Uncompetitive Advantage: Group Files Suit Over Turning Stone’s Daily Alcohol Permits
The State Liquor Authority, the Beeches and the Turning Stone American Culinary Federation Inc. have all been named as respondents in a lawsuit filed Tuesday over alcohol catering permits issued at the resort’s restaurants. The suit filed by three local tavern associations, Oneida County Board of Legislators Minority Leader Michael Hennessy and Verona resident Harry Burton is in response to the Turning Stone entering a deal with the Beeches to “cater” the casino’s restaurants and lounges.
David Vickers, the attorney representing the group stated that “the injunction the lawsuit seeks would apply only to events in which The Beeches is catering on a full-time basis, such as with the newly established restaurant deal. It wouldn’t apply to catering events such as weddings or banquets.”
The Bottom Line
I wholeheartedly agree with the suit based on principal. The casino is not located on sovereign land therefore putting it under the jurisdiction of New York State’s laws, specifically Alcoholic Beverage Control laws. The casino applied for and was denied a beer, wine and liquor license for its restaurants and Club Lava. Allowing them to circumvent the ruling of the State Liquor Authority by allowing a caterer to apply for daily permits for its member’s only restaurants and lounges is absurd. Those permits are for “special” events. After attempting to ascertain the state’s definition of “special”, I found myself e”special”ly confused. The only thing I can conclude on is that thousands of dollars of campaign contributions to state legislators can get you “special” treatment while enforcing the definition of “special” events.
The Turning Stone Casino is a very unique entity. It’s fully owned by a corporation of a sovereign Indian nation yet it operates on New York State land. Lost in the debate over sales tax collection is the fact that the towns it’s located in, Oneida County and New York State has continued to allow it to operate as if it were on sovereign land while it is not. While I regret that this is a battle for another day, we have been quite fair to allow this practice to say the least. I’ve heard all the arguments. I know the entertainment and employment value it provides to the County. The principal here is business equality. If a Chinese corporation were to purchase a parcel of state land it would be governed by state law, not Chinese law. It wouldn’t be afforded any special privileges that would hinder local businesses competitiveness. There is no difference in allowing the Casino to operate under this premise. Considering that we already allow them to operate a casino on state land and don’t collect sales tax from any of their vendors, we should at the very least not allow a business deal with a caterer that abuses the intent of special alcohol permits to wipe out the only competitive advantage any local non-Indian owned restaurant, bar or tavern has over the casino.
Until we sort this mess out, I’m going to start two new business ventures. I’m going to open a casino catering business for stated restaurants, bars and taverns and then I’m going to start applying for daily “special” alcohol permits for Klub Karwacki and its luxury lounge located on my front porch.
Source: Utica Observer-Dispatch, New York State Liquor Authority
