State gaming officials willing to reconsider fourth upstate casino

PHOTOGRAPHER: Haley Viccaro

State gaming officials are “willing to entertain” the governor’s request for a fourth casino in the Southern Tier to benefit the economically distressed region, prompting representatives in Schoharie County to argue that a casino at Howe Caverns should also be reconsidered.

In response to a letter by Gov. Andrew Cuomo calling for a casino in the Southern Tier, the chairs of the state Gaming Commission and Gaming Facility Location Board said they are willing to consider a new Request for Application for a casino in that region.

“The intent of the gaming statute was to benefit economically distressed upstate areas experiencing high levels of unemployment,” said Mark Gearan, chairman of the Gaming Commission, in a statement. “Clearly, the Southern Tier meets this criterion.”

Last month the five-member siting board, handpicked by the Gaming Commission, recommended three casino projects in upstate for licenses: Rivers Casino and Resort at Mohawk Harbor in Schenectady; Montreign Resort Casino in Thompson, Sullivan County; and Lago Resort and Casino in Tyre, Seneca County.

The Lago proposal, located in the Finger Lakes region, was chosen over two other casino projects pitched in the Southern Tier. Seneca County was included as part of the Southern Tier, dubbed Region Five, under the Upstate NY Gaming and Economic Development Act.

Chairs of the Gaming Commission and siting board agree with Cuomo that a casino should be reconsidered for the Southern Tier to provide added jobs and revenue to the area’s struggling economy. The same argument could be made for Schoharie County, said state Sen. Jim Seward, R-Milford.

“I would like to see the Howe Caverns application also be in the mix for reconsideration,” said Seward, whose district includes the town of Cobleskill, where Howe Caverns is located. “We certainly meet all of the criteria, particularly being economically distressed. If we’re going to open the process for a fourth casino, I would prefer Howe Caverns be considered as well.”

Ryan Moses, spokesman for the proposed Howe Caverns Resort and Casino, said Schoharie is “the hardest hit in the Capital Region economically.” The county is home to a little more than 30,000 people with 11.5 percent of residents living below poverty level.

Tropical Storm Irene devastated the area three years ago, with business owners and homeowners still working to rebuild. Moses said public support for the Howe Caverns project was strong because “they needed it.”

Howe Caverns owner Emil Galasso partnered with Michigan casino developer Michael Malik and Full House Resorts of Las Vegas on a casino project that included plans for two 250-room hotels, a banquet facility, several restaurants and an indoor and outdoor waterpark. The project was pitched as a family destination at an already established tourist attraction.

“This really could have been a game-changer for the community,” Moses said. “That’s why you saw such disappointment and also such support. The Schoharie Valley has been struggling for years. As you talk about regions that are hurting economically, I don’t know why it applies to the Southern Tier and not Schoharie in the Capital Region.”

Seward said he understands the circumstances in the Southern Tier and is not critical of the governor for getting involved in the siting process, after he previously stressed that the decision would be left in the hands of the location board.

At the same time, Seward said, “for the sake of the integrity of the process” he would like to see other economically depressed areas also have a second chance.

“In fairness to all I believe all economically distressed areas that have put together strong applications should also be reconsidered,” he said. “I do not have false hope, but I would like to have Howe Caverns reconsidered. I think the application came a long way. Initially people were snickering about it, but in the end, I think we were very competitive. I think the Howe Caverns application won the hearts, but not the casino.”

The siting board is scheduled to meet on Tuesday at 7 p.m. in Manhattan to discuss a new RFA for a casino in the Southern Tier.

It is unclear what the timeline would be for a new RFA. The initial site selection process by the board took about nine months. Jeff Gural, owner of Tioga Downs in Nichols, Tioga County, was previously one of two Southern Tier applicants. Bidding for a fourth license could lead to other applicants competing against the racino.

“We are willing to entertain the governor’s request to issue a new Request for Application for this region, given the recommendation of Lago in the Finger Lakes region could encourage proposals from new applicants in the Southern Tier region,” Law said.

Law stressed that the board would not reconsider casinos sited in the Capital Region and Catskills/Hudson Valley region. Nearly two weeks ago, Rensselaer Mayor Dan Dwyer sent a letter to Cuomo calling on him to push the Gaming Commission to reconsider the siting board’s recommendation of locating a casino in Schenectady.

Dwyer called the board’s decision to choose the Schenectady proposal over the Hard Rock casino project in Rensselaer “inexplicable.” In the letter, Dwyer said a new RFA should be performed for the Capital Region with new board appointees who reside in upstate.

The siting board plans to release documents detailing their findings of all 16 casino proposals next week, according to Gaming Commission spokesman Lee Park. The report will outline the board’s reasons for recommending or not recommending each project.