Laying the foundation for the seventh generation — an Oneida success story

The Oneida Indian Nation, a federally recognized Indian nation, has approximately 1,000 enrolled members within its 300,000-acre reservation, in Madison and Oneida counties in Central New York State. The people and leadership of the Oneida Indian Nation have 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 customer base. In addition, Turning Stone Resort Casino operates gaming activities and related amenities at Point Place Casino, YBR Casino & Sports Book, The Lake House at Sylvan Beach, and six of the Nation’s 12 convenience store locations. All these operations are in addition to Oneida’s diverse array of economic development initiatives, ranging from its successful retail operations, to its thriving IT services business serving the Department of Defense, its vast array of award-winning outdoor recreation offerings, and its unique partnership with Tesla.

Landmark government-to-government settlement preserves Nation’s sovereignty and economic prosperity

An historic settlement with the U.S. government in 2013 resolved outstanding disputes about land use, regulatory jurisdiction, and collection and remittance of various taxes, such as sales, occupancy, and cigarette excise taxes. The Agreement grants Oneida gaming rights within a 10-county zone in Central New York, solidifying the Nation’s 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’s history, the “Turning Stone Evolution” project, investing $370 million to enhance the property’s offerings and solidify its position as New York’s premier gaming resort and destination. The two-year expansion will add a new Turning Stone Grand Expo, new hotel, restaurants, outdoor event spaces, and a second parking garage to the property. This important project increases Turning Stone’s capacity to meet growing demand and to protect its market position through increased visitation and customer 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. As part of Oneida’s ongoing efforts to revitalize its homelands and preserve a vibrant community, in 2023 the Nation launched construction of a 90,000-square-foot cultural center — among the largest in the country. Inspired by the heritage and traditions of the Oneida people, this complex serves as a permanent representation of the Nation’s history. It’s composed of an indoor box lacrosse field, a state-of-the-art gymnasium, a library, a fitness center, and gathering spaces for cultural events, as well as a library for language and cultural programming and classes. The next phase of the Oneida Neighborhoods Project includes adding more affordable housing for Nation elders and other members, and roadworks and utilities infrastructure to accommodate the increase in residency.

Faced with the challenge of finding a comprehensive financing solution that aligned with the current regulatory framework for tribes, Oneida sought ways to find funding for its economic and government initiatives. With the Tribal Economic Development Bond program fully allocated, and no permanent fix to the tax code that permits beneficial tax-exempt financing for economic development, leaders faced a question: How could the Nation achieve cost-effective financing for all its economic and governmental projects? Oneida’s executive management team pursued a unique financing strategy that allowed the Nation to leverage its gaming revenue and its tax revenue into taxable and tax-exempt financing.

$440 million raised through bank financing and tax revenue bonds

Turning Stone raised a new $440 million bank-syndicated revolving credit facility for the Evolution project at Turning Stone Resort Casino with a standard pledge of gaming revenues. Simultaneously with the bank financing, Oneida issued $165 million of 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 robust debt capital markets platform, and deep expertise in financing tribal gaming and hotel expansions. As the Nation’s trusted advisor for over 30 years, KeyBank provided valuable guidance to Oneida and its management through various decisions on the size and structure of the bank financing and the tax revenue bonds.

“Not only does KeyBank have a team of individuals focused on delivering comprehensive and unique solutions to Indian Nations, but it is crystal 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 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, allowing KBCM to further lower 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 4,500 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 opportunity 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 led by KeyBank will help Oneida continue its economic and cultural investments well into the future,” Halbritter said.

Learn more

To find out more about the Oneida Indian Nation, visit oneidaindiannation.com and turningstoneenterprises.com. To discuss unique and effective financing solutions for your Nation, please contact Ben Rechkemmer, Managing Director & Head of KeyBank Native American Financial Services, or visit key.com/nativeamerican.