Flaum Hedges Bets in New York

Rochester developer David Flaum (l.) has not one, not two, but four casino sites in the works as New York prepares to award the first of seven Class III licenses in the state. Perhaps the longest shot is in Orange County, about 50 miles from New York City.

Orange County: location is the benefit and the obstacle

Rochester developer David Flaum has more than one plan for a casino in upstate New York, according to the New York Times. Flaum and his son Asher have their eyes on four sites, from Albany to Orange County, which could potentially be developed into casino resorts.

The most valuable is a 120-acre parcel near the Woodbury Common Premium Outlets, a mall in Orange County that attracts 11 million visitors a year. The site has one big problem: it is within 50 miles of New York City. While that is an economic advantage ?Asher Flaum says the $750 million casino would be the largest capital investment in the state?it does not meet the goal of new gaming as framed last year by Governor Andrew Cuomo. Cuomo was explicit in his order that the first four licenses provide economic stimulus where jobs and industry are scarce.

“It was our intent to help upstate counties that had high unemployment and low median income,” said state Senator John Bonacic. “I don’t think Orange County fits into that category.

Asher Flaum replies that Orange County “could use the revenue, just like Sullivan County” in the Catskills, where multiple proposals are vying for a license.

The Flaums are considering their own site in Sullivan County, in the village of Mamakating; as well as a Seneca Nation site in Henrietta, near Rochester; and a 60-acre site near Albany. The $300 million to $400 million Project E23, so-named because it would be located off Exit 23 of the New York Thruway, would include a 275-room hotel and an indoor water park.

The latter plan “not only represents the most transformative development Albany has seen in more than 40 years, it’s something all residents of Albany and the Capital Region can be proud of,” Flaum recently said at a recent Common Council meeting. “We know local support is critical to a successful bid, and we are going to earn that support.”

After the meeting, the Albany Times-Union talked to a number of council members, most of whom said they expect the city to support the proposal. “I have mixed feelings,” said Cathy Fahey, who represents the Seventh Ward. “But it’s going to be very hard to say no to this.”

“My constituents, they need jobs,” said Fourth Ward Councilman Kelly Kimbrough. “They need to work. They only see an upside to this.”

“It’s something you can’t say no to,” said Vivian Kornegay of the Second Ward. “We need jobs in this city.”

Several council members urged caution. Frank Commisso Jr. of the 15th Ward, said, “I don’t want to see a rushed resolution. This is all very quick and very sudden.” And Judd Krasher of the 14th Ward asked, “Is that how we want to empower any part of our community? I don’t think it’s the best route to take for community development, especially in our more impoverished neighborhoods.”

As Flaum pitches his ideas around the state, he also is taking time to sue Western Regional Off-Track Betting, which filed a complaint last month accusing the developer of illegal lobbying in the Seneca case. The OTB alleges he has been acting as a lobbyist for the tribe but has failed to register with the state as required by law.

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