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PoliticsA community panel has rejected a proposed Mohegan Sun casino resort in Manhattan, marking a significant decision in the ongoing debate over new gambling establishments in New York City. The project, which included various community benefits, was denied despite the developers' efforts to win local support. This decision leaves fewer options for state gambling licenses in the area.

Community Panel Rejects Mohegan Sun Casino Proposal in Manhattan

A proposed Mohegan Sun resort near the United Nations was denied by a state-organized community advisory committee, ending hopes for a Manhattan casino.

Source: AP2 min read

In brief

A community advisory panel has voted 4-2 to reject the Mohegan Sun casino proposal in Manhattan, which was part of a larger development plan. Despite attempts by the developers to gain support by offering affordable housing and community amenities, concerns over the project led to its demise. This decision comes amidst broader opposition to several casino proposals across New York City, including a Jay-Z backed project in Times Square other locations. The final decision on remaining proposals will come from state regulators in December.

NEW YORK (AP) — There will be no casino in Manhattan after a community panel rejected a proposed Mohegan Sun resort near the United Nations headquarters.

The Freedom Plaza development, which also called for hotels, retail, dining, entertainment, and housing, was denied by a state-commissioned community advisory committee on a 4-2 vote Monday.

Committee members, appointed by Gov. Kathy Hochul, Mayor Eric Adams, and other local politicians, cast their votes with barely any discussion, other than to thank the applicants for their time and responsiveness.

In a last-minute bid to gain local support, the developers announced over the weekend their commitment to making the over 1,000 residential units proposed for the project permanently affordable. They had earlier proposed other community investments, including a museum dedicated to democracy, a community center, a daycare, and acres of public open space.

Michael Hershman, CEO of the Soloviev Group—the lead developer on this more than $11 billion project—expressed disappointment, stating their vision would have “revitalized” Midtown East. “Manhattan is the undisputed capital of the world, and it deserved a fully integrated resort that would have attracted visitors while serving the needs of its community,” he said in a statement.

Spokespersons for Mohegan Sun, the tribe-owned casino company based in Connecticut, didn’t respond immediately to requests for comments.

The project, spanning more than six acres from 38th Street to 41st Street, east of First Avenue, was the last remaining proposal under consideration for Manhattan.

A Jay-Z-backed plan to build a Caesars Palace casino in Times Square and another proposal for a gambling resort on Manhattan’s West Side were also voted down by two other community boards last week.

Now five proposals remain in the race for up to three lucrative state gambling licenses for the New York City area, including a proposed Bally’s casino on a Bronx public golf course and a Hard Rock casino next to Citi Field in Queens, where the New York Mets play. Local board approval is necessary for proposals to succeed in the next competitive phase, with state gambling regulators expected to make a final decision in December.

Adams, a Democrat running for reelection as an independent, expressed his surprise at the rejections of high-profile projects, emphasizing the potential job creation and tourism stimulation casinos could bring.

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