Coney Island Casino Faces Community Resistance, Key Vote Looms
A consortium of real estate and casino developers have plans for Coney Island, but the community has thoughts of its own.
Ferris Wheel may be soon overshadowed by 32 story casino © Cami Talpone Unsplash
Key Facts:
- Proposed Coney Island Casino continues to face community pushback
- This week’s Planning Commission hearing saw many supporters and detractors
- The Brooklyn Community Board rejected a previous rezoning proposal
The Empire State’s attempt to license three new downstate casinos in the greater New York, New York area continues to cause waves across all five boroughs. The often delayed and behind-scheduled state approval process has announced June as the final cutoff for applications. With 11 billion dollar plus projects already in the running, the stakes are enormously high.
Perhaps even more so, as there is much speculation that the city’s two slots-only casinos, Resorts World in Queens and Empire City in Yonkers, are front runners. They have the easiest path to obtaining community approval through a Community Advisory Committee, which is required by law. This could mean that only one license remains truly up for grabs.
Also, Resorts World and MGM, which own those two properties, would have no trouble financing the entire projects before license approval. This legal requirement may hang up potential bidders, especially some of the smaller, less well-known suitors proposing billion-dollar, highly leveraged projects during extremely uncertain economic times and a high interest rate environment.
The Coney Island proposal from at least four companies attempting to band together faces trouble with zoning approval and local community support. There is also the danger of dragging four separate operators across the finish line in what will likely be a prolonged and difficult build-out.
This was once again in full view this week as the NYC Community Planning Commission held hearings on the 1.3 million square foot proposed casino, which would be built between the Island’s famed Ferris Wheel and the Cyclone Ride.
Ostensibly, the casino group was asking the CPC to demap or change how the current area along Bowery Street can be used under its current zoning. But opposition to this small zoning change filled the hearing room and left dozens wishing to be heard out in the hall.
The Brooklyn Community Board already declined the land use change called a Uniform Land Use Review Procedure in January, but that vote was only advisory.
However, The NYC CPC vote is make or break for the casino proposal due to New York’s use of a Gaming Location Facility Board. Then, the Community Advisory Committee will ensure that the proposed bids have sufficient demonstration of public support. A vote is expected in the next 30 days.
Who’s behind the Coney Island Casino Project?
Thor Equities is a major player in real estate development and leasing and owns many properties in the New York metro area, London, and around the world.
Their strategic partnering with Legends, potentially the world’s most extensive premier entertainment and live venue operator, was a sound move to help ensure that their casino bid was seen as a top-notch offering in a crowded field with many high-caliber entrants like WYNN, Hard Rock, and Caesar’s. Adding Sam Gerrity and Saratoga Casino Holdings, along with the Chickasaw Nation, was the cream on top.
My family has done business in New York for generations, including opening the first non-tribal casino in 2004, which has contributed over $1.2 billion to New York State education, we are thrilled to be partnering with Thor Equities Group, LLC and Global Gaming Solutions, LLC, two world-class organizations, to bring a community friendly gaming and entertainment venue to Coney Island.– Sam Gerrity/ Saratoga Casino Holdings, CEO, Press Release
Saratoga has long operated the state’s largest racino, but Gerrity also brings years of experience as a lobbyist and government relations expert to the table. The Chickasaw Nation owns the world’s largest casino in Thackerville, Oklahoma.
This 630,000-square-foot monster has over 8,000 slots and is one of over 20 that the Chickasaw Tribe oversees, putting to rest any questions about a qualified operator for a mega-casino of the size contemplated by this consortium.
While the $3 billion casino would pose financing risks for many smaller operators, or even some of these operators on their own, their combined bankrolls make this a very doable project, even with the financing required upfront.
But in a bid like this, with so many moving parts and starts and stops, one has to wonder if even the strongest ties would be enough to keep all of these companies partnered if things got rough.
Could too many chefs actually spoil the broth? It remains to be seen. First, they must get past what appears to be stiffening community resistance to the project and the no vote from the Brooklyn Community Board, which will almost certainly be seen as less than a “solid demonstration of public support”.
