Poker strategy stumbles along the Mohawk (with updates)

 . . Rivers Casino Poker Room

 Despite good media coverage and optimism for River Casino’s roll-out of daily Poker Tournaments last week (see Times Union & Gazette), Schenectady’s Mohawk Harbor Casino posted record-low weekly revenue numbers for the second week in a row, with generated dollars down for the 7th time in 8 weeks. Total GGR for the week ending April 16, 2017 was merely $2,532,004, down  5.2% from the prior week’s nadir. Indeed, its Poker Table GRR during its first week of daily tournaments went down 12.9% from the prior week. And, slots GRR tumbled another 9.7%. Meanwhile, Capital Region competitor, Saratoga Casino and Hotel saw a 6.0% drop from its prior week’s Net Win numbers.

  •  For more information and discussion about revenues at the Mohawk Harbor Casino, see our posting on April 7, 2017, which has relevant charts and links; short URL: http://tinyurl.com/RiversDown . (Image at head of this blurb is  detail from C. M. Coolidge’s “A Friend in Need”.)

update (April 22, 2017, 12 AM): See “Income falls at Rivers, Saratoga: Gross revenues from gaming off more than 5% in week’s stretch” (Times Union, by Eric Anderson, April 22, 2017), which noted:

For Rivers, it’s the lowest weekly revenue figure since its opening in early February, and it came despite a series of poker tournaments during the week.

The poker room has been popular among casino customers, officials have said.

Observers have suggested that extensive roadwork on Erie Boulevard outside the casino may have played a part in the decline. . . .

The casinos haven’t released attendance figures, so it’s not clear how the restaurant and other food outlets have performed.

follow-up (April 28, 2017): Finally some good news for Rivers Casino Schenectady and those counting on its revenue stream. For the week ending April 23, 2017, GGR were $2,866,673, up 11.6% from last week’s lowest-ever figures. See the Official Weekly Report. A screen shot of the April numbers is immediately below this blurb. The Net Win figures up the road at Saratoga Casino were up 3.9%.

RiversRevs28Apr2017

record decline at Rivers Casino Schenectady

 

For the fifth time in six weeks, week-to-week net revenues at Rivers Casino in Schenectady declined last week. [see the composite Report to the right; and the Official Weekly Report.] The 19.8% fall in revenues, down to $2,897,721, was the largest to date at the Casino, which opened February 8. While Rivers Schenectady saw a significant decline, revenues at nearby Saratoga Casino edged up 1.8% to a Net Win of $2,858,905. (Compare the figures reported March 31, 2017 by the Times Union’s Eric Anderson, here; and click here for our prior revenue coverage)

  •  Rivers also reported its Revenue Tax distributions for February 2017, showing that Schenectady County and the City of Schenectady each received $191,991 as their home community share of revenues paid to the State. The average daily GRR for the opening weeks in February were, however, significantly higher than the daily average since then. Nonetheless, the payment of $191,991 for the 22-day partial month of February would result in an annualized total of $3,185,305. When selling the Schenectady Casino to the Racing Commission and the public, Rush Street (and Mayor Gary McCarthy) projected payment of $4.1 million each (22% more) to the City and the County once revenues stabilized.

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update (Saturday, April 8, 2017): The Schenectady Gazette covered revenue and tax distribution for February and march in an article in today’s paper, “Rivers Casino revenues up in March, still behind projectionsFigures from first full month of operation reported” (Brett Samuels, April 8, 2017). As I wrote in a Comment left at the online webpage for the story (which also suggests other issues needing coverage):

deskdudeThe real news is not that — OMG!! — revenues for a 31-day month were higher than for a 20-day month, but that revenues have been down five of the past six weeks. In fact, the decline last week was 19.8%, while Saratoga Casino had about a 2% increase.

The Gazette article does give a nice summary of the projection shortfall issue (while also suggesting reasons revenues might rise as the year progresses):

If the current pace of just over $200,000 per month continues, the city and county would take in about $2.3 million for 2017, falling well short of Rush Street Gaming’s projections submitted in its 2014 application with the Gaming Commission. . .

That economic impact analysis, which included five-year projections for gaming revenues, estimated the low-end gaming revenue for the city and county would be about $3.3 million each for the city and county.

In preparing its 2017 budget, Schenectady County used the low-end revenue estimate, $3.3 million, and pro-rated it to a March opening. That would leave the county expecting about $2.75 million in casino revenue this year.

why the 21-year-old rule at Rivers Casino?

 A number of people have left comments in the media this week, after learning that Rivers Casino at Mohawk Harbor was fined for allowing an underaged person — someone not yet 21 — to gamble. They wondered why the age for gambling at the casino isn’t 18, like at racinos and Indian casinos in the State. See “Underage gambler caught — but only after he won $1,300 on slot machinesSchenectady casino fined for letting him on the gambling floor” (Albany Times Union, by Paul Nelson, March 24, 2017); “State fines Rivers Casino $6k for underage-gambler” (Schenectady Daily Gazette, by Steven Cook, March 23, 2017). 

Here is the Comment I left at the Gazette explaining the legal situation and speculating on reasons:

 You’re right to be a little confused. Although the general age to gamble in New York State is 18, the Upstate New Gaming and Economic Development Act of 2013 added an exception for the commercial “destination” casinos approved by that statute. [click for the text of the Act] You must be 21 to gamble at any new facility licensed under the Act (Schenectady, Seneca Falls/Tyre, Tioga, and Monticello). Here’s the provision:

“§1332. Age for gaming participation 1. No person under the age at which a person is authorized to purchase and consume alcoholic beverages shall enter, or wager in, a licensed casino; provided, however, that such a person may enter a casino facility by way of passage to another room . . . “

Any winnings by a person prohibited under the above section must be forfeited and put into the State’s gaming revenues fund. Those under 21 are still allowed in other parts of the casino facility (restaurants, entertainment events, etc.), but not the actual “casino” rooms where the gambling is allowed.

“Racino” locations and Indian reservations may continue to allow 18 year-olds to gamble. Such facilities either send them into special under-21 areas or give them wristbands indicating they are under 21, so they won’t be served alcohol. Attempts by lawmakers and others to raise the gambling age at the racinos have gone nowhere in the State Legislature.

Like many laws that seem illogical, the 21-age limit was probably a political concession to get the Constitutional Amendment and the 2013 Act passed. My guess is that the existing racino locations (which do not have live table games) pressed hard to have this advantage over the new commercial casinos; it might also have been a way to get the votes of others who were anti-gambling in general.

 Many people are concerned that the younger you are when introduced to casino gambling the more likely it is that you will develop a gambling problem. The mixture of alcohol and gambling is even more worrisome. See our posting “what will the casino mean for Union College students?“, which discusses such issues, and our particular concern over Rush Street Gaming’s practice of targeting younger gamblers. And see “Rush Street takes aim at adolescents” (Sept. 9, 2014).

Note that the Pennsylvania Gaming Control Board has had to fine Rush Street’s Philadelphia casino, SugarHouse, numerous times for allowing underage gamblers and persons on the self-exclusion list to gamble. See details at our 2016 problem gambling post http://tinyurl.com/ProbGambSchdy

Rivers revenues down 4th straight week (with updates)

 Schenectady’s Rivers Casino at Mohawk Harbor faced its first major snow storm last week. The storm virtually closed the City down on Tuesday, March 14, but roads were serviceable the next day, with the nearby Stockade neighborhood (especially Front Street, which borders the casino complex) enjoying its quickest snow removal experience in memory. It is no surprise that Gross Gaming Revenues at Rivers Schenectady declined from the prior week’s record low figures, making it four straight weeks of falling GGR. In fact, the 1% reduction was less severe than I had expected, with $2,757,738 generated. The image at the head of this paragraph shows the weekly totals since Rivers opened in Schenectady on February 8.

The distribution of the revenues looks interesting to this non-expert observer:

  • slots revenues were down 17.6%, falling to $1,571,972
  • table game revenues were up 44.6%, soaring to $1,060,418

Did grandma decide to stay home, while the high-rollers were snowed in at Mohawk Harbor overnight the day of the storm?

. . you can find the weekly Rivers Casino revenue stats, usually refreshed on Friday morning, here: http://tinyurl.com/RiversSchdyRevs

. . see what do those Casino revenue figures mean? (

newspaper update (Monday, March 27, 2017): As of 1 PM today, the Gazette continues to avoid mentioning this streak of weekly revenue declines. Thankfully, the Times Union did report the revenue picture today, in “Area casinos had another down week” (by Eric Anderson, online on March 27, 2017). The TU notes that Saratoga Casino saw its third weekly decline, and “Rivers reported its fourth consecutive weekly decline”, noting “The most recent figures likely were depressed by a massive snowstorm that struck the Capital Region March 14.” TU also explained that even Rivers Casino’s best week so far does not meet the weekly average it would need to make their “stabilized” 2019 revenues projection. 

  • RiversSchdyRevs31Mar2017 update (March 31, 2017): For the week ending March 26, 2017, Schenectady’s Rivers Casino had its first increase in revenues in over a month. The total GRR, $3,613, 222, was the best take for the Casino since its first full week, with a 31% increase over the prior week’s dismal GRR, which was the Casino’s lowest ever. As you can see from the composite below of the Rivers Casino Total Gross Gaming Revenues Report, there were significant increases in slots (16%) and table games (57%!), with poker revenues up almost 9%.

RiversCasinoRevs31Mar2017

As expected, the Schenectady Gazette never reported that Rivers Casino had four straight weeks of GRR decline, but I’m betting this increase will be up soon at their website and in Saturday’s hardcopy newspaper.


LadyBug14Mar2017 p.s.
“Walkable Schenectady”?  Our Mayor likes to brag about our “walkable City”, as do the gents at Metroplex. A week after the mid-March snow storm ended, many crosswalks in downtown Schenectady were clogged at the curb with snow, and many sidewalks in downtown Schenectady were left unshoveled. The snow had stopped Wednesday morning, but on Saturday evening, March 18, I made the mistake of trying to walk from my Stockade home up Front Street, to Mohawk Harbor and then up Erie Blvd. I spent a lot of time precariously switching from sidewalk to street.

 Front St. at N. Church. . DSCF2601

I was particularly surprised at how difficult it was to be on foot near the Casino.

DSCF2589 . . [L] this is what confronted you on foot at the intersection of Front Street and Rush Street, if you wanted to head toward Erie Boulevard.

DSCF2595 . . DSCF2597 . . Once at the rotary at Rush St. and Erie Blvd., you had some snow climbing to do to get to the Nott St. side of the rotary, with an unshovelled sidewalk once across the street.

DSCF2599-001 . . [L] Most daunting was trying to head south on Erie Boulevard on foot. Once past the overhead walkway, virtually all of the sidewalk had the full 19 inches of snow, all the way to Stewart’s, at Green Street. If a business had shoveled at its driveway, the curb at the intersection and crosswalk was piled even higher. I was left to walking at sunset on the side of a very busy road, with fast traffic and lots of puddles. Not pedestrian-friendly, Mr. Mayor. Not a good introduction to visitors on the ease of getting from Mohawk Harbor to our much-touted downtown Renaissance.

a wicked concert cartel?

 An article in today’s Schenectady Daily Gazette suggests that fears we expressed and explained in 2014, here and there, were warranted as to the likely anticompetitive and anti-consumer nature of the so-called Fair Game Theater Coalition. See “Rivers Casino, Proctors team up for entertainment: ‘In no way, shape or form do I feel like we’re competitors” (Daily Gazette, by Brett Samuels, A1, March 8, 2017). The article highlights the lack of rivalry and the depth of cooperation between Proctors and Rivers Casino, and the importance of the Upstate Theatre Coalition for a Fair Game in nurturing this chummy state of affairs between entities that clearly are two of the most prominent members of the live-entertainment and leisure activity market in Schenectady and the Capital Region.

Ironically, Proctors CEO Philip Morris seems to be bragging about the very kinds of restrictions that we warned about back in 2014, when we said:

feelin’ blue

 “[T]he “Fair Game” Coalition (a/k/a The Concert Cartel) may end up achieving joint booking and venue-size limitations, and a revenue-sharing agreement with each of the 3 or 4 winning casinos.  That could mean the equivalent of territorial exclusivity, and joint booking and ticket pricing, for all/each of FairGame members, across all of the eastern portion of Upstate New York, through midState locations such as Utica and Syracuse, and apparently stretching to their members in the Western end of the State.”

On the one hand, Proctors CEO Philip Morris asserts in the Gazette article that Proctors and Rivers Casino are not competitors (a contention that would clearly by rejected by objective economists and antitrust experts); on the other hand, he makes it clear that the Fair Game theater coalition is protecting its members from casino competition across Upstate New York. According to the Gazette:

Without the Fair Game agreement, Morris said, he likely wouldn’t be feeling quite as optimistic about the relationship between the two entertainment entities moving forward.

slicingthepie “It set the stage for a collaboration that probably was critical for any next step,” Morris said. “I think if there was no Fair Game, we probably wouldn’t be doing the booking, and we might be in competitive mode.”

Casino applicants were encouraged under the Act authorizing new commercial casinos to enter into arrangements with local entertainment venues, demonstrating that the local casino “actively supports the mission and the operation of the impacted entertainment venues.” [§1320(3)(2)(D)]. The members of the Fair Game coalition were expected to help their members and the applicants gather necessary information that would facilitate such agreements. Coalition members were not given the freedom to eliminate competition among themselves, nor to prevent competition from all casinos within a large (seemingly unlimited) region. Consumers will surely lose out, with fewer choices and higher prices.

trust-buster needed

In 2014, I asked the New York Attorney General’s Antitrust Bureau to take a look at the operation of Fair Game. Although they replied to me that a preliminary investigation was being undertaken, no further communications were received from the AG suggesting that Fair Game raised antitrust concerns. In 2017, the casinos are in operation in Tyre (near Syracuse), Tioga Downs (near Binghamton), and Schenectady. The AG can now see in more detail and in action the restrictions adopted by Fair Game’s group of the largest Upstate entertainment venues and by each of the new casinos. I hope the Antitrust Bureau will therefore take a close look this time. Restrictions that unnecessarily limit competition between and among the theater-arena venues and the new casinos should be barred, allowing consumers the broadest array of entertainment and location options, and hopefully the best value for their entertainment dollars.

The creation of the Fair Game theater coalition, with its potential to limit competition from casinos and other major venues, transformed Proctors CEO from a strong opponent of having a casino in town, to a fervent casino supporter. Does any one believe this cooperation will result in more entertainment choices and lower ticket prices (beyond token gimmicks and give-aways) for the people of our community? Moreover, will lesser-known entertainment venues and options benefit, or just lose market share to the Big Guys in Town? Did our Legislature really mean to greatly reduce competition across the state between and among casinos and major entertainment venues, when it tried to reassure theaters like Proctors that they would not be run out of business if a casino came to town?

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what do those Casino revenue figures mean?

OPEN LETTER to the SCHENECTADY GAZETTE and Other Capital Region Media

. . and see March 10 update below . .

. . and “another big drop in Casino revenues” (March 17, 2017)

Dear Schenectady Gazette and Local Media editors and reporters:

ch6casinorev We need some context, please, when you give us weekly (and soon, monthly) numbers about the gaming revenue generated at Rivers Casino at Mohawk Harbor. [E.g., Gazette, TU, WRGB-Ch6News] Gaming revenue numbers are virtually meaningless without background information, such as typical patterns for casino opening revenues, and this Casino’s own projections for annual revenues. This is especially true because Rush Street Gaming will be paying its gaming taxes based totally on the net gaming revenue figures. That is unlike other casinos where minimum annual local contributions have been promised (including Rivers Casino in Pittsburgh, which has consistently fallen short of its projections, and used the shortfall as a reason to request reduced real estate assessment).

  •  images-7Reportage on the second week’s Casino revenue is a prime example of numbers without context. Neither the Casino’s projected revenue nor industry expectations or patterns in the opening weeks of a casino were mentioned. Moreover, the Gazette headline touted, “Report: Rivers Casino sees revenue boost” (Feb. 27, 2017), with the article stating that there was a 24% increase in gross gaming revenue ($33.8 million) and a 16% boost in net revenue ($3.5 million) for the first full week of operation. While it mentioned the snowstorm in Schenectady during the first week, there was no indication of how many days were counted in the first week’s numbers, which included a “soft” by-invitation opening day before the official opening. Nor was there any discussion of the significance of a 16% increase for a full 7-day week, which has 14.28% more days than a 6-day week, and 29.5% more days than a 5-day week. Instead, a prepared statement by casino officials is quoted: “We are pleased with the performance of Rivers Casino & Resort Schenectady during our first full week of operation.”

The Gazette and Mayor Gary McCarthy have consistently used the number of $223 million dollars in annual net gaming revenues for the Schenectady Casino, with a resulting payment of $4.1 million annually each to the City and to the County. $223 million is, on average over a 52-week year, about $4.3 million per week. So far, Rivers Casino Schenectady has posted net gaming revenue of of $3.55M and $3.47M for its first two full weeks of operation, after an opening short week of $3M. 

abacusThe average revenues for Rivers Casino’s first two full weeks, $3.51M, would result in annual net gaming revenues of $183M dollars upon which to calculate its State gaming tax bill. That is 18% lower than the $223M projection, and would mean a significant shortfall for local tax coffers.

 How well do casinos usually do during their opening weeks? I’ve been hoping the Gazette would tell us.


sleuth Last night, I spent about 30 minutes Googling casino opening revenues, and looking at the first two examples that came up, I discovered that the new mega-casino project MGM National Harbor, located on the Potomac River in the D.C. suburbs of Maryland, generated about $49M in gaming revenues in its first month (January 2017). Maryland’s racing commission hired two consultants to project annual revenues for National Harbor. One predicted $512M and the other predicted $575M. Annualized, National Harbor’s first month revenues are about $576 million dollars, which is on track to meet even the higher projection.

plungegraphsmY

trends?

 Similarly, in July 2015, Plainridge Park Casino near Boston generated $18.1 million in its first month of operation. Plainridge predicted an annual gaming revenue of $200 million. Annualized, $18.1M would total $217.2M, a nice 8% increase over the $200M projection. (see MassLive, Aug. 15, 2015) Note, however, that early success does not necessarily mean a casino will continue to generate comparable numbers.  Plainridge Park fell far short of its projections for the entire year.

 Shouldn’t the Gazette help its readers (and our Pollyanna-like political and business leaders) understand how Rivers Casino is doing compared to its projections, and historic revenue numbers for similar casinos? If Schenectady’s “Newspaper of Record” does not do that, I hope other media members less attached to Rivers Casino (and City Hall, Galesi Group, and Metroplex) will do some investigation, or at least basic research.

 In contrast to the Gazette Tilt we have pointed out frequently at this website (recently, as to likely incidents of crime), the Albany Times Union has taken the lead over the past couple of years on many topics relating to the casino and Mohawk Harbor, Schenectady’s City Hall, PILOTS, etc. I hope it will continue to play that journalistic role, and perhaps spark some responsible journalism and competitive motivation from the Gazette and other media outlets.

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  • P.S. What about attendance numbers? How is Rivers Casino doing compared to its projection of 7500 weekday and 10,000 weekend visitors? In July 2014, the TU editorial board was a bit skeptical of those numbers. Follow-up would be nice, as patterns emerge with more moderate weather.

newspaper update (March 10, 2017): This evening, the Gazette posted an article online titled “How Rivers Casino’s 1st month revenues compare to projections“, by Brett Samuels, with a comparison of Rivers Casino’s February revenues and tax payments, covering 20 days, with its first-year projections.  After noting that “the city of Schenectady and Schenectady county received $191,991 each,” for the first twenty days, the article points out that:

“[I]f the city and county each received $275,000 per month in gaming revenue for the next 10 months, it would total about $2.9 million in gaming revenue each for all of 2017, falling short of the casino’s own initial projections.”

. . . “In preparing its 2017 budget, Schenectady County used the low-end revenue estimate, $3.3 million, and pro-rated it to a March opening. That would leave the county expecting about $2.75 million in casino revenue this year.”

The article also points out that “There are a few factors still at play that could influence casino revenues the rest of the year,” and says that the opening of the casino’s luxury hotel, and completion of luxury apartments, and office and retail space this summer will draw more people to the site. [We continue to wonder just who wants a luxury apartment abutting a homely and hectic casino site.]

Here is a screenshot we put together from the Rivers Casino revenues document at the NYS Racing Commission, showing its revenues through its third full week,ending March 5, 2017. Its third full week showed a 10%+  net gaming revenue decline.

RiversCasino05Mar2017Revs

  • Late each Friday afternoon, you should be able to see the latest figures from the prior week, on the Racing Commission site, at this link: http://tinyurl.com/RiversSchdyRevs.

plungegraphsm follow-up (March 12, 2017, 3 PM): As of this point in time, the Gazette has not reported the significant drop in gambling revenue at Rivers Casino in its third full week of operation, which is mentioned immediately above and shown in the screenshot. The Gazette did report on the weekly revenue reports to the Racing Commission each of the past three weeks. Friday evening at about 8 PM, the Times Union posted the numbers, in a brief staff report headlined “Double-digit revenue decline at casino, racino” (March 10, 2017), saying “Rivers gross gaming revenue fell nearly 11 percent to $3,094,804 in the week ending March 5 from $3,472,354 a week earlier. At Saratoga, the net win fell nearly 14 percent to $2,845,411 in the week ending March 4 from $3,302,242 the week before.”

a good start for Problem Gambling Awareness Month 2017

npgam_logo_h_cmyk_arrow-colorcorrected-v2 

  • update: The first community forum presentation on problem gambling of the NYS Responsible Play Partnership will be held Wednesday, March 22, 2017, at Elston Hall, at Schenectady County Community College, at 5 PM. It is free and open to the public. Please be there to show your support for not only more problem gambling treatment resources, but also for education and outreach resources to help deter problem gambling from ever getting to the stage where professional intervention is needed.

One year ago, we posted “Will problem gambling awareness month inspire action?” (March 2, 2016), posing the question: What are our public health officials and other local political and community leaders doing to combat problem gambling?

That 2016 Awareness Month post argued that:

[O]nly organized programs specifically focused on problem gambling prevention, education, and treatment, with ongoing outreach activities, can hope to address the effects that a casino in Schenectady is likely to have on our community. With Rivers Casino at Mohawk Harbor now scheduled to open in a year, such programs are needed ASAP and must especially target vulnerable groups, such as aging adults, low-income residents, and youth. [To see the full post, with its discussion, links, etc., click this short URL: http://tinyurl.com/ProbGambSchdy]

Education-Prevention Trumps Treatment. Our hope was that community education and prevention activities might be in operation prior to the Casino’s opening, in order to help inoculate the population of Schenectady against the anticipated tsunami of publicity for the Rivers Casino at Mohawk Harbor, with its resulting Casino Fever.  As expected, in addition to the Casino’s own advertising and promotions, publicity for the Casino has included government and media cheerleading, as casino “gaming” is promoted as a normal, glamorous, and even civic-spirited activity. Our goal was, and is, not to urge the general public to avoid or boycott the Casino, but instead to help create an informed attitude toward casino gambling that places it into the low-risk category of casual entertainment and recreation, rather than an acceptable high-risk habit leading down the path of problem, disordered, or pathological gambling.  Unfortunately, in the past year, our local government leaders have not stepped forward to put Problem Gambling Awareness [“PGA”] programs into place in time to inoculate our community from casino fever.

nyrpplogoNonetheless, rather than point fingers or speculate on motives, I am happy to say there has been important activity at the State level that promises to bring significant PGA information to Schenectady, as well as other New York communities “hosting” casino, racino and similar “gaming” facilities. Those activities were announced in an email sent on February 28, 2017, by New York’s Responsible Play Partnership [formed in 2013], recognizing March as Problem Gambling Awareness Month. The text of the email can be found at the bottom of this posting. [See “What state’s doing to help you gamble responsiblyNew Yorkers can now ban themselves from facilities” (Schenectady Daily Gazette, by Brett Samuels, March 1, 2017)] The full text of the email can be found at the end of this posting.

probgam-pg2016-1920x1080-banners_nat_final . .  click on this thumbnail for the full Awareness Month poster:

The opening paragraphs of the NYRPP announcement, states:

New York’s Responsible Play Partnership (RPP) – consisting of the New York State Gaming Commission, the New York State Office on Alcohol and Substance Abuse Services (OASAS) and the New York Council on Problem Gambling – today announced a series of initiatives in recognition of March as National Problem Gambling Awareness Month.

The Commission also launched its statewide self-exclusion program … [which] allows problem gamblers to ban themselves from all casinos operating in New York State

The RPP’s plans for March include visiting newly opened casinos to review the operators’ efforts to promote responsible gaming practices, followed by public meetings in the communities hosting the casinos to educate the public on the resources available for those who need help.

hopeline-text-square-purple-300x300 The RPP will also foster awareness through a focused social media campaign, conversation-driving signage at all gaming facilities across the State and development of a new public service announcement reminding New Yorkers that the OASAS HOPELINE (1-877-8HOPE-NY/TEXT HOPENY) exists to address all forms of addiction – including gambling. Finally, for the first time ever, the New York Lottery will feature responsible gaming messaging as part of its daily televised drawings.

  • Dates, times and locations for the public meetings will be announced in the near future. The Gazette reported, “A meeting is expected to be held in Schenectady in late March, though official details have not yet been announced.” We will list the information about the Schenectady meeting(s) when available.
  • LagoLogoB&W According to the Gazette, “Mary Cheeks, general manager at Schenectady’s Rivers Casino & Resort, previously said the business’ policies to promote responsible gaming include employee education and training, self-exclusion policies and listing the state’s addiction help hotline on advertisements and social media posts.” We believe that Rivers Casino, like del Lago in Tyre (which is paying for their County to hire two problem gambling counselors, or for treatment and one for prevention), should do much more to help the community learn about problem gambling. The Racing Commission has noted that fees and tax revenues (such as the annual fee on each slot machine) should not be counted as the casino fulfilling its obligation to mitigate such issues in its host community.

Statewide Self-Exclusion. RPP’s Awareness Month email (text below) stresses the new statewide nature of its Self-exclusion program, noting it is “the broadest self-exclusion program in the nation”, and stating:

The statewide policy closes a decades-old regulatory loophole in New York that made it possible for video lottery and casino patrons to voluntarily ban themselves from one gaming property only to continue playing at a neighboring facility unabated.

crimescene-casino The wisdom of a statewide ban is not obvious, and this site will delve further into the notion of a gambler being forced to self-exclude from every facility in the state. Will such a ban discourage many persons from entering the self-exclusion program, which in fact subjects the signer to criminal charges for entering the forbidden facilities regulated by the Racing Commission?  For a large portion of at-risk gamblers, it is proximity that creates their biggest danger. Why wouldn’t a geographic ban within a reasonable radius of the signer’s primary casino be effective? Why make it impossible for the signer, for example, to vacation with family or friends anywhere in the State and spend one evening at a casino? Would’t signing become an embarrassing stigma?

probgam-pgam2017toolkitlogoHave the Conversation.  A very important part of RPP’s Problem Gambling Awareness Month program for 2017 is its request that every New Yorker have a problem gambling conversation with at least one person in March. We will have much more to say on the Have the Conversation project, but for now please note that the New York Problem Gambling Council has put together a very useful Toolkit, with helpful one-page Action Sheets for Youth, Parents, Senior Citizen Caregivers, School Personnel, and School Administrators.  Click on the Toolkit logo to the right of this paragraph, or go to http://tinyurl.com/HTCtoolkit, to see and download the Have the Conversation Toolkit.

After a year of disappointment over the lack of public programs in Schenectady County relating to prevention, education and treatment for Problem Gambling, I am looking forward to see the RPP’s programs in action and resources in wide circulation.

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The email message explaining NY Responsible Play Partnership’s efforts this month to increase Problem Gambling Awareness is immediately below.

Continue reading

Rivers Casino will open February 8, 2017

casinosignalot

The Rivers Casino at Mohawk Harbor, in Schenectady, announced today that it will open for business on February 8, 2017, a Wednesday. See Gazette article, dated Nov. 16, 2016) The Gazette tells us:

The grand opening date was revealed at an event outside the casino, which is located on the Mohawk Harbor site along Erie Boulevard. Casino executives and local leaders popped champagne and celebrated the announcement as a milestone for the region.

The most recent estimate for the opening had been for March. The del Lago Resort Casino in Tyre, Seneca County, New York, has announced a February 1, 2017 opening. (By the way, earlier this month, del Lago made a $100,000 donation to promote workforce diversity) The Tioga Downs Casino, in Nichols NY, which has expanded from its racino status, opened as a full casino on December 2, 2016; the Montreign Casino, at Monticello NY, is expected to open in March 2018.

Two thoughts after viewing the Casino today from Erie Boulevard and Front Street:

  1. img_2604 The Casino compound still looks more like the cineplex end of a 1990’s shopping mall than an international or national tourist destination. (see photo on the right) [follow-up (Jan. 19, 2017): See “casino choices in Upstate New York: who will choose Schenectady?“, which compares casino designs among the competing casinos.]
  2. As we pointed out often at this website and in submissions to the Planning Commission and City Council, Rush Street and Galesi were clearly misleading our community when they insisted that the Casino could not be seen from Erie Boulevard, because the STS Steel building was in the way. (see, e.g. our posting “phony pylon excuse“) The invisibility of the Casino and its rooftop signage from Erie was the excuse given for the demand that Rush Street be able to erect an 80′ x 39′ pylon sign structure. City Council and the Planning staff and Commission never challenged that bold claim, and changed the Zoning Code to accommodate such a monster pylon (which Rush Street has never promised not to build). If they were willing to deceive on something so easily shown to be untrue, what other misleading claims has the Casino Gang made? Revenue projections? Traffic flow?

 img_2605

. . . above and below: Rivers Casino viewed from Erie Boulevard . ..

img_2598

follow-up: We felt a strong need to comment on the fact that February 8 is the anniversary of the Schenectady Massacre of 1690. See our posting “Schenectady’s infamous February 8th“.

bait-and-switch along the Mohawk

CasinoPylon-Jan2016-001 update (December 18, 2015): According to an article in the Albany Times Union by Paul Nelson, “Casino sign plan to be submitted to city in ’16” (Dec. 13, 2015), a new design for the pylon sign will soon be unveiled:

As it stands now, the pylon sign is generally framed on two sides by a contiguous white vertical and horizontal band and does not feature any glass, as was previously discussed. It’s unclear if that white band will be lit.

pylonbait  bait . . . switch vshapemock-1

pylonsitecomparison

– above: [L] the Casino’s pylon “bait” rendering and [R] my amateurish but more accurate Switch mock-ups –

You’ve probably seen the Rush Street rendering of its proposed pylon sign shown on the Left above; it’s a 2-sided, rectangular monolith parallel to Erie Boulevard (note: the street indications were added by me, and not indicated by the Casino on their rendering).  On the right is my crude mock-up of the actual approved pylon: “v-shaped” with a giant 611 sq. ft. LCD screen on each wing of the vee. Because Rush Street never submitted a sketch, much less a detailed rendering of the real design and its orientation toward Erie Boulevard and Nott and Front Streets, and neither your Schenectady Planning Commission nor its Staff ever asked for the highly important documentation as part of its Site Plan Review, my awkward mockups are all we have for now. The uncertainty has led me to construct this QQ Pylon Collage:

V-ShapedPylonQQ

SneakyPylonChangesWThe surprise of a siamese-twin v-shaped pylon structure is, of course, in addition to the bait-and-switch elements we pointed out on Friday July 24 in a follow-up to our posting announcing the approval of the Casino Site Plan. The Planning Commission, without mentioning it, approved a version of the casino pylon that is

  • boxier (no narrow light-box “lantern” at the top),
  • brighter (a pure white background on the Rivers branding section of the pylon, instead of black, but with no Visual Impact Statement provided or demanded for any version),
  • taller by perhaps 6 or 7 feet (having been raised to 80′ by removing the “lantern”), and
  • wider (39′, instead of an already excessive width of 38′).

. . . than the versions shown to the public. Click on the collage to the Right of this paragraph for the details.

The following image sums up the various bait-n-switch elements:

B&Scollage

In words, here are the basic bait and switch elements (there may be more as yet not revealed by Rush Street or their City Hall handmaidens):

  • Pylon-FrontSt The Bait: A two-sided, monolith, rectangular pylon structure, 80 feet by 38 feet, with one giant LCD screen 19 feet by 32 feet, topped by a narrow “lantern/chimney” about 7 feet tall, which is sitting over a 14.5-foot tall Rivers Casino “branding” sign that has a black background, all shown positioned parallel to Erie Boulevard, at the intersection of Front St. and Nott St. (As explained in Comments to the Planning Commission and in several postings, the original design was far too tall and wide, and its monster digital LCD screen far too distracting and bright, for the location and for Schenectady in general. But, even worse, we have instead. . . )
  • VShapeMock The Switch: First presented and approved at the July 22, 2015 Planning Commission site plan review special meeting: An 80′ by 39′ pylon façade, in an unexplained and never-depicted v-shape configuration, without a slimming “lantern” on top, and with its branding sign now having a much brighter white background and raised to the top of the 80′ structure, far more prominent in the sky.  In addition, there will be a second 611 sq. ft. monster LCD screen, with one aimed at traffic reaching Nott Street and Erie Boulevard from the east, and one aimed at traffic coming up Erie Boulevard from the west.
40by19v

each wing 35′ x 24′

What would a v-shaped pylon of the size contemplated by Rush Street look like, and “feel” like at that location? It is hard to know, given the failure of the Applicant to supply a rendering or sketch and of the Commission or its staff to demand this crucial piece of site plan documentation. Our search has found nothing similar in front of a casino on this planet.  The “sample” v-shaped pylon to the left of this blurb is by a Polish firm that says the steel girders can be up to 9 meters high, and each advertising sign 2.5 m. by 6 meters.  That would make each wing of the “v” in the photo perhaps 35 feet tall and 24 feet wide. Also note, the branding section on top is not illuminated from the inside and there are no giant digital displays.

  • Thank you to the Albany Times Union for printing my Commentary on the pylon, “Exempting rules a bad sign indeed” (August 4, 2015). It is a TU-Plus article, which requires a paid subscription to reach directly online. You can see a draft submitted by me to the TU Editorial page Editor, by clicking on this pdf. file, “A huge, homely and hazardous casino sign.”

p.s. Have some fun with the kids or grandpa, and make your own Pylonicus-V design:

pylonicus-v

.

riverscasinodesigns Follow-up (Feb. 11, 2017): Speaking of bait-n-switch, see our posting “where did this unattractive Schenectady casino design come from?” (Feb. 9, 2017).

a Pylon Precis (too big, too bright, too much)

  We’ve posted a lot at this website about the immense proposed Schenectady Casino pylon. This posting is an attempt to provide our readers (including the Schenectady Planning Commission and staff) with a fairly pithy summary. To wit, as explained a bit more below, we believe the proposed pylon colossus is too big and too bright for Schenectady and its visitors, especially at the proposed location near Nott and Front Streets, Erie Boulevard, and the planned traffic rotary. [update: click here for a pdf version of Comments to the Commission regarding the Casino Pylon, dated July 22, 2015; also, “bait and switch along the Mohawk” (July 31, 2015).]

– Two collages sum up our main factual points; first:

NoSTSExcuseE

– click on each collage for a larger version –

However, some casino boosters (and regulators), might say: “Haven’t Galesi Group COO Dave Buicko and other Rush Street representatives been telling the Planning Commission, the Mayor, and the press, all year that an 80′ pylon sign was absolutely needed due to the casino being unseen behind the STS Steel building?” Yes, they have been constantly making that claim. And, it is not true:

NoSTSExcuseS

We believe the Schenectady Planning Commission has the duty and authority in its §264-89 Site Plan review of the Rivers Casino site plan to refuse to approve the proposed size, location, and design elements of the casino’s pylon. Although they exempted casino signage from the Zoning Code’s Art. IX signage regulations, the amendments this year to the C-3 District rules nonetheless specifically required Site Plan Review of casino signage by the Planning Commission.  Thus, as amended, §264-14(H) states:

“Signage for a casino gaming facility and related uses within the C-3 District shall be viewed and approved by the Planning Commission as part of the Site Approval process.”

Protestations by Commissioners and the Planning Staff that their “hands are tied” regarding the size and design, much less the location, of the pylon have no basis in the law, and frankly stoke the fear that applying a rubberstamp and rushing through Rush Street’s requests have become the modus operandi of the Commission (even if not the personal preference of individual members). As stated in Comments to the Commission on June 17, 2015 (by this site’s editor):

Even if the Applicantʼs pylon proposal is within the C-3 pylon height and signage maximum limits, this Commission has the authority and responsibility when performing a site plan review (under Zoning Law, §264-89 et seq.) to assure:

  • proper vehicle and pedestrian traffic flow and safety, including impact on intersections and traffic controls;
  • proper location, arrangement, size, design and general site compatibility of lighting and signs;
  • maximum retention of existing vegetation; and
  • protection of adjacent or neighboring properties against glare or unsightliness or other objectionable features.

The two-sided pylon signage structure proposed by Rush Street Gaming for Rivers Casino at Mohawk Harbor is:

  • too large in both height and width, with an LCD message screen far too big and bright, to be so near crucial intersections, including the planned new (and unique for Schenectady County) traffic rotary, and the entranceway and exits of the Casino compound and Mohawk Harbor; see our discussion and outline of the electronic message screen safety factors at tinyurl.com/electronicdisplayfactors
  • too close to residences (e.g., East Front Street homes and Union College’s largest dormitory a block away, as well as condos, town-homes and apartments planned at Mohawk Harbor)

Thorough and objective application of Schenectady’s Site Plan standards should, we believe, require the Planning Commission to reject the proposed pylon or approve it with adequate and specific restrictions as to size (both height and width), brightness, proximity to roadways and residences, and use and size of LCD displays. Refusing to approve the pylon as proposed is particularly appropriate, given the failure of Rush Street to provide renditions of the structure showing its precise location in relationship to roadways and the rest of the casino compound and other Mohawk Harbor buildings, parking lots, etc. Furthermore, with no Visual Impact Analysis, including a line of sight survey, indicating where and how the pylon sign will be visible in the day or the night, the Commissioners do not have sufficient information to make responsible decisions about a monumental sign that would dominate our skyline and surely become the symbol of Schenectady to the rest of the world.

– share this post with the short URL: http://tinyurl.com/PylonPrecis

red check For amplification of the points made above, see the postings and materials listed in the Pylon Directory at the top of our Pylon Envy posting.

how big is 80′ x 38′?

 The short answer is “too damn big”, but many people have no idea just what those dimensions look and feel like in the actual world, and we want to offer more than a conclusion about the size of the proposed Schenectady Casino pylon signage.  Luckily, here in Schenectady, we have a well-known structure right on State Street at Erie Boulevard that helps put the monster pylon into perspective. It is the former Masonic Temple, at 302 State Street, which is now the home of the Alcohol and Substance Abuse Council. To sum up the comparison: the proposed pylon sign is both taller and wider than the Masonic Temple.

The following collage shows and tells the tale (click on it for a larger image), including showing how huge the electronic display will be:

Around this website, we’ve been tired of the Pylon Tall Tale told by Dave Buicko and Rush Street to try to justify an outsized casino sign with no precedent that they can point to or that we have found. However, the ever-credulous Gazette news room repeats Rush Street’s STS-Pylon-Excuse in today’s Sunday newspaper, “Casino builders tout river views, huge revenues“, by Haley Vicarro, A1, July 13, 2015), repeats the STS excuse without qualification and makes the pylon sound like another Done Deal:

But unlike Pittsburgh, Schenectady’s casino will include an 80-foot-tall entrance sign, one developers say is needed because of how the casino is tucked into the old Alco property.

DesPlaines68 Rush Street’s Rivers Casino in Des Plaines has the only similarly wide-and-tall casino signage that we have been able to find online.  It is another reason we feel certain that the proposed Schenectady pylon is too big. The Des Plaines pylon is “only” 68′ by 25 ‘, and yet by any reasonable standard, it is objectionably large and looming and luminescent. See our posting “shrink that casino pylon“.

PYLON DIRECTORY/Envy

 
Casino#3Pylon

July 2015 version

 Pylon Directory:  Here is a list of our posts and Comments discussing the proposed 80′ x 38′ Schenectady casino pylon and its digital display:

 .
Mayor McCarthy defends the casino pylon” at the League of Conservation Voters forum (September 22, 2015)
.
bait and switch along the Mohawk” (July 31, 2015) suddenly we have a v-shaped pylon with an LCD screen on each wing.
.
– “casino site plan approved: pylon, too” (July 22, 2015). And, the pylon will be bulkier, brighter and wider than expected.
 .
– click here for a pdf version of Comments to the Commission regarding the Casino Pylon, dated July 22, 2015
 .
– “the Commission should require a better pylon” (July 20, 2015) The Planning Comn has the power to insist on a safer and better-looking pylon.
.
– “a Pylon Precis: too big, too bright, too  much” (July 16, 2015): a pithy summary.
 .
– This posting “pylon envy?“ (see below): compares the Sch’dy pylon to classic Las Vegas signs and a massive new sign in Cincinnati; it also compares the signage rules that apply to all other businesses in Schenectady but not to the Casino
.

– “phony pylon excuse“: uses photos, maps, and other images to explain why the excuse that  the STS Steel Building blocks the view of the casino is simply untrue

– “shrink that Casino pylon“: explains why the proposed pylon is the wrong size at the wrong location; looks at the Des Plaines Rivers Casino, which is too large and too bright at night although “only” 68 ft. tall; worries the Schenectady pylon would become an inappropriate symbol of Schenectady

– “how big is 80 feet by 38 feet?” (July 12, 2015), which points out that the proposed pylon sign is both taller and wider than Schenectady’s former Masonic Temple, at 302 State Street.

– other pylon-related materials: (1) Comments submitted to the Planning Commission June 17, 2015, which stresses the inappropriate height and width and the serious traffic hazard from the huge digital display. (2) a discussion of variables for evaluating the safety of roadside CEVMS (digital variable message displays). (3) The Casino’s Visual Resources Assessment submitted by the Mohawk Harbor applicants as part of its environmental impact assessment, concluding that the project would have no negative visual impact on the City or any historically sensitive areas.
.
original posting:
PYLON ENVY?
GlitterGultch Right after giving the Planning Commission the easily-refuted excuse (see our posting “phony pylon excuse“) that they needed an 80′ pylon because the STS Steel building blocked the view of the Mohawk Harbor’s 71-foot tall casino, Galesi Group COO Dave Buicko assured them it would be “classy”, not gaudy. Sitting in the small Commission meeting room that evening, I remember smirking over what Mr. Galesi, Rush Street’s Neil Bluhm, or Gaming Industry folk in general might think of as “classy”.

Fremont+Stthe+Nugget+Apache+Pioneer+MUST

above & Right: photos of the 1960’s “Glitter Gulch” from the Classic Las Vegas website. For more images and history see InOldLasVegas.com.

If you are an East Coast Baby Boomer like myself, it was classic images of the Las Vegas Freemont Street district and The Strip from the 1960s, ’70s, and ’80s that created the vision of what a casino “should” look like. Many Americans back then apparently did consider Las Vegas to be classy. One thing for sure (especially for inhabitants of relatively low-rise Upstate New York cities), we thought of all those casino signs, competing for attention among the many gaming and recreation options, as very big and very bright. That’s why I was surprised to discover this past week how relatively modest in size iconic Las Vegas casino signs were compared to the monumental pylon proposed by Rush Street for Schenectady. For example, see the tale told by this Schenectady-Sands comparison:

Compare-Schdy-Sands-Pylons

 By the way, as explained at the Classic Las Vegas website, “The Sands Hotel, probably more than any other, came to symbolize the Las Vegas of our collective memory. It was here that the color line was finally broken, . . . It was where glamour and glitz met in the Desert and it helped propel tourism in the small desert mecca like no other. . . The result according to author Alan Hess was the ‘most elegant piece of architecture the Strip had ever seen’.”

In fact, the Classic Las Vegas piece continues:

SandsNightDetail The crowning glory though was the roadside sign. It was a departure from the usual sheet metal and neon displays that beckoned road-weary travelers to stop and stay. [Architect Wayne] McAllister designed a 56-foot (the S alone was 36-feet) tall sign, by far the tallest on the highway at that time. With its elegant modern script, the sign blended with the building to create a mid-century modern paradise. The sign and the building had motifs common to both. The sign was fabricated by YESCO. With its egg crate grill, cantilevered from a solid pylon, it played with desert light and shadow. In bold free script, it proclaimed “Sands” in neon across the face. At night, it glowed red when the neon spelled out the name.

The sign Mssrs. Bluhm and Buicko want to plop down in Schenectady will never be mistaken for elegance. There will be no playing with light and reflections off our lovely Mohawk River.  Instead, a solid wall 38′ wide will call to mind supersized versions of monument signs straddling huge shopping center parking lots, or maybe a gaudy mausoleum.

The proposed Schenectady pylon casino sign also dwarfs other iconic Las Vegas signage, from the friendly 40′ cowboy Vegas Vic waving from atop the one-story Pioneer Club, to the imposing 35′ Sultan on the similarly one-story Dunes Casino, to the famous and much slimmer pylon sign of The Mint, which (without counting the star on top) was no taller than the Rush Street pylon proposal for Schenectady. The next two collages compare the classic Las Vegas signage to the aberration that our Mayor, City Council and Planning Commission so blithely told Galesi and Rush Street they were welcome to erect in Schenectady. [click on each comparison collage for a much larger version]

VegasCompareCollage1

. .  . .

VegasCompareCollage2

SchdyPylonSketch2-006 One particularly worrisome aspect of the comparisons above is that the 32-foot-tall electronic display screen on the Schenectady casino pylon monument, with its intense LCD lighting, is itself about the same size as the behemoth Dunes Sultan, giant Vegas Vic cowboy, and elegant Sands “S”, which were all created to be impressive giants.

What kind of corporate or personal narcissism seeks to impose a massive, obtrusive and uninteresting monument on the City of Schenectady that is so much larger than the classic giants of Las Vegas’ classic era? What kind of civic insecurity would allow such a structure to mar a city’s streetscape and skyline?

CinciHorseShoeSignageComparedA Modern Comparison. A contemporary casino sign of massive size in Cincinnati should also give our Planning Commissioners a lot to contemplate as they decide on the appropriateness of the proposed Rivers Casino pylon for Schenectady and consider the kind of design that might fit in with and enhance the Schenectady scene. Richard Unger, a city planner who recently moved to the Stockade from Florida, set out to find large casino signs in existence that might offer Schenectady some useful ideas on the design and dimensions of the main freestanding sign for Rivers Casino at Mohawk Harbor. In his search, he located only one casino sign that was a large as 80′ tall. It is the massive marquee sign for the Horseshoe Casino in Cincinnati, Ohio, which is also 80′ tall.

The 80′ Horseshoe sign was endorsed by community groups in Cincinnati. (e.g., see “Cincinnati casino goes all-in with giant sign“, Cincinnati.com/Gannett, Oct. 26, 2012). It should not be surprising that prior to persuading community leaders to embrace its massive marquee, the casino developer engaged in a dialogue with the community. Even less surprising, the casino-community dialog was nurtured because City Government commissioned a large study and set up a nonprofit organization, Bridging Broadway, “whose mission is to maximize the new casino’s positive effect on Greater Cincinnati . . . as a catalyst for improving the quality of life for downtown Cincinnati, its businesses, and neighborhoods.”  As a result, the 150-page “Broadway Commons District Plan” was created. Click here for a half-dozen select pages from the Executive Summary and Introduction to the Study, and from the Plan’s Primary Implementation Recommendation: A Community Benefit Agreement.

A brief Aside: The Broadway Commons Plan has this to say about local official and CBAs (at 69):

  As stewards of the community trust in accountable development, local officials play a critical role in developing these agreements. . . . When a local authority has leverage to approve requests from the developer, these officials should represent the community’s interest. In recent years, many local officials have used this leverage to require that the developer negotiate and sign a CBA.

Beyond the process for achieving community backing for a large casino sign, here are practical reasons why the 80′ Horseshoe Marquee was far more appropriate than the huge pylon proposed for Schenectady:

  • Cincinnati is a “high-rise” City. Its highest building is 660 feet, and it has 25 buildings taller than 250 feet.  (See Wikipedia) In contrast, Schenectady’s tallest building is Summit Towers, at 148′, which architects would call “low-rise” residential. The next two tallest are The Lottery Building at One Broadway Center [111′] and the Parker Building next to Proctors at 99′).
    • Three other building that Schenectadians consider to be quite tall are in the same ballpark as the proposed Mohawk Harbor Casino pylon: Both Golub Headquarters and MVP Health Headquarters are 86′ tall, and the Wedgeway at Erie Blvd. and State Street is 76 feet tall. Because they are not quite as tarted up as the Schenectady Pylon will be, they all would seem quite demure in comparison. [follow-up: the sign is taller and wider than the old Masonic Temple at 302 State St., corner of Erie Blvd.]
  • No Digital Message Board. The Horseshoe Marquee has no digital message board with text and images to distract drivers. It merely has a 3D animated horseshoe rotating on its top, far above street level. [For a discussion of the safety hazards and factors to be considered when digital signs are displayed near roadways, see our commentary at http://tinyurl.com/electronicdisplayfactors]
  • A slender shape. The Cincinnati Horseshoe sign is not at all shaped like the proposed giant hulk at Mohawk Harbor, which is 38′ wide for the first 60 feet above the ground, and 30′ wide for the next 14.5 feet.   The Horseshoe marquee is about 33′ wide in a narrow strip near the top that names the casino. At the base, it is about 12 feet wide and stays that size for more than a dozen feet up the column. This slender silhouette greatly reduces the bulkiness of the Horseshoe sign.
  • Lower Profile.  According to Cincinnati.com, “The sign would be placed on Gilbert Avenue, away from the sprawling casino’s front door along Reading Road. Although the sign is tall – nearly twice the height of the Genius of Water sculpture at Fountain Square – its placement will be on the lowest point of the casino site, about 55 feet below the street level of Reading Road.”
  • The Cincinnati sign looks like a casino sign, not a wall with a big LCD screen.

In case our local officials are afraid to say no to the Rush Street pylon request because they fear the casino really does need the colossal sign to succeed, we note that Rush Street claims to be doing just fine in both Pittsburgh and in Philadelphia, and have no giant pylon at either location.

Exempted from the “normal” Signage Rules. Another way to look at the appropriateness of the proposed Schenectady Casino pylon is to compare it with the rules that govern every other location and business in the City of Schenectady.

Continue reading

answering Mayor McCarthy on HCAs

mayorgarymccarthy2013bwWe’re pleased that the Schenectady Gazette Editorial Page allowed us to respond yesterday (Letter to the Editor,“Mayor missed point on casino package“, June 27, 2015, C5) to the Guest Column by Schenectady Mayor Gary McCarthy panning the Host Community Agreement notion. (see “Mayor: Schenectady casino deal better than Seneca host package“, June 12, 2015, C8, pdf. file) Due to space limitations, our Letter to the Editor was limited to 400 words. The longer 1st Draft follows. [Also see, “the Lago casino HCA and the Mayor”]

Lago Lessons the Mayor Missed

In Schenectady Mayor Gary McCarthy’s June 19th Gazette Guest Column, he answers critics who have asked why he never tried to negotiate a “host community agreement” [“HCA”] or similar benefits package with Rush Street Gaming [“Rush Street”]. (Schenectady Gazette, “Mayor: Schenectady casino deal better than Seneca host package“, June 12, 2015, C8, pdf. file) It is gaming industry practice, and common sense, for a potential host community to use its inherent leverage to bargain for impact mitigation funds, goodwill payments, revenue guarantees, or other concessions. But, Mayor McCarthy has chosen to be chief cheerleader and backroom muscle for Rush Street, rather than chief negotiator for the people of Schenectady.

We pointed the Mayor to the Lago-Tyre Host Community Agreement to rebut his excuse that such agreements were not feasible in New York State, not to recommend slavish adherence to its particular terms. Rather than learn from the Lago example, McCarthy made a two-pronged attack on the HCA: (1) Dismiss the messengers as foes of the casino with an “ironic” new cause, and (2) stress cherry-picked and unexplained numbers. It is, of course, not at all ironic that those who opposed the casino due to its expected negative effects are taking the Mayor to task for leaving millions of dollars on the table that could have been used to mitigate those impacts and improve Schenectady. Casino supporters also expect the Mayor to maximize casino revenues, jobs, and community benefits.

HCAs are not cookie-cutter affairs, but are tailored to each community’s situation. Comparing selected pairs of numbers from Seneca County and Schenectady proves little when our situations are so different. Schenectady has almost 70 times more residents than tiny Tyre, and Seneca County has less than a quarter of the population of our County, and far less development momentum. Unlike Schenectady, both Tyre and Seneca County did their homework: They learned what host communities have done elsewhere, they commissioned studies to understand the impact of a casino and to quantify its costs and benefits, and they actively and successfully negotiated with their casino applicant.

TyreLogoB&W As a result, Tyre and Seneca County believe they have negotiated very favorable terms with Lago. For example, an extensive study by the County Industrial Development Agency claims that the benefits from Lago for the County will be 51 times greater than its costs. Wilmorite is spending 40% more developing Lago ($425M) than Rush is at Mohawk Harbor. And, the property tax accord will bring in $3.83 million more over the next 20 years than the County would have otherwise expected.

For a detailed discussion of the Lago agreements, see tinyurl.com/InfoLago .

In contrast, the Mayor’s approach has earned Schenectady not one penny more than the law will demand from Rush Street once its Mohawk Harbor casino is in operation, and nothing prior to opening. Moreover, Schenectady has no reason to believe Galesi will freely give up its scandalously low PILOT payments, nor that Rush Street is likely to give up its practice of challenging tax assessments and seeking every available exemption. More important, with no pressure from the Mayor and no cost analysis undertaken by the City, Rush Street has never stepped up, as Lago did, to acknowledge both the reality of negative impacts and its obligation to mitigate them with payments in addition to the gaming revenue taxes it must pay.

Schenectady could have done much better. Rush Street has offered each of its other existing and proposed casino locations various payments and community benefits beyond what the law requires, including millions prior to opening, millions in guaranteed annual revenues, large ongoing community benefit and mitigation payments, local job and vendor preferences, and more. It even agreed to guarantee waterfront access and build a Green Roof in Philadelphia, and to give Brockton a guaranteed $10 million a year in benefits, along with its beautiful casino design.

To see how generous Rush Street has been outside Schenectady, and what Mayor McCarthy might have achieved, go to tinyurl.com/RushGiveaways .

David Giacalone

Editor, StopTheSchenectadyCasino.com

Schenectady, New York

RUSH STREET’s GIVEAWAYS (a letter to City Council)

RushStreetGiveaways

Rush Street’s Giveaways

 Following up on the first two postings in our Money on the Table series (Part 1, and Part 2), the following email message was sent to City Council Members this afternoon (May 27), via City Clerk Chuck Thorne, along with a chart labeled Rush Street’s Giveaways. (click the link for a pdf. version, or the image to the right for a jpg. version). The Chart shows the many benefits Rush Street Gaming [RSG] has bestowed on each of its other casino communities, in commitments made prior to opening, while offering none to Schenectady. We believe Mayor McCarthy has left Money and More on the Table in its dealings with RSG and the Galesi Group concerning Rivers Casino at Mohawk Harbor.

To: City Council Members

Re: Chart entitled Rush Street’s Giveaways

The attached chart shows that Rush Street Gaming has given or promised significant voluntary (non-mandated) payments and other benefits to every one of its casinos, and in every casino application, while offering no such giveaways to Schenectady. Many of these giveaway payments have been made in the years prior to the opening of a Rush Street Casino. I am hoping that these documented facts will start a conversation among City leaders and perhaps the public and media about:

  • why the City has been so generous to Rush Street, and not the other way around (Rush Street wants a casino at Mohawk Harbor and Mr. Galesi is not able to move the location)
  • which neighborhood and community projects could have been funded with an extra $1 million, or even $100K, payment this year and next year?
  • has the City lost all leverage with RSG, or are there still things the Casino needs from the City or its residents that might inspire RSG to offer “goodwill” payments?

The Mayor referred to the Stop the Schenectady Casino website as “that blog” at the last Council meeting, and suggested the website has misinformation. I assure you that we’ve always done our best to present the facts and objective reading of laws concerning this Casino, and have often been the only source in this City for any stories, research, facts, etc., that show the casino or RSG in a bad light, or that even ask that the City Council and Mayor do some homework and stop to fully consider issues. We will correct any factual mistakes, if they are pointed out.

At this link, you will find documents and articles supporting our assertions, and find discussion countering the excuses that have been made to date by the Administration. You can use this short URL: http://tinyurl.com/casinoMOTT2

Please feel free to contact me with any questions and comments.

respectfully,

David Giacalone

Schenectady, NY

Share this posting with the short URL: tinyurl.com/RushGiveaways

Mayor McCarthy left millions on the casino table

Hisstationand4aces-coolidge

.. . . . . . . . . . . . . . . . . . . . . *_/

  At Schenectady City Council meetings, Mayor Gary McCarthy is pretty good at maintaining his poker face, while raking and calling in political chips. But, it’s apparently a different story when the Mayor sits down to gamble on our City’s future with the Casino Gang from Mohawk Harbor (Rush Street Gaming and the Galesi Group).  Despite holding numerous trump cards, the McCarthy Administration has left a lot of casino cash, public benefits, and basic zoning protections on the table, to the future enrichment and probable amusement of the savvy businessmen who are planning to make millions of dollars at the Old ALCO site.

*/ above image: “His Station and Four Aces” (1903), by C.M. Coolidge

So far, all that Schenectady has received from Galesi Group’s Dave Buicko and Rush Street’s Neil Bluhm are unenforceable promises of big dollars and jobs down the road, with lots of disclaimers, footnotes, and revenue projections adjusted downward. We should have expected and demanded much more of Mayor McCarthy, and his Legal and Planning Departments. As explained below, at the very least, we should ask how the Mayors of cities as different as Philadelphia (PA) and Brockton (MA) got so much from Rush Street Gaming, while Schenectady ended up with only smiles and praise for their cooperation from the so-called Partners.

. . . BROCKTON, MA

About ten weeks ago, in February 2015, Mohawk Harbor’s Casino Gang gave Schenectady City Hall its litany of zoning “needs”, and Mayor McCarthy gave them everything they asked for, and more, with no tit for tat. That same month, Rush Street Gaming, through its Massachusetts affiliate Mass. Gaming and Entertainment (“MGE”), entered into an agreement with the City of Brockton as part of its application process for a Massachusetts gaming facility license. As the Boston Globe reported (emphasis added):

“The six-page agreement, negotiated by Mayor Bill Carpenter, would require the casino’s developer to provide the city $3 million in upfront payments  and then $10 million a year, or 2.5 percent of gross gambling revenues, whichever is greater, if a casino is built.”  (“Brockton would receive $10 million a year under casino agreement,” Boston Globe, Feb. 20, 2015)

That’s right, Rush Street recently entered into a contract, called a Host Community Agreement, to make three million-dollar payments to Brockton for Community Enhancement during construction of its casino, and at least $10,000,000 a year in combined payments guaranteed once the resort is open to the public. (See the Yes for Brockton website’s description of the benefits promised to Brockton by Rush Street.) In addition, along with other benefits for the City and its residents, the Host Community Agreement (summary) obligated Rush Street to:

  1. commission and fund comprehensive Impact Studies to be performed by independent, mutually-acceptable experts, to assess the impacts of the Project on the City’s traffic and transportation infrastructure, utility infrastructure, public safety, and other impacts such as education and housing.
  2. enter a Mitigation Agreement, after receiving its gaming license, to fund the mitigation of all identified impacts.
  3. pay property taxes during construction based on the arms-length acquisition price of the land
  4. grant a hiring preference for both construction and permanent jobs, first to qualified Brockton residents and then to qualified residents of Surrounding Communities.
  5. pay for or reimburse the City for customary expenses incurred in the permitting and impact-review process
  6. issue at least $50,000 per year in gift cards or rewards vouchers to be used at local businesses located off site.

RSppMGCcover . . RSppMGC

– above screen-shots: Cover & Brockton Benefits page from Rush Street Power Point presentation to Massachusetts Gaming Commission, March 2, 2015 –

In addition to the very significant factor of allowing each municipality’s voters, rather than merely the local Council, to approve an applicant’s casino proposal, Massachusetts Gaming Law [G.L. Chapter 23K, §15(8)] differs from New York’s in that it requires the applicant to enter into a Host Community Agreement that sets out the responsibilities of both parties. But, the only specifically-required element is an Impact Fee of an unspecified size.  Everything else — i.e., payments prior to opening the casino; guaranteed minimum payments for real estate taxes and community enhancement, preference in hiring to local residents for jobs and vendors, etc. —  is a matter for negotiation and bargaining between the casino developer and the City.

checkedboxs  The most important aspect of the Agreement made by Rush Street with Brockton (as well as the agreements with Philadelphia) is that Rush Street clearly believes it can give such significant, firm prior commitments to the City and the Community and, nonetheless, make a profit sufficient to warrant submitting the application, waging a vigorous campaign, and making the immense investment necessary to develop and operate a casino. The apparent but understandable irony, of course, is that Rush Street offers its pre-operation payments, generous goodies, and binding revenue promises to the cities where the fight against Rush Street is the strongest (or where it faces a vote by the residents), and offers virtually nothing to places like Schenectady where “leaders” eagerly support their proposal.  That makes Mr. Bluhm a good businessman and poker player, but not necessarily a good neighbor. The question now is whether the City (as well as the County and Metroplex) can make up for those lost opportunities and take the City back from the New Bosses at the Old ALCO site. 

update (May 11, 2015): When confronted, by Mohamed Hafez at tonight’s City Council Meeting, with the many promises made by Rush Street to Brockton, Mayor Gary McCarthy made the expected excuse that Massachusetts requires the Host Community Agreements. As stated above, that response is incomplete, and cannot justify McCarthy not demanding similar agreements be made by Rush Street with Schenectady.

In addition, the Mayor pointed out that all New York gaming revenues go to the State, which distributes the funds to counties and municipalities.  That argument ignores the fact that the casino operator has the ability to guarantee that the city will receive a minimum amount each year in total revenues, and to reimburse the City for any shortfall from the revenue redistributed by the State and County.  In addition, the casino pays real property taxes directly to the County, City and School District, and those funds can be the subject of an agreement with the City, as can the other promises made by Rush Street with Brockton and Philadelphia, and the many other items that appear in typical Community Benefit Agreements.

RushStreetGiveaways For a detailed response to the Mayor, see “Money on the Table, part 2” (May 18, 2015), which describes the many Host Community Agreements and Impact Mitigation Plans entered into by other potential Upstate New York host municipalities last year, and their implications when judging the job the McCarthy Administration has done in Schenectady. Follow-up (May 27, 2015): See our post and related chart on Rush Street’s Giveaways (to everyone but Schenectady).

Additional points about casino location in Massachusetts:

  • See the Mass. Gaming Commission HCA webpage, for an explanation of Host Community Agreements, along with both full texts and summaries of existing agreements with 5 communities awaiting casino location. Also, click here, for 9 excerpted pages we’ve scanned from the 5 summary documents.
  • Payments prior to Opening. While it will be years before Schenectady tax payers will be seeing casino revenues to help reduce property taxes, Massachusetts localities, thanks to Agreements like the one made in Brockton, are already seeing pre-opening payments. Indeed, according to an article this week in the Attleboro Sun-Chronicle, several years before any casino dollars will be generated in Massachusetts:

Fifteen communities . . . have received roughly $5 million from the state’s three licensed casino operators as part of compensation agreements negotiated with the companies.

The payments range from more than $1 million to Springfield to $50,000 apiece to nearby Ludlow, Wilbraham, East Longmeadow and Holyoke. [“Early spend spree” (AP, The Sun-Chronicle, Attleboro MA, April 19, 2015)

  •  Helping Surrounding Communities. As the above Sun-Chronicle article suggests, another difference in the Massachusetts Gaming Law is that Massachusetts specifically attempts to help Surrounding Communities receive mitigation funds from a casino applicant/operator. (That is another way in which our State law fails to protect the public, making strong advocacy by a Host city for its residents and neighbors even more important.) Therefore, under G.L. Chapter 23K, §15(9), an applicant for a license must “provide to the commission signed agreements between the surrounding communities and the applicant setting forth the conditions to have a gaming establishment located in proximity to the surrounding communities and documentation of public outreach to those surrounding communities.” In Massachusetts, therefore, Rush Street says it will start approaching neighboring communities for mitigation agreements as soon as the people of Brockton vote “Yes” on the Brockton Agreement. See, “Neighboring towns keep close watch as Brockton prepares casino vote“, Boston Globe, April 26, 2015.

images-7 In Schenectady, by contrast to Brockton, neither City Hall nor the Casino (nor Big Brother Ray Gillen at Metroplex) has acknowledged publicly that there will be added expenses or other negative impact on the people, neighborhoods, and businesses of Schenectady and nearby towns. Instead, when asked about increased costs for police, fire, and emergency services, or the added need for public assistance and school district expenses, the “Casino Partners” glibly and dismissively tell us that more than enough extra revenue will come to the City and County from operation of the casino to easily pay for any such impacts, with lots left over to reduce property taxes. Similarly, when Council Member Vince Riggi (the only non-Democrat on the City Council) has asked his colleagues to study and report on added costs to the City caused by operation of the Casino, he has been rejected out of hand. images-3 . Likewise, calls by residents, and Mr. Riggi, at Council meetings, for a commitment by Rush Street for minimum payments to the City have been scoffed at by The Partners.  Imploring the Mayor and City Council to bargain from strength while they still have leverage has been met with Mayor McCarthy’s poker face and Council President King’s averted eyes. The goal proclaimed by Rush Street in the Brockton Agreement, “To achieve certainty for both parties”, cannot be heard along the Mohawk. . . . . .

.BrocktonCasino  . . . Casino-RenderResort – Rush Street Casino Renderings: [L] Brockton; [R] Schenectady (click on image for larger view) –

Architectural Comparison: There is at least one more significant way in which Rush Street has treated Brockton better then Schenectady: Neil Bluhm is planning a project at the Brockton fairgrounds that actually looks like it could be both a “destination resort” and part of a New England community, rather than a retread of his Midwest Des Plaines Casino, which has the charisma of a 1970s shopping mall or branch bank (see images above this paragraph). The Boston Globe said the Brockton proposal was a sprawling plan reminiscent of a New England college campus. I have wondered since last summer why no one at City Hall, the County Building, or Metroplex sent Rush Street back to the drawing board to come up with a design worthy of our City, perhaps in sync with the look and feel of our Historic Stockade District. I wonder if Brockton’s Mayor did just that, or if Rush Street decided from the start to go show Brockton more design respect than Schenectady has received.

StockadeFlagCollage

Stockade images

 

By the way, in its environmental remarks to the Location Board, concerning impacting nearby neighborhoods or historic sites, Rush Street the Applicant said there are design elements of the project that reflect the Stockade influence. Perhaps they mean the cherry blossoms that will apparently bloom all year long at Mohawk Harbor’s Casino, but only about a week in the real Stockade District.

.

PHILADELPHIA, PA . . .

We have in Philadelphia’s SugarHouse Casino additional, strong evidence that Mayor McCarthy and his Legal and Planning Departments have underperformed immensely in dealing with Rush Street and Galesi on behalf of the people of Schenectady.  The Philadelphia casino is operated by Rush Street Gaming and owned by SugarHouse HSP Gaming, LP, which are both controlled by Neil Bluhm and his family.  SugarHouse gives us a telling demonstration of just what happens when a City and community actually bargain with Rush Street, rather than grovel like desperate and helpless supplicants.

  • Schenectady residents focused on lowering property taxes, as well as those interested in funding projects to combat expected social and neighborhood issues, should pay particular attention to the Philadelphia story.

SugarHouseEntryway Two major Agreements, made prior to its Selection to receive a gaming license in December 2006 and its Opening in September 2010, have had a significant impact on the SugarHouse situation, including the size, shape and timing of its benefits.  First, the City of Philadelphia entered into a Development and Tax and Claim Settlement Agreement (“The Development Agreement”) with HSP Gaming on December 17, 2007, three days before its application was selected for a gaming license.  Second, persons and entities representing four nearby neighborhoods entered into a Community Benefits Agreement with HSP Gaming relating to the SugarHouse Casino in November 2008, almost two years before its opening. [You can learn about Community Benefits Agreements, including the SugarHouse CBA, at the CBA weblog.] . . . . . In 2006, in another significant prior action, the Philadelphia City Council passed §14-400 of its Zoning Code, establishing the Commercial Entertainment District (CED) to permit licensed gaming facilities. That was a year before HSP Gaming was selected by the Gaming Commission. Similar to Schenectady’s original C-3 Waterfront Multi-use Zoning ordinance, Philadelphia’s 2006 casino zoning included a very strong public access requirement at riverfront locations (§14-406(5)(b), details below). Unlike Schenectady’s amended casino zoning provision, Philadelphia continues to specify the requirement of guaranteed public access to the riverbank. [By the way, there is no waterfront on the Braxton casino property. If there were, I’m sure its citizens would have achieved a firm promise of permanent waterfront access, as the folks in Everett and New Bradford, MA, recently did.]

Note: In December 2011, the Philadelphia Zoning Code was revamped and reorganized, but its casino district provisions were only renumbered to §14-405, and renamed, without changing their substance. The district is now called SP-ENT (Special Purpose-Entertainment). For those interested in making a comparison, the Repealed Casino District provisions can be found here.  Click on this link for the current SP-ENT provisions.

PENNTreatySSD Logo Not only did Rush Street Gaming enter into a comprehensive Community Benefits Agreement with Philadelphia for its SugarHouse casino, it went beyond the elements customarily found across the nation in development CBAs by agreeing to the creation of a Special Services District (“SSD”), controlled by four neighboring communities, to administer the CBA on behalf of the Community. The resulting SSD is called the PENN Treaty Special Services District (“PENN Treaty SSD” or “PTSSD”). Click this link for the full text of the PENN Treaty SSD Articles of Incorporation and the SugarHouse CBA.

Why “PENN Treaty”? According to legend, Pennsylvania founder William Penn signed his treaty of peace with the local Lenape tribe under an elm tree just off the Delaware River in 1683, at a riverfront spot near SugarHouse. The tree fell down in a storm in 1810, but the site was dedicated in 1894 and named PENN Treaty Park.

PENNTreatySSD Logo Here are some of the most important provisions in the SugarHouse Community Benefits Agreement:

1.Goals: The CBA says that SugarHouse wants to open on schedule, “with the minimum disruption practicable, during both development and operation to the Neighboring Community.” In addition, the Community Signatories are said to desire ongoing cooperation with SugarHouse, “in order to properly address the impacts of casino development and maximize the benefits of such development to the community.”

2.red check Special Services District: The Community Benefits Agreement includes setting up a Special Services District, called PENN Treaty SSD (“PTSSD”), which is a nonprofit organization formed and controlled by volunteers from the four Neighboring Communities that border on the Casino. As PTSSD states on its web homepage, it distributes grants and sponsorships to organizations that provide charitable benefits to the residents of the SSD. PTSSD started operations in January 2010, nine months before SugarHouse opened for business.

3.red check Funding:  It took two years of continued wrangling, but the Casino eventually began making the required payments under the CBA and the Special Services District has been sharing those funds since that time with the communities of Fishtown, Northern Liberties, South Kensington and Old Richmond.

1.PTSSD has already received $1,175,000 from SugarHouse under their CBA to fund projects for the benefit of the neighboring communities

2.SugarHouse agreed to pay $175,000 each year during the Pre-Opening period; $500,000 the first Post-Opening Year; and $1,000,000 in subsequent years, for 15 years, with upward adjustments up to $1.5 million.

3.SugarHouse also agreed to pay up to $35,000 for the legal fees incurred by the community representatives setting up the SSD, plus $1000 in startup expenses

4.red check Waterfront Access: SugarHouse agreed that “in no event shall such access be more limited than provided in the [Development Agreement it made with the City]”. As a result, as detailed at pp. 6-7 of the Development Agreement, once SugarHouse completed its Waterfront Promenade (during its first phase of construction), it must permit “substantial public access . . at all times along its waterfront pursuant to a mutually satisfactory agreement concerning such access,” with street entry from both north and south ends of the Casino complex, and with very limited partial restriction allowed for special events and safety reasons. SugarHouse must also consult with the SSD on a regular basis regarding access to the waterfront.

Note: This is of course, quite different from the situation in Schenectady, where Rush Street and City Hall collaborated to remove a public access guarantee from its C-3 Waterfront zoning provision: with Council Member Leesa Perazzo inanely explaining “we don’t need it because they’re going to do it anyway,” and Director of Development Jaclyn Mancini pointing out that “they’ll have access to the retail shops,” as if being able to shop at Mohawk Harbor retail establishments was in question and is equivalent to being able to freely enjoy the waterfront. When the topic of public access came up before the Planning Commission, Galesi Group’s CEO and representative Dave Buicko twice said “it’s private property”, and he admitted they want people to come as customers.

5. Promotion of Local Businesses.  SugarHouse must operate a Promotional Player Program with points redeemable at local businesses and must keep a list of businesses offering discounts to SugarHouse players’ club members.

6.Traffic. Miscellaneous obligations are undertaken by SugarHouse aimed at minimizing “disruption caused by increased or modified traffic” related to the development and operation of SugarHouse. For example, free parking must be provided for employees and casino guests to prevent spillover to neighboring streets. Also, a one-time $5000 payment was made to allow for free car washes for those nearby affected by construction dust.

In addition, the Development and Tax and Claim Settlement Agreement with the City of Philadelphia included many commitments, such as:

•Security, Safety, Medical Emergencies: SugarHouse will fund private security for its complex sufficient to maintain the peace; will pay for expenses related to 911 emergency calls from the Casino; and will provide or fund ambulance service for medical emergencies at the Casino.

•Traffic Report. In the first and third years of operation, SugarHouse must do a traffic count at specified intersections and provide a plan to remedy any failure to reach goals set forth in certain Traffic Letters.

red check Specified Settlement Payments and Use and Occupancy (property tax) Payments: Specific Dollar Amounts are pledged (see p. 10), with a minimum of $3.2 million in Settlement Payments, and $1 million in Use and Occupancy payments in each of the first 10 years, and $3.5 million in years 11 to 20, with CPI adjustments.

•LEED & Green Roof. SugarHouse will use an LEED Certified consultant, and promises to spend a minimum of One Million Dollars to construct a Green Roof on the facility covering at least 60,000 sq.ft. (Click here for the EPA webpage on Green Roofs) In Schenectady, the Casino Gang speaks more in terms of aspirations than promises, and they seem to be saying something like, “Gosh, we’ll do what we can to be energy efficient, as long as it doesn’t cost too much.”

•Waterfront Access. As discussed above in the CBA section, the Development Agreement (at 6-7) sets forth numerous public access requirements, and explains limited restrictions on access that might be imposed due to special events, construction, and safety concerns.

Zoning Code Differences. . . . The Schenectady City Council recently pushed through a set of C-3 Waterfront zoning amendments to meet the “needs” of the developer and operator, with the City’s incurious, almost-servile Planning Commission granting it major CYA protection (see our earlier posting). The resulting zoning code leaves the people of Schenectady with fewer rights and less protection. (See, e.g., our posting of Feb. 10, 2015, “zoning vote hands the Casino Gang a Blank Check“) In contrast, treatment of licensed gaming facilities in the Philadelphia zoning code was put in place prior to the selection of SugarHouse for a casino license and not tampered with at SugarHouse, as they had been in Schenectady under pressure to fulfill the pressures, whims and exaggerated deadlines of the Galesi Group and Rush Street. . Here are examples of the contrast between casino-related zoning provisions in Schenectady (its C-3 District provisions, §264-14, which are described, with a link to the final version, at tinyurl.com/C-3Changes) and in Philadelphia (its SP-ENT provisions):

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the Gazette continues the ALCO TUNNEL COVERUP

controversial

photo of ALCO tunnel taken by DEC engineer 08Aug2014

 About eight weeks ago, Stop the Schenectady Casino learned that the Applicant/Developer of the proposed Schenectady casino at the Old ALCO Plant site failed to disclose to Metroplex in its environmental statements its discovery of “tunnels” under historic ALCO Building 332, and that the Schenectady Gazette helped in the coverup.

For the bigger story of how the Gazette has served the interests of the casino and ignored the opposition and the needs of the City and people of Schenectady, see rigging the news: the Gazette and the Schenectady Casino” (Dec. 16, 2014)

The Rotterdam-based Galesi Group is the owner of the Mohawk Harbor site and the developer of a planned marina and mixed-use complex there, and hopes to include a casino on the 60-acre site.  As the owner-developer, Galesi is responsible for submitting an environmental impact statement [“EIS”] to the Metroplex Authority, which is the lead agency for purposes of the State Environmental Quality Review Act.  As such, in attempting to obtain approval of a final EIS, Galesi has an ongoing responsibility to report any new facts that raise a significant question of potential harm to relevant aspects of the environment, including elements of historical or archeological importance. Galesi CEO David Buicko has taken the lead as spokesman for the proposed Mohawk Harbor projects before local government bodies as well as the NYS Gaming Facility Location Board, and is well known in the business, development, political and educational sectors of Schenectady County and the region. Rush Street Gaming, which is headquartered in Chicago, is the primary Applicant for a casino license and would operate the Schenectady casino, called Rivers Casino at Mohawk Harbor, if granted a license by the Gaming Commission.

Because the Gazette has failed to clarify what happened on the site, at Metroplex, and in its newsroom and editorial enclave concerning the uncovered utility tunnels, I sent the following proposed opEd piece or guest column Letter to the Gazette on November 14, 2014. There has been no response of any kind from the Opinion Staff.  Here is the piece the Gazette refuses to publish, followed by additional explanation and discussion, including communications between myself and both the Gazette reporter who admitted she was asked not to report on the tunnels and the one purportedly assigned to find out what really happened.

To the Editor:

Three weeks ago, I was told by a Gazette reporter that the paper would be following up on its incomplete and one-sided article “Metroplex OKs Alco site environmental review” (Oct. 22, 2014), concerning the failure of the ALCO/Mohawk Harbor developer (Galesi Group) to disclose in its environmental impact statement its discovery of tunnels under Building 332, and its request (honored by the newspaper) that the Gazette not report on the discovery. [the portions of the Oct. 22 article relevant to the tunnel issue are quoted below] So far, not a word has been printed about an issue that draws into question the credibility of the Applicant for a Schenectady casino license, Metroplex’s environmental review, and the Gazette‘s coverage of the casino selection process.  Is the Gazette waiting until the NYS Casino Facility Location Board makes its decision awarding a Capital Region casino license, so that the credibility of the Schenectady Applicant won’t be undermined prior to the selection?

The Oct. 22 article correctly points out that I and Mohamed Hafez had written to Metroplex chair Ray Gillen just prior to its Board meeting that day, asking for a postponement of its approval of the environmental review, because we had just learned that the ALCO contractor had uncovered tunnels under the century-old ALCO Building 332 while demolishing its foundation.  The discovery was in early August, prior to the approval of the draft environmental impact statement, but Galesi Group never brought in an archeologist nor reported the discovery to Metroplex.

The article then fails to mention any of my supporting information, although it was supplied to the reporter along with the Memorandum to Metroplex. Instead, the rest of the article debunks my Tunnel Coverup claims, by quoting Mr. Gillen and Galesi CEO Buicko denying that there were any tunnels and that there was any historical significance to the “utility corridors” they did find and demolish.  It then quotes from three Galesi consultants denying the existence of tunnels or saying that what was found was expected.  In addition, the letters by the consultants were described as having been “written this week,” although the reporter knew that they had been written that very evening specifically in response to our Memorandum to Metroplex.

The article also fails to mention that our Memo to Metroplex specifically alleged, using information verified by another Gazette reporter, that “When a reporter from the Gazette attempted to learn about the tunnels [in early August], the Applicant refused to give an interview on the record and would not allow photos to be taken; it also appears that the Applicant specifically requested that the Gazette not report on the discovery of the tunnels.” Not having mentioned our coverup claim, the article does not tell us whether Mssrs. Gillen and Buicko denied the request for a coverup or somehow justified it.

At the very minimum, your readers show have been told in the original article, or by now in a follow-up article, that:

  • Contrary to the letters of the Galesi consultants, the DEC engineer stated twice that it would have been virtually impossible for the contractor to know the tunnels existed prior to demolishing the building’s foundation.
  •  In addition to the original Gazette reporter calling the so-called “utility corridors” tunnels and not questioning our using that word, the Department of Environmental Conservation engineer heading up the remediation project at the ALCO site spoke with me at length by telephone, and said that the “pipe chases” were indeed large enough to be more appropriately called tunnels, and he thereafter referred to them as tunnels.
  • The Gazette reporter, Haley Viccaro, wrote to me on October 20 in an email that: “Yes there are tunnels and they are working to get rid of them. I was asked not to report on that fact,” and complied after discussing the issue with Gazette editors.
  • On October 21, I emailed the six photos sent to me by the DEC engineer to Don Rittner, the former Historian of Schenectady County and the City of Schenectady, and an archeologist.  Dr. Rittner wrote back: “[A] professional archeologist should have been hired to document the site before destruction.  This was such an important part of Schenectady history [but] we may never know what those tunnels were for.” Dr. Rittner also concluded that the discovery should have been disclosed as part of the Environmental Impact review process.
  • photo of Bldg. 332 - by H. OhlhouseAccording to information at the Historic Marker Data Base website, “Building 332 was one of the longest structures in the world at nearly 1000 feet when it was completed in 1905.” (see photo to the right, taken and with commentary by Howard C. Ohlhous, Historian of the Town of Duanesburg, NY; click on the image for a larger version) Furthermore, according to DEC engineer Strang, the buildings on the ALCO site often were built over the foundations of prior buildings dating from the mid-19th Century, and “cells” found during its demolition suggest that was the case with Building 332.
  • Construction of ALCO Building 332 was completed in 1905, but its foundation was very likely to have been erected on the foundation of buildings dating back to before the Civil War, increasing the chance that the tunnels could have some important stories to tell us.

Whatever they are called, the uncovered hollow structures were part of or beneath the foundation of a building which played an important part in the history of ALCO, of Schenectady, and of our nation’s war efforts in the 20th Century.  A professional archeologist could have quickly examined and documented the tunnels, assessing whether they were standard, mundane utility corridors, or were indeed of archeological and historical significance.  We will never know, because the Applicant concealed their existence from all but DEC’s remediation engineer, demolished them and filled them over.

The goal of receiving environmental approval by Metroplex as soon as possible to gain an advantage in the casino licensing process is understandable, but in no way justifies the Applicant’s covering the tunnels over without archeological examination, nor asking the Gazette to cover up the story.  To the extent the Gazette allowed itself to be part of the Applicant’s concealment efforts, it has also failed to serve its public.

Readers can learn more on this topic, and see the photographs and documents mentioned, at
http://tinyurl.com/ALCOCoverup

David Giacalone
Editor, Stop the Schenectady Casino, http://stoptheschenectadycasino.com/

_____

Instead of reporting our supporting information to its readers, the article dismisses me as “an outspoken critic of the casino,” and tried to make me look unreliable.  See “Metroplex OKs Alco site environmental review” (Oct. 22, 2014, by Bethany Bump). Here is the Gazette’s total discussion of our tunnel coverup claim:

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Rush Street takes aim at adolescents

noslots

According to a report issued September 9th by a major hospitality and casino worker union, Rush Street Gaming is investing millions of dollars with the aim of becoming the industry leader in “building a bridge” between children playing casino-like games on social media and smartphones and their going to brick-n-mortar casinos to do real gaming once they are old enough.  Knowing that the earlier you begin to gamble, the more likely you are to gamble often and obsessively, Schenectady’s proposed casino operator is sowing the seeds digitally to grow the next generation of problem gamblers.

bettingonkidsonline-cover Go to the website No Slots for Tots, which is sponsored by the Unite HERE, to see their informative, easy-to-read, and well-illustrated, 12- page report, “Betting on Kids Online: How One US Casino Company Hopes to ‘Bridge the Space’ Between Real and Virtual Casinos While Making Apps Available to Children via Social Networks and Smartphones.”  The introduction states:

[O]ne US casino company [Rush Street Gaming] has quietly pursued an Internet strategy that has sidestepped gambling regulators while also explicitly allowing players as young as 13″ to play their virtual games.

Who is Unite HERE? In their words, “UNITE HERE is the hospitality workers union representing workers in the gaming industry in North America. UNITE HERE Gaming Research provides analysis of the gaming industry from the perspective of those who work in it.”

Note: The Albany Times Union reported last night that “A large casino workers union [Unite HERE] has written to the state Gaming Commission complaining about Rush Street Gaming, the company trying to obtain licenses to run gambling houses in Schenectady and Newburgh. . . . The letter asserts that workers at casinos run by the Chicago-based firm have reported ‘illegal harassment by casino managers including threats, surveillance and other intimidation’.” TU reporter Jim Odato explains further and gives a little background on Rush Street and unions.

If Rush Street Gaming is rushing to create the next generation of casino gamblers, can there be any doubt that they will make a full-court (full-rink?) press to lure Union College undergraduates across the street to the old ALCO site?  For more on the increased vulnerability of young gamblers, see our posting “what will the casino mean for Union College students” and the materials referenced there.