On April 25, Wynn Resorts and Related Companies released new updates for its Hudson Yards casino proposal, as Las Vegas Sands (LVS) searches for a partner to offload its Long Island bid.
Of all the details from Wynn and Related’s updated bid, which was first reported by Crain’s, none are more noteworthy than the changes in housing commitments. The previous plan called for 1,500 apartments, which was the chief concern from opponents, including Manhattan Borough President Mark Levine.
The new plan now calls for up to 4,000 units, made possible by removing a previously planned office tower. Also included in the proposal is a 5.6-acre public park, a public K-8 school, a hotel and casino operated by Wynn and other amenities.
Originally, back in 2009, Related pledged to build up to 6,000 units at the site, with a portion of those deemed as affordable. The developer told iGB previously that its allotment of 324 affordable housing units is still compliant; the units that were removed, Related said, were high-priced units that are no longer economically viable.
Earlier this month, changes to the 2009 plan were approved by the New York City Planning Commission, but in January the bid was unanimously rejected by Manhattan Community Board 4. Although a non-binding vote, it indicated how opposed local interests were to those terms. The New York City Council is now expected to vote on the new proposal in the coming weeks.
As Wynn and Related double down on their efforts, LVS now looks for an exit strategy. The company reported last week that it was withdrawing its bid for a casino on Long Island at the site of the Nassau Coliseum. As part of that decision, LVS must now look for a third party to offload the bid to.
When announcing its decision, LVS said it “remains concerned about the impact of the potential legalization of iGaming on the overall market opportunity and project returns.” Such sentiments had been expressed by company executives on both of LVS’ previous two earnings calls.
However, LVS also said it was “in the process of attempting to secure an agreement with a third party to whom we can transact the opportunity to bid for a casino license on the Nassau Coliseum site. This would include those that may be able to address both land-based and digital markets in New York.”
It is unclear what hoops a prospective newcomer seeking a New York casino license would face in joining the race so late. Official bids are due by June 27, with licenses to be awarded by year’s end. It is presumed that a new bidder could make the cut by the deadline, but the New York State Gaming Commission told iGB that it has not been notified of any such interest and therefore couldn’t comment on next steps.
