Orange County still a sore point with upstate developers
Last week, Hard Rock International made headlines when it announced it was jumping into the New York casino race. HRI said it would partner on a proposed casino development in Rensselaer, New York, giving added heft to that proposal. It will go up against other big-name operators including Caesars Entertainment, Rush Street Gaming, Mohegan Sun, and Genting, among others.
Lesser-known contenders will also vie to be part of the gaming expansion approved by voters in a referendum last November. But hopeful developers from the city ofAmsterdam will not be a part of the bidding. The New York Gaming Commission siting board declined a request by Montgomery County officials to give them more time to submit a proposal. Amsterdam officials also asked to pay a reduced license fee.
Full proposals are due to the state by June 30. Up to four licensees will be selected this fall, and construction on the Class III gaming halls could begin immediately.
Among the bidders are the Galesi Group and partner Rush Street Gaming, owner of SugarHouse in Philadelphia and Rivers Casino in Pittsburgh. The partners want to build a $200 million casino/hotel project along the Mohawk River in Schenectady.
The Saratoga Raceway team, which hoped to build in Saratoga Springs but could not muster public support for the plan, is now partnering with Churchill Downs to build a $300 million resort complex in East Greenbush.
Initially, the Catskills Mountains were thought to be the natural location for casinos; the area was expected to get two licenses. Now, according to the Wall Street Journal, residents who hoped for a return to the good old days, when Borscht Belt resorts made the region a magnet for vacationers, are bracing for disappointment.
Two groups have abandoned their plans to bid on casino licenses in the Catskills, citing the possibility that Orange County could nab a license and also most of the action. Foxwoods Resort Casino and Muss Development tabled plans for a casino at the former Grossinger’s Hotel in the town of Liberty, citing the risk of an Orange County casino. Connecticut developer Len Wolman and the Stockbridge-Munsee Indians also dropped their plans for a casino in the town of Monticello.
Orange County is closer to the New York metro area than the rest of the proposed casino sites; Caesars Entertainment, Genting Group and real-estate developer Cordish Companies and Penn National Gaming are planning to submit bids for casinos there. Also in Orange County, the Saratoga faction will team up with its Capitol Region competitor, Rush Street, against the major players.
Robert Williams, acting executive director of the New York state Gaming Commission, recently sent a letter to Republican state Senator John Bonacic, who represents both Sullivan County and Orange County, to say Orange County has no “competitive advantage” over Sullivan County. But Randy Resnick, leader of Citizens for New York State Gaming, was not convinced. He called the prospect of an Orange County casino “a knife in the heart” to hopeful operators farther upstate.
But the Mohegan Tribal Gaming Authority, which is working with Westchester developer Louis Cappelli to build a hotel at the old Concord Hotel site in Kiamesha Lake, says it is still in the game and confident of a win.
“The siting board and gaming commission have to pick what’s right for the state of New York overall,” said CEO Mitchell Etess. “Our goal will be to convince them that what’s best for everybody is Sullivan County.”
And Empire Resorts, which owns the Monticello Casino and Raceway and is working with real-estate investment trust EPR Properties, also is going ahead with its casino proposal.
“We are going to trust that this process is not going to dash the hopes and dreams of the Sullivan County community,” said Empire spokesman Charles Degliomini.
No casino is now planned for Albany County, so city and county officials are busy negotiating “last-minute pacts” with would-be casino builders to “share the wealth,” reported the Times-Union. County Executive Dan McCoy said his staff has met with representatives of the East Greenbush and Rensselaer projects, as well as those backing a casino along the Mohawk River in Schenectady.
But that made no sense to Common Council President Carolyn McLaughlin. “It’s like trying to do a prenup in 48 hours,” she said. “You can’t do that. There’s too much detail in there.”
Meanwhile, would-be developer Wilmorite, which wants to build a casino in the town of Tyre, Seneca County, has signed a 43-page, legally binding project labor agreement with 19 regional unions, reports the Finger Lakes Times.
At a press conference in the International Brotherhood of Electrical Workers Local Union 840 office, IBEW business manager Michael Davis and Wilmorite vice president of construction James McKenna signed the agreement.
“We have a long history of doing these agreements,” McKenna said. “The goal is to assure the efficient, safe, quality and timely completion of the construction project relating to the Wilmot casino and resort in Tyre.”
Wilmorite also agreed to give $100,000 to the a jobs program for women and minority workers during the construction period.
One of the lesser-known bidders is the owner of Howe Caverns in Schoarie County. Emil Galasso, president of Howe Caves Development Corp., told the Albany Business Review he has a nondisclosure agreement with the owner and operator but described the person as having “a terribly strong tie to the Baseball Hall of Fame.”
Galasso would not disclose the name of his partner, but said, “You’re going to be quite surprised when you see the depth of this individual and the individuals that are with him. They are owners of so many things. They own casinos and are into sports arenas. I’d love to say this is who they are.”
Howe Caverns, about 40 miles west of Albany, draws about 150,000 visitors annually, making it the second-biggest natural attraction in upstate New York after Niagara Falls, he added.
There could be a fly in the ointment for Caesars’ Orange County plan, as the Woodbury Town Board delayed a vote on whether to support the proposal. Caesars and its partner, Rochester-based developer Flaum Management, need resolutions of support from both the village and town boards in Woodbury to apply for a casino license before June 30. The Village Board voted unanimously to support the project at its June 12 meeting.
Hard Rock came late to the game, announcing June 19 that it would propose a $150 million to $200 million entertainment destination at DeLaet’s Landing across the Hudson River from Albany.
“Hard Rock International is thrilled to collaborate with NYS Funding LLC to potentially create a world class facility in Rensselaer within the Capital Region, as it would become an important economic engine for the community,” said HRI Chairman Jim Allen. “We look forward to lending our global recognition, strong legacy of philanthropy and entertainment, and proven experience to this project. We are confident that this Hard Rock Hotel & Casino will positively impact the community’s economy.”
The Rensselaer team also includes the Chickasaw Nation, Flaum Management and Capital Region Off-Track Betting Corp., the Albany Times-Unio
n reported. There was no public comment permitted on the proposed riverfront casino, which would be built on a 27-acre parcel that once held the local high school.
Meanwhile, the New York Hotel and Trades Council, which represents 1,400 of the 1,700 employees at Resorts World, the racino at Aqueduct Race Track in Queens, says salaries for the casino workers should average about $40,000.
Finally, the Gaming Facility Location Board is considering adding a fourth member. The board is authorized to have up to five members. It currently has three: Paul Francis, a business executive and former top adviser to the last three governors; Hofstra University President Stuart Rabinowitz; and former New York City Comptroller William Thompson, Jr.
