After voters statewide approved Proposition I last November, which authorized the New York State Legislature to grant up to seven full-scale casino licenses in certain selected zones, tension has brewed throughout the Albany-area and the Capital Region, which is one of the areas slated to receive a full-scale, Las Vegas-style casino in the near future. The two most prominent sites which many consider to be the frontrunners for casino development are the Saratoga Casino and Raceway, a harness track and video lottery terminal facility in Saratoga Springs, as well as the Noonan property in Albany, which is located directly off Exit 23 of the New York State Thruway, and is the longtime residence of Polly Noonan, the mother of now-U.S. Senator Kirsten Gillibrand.
In the end though, the site which ultimately chosen for casino development will likely come down to which one of two New York political heavyweights has more influence with the Cuomo Administration - lobbyist James Featherstonhaugh, who previously served as President of the New York Gaming Association and owns a minority stake in the Saratoga Casino and Raceway or prominent Rochester, NY developer David Flaum, who has proposed redeveloping the Noonan property into a full-scale, Las Vegas-style casino complex.
Today, Saratoga Casino and Raceway revealed new information to Saratoga Springs Mayor Joanne Yepsen and the Saratoga Springs City Council about what they plan to submit in the request for application (RFA) when they apply to a casino license this month.
From The Daily Gazette (Schenectady), April 15, 2014:
"SARATOGA SPRINGS — Saratoga Casino and Raceway’s large expansion project is gradually advancing through the state approval process, but preliminary plans have not yet satisfied the level of detail expected by city leaders."
"Mayor Joanne Yepsen said a binder of documentation given to her by Dan Gerrity, the president and majority stakeholder of the racino, shows a project that will add a total of 134,000 square feet of space off an area northwest of the Vapor Night Club that is now occupied by a practice track."
"The first phase proposes building a 108-room hotel, a 137-seat steakhouse, a 28-seat coffee shop, a pool, a spa and a fitness center."
"A second phase would construct the more controversial part of the project: A 2,000-seat event center and a 180-seat meeting room. This construction would add 68,000 square feet, more than doubling the size of the project, according to plans submitted to the mayor’s office."
"“There are a lot of materials to review, but it still doesn’t give much detail about what they have planned there,” Yepsen said during the City Council’s agenda meeting Monday."
While Saratoga Casino and Raceway has already stated that they plan to begin construction on their proposed expansion regardless of whether they receive a full-scale casino license or not, it is still unclear whether they will pursue both phases of their proposal to construct additional restaurants, retail and a convention center if they fail to receive a license. By all accounts, the likelihood of Saratoga Casino and Raceway receiving a resort casino license appears less and less likely as opposition continues to increase in Saratoga Springs and surrounding communities throughout Saratoga County. Last Month, Mayor Yepsen and the other four commissioners on the Saratoga Springs City Council unanimously passed a resolution opposing the state's casino siting law.
From the Albany Business Journal, April 1, 2014:
"Casino operators must submit a resolution from the host community showing support for granting the license."
"That means the Saratoga Springs City Council would have to approve a resolution of support by the June 30 application deadline if the owners of Saratoga Casino and Raceway pursue a license to offer live table games in addition to video slot machines--a decision that the owners of the racino are still weighing."
"In early March, after three months of debate and wrangling by supporters and opponents, the City Council unanimously passed a resolution opposed to the state's casino siting law, in part because of concerns about the impact of a resort-style casino on the city."
"The measure was cheered by a grassroots group, Saratogians Against Vegas-style Expansion (SAVE), though casino supporters noted the resolution didn't specifically oppose plans to convert Saratoga Casino and Raceway into a full-scale casino.
Sara Boivin, a SAVE organizer, said today the racino owners "are going to have a tough time" getting support from the council."
""The threshold for the application is a resolution of support, and they don't have it," Boivin said."
Meanwhile, today several Albany County business owners, including Jeff Sperber, president of Huck Finn's Warehouse and Angelo Mazzone of Mazzone Hospitality launched the "E23 Business Alliance," in support of building a casino facility at the Exit 23 interchange of the New York State Thruway.
From The Times Union's Capitol Confidential blog, April 15, 2014:
"The team proposing to build a casino at Exit 23 of the Thruway on Tuesday announced its “E23 Business Alliance,” including some prominent members from the Capital Region.
The alliance chairmen and chairwoman are Jeff Sperber the president of Huck Finn Inc. and owner of Colonie Golf & Country Club; Angelo Mazzone, owner of Mazzone Hospitality; and Lena Hart, owner of Precision Fitness in downtown Albany."
"Community support will be a factor when the New York Gaming Commission and its siting board consider applications for up to four casino licenses in upstate. David Flaum and Capital OTB are partnering on the Exit 23 proposal and have been trying to garner local support."
"The roughly 40 members on the alliance include represenatives of Jack’s Oyster House; Colonie Chamber of Commerce; and Yono’s Restaurant."
Last month, Albany mayor Kathy Sheehan (D) was open to the idea of a full-scale casino on the outskirts of the city, citing benefits from 1,800 permanent jobs, as well as millions of dollars from host community benefits.
From the Albany Business Journal, March 21, 2014:
"David Flaum, chairman and CEO of Flaum Management, and John Signor, president of Capital District OTB, will be presenting their plans to the Albany Common Council at noon today in City Hall."
"Sheehan said she first learned earlier this week of the proposal to build the resort casino on about 60 acres owned by the Noonan family in the city. The Noonan family has a long history of involvement in local politics."
"Polly Noonan, mother of U.S. Rep. Kirsten Gillibrand, a Democrat, owns a house on the property, according to The Times Union."
"There are a total of five houses, including three occupied by members of the Noonan family. Two others are rented, according to a local real estate agent.
Sheehan said she has not talked to Gillibrand or members of the Noonan family about the proposal, but it's her understanding the developers have "committments" to buy the property."
"Sheehan is open-minded to the idea, citing the potential economic impact, including 1,400 construction jobs, 1,800 permanent jobs, millions of dollars in "host community" benefits and a significant boost in the taxable value of city land."