CACs Nix Caesars Palace Times Square And Avenir Casino Bids

The Community Advisory Committees (CACs) overseeing the $5.4 billion casino proposal fronted by Caesars and Roc Nation for 1515 Broadway and the $7 billion plan for The Avenir on the West Side of Manhattan submitted by Silverstein Properties and Rush Street Gaming rejected both bids Wednesday by 4-2 votes.

The two rejections mean those proposals will not be forwarded to the New York State Gaming Commission for further consideration for one of up to three $500 million downstate casino licenses that could be made available. It also leaves the $11.1 billion Freedom Plaza application as the last one standing among the three groups looking to build a casino in New York City.

It also whittles down the field from eight applicants to six overall, all of whom completed their two mandated public hearings following Tuesday’s sessions for MGM Empire City and Metropolitan Park. Those CACs face a Sept. 30 deadline for voting on the proposals, with each committee needing four aye votes to advance a bid to the NYSGC.

Broadway bounces Jay-Z

The two hearings for a casino at 1515 Broadway pitted large amounts of Broadway’s union-based theater workers seeing the proposed venue atop the Minskoff Theatre as a threat to their livelihood on the “Great White Way” versus union-based construction workers eager to get a crack at the 3,000 projected jobs among the 6,800-plus overall positions.

The Caesars/Roc Nation proposal also had arguably the most star power lined up among any of the eight. Roc Nation founder Jay-Z was among those who made the group’s initial pitch to the CAC, while CEO Desiree Lopez spoke on Roc Nation’s behalf at both public hearings. Jay-Z was not at either public hearing, but the 25-time Grammy winner offered his comments in an interview published by City & State New York the day before the second hearing.

Longtime civil rights activist and New York City icon Rev. Al Sharpton also supported the project via a partnership with Cadre founder Ryan Williams, and Sharpton was the closing speaker for the group’s presentation last Thursday.

“While we disagree with the outcome of this process, we remain committed to advocating for positive change in the city we love,” said the Caesars Palace Times Square group in a statement. “We’ve built strong relationships with a community that is eager for progress, and we hope that those who opposed this project—both in the public and private sectors—will now bring the same energy and resources to solving the very real challenges facing Times Square.”

Perhaps irritated by the first hearing being held on a Wednesday — when Broadway schedules matinee shows — and needing to go across town to the Scandinavia House, Broadway workers showed up in droves last Thursday at the Broadhurst Theatre to voice their opposition. The Broadway League, which had been opposed to a casino since the get-go, offered a statement after the CAC vote:

“This was a vote to protect the magic of Broadway for the one hundred thousand New Yorkers who depend on it for their livelihoods, and for the tens of millions who come from around the world to experience it,” said Jason Laks, president of The Broadway League, which was part of the No Times Square Casino Coallition, via email. “A casino can go anywhere, but Broadway only lives here.

“We are so filled with gratitude for the committee members and the local elected officials — State Senator Liz Krueger, Assembly Member Tony Simone, Borough President Mark Levine, and Council Member Erik Bottcher — who looked at the facts, listened to the residents, and stood up for this neighborhood and the theater community.”

The CAC vote broken down by committee members, with appointers in parentheses:

• Chair Carl Wilson (New York City Councilmember Erik Bottcher): Nay
• Peter Hatch (Gov. Kathy Hochul): Aye
• Richard Gottfried (state Sen. Liz Krueger): Nay
• Matthew Tighe (state Assemblymember Tony Simone): Nay
• Laura Smith (New York City Mayor Eric Adams): Aye
• Chris Carroll (Manhattan Borough President Mark Levine): Nay

Late drama before The Avenir vote

The Avenir’s two public hearings had a slightly different line of demarcation for support and opposition based on West Side residency. Tenants at two high rises belonging to Silverstein Properties largely backed the proposal, while an overwhelming block of Manhattan Plaza residents — two high-rises in Hell’s Kitchen that house more than 2,600 people — staunchly opposed the project.

Even with the notable residential opposition, The Avenir appeared to have been well received at both hearings. The goodwill Silverstein Properties had accrued over the two-plus decades following its efforts to rebuild lower Manhattan post-9/11 was on display at various points, but it was counterbalanced by worries of an overload of construction and congestion. Construction work to revamp the Port Authority terminal adjacent to where the casino would be built had just begun and is expected to last the rest of the decade.

A series of late amendments proposed by The Avenir Group, which included increasing the number of total housing units from 2,000 to 2,200 and affordable housing units from 500 to 550, was voted down. A spokesperson from The Avenir also noted the group made a request to the CAC to delay Wednesday’s vote, saying the committee made a “very significant request” for information at 10:50 p.m. Tuesday night, and The Avenir group was not given the chance to consider the request prior to the vote.

“Obviously, we are disappointed that our West Side elected officials didn’t see a path forward for The Avenir project. We are grateful to everyone who has supported this project and partnered with our team throughout this process and appreciate their confidence in our vision for the Far West Side,” said Dino Fusco, chief operating officer, Silverstein Properties, in a statement emailed to Casino Reports.

The CAC vote broken down by committee members, with appointers in parentheses:

• Chair Matthew Tighe (Simone): Nay
• Angel Vasquez (Hochul): Aye
• Richard Gottfried (state Sen. Brad Hoylman-Sigal): Nay
• Nabeela Malik (Adams): Aye
• Quentin Heilbroner (Bottcher): Nay
• Madeleine McGrory (Levine): Nay

The Mayor’s Office is unhappy

New York City Mayor Eric Adams’ appointees to both CACs expressed disappointment in the accelerated timeline for Wednesday’s votes as both Smith and Malik had identical prepared remarks before voting aye.

“By moving today’s vote forward, we have effectively lost nearly two weeks of deliberation. These are complex proposals with significant changes along the way, and under the law, our role is to review applications thoroughly, consider public comment, and deliberate openly.

“That time would have allowed members to more fully assess the changes, reflect on community input, and carry out the responsibility entrusted to us. While I respect the process and my collegaues, I believe it is important to acknowledge that the accelerated timeline has constrained the committee’s ability to meet the very standards of transparency, engagement, and thorough review that were built into the CAC framework.”