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Zoning Changes Proposed In New York To Pave Way For Casinos

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2023-11-29

Zoning Changes Proposed In New York To Pave Way For Casinos

New York City Mayor Eric Adams’ administration is seeking to smooth over any zoning issues connected with a would-be casino in the city in one fell swoop.

As first reported by Crain’s New York, Adams’ administration has filed paperwork with the Department of City Planning to overwrite existing zoning laws to pave the way for a casino to be built somewhere in the five boroughs. The changes would allow casinos to be built in virtually any commercial or manufacturing district, leaving only residential areas as no-go zones. Furthermore, it would not put a cap on the size of the casino — or its restaurants, hotels, and other related structures.

If passed, the zoning plan would allow winning bidders to forgo the normally lengthy zoning process — the Uniform Land Use Review Procedure — and only require they get approval from the state and its Community Advisory Committee, according to Commercial Observer.

Adams’ proposal has to go through community boards, borough presidents’ offices, and win approval from the Planning Commission before it would head to the New York City Council, according to the Commercial Observer.

“As the state considers proposals for casinos downstate, it’s important that we create a level playing field for applicants within New York City so they can compete for this opportunity,” Dan Garodnick, CPC chair and director of the Department of City Planning, said in a statement to the Commercial Observer. “This text amendment would avoid duplicating the state’s rigorous licensing process, which includes local representation on the [Community Advisory Committee], while setting up a rational framework for consideration within our zoning.”

Not everyone is thrilled

Adams’ plan was not universally well-received.

One issue was the relative simplicity of the plan.

“This is very unusual for New York City not to be very specific. … It says nothing,” said Layla Law-Gisiko, the land use chair at Manhattan Community Board 5, according to amNewYork.  A pair of casino proposals, one in Times Square and the other at Saks Fifth Avenue, are proposed in her district.

The ability to allow the casino and its related properties to grow unfettered also caught flak.

“The hotel could be any size if there’s nothing that says the people who are staying in the hotel have to be gaming at the casino,” City Planning Commission member Gail Benjamin said during a public hearing Monday according to Crain’s. “We are allowing things that would not be permitted, without any City Planning review, oversight, determination.”

Eleven would-be bidders

If passed, the zoning changes would clear the path for all 10 of the city-based would-be bidders, while the 11th, the Las Vegas Sands proposal for the old Nassau Coliseum site, sits outside the city limits. (That proposal is having its own issues with its neighbors.)

The New York State Gaming Commission is expected to issue three “downstate” casino licenses at some point. The process has been derided by analysts as going painfully slow.

The next step in the process is waiting for the NYSGC to publish answers from a second set of questions submitted by the would-be casino operators. It’s expected that official bids will be due 30 days after the answers to the questions are posted.

Photo: Spencer Platt/Getty Images

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