City Planning Commission Grants Hudson Yards Casino Zoning Approval

The City Planning Commission on Wednesday voted 9-4 in favor of a rezoning plan for a casino project at Hudson Yards in Manhattan, New York.

This is another step in the direction of transforming the Western Rail Yards land into a commercial and entertainment district.

The rezoning designation still needs approval from the City Council before it can officially enter the sweepstakes for one of three New York casino licenses that will come available later this year.

A total makeover

While the vote is a positive sign for Related Companies, Wynn Resorts, and Oxford Properties Group, all of whom are behind the “Hudson Yards West” project, there’s no guarantee that their plans for an opulent casino come to fruition.

“We're not evaluating the merits of a gaming facility at this location,” said Dan Garodnick, chair of the commission. “That process will be difficult and competitive and it is possible that no casino will be sited at this location.”

Currently a railway, the plans for the redevelopment of Hudson Yards call for a total overhaul of the land. The developers plan to refurbish the area with housing units and public park space, and if licensing is approved, a casino, among other amenities.

Their plan is a rework of a 2009 proposal that laid out blueprints for a large residential area. The companies’ new proposal would reduce the number of available housing units by 3,000 but would honor the amount of affordable housing units. 

Related Companies argued the 2009 version relied on expensive condos, which it claimed were no longer financially viable.

A casino arms race

The developers already pledged one percent of gross gaming revenue generated by a casino, if approved, to nearby communities like Chelsea, Hell’s Kitchen, and Manhattan’s West Side.

Casino approval would likely lead to the development of improved transportation options in the region to accommodate the influx of guests and travelers. 

The Hudson Yards project now finds itself in a similar position as New York Mets owner Steve Cohen’s group. Cohen and his team recently received zoning approval for their casino project in Queens, meaning that competition for the licenses is heating up.

At least eleven prospective casino licensees are vying for three licenses. Other projects include one headlined by rapper and business mogul Jay-Z, one in Coney Island, and another next to the Bally’s golf course in The Bronx.  

Applications are due by June, and zoning approvals, land-use agreements, and community greenlights are due by the end of September.

New York Gov. Kathy Hochul is expected to announce the licensees no later than the end of the year. The eventual recipients of the licensees are expected to generate a ton of economic stimulus in New York’s gaming-rich market, which is the top sports betting market in the country. 

Estimates suggest that New York City casinos could generate $1.5 billion in upfront revenue and at least half-a-billion in annual tax revenue.