Casino Bidders Fret Over Environmental Reviews

As the deadline for applications approaches, a trio of proposed casino projects may be imperiled by state bureaucracy.

Three casino proposals in Manhattan may be disqualified from the competition for a downstate gaming license because of the state’s Gaming Commission’s failure to initiate required environmental reviews, Crain’s reported. People involved with the bids raised concerns that the clock could run out on them. Not all of the bidders, however, say they are too concerned about the holdups.

The impacted projects — SL Green’s in Times Square, Silverstein Properties’ near Hudson Yards and the Soloviev Group’s near the United Nations — say they are in danger of failing to meet the state’s Sept. 30 deadline for resolving local land-use issues.

“What has occurred here is a complete failure by the Gaming Commission to do anything,” said an attorney for one project. “They haven’t even started the process.”

Unlike other casino bids that require special zoning approvals handled by local agencies like the Department of City Planning, these three projects rely solely on the Gaming Commission for their environmental reviews — a responsibility the commission has been slow to fulfill as it deals with a process it’s largely unfamiliar with.

Competing proposals from Steve Cohen in Queens, Related Companies at Hudson Yards, Thor Equities in Coney Island and the Las Vegas Sands in Nassau County have their reviews either completed or substantially underway, creating an uneven playing field.

Attorneys for one affected bidder claim meeting the deadline will be impossible unless the state delays it or modifies requirements. Another project executive described the timeline as “doable but challenging.”

“We are not concerned about the ability to meet the SEQRA deadline and look forward to submitting our bid. We’re confident the state can meet the deadline as well. Any further delay would be unwarranted,” said an SL Green spokesperson in a statement provided to The Real Deal.

The environmental review process typically involves submitting scope documents for public comment, creating draft impact statements and finalizing reports, a process that normally takes months. Even with the engineering firm LiRo beginning reviews of planning documents for one project last week, attorneys estimate completion no earlier than December — well past the September deadline.

Silverstein declined to comment to The Real Deal. Soloviev did not immediately respond to requests for comment.

Gaming Commission spokesperson Lee Park denied any delays, stating the commission “has developed a timeline that, while tight, will enable the completion of environmental review requirements.”

Applications for the licenses are due on June 27. There are 10 bidders competing for three downstate gaming licenses after Saks folded its proposal last week.

— Holden Walter-Warner

The story has been updated with a statement from an SL Green spokesperson.