ToCasino.net Online Casino

Albany

A $300 million casino and resort planned for an old industrial site along the Mohawk River in Schenectady got the initial green light on Wednesday as one of three gambling centers to be licensed by New York state.

The Rivers Casino and Resort at Mohawk Harbor, proposed by real estate developers Galesi Group of Rotterdam and Chicago-based Rush Street Gaming, prevailed over competing plans in Rensselaer, East Greenbush and Schoharie County to win a recommendation from the state's Gaming Facility Location Board for the Capital Region/Hudson Valley section.

"This is not just a Schenectady but a Capital Region project, and we want to reach out to the rest of the Capital Region to make sure they have access to our city and our river," said David Buicko, Galesi Group's chief operating officer.

Galesi and Rush Street must still be vetted by the state. Buicko said once the infrastructure work — roads, water, sewer — is done, apartments will be built, along with a Marriott hotel and townhouses. Galesi is still awaiting approval from the Army Corps of Engineers for its work on the proposed marinas.

Licenses were also recommended for the two other upstate casino zones: In the Southern Tier/Finger Lakes region, the nod went to the Lago Resort & Casino in Tyre, Seneca County; in the Catskills/Hudson Valley zone, the pick was the Montreign Resort Casino in Thompson, Sullivan County, near the old Concord resort.

The committee could have recommended up to four licenses, but the panel determined that there wasn't enough demand for locating two casinos in the southernmost zone.

The Rivers casino is planned to be part of a larger hotel and housing complex on the old American Locomotive Co. site on the Mohawk River.

After the announcement was made to a packed room at Empire State Plaza on Wednesday afternoon, members of the location board said the project's riverfront location was a plus because it is likely to appeal to boaters as well as visitors who travel by land or air.

Also, "It supports the revitalization of the city of Schenectady by replacing one of the country's oldest brownfield sites," said location board member Bill Thompson.

He also said the Galesi/Rush Street consortium has the capability to raise institutional capital and a willingness to sink its own cash into the project as needed.

Thompson said "strong local support" and a commitment to hiring local residents had also contributed to the outcome.

The Rivers project bested three other competitors in the greater Capital Region: Hard Rock Hotel & Casino in Rensselaer, spearheaded by Orlando, Fla.-based Hard Rock International, Rochester's Flaum Management and Capital District Off-Track Betting Corp.; Capital View Casino and Resort in East Greenbush, proposed by Churchill Downs and Saratoga Harness Racing; and Howe Caverns Resort & Casino in Schoharie County, proposed by local businessman Emil Galasso and Las Vegas-based Full House Resorts.

Wednesday's recommendations are not the final hurdle in building the casinos. The location board's recommendations must now be acted on by the state's Gaming Commission, which will do extensive background checks on the principals and, once completed, issue the licenses. After that, the casinos are supposed to be up and running within two years.

Wednesday's decisions end what for some gambling proponents has been decades of work to allow Las Vegas-style casinos upstate to boost the region's struggling economy.

Those efforts went into high gear in 2013 when voters approved a constitutional amendment allowing casino gambling on non-Indian lands. (Several New York tribes already operate casinos in their territory, mostly in western or northern New York.) The amendment allowed up to seven casinos, but legislators and Gov. Andrew Cuomo wanted the initial group to be licensed upstate, where the need for economic renewal is the most pressing.

The Schenectady project, like all the proposals, promises new jobs and added tax revenue to the community.

According to the location board, the project is expected to generate $8.2 million in tax revenue for Schenectady County and the city, as well as $65.7 million in statewide school aid or property tax relief.

The developers estimate that the project will generate 877 full-time jobs and 193 part-time positions. Like the other applicants, the developers have agreed to employ unionized workers.

Schenectady area officials, in a news conference after the announcement, said they were thrilled that their plan had been chosen.

Selection of the site is a "game-changer,'' said County Legislature Chairman Anthony Jasenski. Reaction from those in Rensselaer and East Greenbush ranged from disappointment to resignation.

"I can't believe it," Rensselaer Mayor Dan Dwyer said at City Hall, where Hard Rock T-shirts were ready to be handed out if that proposal had won.

"I am disappointed that Rensselaer County was not chosen as the home for this region's casino," said County Executive Kathy Jimino. "Now that the site has been identified, we will begin working with the host community to identify job opportunities for our residents and to limit any negative impacts a casino in this region may have,"

"Although there are residents on both sides of the issue, it is now time to come together and focus on future progress for our town,'' said Town Supervisor Keith Langley of East Greenbush, where the proposed Riverview casino had supporters and opponents.

About two dozen anti-casino activists, many bearing signs saying "Save East Greenbush," attended the announcement and burst into cheers when Thompson said the Capital Region casino would go to Schenectady.

"I'm ecstatic," said Joanne Kathleen Farrell, one of the activists. The Rensselaer city resident opposed both local proposals. "I did not want it down the street from my house," she said of the Hard Rock plan.

Following the announcement, Kevin Law, who chaired the location board, said support or opposition in a given community was an important factor. But members also took a hard look at the financial viability of the proposals.

"At the end of the day, we had to do what made financial success," said Law.

Schenectady resident Denen Blackmon lives on Front Street, near the Rivers casino site.

"I am emphatic about it, that's going to be another job for me," she said, smiling broadly. "I think it's more jobs not only for people in my neighborhood, but for people in other communities." She also dismissed claims that the casino will bring more problems to Schenectady.

Her friend Yvette Wood, who has lived in the city for the past 25 years, is also in favor of the casino.

"If you look around, the whole town has changed. It's beautiful, they're trying to make it better, so they're not going to allow it to bring the community down," Wood said.

This e-mail address is being protected from spambots. You need JavaScript enabled to view it • 518-454-5758 • @RickKarlinTU