New York City officials unveil zoning changes to facilitate development of casinos

The New York City Planning Commission is beginning a seven-month process for a zoning text amendment that would legalize casinos in certain commercial and manufacturing areas, assuming they obtain a gaming license from the state.

If passed, potential casinos in those zoning districts, which cover wide swaths in every borough, would need approval from only the state and its Community Advisory Committee to move forward with the project, avoiding the long Uniform Land Use Review Procedure for each application, according to the city.

While the specifics of at least nine casino bids in New York City will be reviewed by local advisory committees in the coming months, the citywide initiative is intended to ensure the gaming applications as a whole are “not at a competitive disadvantage” in the ongoing state process compared to those in surrounding counties, Dan Garodnick, CPC chair and director of the Department of City Planning (DCP), said as reported by Politico.

"As the state considers proposals for casinos downstate, it’s important that we create a level playing field for applicants within New York City so they can compete for this opportunity," he added, as per the Commercial Observer. "This text amendment would avoid duplicating the state’s rigorous licensing process, which includes local representation on the [Community Advisory Committee] while setting up a rational framework for consideration within our zoning."

Dan Garodnick

The new proposal also ensures the city won’t be deluged with individual land use applications from each of the casino bidders. The licensing process requires that applicants obtain local land use approvals before they’re considered by the state gaming commission. 

Under the proposed text amendment, gaming facilities would be permitted in specified commercial and manufacturing zones with a state license, and those facilities would be "deemed complying and conforming with all applicable use and bulk zoning regulations," according to a description of the proposed changes.

"Other non-casino uses such as hotels, restaurants, bars, eating or drinking establishments, as well as other amenities, may be included with the State approval and license, and will also be deemed as being in compliance with the Zoning Resolution," the description states.

The potential could help each developer who has made proposals for one of the three downstate licenses to be approved by the New York State Gaming Commission. The proposal will be reviewed by the city’s 59 community boards, and five borough presidents and come up for a vote by the Council sometime next year. 

The casino proposal by Related Companies and Wynn Resorts works since much of the Hudson Yards is zoned C4-6 and M1-2. Thor Equities’ plans for a gaming house between Stillwell Avenue, West 12th Street, Surf Avenue, and Wonder Wheel Way in Coney Island, Brooklyn, also seem to benefit since it sits within a C7 zone.

Stefan Soloviev’s plans for an entertainment district also look to be helped by the proposal. Soloviev’s proposed Freedom Plaza between the East River and First Avenue from 38th to 41st Streets is also safe, falling into a C5-2 zone, the city government’s interactive zoning map.

Other proposals include Point72 Asset Management’s Steve Cohen plan for a gambling house next to Citi Field in Queens; and SL Green Realty, Jay-Z’s Roc Nation, and Caesars Entertainment's proposal for a gaming floor in Times Square, which is zoned for commercial uses as well.

However, proposals like Cohen's and Bally’s in the Bronx could have other barriers to cross before opening a casino, since they would both require permission to build on park land.