BUFFALO, N.Y. - The Seneca Indian Nation says it’s halting construction of its planned $333 million casino-hotel complex in Buffalo because of the poor economy.

Wednesday’s announcement came a day after a federal judge reinforced a ruling declaring casino gambling illegal on the site, but Seneca Gaming Corp. spokesman Phil Pantano said the court action, which will likely be appealed, was not a factor.

“A decision of this magnitude is not made overnight,” Pantano said.

An Aug. 14 filing with the U.S. Securities and Exchange Commission indicated the gaming corporation, the Seneca Nation’s gambling arm, was reassessing its construction projects “in light of greater demands on our available cash, increased competition and challenging economic and capital market conditions.”

Work also was suspended at the tribe’s existing casino and hotel in Salamanca, where a $130 million expansion was under way.

Pantano said the suspensions are temporary, but could not say when construction might resume.

“We’re going to continue to watch the economy very closely,” he said.

The western New York tribe has opened three casinos since Dec. 31, 2002, under an agreement with New York state that requires the Senecas to share a percentage of slot machine revenues with the state and host communities. Wednesday’s action will not affect current operations, Seneca officials said.

The planned Buffalo casino represents one of the largest private projects ever undertaken in the economically struggling upstate city and the mayor said he looks forward to seeing the project back up and running.

“I still believe that this $333 million project, which will create over 1,000 jobs, will be a benefit to the city of Buffalo,” Mayor Byron Brown said.

Not everyone agrees.

A group of casino opponents has been waging a legal battle against the Senecas’ plans to build a casino on the nine-acre Buffalo parcel, saying it would drain money from the poor and cause a host of other social ills.

Tuesday’s decision by U.S. District Judge William Skretny ruled in the opponents’ favor, upholding an earlier finding that while the Buffalo parcel, which the Senecas bought, qualified as sovereign territory, it was not eligible for casino gambling because it was not acquired as part of a land claim.

After the ruling, casino opponents vowed to keep pressure on the National Indian Gaming Commission, charged with enforcing the ruling, to stop gambling at the site. A small temporary casino has been operating there since March while construction crews have cleared land and erected steel framing for the permanent facility.

“If the Senecas don’t voluntarily cease operations and NIGC does nothing to stop the gambling, we will be back in court,” said Cornelius Murray, lead attorney for Citizens for a Better Buffalo.

While Seneca President Maurice John on Tuesday said the temporary Buffalo Creek casino would remain open and construction on the permanent casino would continue, by Wednesday, plans had changed.

Seneca Gaming Corp. Chairman Barry Snyder Sr. said the tribe has been keeping a close eye on the economy.

“In keeping with our financial commitments to our owner, the Seneca Nation of Indians, and with our obligations to bondholders, we have decided that it is our responsibility to suspend our construction activities at this time as we endeavor to preserve the continuing strength and vitality of our company,” Snyder said.

In its Aug. 14 SEC filing, the corporation indicated the two casino construction projects and the planned development of a golf course in Lewiston would require significant capital outlays and that the company was evaluating the scope and timing of its projects.

“The ability to complete these projects by the targeted dates, or at all, will depend on various factors including cash flow from operations, the availability of external financing with regard to one or more of the projects, certain nation and other governmental approvals, the effects of legal and/or administrative proceedings, and adherence to projected construction timelines,” the filing said.

AP