Proposal underway to enable casino development in New York City

NEW YORK — A zoning proposal to make way for casinos in New York City is expected to come before the City Council later this month, amid a fiercely-competitive race to operate gambling facilities in and around the five boroughs.

The City Planning Commission is slated to vote on the zoning amendment in the coming weeks, a Department of City Planning representative confirmed to POLITICO. The plan is expected to be approved, according to two people familiar with the matter, before advancing to the Council for a final decision.

The proposal, unveiled last year, would legalize casino uses in certain commercial and manufacturing areas for facilities that have obtained a state-issued gaming license.

The Adams administration and the Council reached consensus on the approach before moving ahead with the zoning amendment last fall.

“Casinos have the potential to bring jobs and economic opportunities to New Yorkers, but applicants within New York City are at a disadvantage today because the city does not currently have a mechanism in our land use regulations to properly review casino siting,” City Planning director Dan Garodnick and Council Speaker Adrienne Adams said in a joint statement at the time.

After the publication of this story, one key lawmaker — Council Member Kristy Marmorato, who has a casino bid in her district — said she considers the plan dead on arrival. The plan has also drawn opposition from several community boards.

“I want the city to have an opportunity to win all 3 downstate gaming licenses, however it’s paramount that our local communities have input on any project proposed in the community and a text [amendment] that bypasses the [ULURP] process is a non-starter for me,” Marmorato said in a text message.

The proposal nonetheless stands a good chance in the legislative body since the Speaker supports the approach, but Marmorato’s comments speak to a looming fight.

At least nine New York City bidders are expected to compete for three downstate licenses that are up for grabs once the process formally begins. Under state rules, applicants must obtain local zoning approvals before they’re considered by the gaming commission — which could mean each of the nine casino bids has to submit individual land use applications to the planning department, potentially overburdening the agency.

The citywide zoning plan would help avoid that, though some of the bidders will still need to obtain site-specific land use changes.

The specifics of all the casino bids will be reviewed by advisory committees appointed by political leaders — and the plans will need local support to move forward.

Once the citywide zoning proposal reaches the Council, it will likely put a spotlight on members who have casino bids in their districts: Marmorato in the Bronx, Francisco Moya in Queens, Erik Bottcher and Keith Powers in Manhattan and Justin Brannan in Brooklyn.

"I support the broader amendment to authorize a casino to operate somewhere in New York City, but individual proposals will still have to go through a rigorous community process," Powers said in a text message.

The other three did not immediately comment on whether they support the citywide zoning plan.