Millions sweeten the casino pot
Albany
The Seneca Indian Nation intends to pay a Rochester developer $8 million to deliver a casino to Monroe County, including a potentially improper success fee of up to $5 million.
The tribe agreed to give David Flaum a $3 million "development fee" if the casino opens. In addition, he would get a "success fee" worth millions more if the Seneca secure a state compact for the new casino by Oct. 1, 2014, according to the a "master development agreement" obtained by the Times Union. Flaum Rochester LLC's success fee is good for $5 million if the tribe gets a state gaming compact by Oct. 1, 2013. The fee would be $2.5 million if the compact occurs between Oct. 1, 2013, and Oct. 1, 2014, the agreement language states.
Flaum did not deny the terms of the deal when contacted by a reporter on Monday. Instead, he repeatedly asked how the Times Union received the document.
Last week, the tribe surprised many in Albany by announcing that the Seneca Gaming Corp. had entered a contract with a subsidiary of Flaum Management Co., of Rochester, to organize and coordinate gaming and hospitality development in the town of Henrietta, Monroe County. The tribe's intention is to grow its gambling market beyond the three casinos the Seneca already run in Niagara Falls, Buffalo and Salamanca.
http://www.timesunion.com/local/article/Millions-sweeten-the-casino-pot-4763128.php