Posted on: December 18, 2024, 04:15h.
Last updated on: December 18, 2024, 04:15h.
The Hippodrome office building is the latest entity to vocalize opposition to the plan to bring a casino hotel to Times Square in New York City.
Principals of the Class A office building at 1120 Avenue of the Americas believe the proposal by Caesars Entertainment, real estate developer SL Green, and Jay-Z’s Roc Nation entertainment agency to bring a gaming venue to the theater district would be detrimental to tenants in nearby office buildings.
Times Square is thriving and hardly needs to experiment with this kind of development,” said Andy Gottesman, principal of The Hippodrome, in a statement. “In addition to the valid concerns expressed by others about congestion, disruption and questionable economic benefits, we underscore the likelihood of losing the delicate balance among office workers, theater-goers and tourists that has evolved over many years.”
Hippodrome’s objections to the Times Square casino plan arrived two weeks after the United Federation of Teachers said it too opposes the idea of a gaming venue in the entertainment district on the basis that the area is an “educational goldmine” for children and that a casino could disrupt that status.
Hippodrome Sees Precedent for Times Square Casino Objection
Due in part to the dearth and pricing of viable commercial real estate in New York City suitable for gaming venues, many of the gaming companies vying for three downstate casino licenses are partnering with real estate firms.
In addition to Caesars/SL Green, Related Cos. and Wynn Resorts are partnering on an effort to bring an integrated resort to the Western Rail Yards on the West Side of Manhattan. While these relationships are common in the New York casino bidding process, Hippodrome’s Gottesman says there’s also precedent for commercial real estate developers abandoning casino hopes on the basis that gaming venues could be harmful to tenants.
In the press release, the Hippodrome principal highlighted the example of Vornado Realty Trust, one of the largest real estate investment trusts (REITs), abandoning plans to potentially bring a casino hotel to the area around Madison Square Garden and Penn Station.
When that news surfaced in October 2023, Vornado Chairman and CEO Steve Roth didn’t get into details as to why the gaming venue idea was being dropped, but Gottesman speculated Vornado made that decision because it believed tenants would be less likely to initiate new and renew old leases with a gaming venue as their neighbor.
Times Square Casino Has Ample Objection, Support
The Times Square Casino proposal is similar to competing bids in that it has plenty of detractors and supporters among locals — many of whom don’t object to New York City having casinos. They merely don’t want the gaming venues in their neighborhoods.
In the case of the Times Square casino, Hippodrome is the latest member of the No Times Square Casino Coalition, which is comprised of approximately three dozen local businesses and community and theater groups.
Conversely, the Caesars/SL Green project is supported by some business entities in Times Square as well as a slew of labor groups backing the proposal on the basis that it will create thousands of good-paying union jobs.
