Times Square Casino Hearing Pits Unions Against Each Other

Wednesday’s marathon public hearing session to solicit comments for Caesars Palace Times Square‘s casino proposal largely broke into two camps: unionized construction workers eager to retrofit 1515 Broadway as part of the $5.4 billion project, and unionized Broadway theater workers fearful their industry would be ruined.

Interspersed in the six-plus hours of comments from the two groups at Scandinavia House, approximately one mile from where the casino would be, were New York City area residents also giving their thoughts. A portion of those people live in the area directly impacted by the proposal being fronted by SL Green and Roc Nation in addition to Caesars.

There was no direct vitriol between the two union groups, but emotions flared as nearly 200 people offered their thoughts to the Community Advisory Committee (CAC). The hearing mirrored the buildup prior to the Caesars group submitting its application in late June. It is the most polarizing proposal among the eight being considered for one of the three $500 million downstate licenses being awarded by the New York State Gaming Commission.

Caesars opens with a top-line pitch

Unlike the public hearing held Monday in Yonkers by MGM Empire City that was purely driven by public commentary, the Caesars group used the first half-hour to make a top-line presentation of its pitch to the CAC. SL Green CEO Marc Holliday, Roc Nation CEO Desiree Perez, and Caesars Entertainment CEO Tom Reeg provided a bullet-point style summary of the proposal.

The highlights included how Caesars would turn 1515 Broadway into a premier gaming destination and serve as an additive to the Times Square community without being an expansive project. Holliday stressed how there would still be 2,500 rooms available at other Times Square hotels and that the property would have only four restaurants.

Reeg, who was not part of the pitch to the CAC last month, discussed the importance of the Caesars Rewards program. Its 65-million strong database would be a driver of business to the property and be activated by local businesses around 1515 Broadway, he said.

“There’s no other company that comes close to this in terms of depth of program,” Rees said about Caesars Rewards. “This is the largest and most highly developed program in the casino space. … Over decades of operation and the millions of relationships that we have, we have unprecedented data into how our customers behave and engage with our destinations.”

Perez discussed the social impact of Roc Nation, its $250 million community investment program, and partnerships Caesars has formed in the Times Square community. That includes a recent collaboration with award-winning actor and producer Wendell Pierce to invest $10 million to launch and sustain the New York Coalition of Legacy Theatres of Color Fund.

Local 79 versus the IATSE

The two union groups with the largest representation Wednesday were Laborers Local 79 and the International Alliance of Theatrical Stage Employees (IATSE). Local 79 has more than 10,000 active and retired members and is the largest construction local laborers’ union in the U.S. The IATSE has seven Broadway-based locals.

Pro-union sentiment was apparent in the morning portion of the hearing, though at times it appeared there was a prepared statement given to multiple people backing the project. Buzz phrases, including “pointing to another iconic building built and run by the best trained union workers” and “create union jobs that provide high quality health insurance and retirement savings to New York City workers,” were said on a handful of occasions.

Broadway union workers were agitated that the hearing was held on a Wednesday — when matinee shows take place throughout the theater district — and that they had to make their way across town to Scandinavia House on the East Side of the city. Jason Laks, president of the Broadway League, accused security of not letting casino opponents into the building, but he also struck to the heart of the matter in his allotted two minutes.

“We know that Local 79 is here in force and we love and respect them,” he said. “We are not anti-labor. That’s why our partners at IATSE are here today. But these construction jobs will go wherever the casinos are built. This location is the only one that threatens 100,000 jobs, so many of which are good union positions.

“This casino remains an existential threat to Broadway and our entire neighborhood. If you approve this casino, it will mean fewer jobs and fewer people working on Broadway.”

What about the residents?

The mix of business owners and residents in the area, which also includes Hell’s Kitchen, provided a vast range of reasons for support or opposition to the casino proposal. Some feared the casino would undo decades of cleaning up Times Square, while those in favor pointed out Times Square is one of the few areas in Manhattan equipped with the infrastructure to take on a casino without any significant disruption.

“It is very different sitting in front of a slot machine than going to see The Lion King with your family,” said an opponent, actor and Hell’s Kitchen resident Veanne Cox. “It is a community. Broadway is a community. A casino is not a community.”

“From the perspective of a Hell’s Kitchen small business owner, I believe this project will bring much-needed tourism to the neighborhood — tourism that has not been fully recovered since COVID,” said supporter Ted Arenas, owner of Rise Bar and member of Manhattan Community Board 4. “Increased traffic will directly support local business and strengthen the economic vitality of our community.”

It also would not be a New York City event without some celebrity presence. Rapper Fat Joe and radio host Charlamagne tha God spoke in support of the proposal.