Coney Island’s New York Casino Proposal Involves Hotel, Concert Venue

According to Andria Cheng at CoStar News, "Developer Thor Equities, along with its partners, has proposed building a 500-room hotel and a 2,500-seat concert venue as part of its $3 billion entertainment and gaming development as various developers jostle for a shot at up to three gaming licenses New York state is expected to issue in or near New York City.

The casino project, called The Coney, is designed to feature a 250,000-plus square-foot hotel; 92,000 square feet of convention center and meeting space; more than 70,000 square feet of retail and food/beverage space; the concert venue; and more than an acre of new publicly accessible open space.

Thor and partners Saratoga Casino Holdings, a family-owned casino and hotel operator in upstate New York, the Chickasaw Nation and hospitality operator Legends, announced the plans Thursday in a statement. Renderings also were released for the project.

The group in late 2022 announced its ambition to land one of New York’s coveted gaming licenses.

“We have heard time and time again that Coney Island needs a project that provides year-round economic support while also lifting up the infrastructure in one of the most densely traveled areas of the community,” Sam Gerrity, Saratoga Casino chief executive, said in the statement. He added that the project would be built on privately owned land that would make it shovel-ready on Day 1. “The Coney does just that.”

The Coney already has received more than 10,000 signed petitions in support of the project, the development group said.

Still, none of the developers and their casino operators have been able to submit formal applications.

New York State Gaming Commission Executive Director Robert Williams said in its meeting in March that it “makes little sense to trigger” the request for applications filing as various land use and environmental reviews are unlikely to conclude before the first quarter of 2025 because those reviews usually see “projects substantially amended or altered during the process.”

Any casino contender also needs to secure local zoning approval and buy-in from their local community advisory committee before the gaming facility location board can consider its application, Williams said. He added that a decision on gaming licenses isn’t expected until late 2025.

The requirement of local support has sent those for and against a casino in their communities in competing mode.

For example, take SL Green Realty, Manhattan’s largest office landlord, and Caesars Entertainment in their Times Square casino bid.

According to a new poll released Thursday and commissioned by the group against SL Green’s casino bid, the No Times Square Casino Coalition, 71% of some 400 registered voters who live in and around Times Square oppose a casino in the area.

The poll showed respondents were most concerned about the potential for worsening traffic congestion, increasing crime and making the area less pleasant to live and work, the coalition, which includes the Broadway League, said.

However, several property owners in Times Square, including its two anchor buildings, have voiced their support for a casino in the tourist and entertainment hub.

Competitive Bids

In other casino proposals, Related Cos. and Wynn Resorts in March unveiled renderings for their proposed Hudson Yards casino resort on the far west side of Manhattan. Their proposed complex would include a luxury hotel and gaming tower with restaurants and bars as well as a residential building with affordable housing units and a top-tier commercial office building.

Silverstein Properties plans to develop the Avenir, a hotel, casino, entertainment and residential complex spanning 1.8 million square feet near Hudson Yards.

The Soloviev Group, known for projects such as New York’s iconic 9 W. 57th St. office tower overlooking Central Park, has partnered with casino operator Mohegan in proposing a mixed-use casino resort south of the United Nations headquarters.

It has added affordable housing units to boost its odds at a site that is billed as the largest undeveloped lot in Manhattan.

The Mets owner, Steven Cohen, is said to be eyeing a casino license in Queens near Citi Field as New York is set to build its first professional soccer-specific stadium in the borough as part of a megadevelopment.

Outside of Manhattan, Resorts World New York City, billed as the city’s first and only casino-hotel at Aqueduct Racetrack in Queens, recently upped its game in a $5 billion expansion plan to vie for one of New York’s high-stakes casino gaming licenses."

The potential development of new casino projects in New York City, including the ambitious $3 billion entertainment and gaming development proposed by Thor Equities for Coney Island, carries significant implications for property taxpayers.

Economic Boost and Potential Tax Relief

Increased Revenue: The development of a casino can substantially boost local government revenues through various channels, including property taxes, gaming taxes, and tourism-related revenues. A successful project like "The Coney" could attract a considerable influx of visitors year-round, driving up sales and occupancy tax revenues. This increased revenue could help ease the tax burden on property taxpayers by providing an additional funding stream for public services and infrastructure.

Job Creation: The construction and operation of these casino projects are expected to create thousands of jobs. Employment growth can lead to a more robust local economy, increasing property values and thereby raising property tax revenues without increasing tax rates.

Impact on Property Values

Increased Property Values: The introduction of high-profile entertainment and gaming developments can lead to increased demand for residential and commercial properties in the surrounding areas. This heightened demand can drive up property values, resulting in higher property tax assessments. While this could increase the tax bills for existing property owners, it may be mitigated by the overall economic benefits and improvements in local amenities and infrastructure.

Potential for Gentrification: Large-scale developments often lead to gentrification, which can displace long-term residents and small businesses due to rising property taxes and living costs. This displacement effect might prompt calls for policy interventions such as tax abatements or exemptions for vulnerable populations.

Infrastructure and Public Services

Enhanced Infrastructure: Developers often invest in local infrastructure as part of their projects. For example, "The Coney" includes more than an acre of new publicly accessible open space and significant convention and meeting spaces. Improved infrastructure can enhance the quality of life for residents and potentially stabilize property taxes by reducing the need for future taxpayer-funded improvements.

Strain on Public Services: Conversely, an influx of tourists and new residents can strain public services such as transportation, law enforcement, and sanitation. If the additional revenues from the casino developments do not adequately cover the increased demand for public services, property taxpayers might see their taxes rise to fill the gap.

Community and Regulatory Considerations

Community Support and Zoning: As noted in the article, obtaining local zoning approval and community buy-in is crucial for these developments. Strong community support can facilitate smoother project implementation and potentially foster a collaborative approach to addressing any tax implications. Conversely, opposition, such as that seen against the Times Square casino bid, highlights concerns about increased congestion and crime, which could affect property values and taxpayer sentiment.

Regulatory Hurdles: The New York State Gaming Commission's requirement for thorough land use and environmental reviews ensures that projects are carefully evaluated for their long-term impact on communities. Delays in these processes can affect the timing of any potential tax benefits or increases, with significant implications for local government budgeting and planning.

In summary, while the development of new casinos in New York City presents opportunities for economic growth and increased revenues that could potentially alleviate the property tax burden, it also poses challenges related to property values, public service demands, and community dynamics. Policymakers and developers will need to carefully navigate these factors to ensure that the benefits of such projects are maximized for local residents and taxpayers.