Buffalo, New York: State Sues Interior Department Over Seneca Nation Land in Buffalo and Grand Island

New York State sued the US Department of the Interior in federal court on Friday, November 6, asking a judge to strip the sovereign status from two Seneca Nation properties in western New York: a development site in Buffalo and a 207 acre parcel on Grand Island. The two lawsuits, filed in the US District Court for the Western District of New York, say the Interior Department had no authority to place either property in restricted fee status, the designation that keeps tribal land outside local zoning, building codes and property taxes.

The Buffalo site

The Buffalo parcels, at 5 Miami Street and 124 Chicago Street near the Seneca Buffalo Creek Casino, are the site of Seneca One Stop, the gas station, convenience store, cannabis shop and Dunkin' franchise the Nation is building. The Interior Department approved restricted fee status for the Buffalo land in 2023. Site work began on August 31, and completion is tentatively expected by late June or early July 2027, according to the Buffalo News. Buffalo Mayor Sean Ryan sued in state court to halt the project, and judges have twice refused to block construction. On October 27, a state judge denied the city's request for a preliminary injunction.

The Grand Island parcel

The second lawsuit covers 207 acres at 2780 Long Road and 0 Bedell Road on Grand Island. The Huntress brothers of Acquest Development owned the land for about 35 years and tried for years to build a large Amazon warehouse there, a plan known as Project Olive. After that plan failed, they transferred the parcel to the Seneca Nation in December 2025 for one dollar. The Interior Department approved restricted fee status for the Grand Island land in February 2026, a decision the town of Grand Island has also challenged in court.

The state's argument

The fight turns on the Seneca Nation Settlement Act of 1990, the federal law that set aside a limited pool of land acquisition money. In its filings, the state contends that all but 5 million dollars of that fund was spent acquiring the Seneca Buffalo Creek and Seneca Niagara casino properties in Buffalo and Niagara Falls, and that the remaining 5 million dollars is restricted to tribal member housing next to the casinos or on land touching tribal territory. Neither the Buffalo development site nor the Grand Island parcel meets that test, the state says, so neither was eligible.

What each side says

The Seneca Nation maintains that the purchases were lawfully qualified under federal guidelines, citing wire transfers drawn from an account designated for Settlement Act funds and arguing the parcels sit in qualifying historic areas. Nation President J. Conrad Seneca has said the Nation will continue to develop the Buffalo project on its own land outside the city's jurisdiction and will defend its sovereignty. Governor's Office spokesperson Ryan Whalen told the Buffalo News that Governor Hochul respects tribal sovereignty and is committed to a strong, productive relationship with the Nation. "The state believes the Department of the Interior incorrectly qualified these parcels for sovereignty status, and we are confident the courts will agree," the statement said.

If the state wins, both parcels go back on the tax rolls and under local zoning. If the Seneca Nation wins, both parcels stay permanently sovereign and tax exempt, and the Nation can build and operate without city or state oversight. The Governor's Office, the Interior Department, the Seneca Nation and the Buffalo Mayor's Office did not immediately respond to requests for comment, the Post reported.