New York: Hudson Yards Casino Effort Faces Setback as Community Board Blocks Zoning Change

^{Related Companies CEO Jeff Blau (lower right) makes his pitch for revised casino development plans to a packed house and Zoom room at the Manhattan Community Board 4’s Land Use Committee, where committee and community members expressed skepticism about the project. (Image: YouTube/MCB4)}

If local support matters for anything in the race for the three downstate New York casinos, then the Hudson Yards complex proposed by Wynn and Related Companies may be in serious trouble.

The Clinton Hell’s Kitchen Land Use Committee of Manhattan Community Board 4 (MCB4) voted unanimously on Thursday, December 12 to reject zoning changes that would allow the construction of the largely commercial proposal in the Western Rail Yards.

Committee Says Housing, Not Casino, Should Fuel Development

The committee told developers that its priority for the neighborhood is the creation of more housing units rather than a casino or other commercial development.

Related Companies has proposed a $12 billion plan for the neighborhood, which would include a Wynn resort and casino along with a mix of commercial offices and some housing. However, the new proposal would include 4,000 fewer housing units than the initial Related Companies proposal in 2009, which was primarily a residential building plan.

Developers say that the 2009 plan is no longer economically viable, and that the current proposal offers the best balance between helping the community and boosting the local economy. 

“Hudson Yards West is a transformative project that will deliver long-term community and economic benefits for the neighborhood,” a Related Companies spokesperson said in a statement sent to W42ST.com. “We look forward to continuing to work with community members and local stakeholders as we move through the ULURP [Uniform Land Use Review Procedure] process to make this project a reality.”

While polling has shown little local support for the proposal, many construction unions have come out in favor of the casino complex. At the Thursday meeting to discuss the proposal, supporters and opponents squared off with differing opinions on the casino project.

“I believe that this plan is not only ambitious, but essential,” Hudson Yards resident Veronica Thaxton said during the meeting, via W42ST.com. “Based on my own research, I see this proposal delivering significant benefits, boosting New York City’s economic development, creating thousands of jobs.”

Friends of the High Line executive director Alan van Capelle, who launched a campaign against the proposal due to how it would impact views from the popular elevated park, spoke in opposition.

“Unfortunately, Related Companies have made a terrible misjudgment,” van Capelle said. “They have mistaken our community’s passion for inclusiveness and understanding, and seem determined to steamroll through a plan that ignores our voices, our values and our needs.”

Wynn, Related Companies Face Uphill Battle for Casino License

Ultimately, the MCB4 committee came down on the side of those who opposed the new proposal. Members said that they believed there were opportunities to get financing for a housing-based development, while Related Companies’ current strategy relies on its uncertain bid for a casino license.

“We need to be asking what is the current need, now and in the future, for not only our neighborhood but the city,” MCB4 member Delores Rubin said during the meeting. “And I think everything that is here on either side – they all think it’s housing. And if that’s a point of agreement, that’s a starting point to think of the opportunity.”

The committee will write a letter opposing the requested modifications, after which the full MCB4 board will vote on it during a January 6 meeting. After the Manhattan Borough President offers an opinion, the New York City Council will vote on whether to approve the zoning change.

The odds of Related Companies and Wynn getting that change might be slim. Not only is the MCB4 against the project, but other local legislators, including Assemblyman Tony Simone (D-Manhattan) and Assemblywoman Debroah Glick (D-Lower Manhattan) have come out against the proposal. 

Even if the zoning change is ultimately approved, the Hudson Yards project has steep competition for the three available downstate casino licenses in New York. Racinos in Queens and Yonkers may have an inside track on two of the licenses, while New York Mets owner Steve Cohen, Caesars, and Las Vegas Sands are among several major players also fighting to build a casino in or near New York City.