-vs- BYRON W. BROWN, being duly sworn, deposes and says: 1. I am a Senator for the State of New York for the 60 th District.

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1 SUPREME COURT STATE OF NEW YORK : COUNTY OF ERIE HURON GROUP, INC.; THE CITY OF BUFFALO; ANTHONY MASIELLO INDIVIDUALLY AND AS MAYOR OF THE CITY OF BUFFALO and CARL P. PALADINO -vs- Plaintiffs AFFIDAVIT OF BYRON W. BROWN Index No. I GEORGE E. PATAKI, GOVERNOR OF THE STATE OF NEW YORK; THE STATE OF NEW YORK; TOWN OF CHEEKTOWAGA; THE UNILAND PARTNERSHIP, L.P. n/k/a THE UNILAND PARTNERSHIP OF DELAWARE L.P. d/b/a/ UNILAND DEVELOPMENT COMPANY Defendants STATE OF NEW YORK ) COUNTY OF ERIE ) SS.: BYRON W. BROWN, being duly sworn, deposes and says: 1. I am a Senator for the State of New York for the 60 th District. 2. I am aware that the Seneca Nation of Indians ( Seneca Nation ) plans to locate a casino in the Town of Cheektowaga. Such a location would be unconstitutional as it has not been authorized by the New York State Legislature ( Legislature ). 3. Specifically, the Seneca Nation has sought permission to locate casinos in Western New York for many years. 4. When the cities of Buffalo and Niagara Falls began experiencing severe financial problems, Governor Pataki agreed to discuss with the Seneca Nation the location

2 of casinos in those cities for the purpose of providing them with a direct stream of revenues and other indirect economic benefits. 5. Those negotiations resulted in an agreement that was set forth in a Memorandum of Understanding signed by Governor Pataki and then President of the Seneca Nation Cyrus Schindler on June 20, 2001 ( MOU ). 6. In the MOU, it was agreed and clearly stated that the Seneca Nation, pending approval of the New York State legislature, would be allowed to build and operate three casinos in Western New York, one in the City of Niagara Falls, one in the City of Buffalo and one on existing reservation land. 7. Governor Pataki filed the MOU with the Department of State on June 21, He then provided a copy to the members of the Legislature and asked for authorization to enter into a Tribal-State Compact with the Seneca Nation to effectuate the location of casinos in Buffalo, Niagara Falls and on existing Seneca Nation reservation land. 8. During the debate in the Senate, it was made clear that the Governor was asking for authorization to allow casinos to be built in Buffalo, Niagara Falls and on existing reservation land, and only in those locations in Western New York. 9. Although there was discussion about a variety of issues, including union representation, law enforcement and the division of revenues, the only locations for these casinos that were discussed and ultimately authorized were those sites set forth in the MOU - i.e

3 Buffalo, Niagara Falls and on existing reservation land. 1/ A copy of the transcript of the Legislature s debate is attached as Exhibit A. 10. Following the debate, a bill was passed allowing the Governor to enter into a compact expressly conditioned upon it being consistent with the MOU. 11. For example, Senator Dollinger expressed concern about unbalancing the tourist investment in New York State by locating casinos in Niagara Falls and Buffalo, rather than in his district in Rochester: I believe it s critical that everybody understand that we are, in my judgment, completely unbalancing our tourist investment in New York State. We in Rochester, New York, do not get a casino. Niagara Falls and Buffalo both do. (Exhibit A, p. 24 of 70). (Emphasis added). Later, Senator Dollinger stated that I believe that we are unbalancing our tourist investment in New York by putting these casinos in only distinct locations... (Exhibit A, p.25 of 70). (Emphasis added). 12. As I stated on the floor of the Senate, it s critical that the local share going to the City of Buffalo and the City of Niagara Falls be significant. (Exhibit A, p. 38 of 70). (Emphasis added). 13. Later, in discussing how the revenues will be divided, I stated: Now, also a question is what will be the split of the local share between the City of Buffalo and Erie County, between the City of Niagara Falls and Niagara County. (Exhibit A, p.39 of 70). (Emphasis added). 1/ Sites outside Western New York, for example the Catskills, were discussed as well, but have no bearing on this matter

4 City of Buffalo, I stated: 14. In explaining the critical need for these revenues to flow to the The cities are in desperate need of a financial shot in the arm. And I think if we pass a local share that is equal for both the cities and the counties, we do the City of Buffalo and the City of Niagara Falls a great disservice. (Exhibit A, p. 40 of 70). (Emphasis added). 15. Senator Oppenheimer later expressed her personal distaste for gambling and described her decision as a conundrum, but stated: but B B and also I should add that I would like to be able to assist Buffalo and the Catskills, but in a more limited fashion. (Exhibit A, p. 68 of 70). (Emphasis added). 16. Governor Pataki then entered into the Compact. 17. As he did when he signed the MOU and when the Legislation was passed, Governor Pataki, upon signing the Compact, made a public announcement that the casinos would be located in Niagara Falls, Buffalo and on existing reservation land and that the sole purpose of the State entering into the Compact was to provide revenues and economic development opportunities to the cities of Buffalo and Niagara Falls by locating casinos there. 18. To the extent the Seneca Nation is asserting in this litigation that there is language in the compact which allows them to locate a casino in Erie County outside the City of Buffalo, it is entirely inconsistent with the MOU and was never authorized by the New York State Legislature. In fact, no site in Erie County outside the City of Buffalo was even discussed or proposed to the Legislature. 19. As a result, any such language would be unconstitutional

5 Byron W. Brown Sworn to before me this day of May, 2004 Notary Public BFLO Doc #

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