The suit challenged the Seneca County Industrial Development Corporation's resolution that granted payment in lieu of taxes. The tax breaks will remain in place for 20 years.
Justice Patrick Falvey ruled the IDA's determination to grant benefits to Lago was not made in violation of lawful procedure and is therefore denied.
Rochester developer Thomas Wilmot called the decision a victory for Seneca County. Developers say the project creates 1,800 construction jobs and another 1,800 permanent jobs after opening.