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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.

Manhattan Casino Proposal Shot Down by Community Panel

A proposed Mohegan Sun casino and resort project near the United Nations is rejected by a community advisory committee amid concerns for local needs and affordability.

Source: AP2 min read

In brief

A Mohegan Sun casino project in Manhattan has been rejected by a community advisory committee on a 4-2 vote. Despite last-minute commitments from developers to make more than 1,000 residential units permanently affordable and promise community investments, the proposal failed to gain local support. This decision leaves only five proposals in the running for state gambling licenses in New York City, with the final decision expected in December.

NEW YORK (AP) — A proposed Mohegan Sun resort project near the United Nations headquarters has been rejected by a community advisory panel, meaning no casino will be built in Manhattan. The development, known as Freedom Plaza, was intended to include hotels, retail, dining, entertainment, and affordable housing but was voted down 4-2 by the state-commissioned committee on Monday.

The committee, composed of appointees from Governor Kathy Hochul, Mayor Eric Adams, and other local officials, offered minimal discussion during the vote, thanking the applicants for their efforts instead of delving into the details of the proposal.

In an eleventh-hour attempt to garner local approval, developers pledged to make over 1,000 residential units part of the project permanently affordable, along with community investments including a democracy museum, a community center, a daycare, and extensive public open spaces.

Michael Hershman, CEO of the lead development firm, the Soloviev Group, expressed disappointment, emphasizing that their vision could have revitalized Midtown East, branding Manhattan as the world's capital deserving of a fully integrated resort.

Spokespersons for Mohegan Sun did not respond immediately to inquiries for comments. The Freedom Plaza project was the last major proposal under consideration for a casino in Manhattan. Previous plans, including a Caesars casino in Times Square backed by Jay-Z, were also recently voted down by other community boards.

Currently, five proposals remain in competition for up to three lucrative state gambling licenses for the New York City area. Among these are a Bally's casino on a Bronx public golf course, a Coney Island gambling hall, and a Hard Rock casino near Citi Field in Queens, home to the New York Mets.

In the meantime, two existing 'racinos' in Yonkers and Queens are also vying to upgrade to full casinos offering live table games.

To further complicate matters, local approval is necessary for projects to advance in the licensing process, which is expected to conclude with a decision from state gambling regulators in December. Mayor Adams expressed surprise at the rejections of high-profile projects, asserting that casinos could bolster jobs and tourism in the city.

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