The Oneida Indian Nation is a federally recognized tribal nation in Madison and Oneida counties in Upstate New York. The Nation has identified principles and long-range goals to guide the community and its economic development endeavors. For example, Oneida tradition requires Nation leaders and members to consider the impact upon the seventh generation in all decision-making processes.
Oneida’s flagship property, Turning Stone Resort Casino, stands as a renowned destination featuring world-class hospitality amenities, diversified revenue streams, and a loyal guest base. In addition, Turning Stone Resort Casino operates gaming activities and related amenities at Point Place Casino, YBR Casino and Sports Book, The Lake House at Sylvan Beach, and six of the Nation’s 12 convenience store locations. All of these operations are in addition to Oneida’s diverse array of economic development initiatives, including retail operations, IT services serving the Department of Defense, outdoor recreation offerings, and a unique partnership with Tesla.
Landmark government-to-government agreement preserves the Nation’s sovereignty and economic prosperity
In 2013, the Oneida Indian Nation, the State of New York, and Madison and Oneida Counties signed a historic agreement that officially ended all legal disputes related to land, taxes, and gaming. Under the 2013 agreement, all parties involved also agreed to the Nation’s exclusive gaming rights in a 10-county Central New York region. At the same time, the Nation agreed to invest 25 percent of its net gaming revenue from its slot machines in the state and surrounding counties, solidifying its role as a partner with New York State and its right and ability to generate a strong and stable tax revenue base in perpetuity.
In 2023, the Nation embarked on the largest expansion in Turning Stone Resort Casino’s history, the Turning Stone Evolution project, investing $370 million to enhance the property’s offerings and solidify its position as Upstate New York’s premier gaming resort and destination. The two-year expansion will add the new Grand Expo conference and events center, a new hotel, restaurants, outdoor event spaces, and a second parking garage to the property. This important project increases Turning Stone Resort Casino’s capacity to meet growing demand and protect its market position through increased visitation and guest engagement. Equally vital, the increase in economic activity will empower the Nation’s ability to further grow its tax base.
Working to finance expansion initiatives while funding community programs
Like many Native nations, Oneida was faced with the financial challenge of funding the expansive project while also funding critically important government initiatives for Nation Members. In 2023, the Nation began construction of a 90,000-square-foot cultural center as part of its ongoing revitalization efforts.
Faced with the challenge of finding a comprehensive financing solution that aligned with the current regulatory framework for tribes, Oneida sought ways to fund its economic and government initiatives. With the Tribal Economic Development Bond program fully allocated and no permanent fix to the tax code to permit beneficial tax-exempt financing for economic development, leaders questioned how to proceed. Ultimately, Oneida’s executive management team pursued a unique financing strategy that leveraged its gaming revenue and its tax revenue.
$440 million raised through bank financing and tax revenue bonds
Turning Stone Resort Casino raised a new $440 million bank-syndicated revolving credit facility for the Turning Stone Evolution project with a standard pledge of gaming revenues. Simultaneously with the bank financing, Oneida issued $165 million in Tax Revenue Bonds. By securitizing its tax revenues to issue the bonds, the Nation achieved a 20-year, fixed-rate financing structure on both a taxable and tax-exempt basis. The Nation’s 2013 Agreement, along with its record of reliable tax collections, were instrumental in ensuring the structure remained non-recourse to the Nation’s full faith and credit pledge.
KeyBanc Capital Markets was selected to lead the $440 million syndicated revolving credit facility for Turning Stone Resort Casino and served as the sole initial purchaser of Oneida’s $164.5 million Tax Revenue Bonds. This decision stemmed from KeyBank’s long-standing relationship with the Nation, its debt capital markets platform, and its expertise in financing tribal gaming and hotel expansions. As an advisor to the Nation for over 30 years, KeyBank provided guidance to Oneida and its management through various decisions on the size and structure of the bank financing and the tax revenue bonds.
“We chose to work with the KeyBank team because it is clear that the entire organization is committed to understanding the needs, goals, and sovereign rights of Indian Nations,” said Ray Halbritter, Oneida Indian Nation Representative and Turning Stone Enterprises CEO.
Impact: Strategic growth plan benefits Oneida Indian Nation and the entire region
The strength of Oneida’s tax revenue pledge was affirmed by a very favorable private credit rating from Fitch Ratings. Oneida’s Tax Revenue Bonds were very well received by investors, and the Nation received more than $1 billion in orders for a bond issue of only ~$164 million, further lowering the yields on the bond issue beyond what was estimated prior to the sale.
Today, Oneida is the largest employer in its region, and the Nation’s economic impact now exceeds $1 billion annually, according to a 2023 independent report by Oxford Economics.
Even before the Turning Stone Evolution, Oneida generated an economic impact in Central New York exceeding $1 billion annually while also sustaining more than 7,000 jobs, including the Nation’s 5,000 employees in Central New York. The foundation for this success reaches back to the historic 2013 Agreement, which solidified the Nation’s independence and its economic stability. These successes have positioned Oneida to provide resources, services, and economic opportunities to Nation Members and area residents.
Moreover, the success of the financing transactions continues to pave the way for Oneida and other Native nations to issue debt secured by tax revenues to fund capital projects in the future.
“For almost 30 years, the Oneida Indian Nation has enjoyed a trusted partnership with KeyBank. The success of the recent financings will help Oneida continue its economic and cultural investments well into the future,” Halbritter said.
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