CNY Business Journal (1996+): Casino Company Buys Wellesley Island Acreage

WELLESLEY ISLAND-A Houston-based casino and resort development company has purchased more than 800 acres of real estate on Wellesley Island near the resort town of Alexandria Bay. UWIN, a wholly owned subsidiary of Nevada Gold & Casinos, acquired the property for $1.8 million at a county auction. The property, located on the east end of the island, had gone into bankruptcy proceedings and was foreclosed by the mortgage holder, then auctioned off to cover past debt.

According to Nevada Gold & Casinos President and CEO H. Thomas Winn, the company plans to develop a resort community with a potential Indianoperated casino on the popular tourist island. "We're initiating a feasibility study as we speak and I can't be real specific about our plans until we complete the study. We think, conceptually, a resort development-maybe eventually with an Indian-based casino with hotel project, but all of it is based on feasibility. The market has to tell us what it'll support."

While Nevada Gold & Casinos touts the island's potential for an Indianoperated casino, Winn says he hasn't begun

talks with any tribes yet. He does say, however, that "the primary tribe in the area is the Mohawk tribe." This, he says, could become a potential area of dispute

over which tribe has the right to operate a casino on the island. Oneida Nation territorial maps show Wellesley Island as being part of the Onondaga Nation's ancestral lands. Onondaga Nation officials have historically opposed gambling.

Winn says the feasibility study should be completed within 90 days. "That will give us the better part of the summer to get up there and determine what exactly we're going to do based on those results," he says. "This is a great opportunity for Nevada Gold & Casinos. The land on Wellesley Island is prime resort real estate."

Wellesley Island is one of New York's Thousand Islands that lie in the St. Lawrence seaway between the borders of the United States and Canada. "The eightmile-long island is an excellent location for us to capitalize upon the increased domestic and international traffic that frequents this historic tourist destination," Winn adds.

He accepts the fact that some local residents may be opposed to the idea of a resort and casino on Wellesley Island. "We may get some people opposed to the idea, but I know there's going to be a lot of support, too," he says. "What we want to do is develop a strong rapport with the community and work with them to create something they can support and be proud of. Whatever project we decide to do is going to have a positive economic impact on Alexandria Bay."

Clark Riedel, executive director of the Alexandria Bay Chamber of Commerce, is enthusiastic about the economic boost that having another resort in Alexandria Bay would bring. "Building a resort on Wellesley Island would be great for the Bay. The more tourist-oriented businesses we have here means more people coming to visit. And more people coming to visit means more money for all the businesses in the community." While Riedel thinks a casino would be a great draw, he adds that opening a casino is a long, drawn-out process and may take years to set up.

"Many business people would welcome new development, but a lot of island residents are not real pleased with the concept," says Gary DeYoung, director of tourism for the Thousand Islands

International Tourism Council.