Might the Seneca Niagara Gaming Corp. be able to wrest control of the incredibly lucrative Maid of the Mist franchise from James V. Glynn of Lewiston, who has amassed a fabulous fortune from exclusive and largely secret agreements he has with the governments of New York and Ontario?
Some on the Seneca Niagara Gaming Corp.'s board of directors hope so, and lawyers on both sides of the Niagara are currently researching the clandestine arrangements with an eye toward torpedoing Glynn's longstanding monopoly.
With little money of his own, Glynn took over the hugely profitable Maid of the Mist franchise in 1971. The governmental agreements consist of no-bid contracts in return for a percentage of the revenue generated by the business. What that percentage is has been a closely guarded secret, leading to periodic criticism over the years about the way the state of New York conducts its business.
Attempts to find out how much revenue the popular attraction generates and how much it returns to the state coffers have been routinely rebuffed because the contracts involve both the Unites States and Canada, as well as Glynn's corporation. The complex arrangement is effectively obfuscated by the highly unusual two-country, public-private partnership.
In any event, Glynn, 73, has variously held positions on the boards of directors of M&T Bank and National Fuel Gas, and has been a member of and a strong advocate for the Buffalo-Niagara Partnership, an organization some believe has preyed on Niagara County in order to benefit the monied Buffalo interests.
Living in Lewiston, he has consistently opposed the removal of the Robert Moses Parkway, and was against the state compact with the Senecas that allowed the tribe to locate its first casino in the city.
Glynn has donated lavishly to many Republican politicians, including President George W. Bush and Vice President Dick Cheney, Rep. Tom Reynolds, former Rep. Jack Quinn and numerous state and local candidates. Although he technically "retired" in 2001 and made his son, Chris Glynn, head of the corporation, it is believed that he still oversees the operation.
In 1979, a federal court judge found his Maid of the Mist Corp. to be liable for $11,881 in unpaid taxes dating back to 1972. Glynn lost the case on appeal when the judge refused to overturn a ruling by a lower court.
The amount of money taken in by the tour boats annually is another state secret. Loose lips sink ships, they say, and it is believed that were the general public made privy to the astronomical amount, the outcry would be deafening.
One of the Maid of the Mist vessels departs the docks on the U.S. and Canadian sides every 30 minutes, carrying as many as 582 passengers, who pay $12.50 American ($7.30 for children) for the brief excursion.
The attraction is open between May 2 and Oct. 24 and, during the peak season, the boats operate for 11 hours a day. Assuming that half the passengers are children and half adults, each trip would bring in $5,762 and a 44-trip day would result in gross revenues of $253,528.
Souvenir licensing and sales would provide additional revenue, while less-than-full boats, days lost to bad weather and slightly shortened hours at the beginning and end of the season would detract from that amount.
Still, over a 175-day season, the Maid of the Mist Corp. could be raking in as much as $45 million annually. And with far less overhead than the Seneca Niagara Casino operation.
"What they've got down there is a license to print money," one Seneca Niagara official told the Reporter last week. "They've had that for nearly 40 years, nobody else has been allowed to bid on it, and even the amount of money they pay to operate is a deep dark secret."
Even the name "Maid of the Mist," appropriated by Glynn's company for commercial gain, refers to an episode in the Seneca religious tradition that would be comparable to a story out of the Book of Genesis for Christians.
Operating the tour boats would be a natural fit for the Senecas, who could use the trips as perks for Players' Club members and other high rollers while still generating revenue from paying customers.
"One of the problems in the past is that anyone who might want to take over the operation would have to have a tremendous amount of startup cash just to buy new boats and other equipment," said one source familiar with the proposal. "Obviously, that would not be a problem for the Senecas."
Furthermore, the source added, many feel the current Maid of the Mist vessels no longer meet the standards for such an attraction in a world-class destination like Niagara Falls.
"These boats are basically the same as the ones they were running 50 years ago. They pack the people in like sardines, there are zero amenities, and the whole operation just seems dated and stale," he said. "It's the old 'get 'em in, get 'em out, and take them for as much as you think the market will bear' mentality."
Several new generations of improved tour boats have come and gone since 1971, apparently unnoticed by Glynn's Maid of the Mist Corp., he added. While this doesn't seem to affect the number of tourists who board the vessels each season, it may detract from the entire Niagara Falls experience.
One other aspect of the lucrative tour boat business would be very familiar to the Senecas as well.
Like the casino itself, the Maid of the Mist operation pays nothing in city taxes, as it is located entirely within the borders of the Niagara Reservation State Park.
While the Senecas may or may not eventually try to force open a bidding process that would ensure the state collects its fair share of the tour boat revenue, many here feel the Kremlin-like secrecy shrouding the Maid of the Mist Corp.'s peculiar relationship with the state -- and the quasi-governmental status it enjoys as a result -- are in need of a healthy dose of sunshine. Maybe then the people of Niagara Falls can determine how much money generated within their borders is being shipped one-way to Lewiston and Albany.
| Niagara Falls Reporter | www.niagarafallsreporter.com | July 1 2008 |