\n(Bloomberg) \u2014 A New York panel that will select as many as four sites for upstate casinos must weigh threats of lawsuits, claims of environmental hazards and even opposition from the descendants of Gilded Age railroad baron E.H. Harriman.<\/p>\n
\tThe committee is considering 16 bids, part of Governor Andrew Cuomo\u2019s plan to revive the region\u2019s economy while adding $430 million to state and local coffers. The panel, which may announce the winning proposals as soon as this month, must consider local sentiment, environmental issues and legal challenges.<\/p>\n
\tThe biggest prize is the area closest to New York City and its 8.4 million residents, where Caesars Entertainment Corp. and Genting Bhd. are vying to build resorts in Orange County. The Harrimans, whose donated land created New York\u2019s second-biggest state park, are fighting to stop both, including enforcing limits on deeds to block Caesars.<\/p>\n
\t\u201cThe current Harriman family is intent on perpetuating their legacy of protecting and enhancing the environment in that section of the state,\u201d said James Sweeney, an attorney for the Harrimans in Goshen, New York. \u201cThe family will march off to court to enforce the deed restrictions, and the siting board knows that.\u201d<\/p>\n
\tAtlantic City<\/p>\n
\tUnder a referendum approved by voters in 2013, the panel can hand out as many as four licenses across three regions, including the Orange County-Catskills area, about 50 miles (80 kilometers) northwest of Manhattan. Among the criteria they will consider is the increasing saturation of the Northeast gambling market. In New Jersey, four of Atlantic City\u2019s 12 casinos have shut this year.<\/p>\n
\tIt\u2019s possible the panel could reject all of the proposals. Members won\u2019t comment until after they\u2019ve made their decisions, said Lee Park, a spokesman for the five-member board.<\/p>\n
\tCuomo, a 56-year-old Democrat, said at an Oct. 20 press briefing that he isn\u2019t worried that opposition might derail two of the biggest proposals, Genting\u2019s $1.5 billion resort and Caesars\u2019 $880 million casino-hotel. Both are the type of large- scale casino development he says he wants for New York.<\/p>\n
\t\u201cWe have some controversy about certain sites and we don\u2019t even know that those sites will be selected,\u201d Cuomo said. \u201cThey may have nothing to complain about because there may be no casino.\u201d<\/p>\n
\tSweeney and Albert Butzel, a lawyer for the Sterling Forest Partnership, a group that opposes Kuala Lumpur-based Genting\u2019s plan, said that by raising their concerns now, they seek to influence the board.<\/p>\n
\tDelays Threatened<\/p>\n
\t\u201cIf they should select this location, there\u2019s going to be continued opposition,\u201d Butzel said. \u201cOur hope is the location board will recognize that and other factors like the environment and will go against the casino because the potential for delay is significant.\u201d<\/p>\n
\tThe Harriman family already helped deliver a potential victory to the Sterling Forest Partnership. David Harriman Mortimer, the great grandson of E.H. Harriman, joined with fellow members of the Palisades Interstate Park Commission last month to deny Genting easements on park land for a New York State Thruway exit for its proposed resort in Tuxedo. The commission manages Harriman State Park and Sterling Forest State Park.<\/p>\n
\tDrinking Water<\/p>\n
\tWithout the easement, Genting will need approvals from both the New York and New Jersey legislatures, said James Hall, the commission\u2019s executive director. That probably won\u2019t happen because the New Jersey Senate approved a resolution in September asking New York to reject Genting\u2019s bid, saying it would threaten the Garden State\u2019s drinking water.<\/p>\n
\tMichael Levoff, a Genting spokesman, said New York already passed a law allowing the Thruway exit in the mid-1980s. Genting, Malaysia\u2019s biggest casino operator, doesn\u2019t need approval from the commission, which acted before the proposal had gone through a state-mandated environmental review, he said.<\/p>\n
\tThe resort would include a Renaissance fair and a ski area, and the company would build a water-filtration system, Levoff said. Genting is offering to pay a $450 million licensing fee, $380 million more than the minimum required by the state.<\/p>\n
\t\u201cThroughout this process, we have also worked to engage our detractors in constructive dialogue, committing to a variety of improvements to our site plans with their input,\u201d Levoff said by e-mail. \u201cShould we be lucky enough to receive a license, this collaboration will continue.\u201d<\/p>\n
\tDeeds Cited<\/p>\n
\tE.H. Harriman, who died in 1909, took over the Union Pacific Railroad and expanded his rail holdings to the point where he dominated the industry, much the same way John D. Rockefeller did with oil.<\/p>\n
\tThe casino-hotel proposed by Las Vegas-based Caesars in Woodbury that his heirs are fighting is on land the railroad magnate once owned, Sweeney said. When it was sold, a restriction against building hotels on the property was placed on the deed.<\/p>\n
\tCaesars has also leased about 11 acres for its project from the Norfolk Southern railroad, where it would build the hotel for the casino. Sweeney said that property also has a restriction on it requiring the railroad to return the land to the Harriman family if it\u2019s not being used for rail transportation.<\/p>\n
\tMortimer, who manages the family\u2019s land holdings, declined to comment through Sweeney, who said he speaks for the Harrimans.<\/p>\n
\tJan Jones Blackhurst, Caesars executive vice president for communications and government relations, said the family\u2019s claims have no merit.<\/p>\n
\tThey \u201care simply noise from those who will say or do anything to oppose a casino under any circumstances,\u201d Blackhurst said by e-mail. \u201cThere is no question that we have rights to build our project on this property.\u201d<\/p>\n
\t\u2013With assistance from Christopher Palmeri in Los Angeles and Allyson Versprille in New York.<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
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