negotia-tions:• Community support• Negotiate with State regardingland transaction
Suffolk County Negotiations: Finalize site location and begin nego-
tiations with land owner. Meet and have substantially identified
key issues that will be required forCounty Agreement/Municipal ServicesAgreement (MSA) and mitigation.
Nation State Compact Negotiations: PR campaign, work closely with local
governments, union, communitygroups to build and demonstratestrong support for project in Suffolksite and Belmont.
Mandatory Acquisition Legislation: PR campaign, work closely with local
governments, union, communitygroups to build and demonstratestrong support for project in Suffolksite and Belmont.
53 SNGA Gaming Update November, 2011
On going Nation State Compact Negotiations: Meet with key State elected officials to
discuss proposed project, site loca-tions, and demonstrate communitysupport.
Have technical issues for compact(appendices) resolved.
Mandatory Acquisition Legislation: Meet with Federal elected officials;
Schumer and Gillibrand; NassauCounty and Suffolk County Congres-sional delegation. Demonstrate localsupport for Project.
Meet with key Federal and State elect-ed officials needed to support Manda-tory Acquisition legislation. Preparewhite papers and testimony for com-mittees.
Meet with key elected officials, com-mittee chairs, key DOI officials, andpresent testimony at committee hear-ings; lobby- lobby- lobby.
2011-2012 Dec.—Jan.
Suffolk County Negotiations: Finalize strategy for non-gaming lands
and work with County to develop andfinalize plan that identifies sites and/orspecific geographic areas for Nationacquisition of Non-gaming lands.
2012 Jan. – Apr. Suffolk County Negotiations: Finalize land transaction agreement
with land owner. Finalize any Agreement or MSA with
County. Finalize strategy for non-gaming lands
and work with County to develop andfinalize plan that identifies sites and/orspecific geographic areas for Nationacquisition of Non-gaming lands.
2012-02 Nation State Compact Negotiations: Finalize Compact terms with gover-
nor’s office.2012-03 Nation State Compact Negotiations:
Introduce Compact to State legislaturefor approval.
Nation State Compact Negotiations: Compact approved by State legisla-
ture and signed by Governor.
SNGA Gaming Update November, 2011 54
Mandatory Acquisition Legislation: Proposed Mandatory Acquisition legis-
lation presented to federal officials.
2012 Spring andWinter
Mandatory Acquisition Legislation: Finalize Mandatory Acquisition legisla-
tion for introduction to Congress. Introduce Mandatory Acquisition legis-
lation to Congress.