No casino in Manhattan after community board rejects proposed Mohegan Sun resort near United Nations

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NEW YORK (AP) — There will be no casino in Manhattan after a community panel rejected a proposed Mohegan Sun resort near the United Nations headquarters.

The Freedom Plaza development, which also called for hotels, retail, dining, entertainment and housing, was denied by a state-commissioned community advisory committee on a 4-2 vote Monday.

Committee members, who were appointed by Gov. Kathy Hochul, Mayor Eric Adams and other local politicians, cast their votes with barely any discussion, other than to thank the applicants for their time and responsiveness.

In a last minute bid to gain local support, the developers announced over the weekend they would commit to making the more than 1,000 residential units proposed for the project permanently affordable. They had earlier proposed other community investments, such as a museum dedicated to democracy, a community center, a daycare and acres of public open space.

Michael Hershman, CEO of the Soloviev Group that was the lead developer on the more than $11 billion project, said their vision would have “revitalized” Midtown East.

“Manhattan is the undisputed capital of the world, and it deserved a fully integrated resort that would have attracted visitors while serving the needs of its community,” he said in a statement.

Spokespersons for Mohegan Sun, the tribe-owned casino company based in Connecticut, didn’t immediately respond to email seeking comment.

The project, spanning more than six acres from 38th Street to 41st Street east of First Avenue, had been the last remaining proposal under consideration for Manhattan.

A Jay-Z-backed plan to build a Caesars Palace casino in Times Square and another proposal to build a gambling resort on Manhattan’s West Side in the Hudson Yards area were both voted down by two other community boards last week.

Five proposals are now remaining in the race for up to three lucrative state gambling licenses for the New York City area.

Among them is a proposed Bally’s casino on a Bronx public golf course once run by President Donald Trump’s company, a gambling hall envisioned for Coney Island’s iconic boardwalk in Brooklyn and a Hard Rock casino proposed next to Citi Field in Queens, where the New York Mets play.

Two “racinos” — slot parlors built alongside horse racing tracks — that are located in Yonkers and in Queens are also seeking a license to become full-fledged casinos with live table games such as blackjack and poker.

Local board approval is required for proposals to advance to the next stage in the competition. State gambling regulators expect to make their final decision in December.

Adams, a Democrat who is running for reelection as an independent, expressed surprise at the demise of the some of the more high profile projects in the running.

“Casinos can bring jobs. It can bring stability, tourism,” he said in a television interview ahead of Monday’s vote. “So, I was surprised at some of the negative votes. Let the final process make the decision. We should not be stopping them at this local level.”

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Associated Press reporter Anthony Izaguirre in Albany contributed to this story.

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Follow Philip Marcelo at https://x.com/philmarcelo