East Greenbush looks like the winner
The city of Albany, New York may swing its support to a proposed casino in East Greenbush in exchange for $1 million in annual payments to the city’s economic development department, reports the Albany Times-Union.
If the deal goes through, Saratoga Harness Racing would make the payments for 10 years to the Capitalize Albany Corp. The deal would also include a $1 million advance payment. Saratoga is behind the plan to build the $300 million Capital View Casino with its partner, Kentucky-based Churchill Downs Inc.
A similar offer was made to Albany by the city of Rensselaer, which also is seeking the state capital’s support and has offered to share up to $1 million annually if it gets a casino license. Rensselaer hopes to build a Hard Rock Hotel and Casino on the Hudson River waterfront.
Neither community needs Albany’s support to win one of up to four Class III licenses to be awarded state this fall. But both think the city’s support would boost their chances of winning.
A total of 16 casino projects have been proposed for three regions, all located upstate: the Hudson Valley/Catskills area, the Capital Region, and the Southern Tier. The proposals have excited city officials looking for an economic boost and the promise of new jobs and industry. They also have brought out critics who oppose casinos for social reasons or because they feel casinos may not bring in the revenues some developers promise.
One community that is only indirectly involved in the bidding has registered a protest for a different reason. The village of Kiryas Joel has filed a lawsuit in state Supreme Court saying a proposed casino in South Blooming Grove would “overburden the limited sewage treatment capacity” at the local wastewater treatment plant and adversely affect residents.
The Times-Union reports that the state’s site selection committee is looking beyond revenues to scrutinize the investors behind the scenes. The financier behind Rensselaer’s Hard Rock project, Och-Ziff Capital Management of New York City, is under investigation by federal regulators including the SEC.
In July, Businessweek reported that Och-Ziff was a key investor in Robert Mugabe’s government in Zimbabwe, and may have donated millions there for the rights to mine platinum. Och-Ziff was also active in Libya during Muammar Qaddafi’s reign, Businessweek reported.
“Being investigated in and of itself I don’t think bars licensability,” said Albany gaming attorney Jonathan Silverstein. “What’s written in the article is certainly sobering when you read the accounts, but it doesn’t directly impact my role in advising Albany in gaming.”
Other developers are adding perks to their casino plans to sweeten the deals. The Galesi Group, BBL Hospitality, and Rockgate Hospitality Group plan to add a $15 million hotel as part of the Rivers Casino project on Mohawk Harbor, to be operated by Rush Street Gaming.
And Tioga Downs, a racino in Nichols, has announced plans to add a swanky spa.
Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority, which is proposing a $550 million casino in Sullivan County, says operators should err on the side of restraint in this day and age. “You might figure: Build a bigger casino, you might have a better chance of winning, but you have to look at the market size,” said Etess. “You need the right-sized building that can operate efficiently. There will never be another Mohegan Sun. That’s the way the market has shifted.”
