County divided on use of funds

CANTON — St. Lawrence County legislators are considering funding the Office of Economic Development with state gaming compact revenue, but lawmakers are divided on whether that's the best use for the money.

County Administrator Karen M. St. Hilaire has said using revenue from the Akwesasne Mohawk Casino will remove much of the office's $844,828 cost from the tax levy. She also recommends using $653,836 to reimburse the fund balance for the department's 2009 expenses.

Casino money previously has paid only the office's administrative salaries.

The county next year expects $1 million from the casino compact. Ms. St. Hilaire has proposed using it to fund tourism-minded outside agencies such as the Chamber of Commerce, Arts Council and Fort La Presentation Association. She also suggested using the money to pay for a grants application writer and transportation coordinator in the Planning Office, to pay for a recently created trail coordinator position and to offset the Economic Development budget by $278,329.

"This is pure economic development," Ms. St. Hilaire said. "I think we could probably get approval from Empire State Development."

The state's Empire State Development Corp. must approve a plan to spend the money. James P. Fayle, regional director, has said it must be spent on economic development activities and gambling addiction programs, not on general operating expenses.

County Attorney Michael C. Crowe, however, said state law does not dictate how money must be spent.

"The statute is not written that narrowly," he said. "It says it shall be spent for, among other things, economic development and gambling addiction initiatives."

The law might not say so, but Legislator Vernon D. "Sam" Burns, D-Ogdensburg, said the money is intended to spur economic growth.

"I did not envision it to be used this way," said Mr. Burns, who is the chairman of the Legislature's Economic Development Strategic Planning Committee. "I'm deeply concerned that we're taking a source of revenue to help existing businesses and attract new business to St. Lawrence County and using it in our operating budget."

The town of Massena also receives casino revenue, and has used it to pay Business Development Corp. costs without state objections, said Supervisor W. Gary Edwards.

The town's 2008 plan, approved by the state, included $20,000 to improve handicapped accessibility at its community center, $25,000 for Fire Department equipment, and $30,500 for a generator project for the Highway Department and the Town Hall.

"We have someone interpreting the law very narrowly," said Legislator Peter W. FitzRandolph, D-Canton. "If we put projects forward that we construe as economic development and they get rejected, we should file suit."

Mr. Fayle could not be reached for comment Thursday.