CACs Nix Caesars Palace Times Square And Avenir Casino Bids

(RECASTS WITH AVENIR REJECTION, ADDS THROUGHOUT)

The Community Advisory Committees (CAC) 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 were both rejected 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 hearings for MGM Empire City and Metropolitan Park. Those CACs face a Sept. 30 deadline for voting on the proposals, which 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 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 proposals. 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 Award winner offered his comments in an interview published by City & State New York the day before the second hearing.

Long-time civil rights activist and New York City icon Reverend 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.

Perhaps irritated by the first 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. “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 Senator 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 the 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 concerns of an overload of construction and congestion as work on revamping the Port Authority terminal adjacent to where the casino would be built had just begun.

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 the 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.