Wynn Resorts, which recently celebrated 20 years in Las Vegas, and its development partners took major strides in the highly competitive race for a New York City metro area casino license.
Key takeaways
● Three casino licenses are up for grabs in New York City.
● Wynn Resorts proposes redeveloping Western Rail Yards.
● The rezoning vote passed with a 9-4 vote.
On April 9, the New York City Planning Commission approved a landmark set of zoning changes to Hudson Yards West, giving the proposal an extra boost of support. The bid is to redevelop the Western Rail Yards as a multi-use complex featuring a casino, housing units, and public parks.
The project is a joint venture between Related Companies, Wynn Resorts, and Oxford Properties Group, designed to remake a prime piece of land immediately adjacent to High Line Park.
The Planning Commission approval means the developers can now officially modify zoning regulations here—the second major step toward establishing their resort and entertainment center. Once more, this local-level approval exists independently of the more stringent and ongoing process of getting a full gaming license overseen by the New York State Gaming Commission.
The developers referred to the Commission's decision as a watershed moment, identifying the level of local support for the scheme. As part of their public outreach and consultation program, they committed to distributing 1% of gross gaming revenue from the casino to neighborhood groups.
Casino supporters also argue revenue from the casino can be used to ease Metropolitan Transportation Authority (MTA) longstanding financing issues.
Casino to help fill public transportation funding gaps
The MTA struggles with critical financial issues and awaits approval on a $68.4 billion capital plan. Doubt and delays in implementing congestion pricing compound the agency's financial instability. Project supporters state income from taxes and other sources in the Hudson Yards West casino could be used to fill the MTA's budget gap.
Projections by the project's development team indicate the casino project can yield as much as $2.7 billion to the MTA from various revenue sources. These include rents for leasing MTA property, designated sales taxes on the resort's commercial activities, and additional income from increased tourism and foot traffic.
The developers argue this form of public-private partnership has the potential to bring much-needed economic assistance to a transportation network that's lost riders and runs on tight budgets.
Despite these promised benefits, the plan hasn't been widely accepted. Local community groups like Protect the High Line raised concerns regarding a casino's impact on the neighborhood's overall character and the city's urban landscape.
This group would opt for a 2009 alternative for the property that emphasized more open space and didn't include gaming facilities. Opponents fear the influx of a giant casino would displace the mix of residential, cultural, and recreational elements in the High Line and nearby neighborhoods.
While the City Planning Commission's approval of zoning changes is a giant step, it doesn't guarantee the project's final approval. The state is still evaluating several competitive bids, with the competing sites being Brooklyn, other areas of Manhattan, and Queens.
