Local support is criteria for consideration
The game is officially on in New York State.
After months of buzz about developers planning to apply for the state’s first four Class III casino licenses, gaming commissioners are about to hear from serious contenders.
Lee Park, gaming commission spokesman, said the March 31 request for applications is “a milestone that formally begins the process that applicants have been waiting for.”
In response to the 80-page RFA, each applicant must provide a resolution of support from its would-be host community; pay a $1 million application fee; and prove it is able to pay licensing fees that will run as high as $70 million.
The siting board will judge the applicants based largely on the potential for economic activity and business development in their regions. Those factors will constitute 70 percent of the total “score.”
“Economic growth, good jobs and enhancement to the region and community are paramount to this effort and we look forward to seeing what bidders have to offer,” said siting board member William Thompson.
Local support will account for 20 percent of the decision, according to the RFA, and applicants must demonstrate support from a variety of sources other than the local government.
“In weighing local support and opposition under this criteria, the board will consider public statements and declarations, letters or resolutions from the host municipality, nearby local governments, private organizations, community, religious and civic groups, charitable organizations, entertainment venues, chambers of commerce, local businesses, labor organizations, etc.,” the RFA states.
The final 10 percent of the decision will be based on workforce enhancement.
The four casinos will be located in the Catskills, the Capital Region and Southern Tier/Finger Lakes regions, with one area getting two casinos.
According to the Associated Press, license fees would be based on location. In Dutchess or Orange County, for example, the fee would be $70 million. The least expensive license fee would be $20 million for a second casino in portions of the Southern Tier/Finger Lakes region, the AP reported. There is some controversy about the inclusion of Orange County and the potential much more lucrative locations. Some companies are considering locations near Harriman at the base of the New York Thruway, less than an hour from New York City.
Other development groups have formed in hopes of building on the sites of old Borscht Belt resorts in the Catskills. The Mohegan Tribal Gaming Authority has partnered with developer Louis Cappelli to build a casino on land where the old Concord and Grossinger’s resorts once flourished. Michael Treanor leads a group that wants to open a casino at the Nevele Hotel.
In Rensselaer near Albany, casino developers are eying waterfront property owned by U.W. Marx Construction. Multiple groups have expressed interest in the Southern Tier, including the owner of Tioga Downs in Nichols, 25 miles west of Binghamton, and the Traditions at the Glen resort, which wants to build a $150 million casino resort near Binghamton.
An Alabama company hoping to establish a presence up north may apply to build a casino on 140 acres of land beside Stewart International Airport in New Windsor, reported the Hudson Valley Times Herald-Record. The company, Greenetrack, is working on a 99-year land lease for the property.
In Seneca County, Wilmorite has acquired land in the Town of Tyre with the plans to build a casino. But a zoning dispute may hamper that plan. And several groups are planning to develop in Orange County, which is closer to New York City. Those plans may not dovetail with Governor Andrew Cuomo’s directive that the first four casinos be built in districts that need more development. But one observer says the casinos must be located “where there’s a real market,” not simply in areas that need an economic boost. Gordon Medenica, director of the New York State Lottery from 2007 to 2012, said, “This field-of-dreams strategy is out of date.”
Other potential sites for casinos are located above Howe Caverns in Schoharie County and at Galesi Group’s Alco site in Schenectady.
The local-support requirement could rule out locations like Saratoga Springs. The owners of the racino there plan to apply for a license, but a majority of residents voted against the casino referendum last fall. And continuing local opposition could deep-six the track’s chances.
“If support is not evidenced, your application will not be received,” said the commission’s acting executive director.
“From what I understand, it is the responsibility of the applicant through the application process to garner the support from the community,” said Saratoga Springs Mayor Joanne Yepsen told the Saratoga Springs Daily Gazette. “So far that hasn’t happened.”
Four consulting firms have been hired by the siting board to evaluate the applications. In the lead is the Cincinnati-based law firm of Taft, Stettinius & Hollister. The others are Christiansen Capital Advisors of New York City; Houlihan Lokey Capital Inc. of Los Angeles; and Macomber International Inc. of Las Vegas.
Applications must be submitted by June 30. The winners are expected to be chosen by fall.
“It’s going to be a busy 90 days,” said Treanor of Nevele Investors, which will bid to open a casino at the old Nevele resort in the Catskills.
