a quick look at del Lago’s exterior

 . . 

. .  above: main entrance to [L] del Lago Casino; [R] Rivers Casino Schenectady

Driving back to Schenectady the day after Easter, I noticed that del Lago Resort & Casino is located right at Exit 41 of the New York Thruway, at Waterloo, NY, in Seneca County. Having only seen renderings of del Lago, when concluding it looked considerably more attractive than Rivers Casino at Mohawk Harbor, I thought I’d take the opportunity to stretch my legs and take a few photos of the exterior of del Lago in the brick-and-mortar world.

delLagoHotelRear

. . above: rear of del Lago Hotel and side entrance of Casino

You can judge for yourself from the two collages below (click on each for larger versions), one of which concentrates on the Casinos and one on the Hotels and Parking Ramps, how the $440 million spent on del Lago turned out, on the outside, compared to the $320 million to build Rivers Casino in Schenectady. A few additional images are also included after the collages. (You might note that del Lago appears to have no large, bright LCD screen or freestanding pylon.)

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. . share this post with the short URL: https://tinyurl.com/delLagoCompare        

Here are two more views of the del Lago Hotel:

IMG_6681 . . IMG_6679

 . . . And, two views of the rear entrance to the del Lago Casino:

IMG_6696  . . IMG_6694

Plus, the del Lago entry/exit driveway, at 1133 State Route 414, seen from near the self-park lot:

. . IMG_6667 . .

IMG_6669

IMG_6666

UpstateNYMap2018

  • Distances. Del Lago is 43 miles from Syracuse, 50 miles from Rochester, 90 miles from Utica, 95 miles from Binghamton, 105 miles from Watertown, 112 mlies from Buffalo, and 156 miles from Schenectady. In an Appendix at the bottom of my Casino Choices posting from January 2017, I have compiled the distances of the various casinos from Albany, Binghamton, Buffalo, Ithaca, Kingston, Rochester, Syracuse, Watertown, and Utica. 

IMG_6673

bum’s Rush needed

. . “get dose bums outta here!” . . 

 And, so it begins: “Rivers, Del Lago casinos ask state for better terms: All four non-Indian casinos in state are missing their financial targets” (Schenectady Daily Gazette, by John CropleyMarch 28, 2018):

 Little more than a year since their grand openings, two of New York’s four non-Indian casinos are asking the state for financial help.

Rivers Casino & Resort in Schenectady and Del Lago Resort and Casino in Seneca County are both making their cases with state lawmakers as the negotiations for the 2018-2019 state budget wind down to the final hours in Albany.

Details on their requests are elusive and, given the secretive nature of deal-making in the Capitol, quite possibly subject to change or outright rejection.

. . . Details were likewise hazy on the request by Rivers.

 A New Jersey public relations agency working for Rivers said there would be no comment on the matter.

A lobbyist reportedly working for the casinos did not return a call seeking comment.

. . . However, Assemblyman Phil Steck, D-Colonie, whose district contains Rivers Casino & Resort, said he has been given a rough idea of what Rivers is requesting, and said he endorses it.

Trying to save Schenectady’s Lady Liberty from pols and pirates is monopolizing my time again today, so I can’t go into detail about taxpayers getting the Bum’s Rush from Rush Street, but it probably makes more sense to see what, if anything, is done with their request. [see update below: Cuomo won’t play]

Here is what I said in a comment at the Gazette article:

 On July 14, 2014, we asked at the “Stop the Schenectady Casino” weblog: “How big of a gamble are the casino cheerleaders willing to take?. . . Does the shiny future they predict for Schenectady include the sight of a failing casino project along Schenectady’s riverfront and the inevitable request for tax breaks and financial assistance that we can expect once gaming revenues shrink along the Mohawk? [see https://tinyurl.com/unpromisingCasino ]

When Rivers hired Rob Long as its new General Manager last December, we also noted that Long had guided the development and opening of Rush Street’s very first casino, Riverwalk in Vicksburg, Mississippi. Rush Street sold that Casino in 2012, just four years after it opened, and after failing in their request for a 60% reduction in their property tax assessment. Have Rush Street and Galesi Group drawn up their tax assessment challenges yet? Are they looking for a buyer? What will Mr. Steck do for them next?

In addition to checking out https://tinyurl.com/unpromisingCasino, see “casino projections vs. casino reality” and links therein. Stay tuned, and watch out for those pick-pockets and Rushing Bums.

red check update (4 PM, March 28, 2018):  See “Cuomo says he is not interested in bailing out casinos” (State Of Politics. March 28, 2918). Article also has letter from State Senator Micheal Ranzenhofer, wanting help for existing casinos hurt by creating del Lago Casino, not for del Lago.

[8PM update] See “Cuomo: No bailout for Rivers, del Lago casinos” (Gazette, John Cropley, March 28, 2018).

There are many others in this state that aren’t getting what they need and that deserve more money from the state — many others in severe need through no fault of their own.

The casinos don’t fall into that category, and state lawmakers shouldn’t cave in to their appeals.

  • TUJBoyerTaxGamble update (March 30, 2018): The Times Union editorial board weighed in this morning with “Editorial: Say no to casino subsidies“, including a nifty illustration by Jeff Boyer [click on the thumbnail to the left]. It notes which of our representatives are for and against such handouts, and concludes:

All the signs were there years ago that the casino expectations and promises, especially upstate, were overblown. Now that those warnings are proving true, these enterprises seem to hope New York will behave like a classic loser who digs deeper into his pockets in the hope of a winning hand. There’s a gambling term state leaders would do well to learn: Pass.

Casino Projections vs. Casino Reality

 

RiversProjectionGame2

 Year-end numbers are in for 2017, and the City of Schenectady has received approximately $2.1 million in gaming tax revenue as the Host City of Rivers Casino at Mohawk Harbor, based on the Casino’s Gross Gaming Revenue total of $129.2 million for the year. The County received the same amount. In its budget, the City had projected it would receive $2.75 million from distribution of gaming taxes in 2017, leaving a shortfall over $600,000. See “Schenectady loses bet on casino revenue” (Times Union, by Paul Nelson, Jan. 4, 2018). As the Gazette pointed out last November, “Rivers reportedly projected its first-year [Gross Gaming] revenue to be in the $181 million to $222 million range.” If we take the middle of that range, $201 million in GGR in its first year, Rivers Casino only achieved 64% of its first year projection.

  • Click here to see Rush Street’s 5-year tax revenue estimates, submitted in its Application to the Gaming Commission Location Board as Ex. VIII.B.4. It shows a base GGR for 2017 of $201.8 million. Its high and low figures were obtained by respectively adding and subtracting 10% to that figure, yielding the range given in the Gazette of $181-222 million. Because Rush Street anticipated opening on Jan. 1, 2017 when making this estimate, it used a 52-week period rather than the actual 47 weeks, which meant 10% fewer operating weeks/days.
  •  Note: In Ex. VIII.B., filed at the end of July 2014, Rush Street Gaming estimated that the County and City would together receive a total of $3.2 million in gaming tax revenues in Year One, increasing to only $3.6 million collectively in Year Five, and would share those amounts.  Those numbers are very different from the $5.7 million in annual tax receipts City Council said it expected in its resolution the month before.  I would have thought the communication between City Hall and the Casino Gang was better than that.

 In what is surely a causally related effect, Mayor Gary McCarthy stated for the first time, in his New Year address before City Council last week, that he expected the City would have a “small deficit” when all 2017 numbers were tallied for the City, giving no further details of the cause or the likely amount. Asked afterwards, new City Council President Ed Kosiur said the Mayor’s remarks were the first he heard of a deficit. See “Schenectady Casino Revenue Coming Up Short of Expectations” (Samantha Beckett, Casino.org, Jan. 5, 2018). Regarding the Upstate casino shortfall in general, see “He nailed it: An analyst’s 2014 report predicted Upstate New York casino woes” NYUp.com, by Don Cazentre, Jan. 18, 2018).

 Click on the image to the left to see a week-by-week display of Gaming Revenues generated at Rivers Casino in 2017, plus totals.

The Stabilization Hope. Our City and County leaders keeping saying we can expect much better results once the casino’s operations and revenues have stabilized — as if Rush Street and its expert analysts are not competent to make first-year projections. But, in its Application to the Location Board, Rush Street Gaming estimated stabilized revenues in Year 5 to be only 10% more than its Year 1 figures. For more information on Rush Street’s revenue and tax projections, see the Applicants’ Economic Impact Analysis.

 Remembering the 18% property tax reduction City Council claimed it expected in a Resolution passed just before its vote to approve the Casino Application in July 2014, many residents are unhappy with the 1% reduction in the current City budget, and many are “roiled” over the water and sewer fee increases announced this week, which will offset the 1% reduction. See “State, local promises before casino vote a bust” (Times Union, by Lauren Stanforth, December 17, 2017); “Water, sewer rate increases roil some Schenectady residents” (Times Union, by Paul Nelson, Jan. 5, 2018).

 Are things likely to get better? Despite their Happy Faces, the City Council budgeted only $2.3 million in casino tax payments in 2018. Furthermore, Rush Street, City Hall and Metroplex have all pointed out for months that revenues are likely to rise due to the opening of Rivers Casino’s Landing Hotel, which had its first guests on July 19, 2017. (e.g., Times Union coverage; Gazette coverage) The week ending July 30 was the first full week with the Landing open. Despite the predictions of our Casino Cheerleaders, my calculations show that:

  • $2.7 million/wk. average for the 24 full weeks before before July 23
  • $2.6 million/wk. average for the 23 full weeks since the Landing opened

And, did you say “Resorts World Catskills Casino”?

Continue reading

a Long-shot at Rivers Casino?

 Last week, on December 8, Rivers Casino at Mohawk Harbor announced its new General Manager, Rob Long. [Click for Times Union coverage, and the Gazette report.] Of course, Long cannot be expected to instantly bring in significantly greater revenue. But, his first week on the job must have brought some cold reality for Mr. Long, along with Schenectady’s first jolt of real winter weather. The week ending December 10, 2017 (see Revenues Chart at the Gaming Board) brought these milestones/millstones, although we had no crippling snowstorm:

  • Worst Table Game Drop figure ever [$3,362,547] – despite its Table Game seminars a couple months ago to lure players;
  • Worst Slot Machine GGR since June [$1,523,343];
  • 2nd worst total GGR since June [$2,388,276].

Neither the Gazette nor the Times Union, despite my sending them the information on December 8, has mentioned Rob Long’s record when he guided the development and opening of Rush Street’s very first casino, Riverwalk in Vicksburg, Mississippi. The Gazette never mentioned that Long had been Manager of a Rush Street casino on a river in Vicksburg. But, as we wrote here in March of 2016, when opposing the naming of the main casino roadway in Mohawk Harbor “Rush Street”, Rush Street Gaming (with the same captains at the helm, owner Neil Bluhm, CEO Greg Carlin, and GM Rob Long):

 sold their Riverwalk Casino in Vicksburg, Miss., just four years after it opened, and after failing in their immediate request for a 60% reduction in their property tax assessment.

 Rush Street CEO Greg Carlin touted Rob Long’s “well-established track record.” All I know about Long at this time is that:

  1. the riverside casino he ran for Rush Street Gaming in Mississippi opened in 2008;
  2. shortly thereafter, it requested an enormous reduction in its real estate appraisal, which was not granted; and
  3. it was sold in 2012 to Churchill Downs.

By the way, of the 19 Mississippi casinos located along the Mississippi River, Riverwalk was one of the only two facilities that were not forced to close in 2011 due to record flooding. Did Rush Street decide it would not press its luck?

  •  One more thing I did learn, Long’s Riverwalk Casino’s big fundraiser each year was “Bras for Breast Cancer”, which offered to pay a dollar for donated bras and strung the bras across the Old Highway 80 Mississippi River Bridge, with a special section featuring creatively decorated bras. Hey, we have a nearby bridge! 

QQ: Rush Street Gaming will not tell us, nor will Rob Long himself, but I sure would like to know what options the company discussed with its GM when planning for the near-future at Rivers Casino in Schenectady. When will they start considering jumping ship along the Mohawk? Not to mention, how happy is the landowner, Galesi Group, that they “designed” the Schenectady casino to be just boxes next to boxes, so the facility could easily be converted from a casino to just about anything?

 

Luck Ain’t No Lady: 38th week the worst yet at Rivers Casino

LUCKNOLADYhonest  According to the NYS Racing Commission revenues page for Rivers Casino, its 38th week (ending October 29, 2017), was the WORST week yet for the Schenectady Mohawk Harbor Casino. That’s despite having the Ellis Foundation’s big Women’s Night Out “Luck Be a Lady” event there on October 26, preceded by a prep-day of Table Game education in September. Of course, we can only guess the effect of several weeks of Mayor Gary McCarthy appearing in ubiquitous (and, for many of us, tacky and dispiriting) Fuccillo Auto ads shot at the Casino. Nonetheless, last week’s, take, $2,039,456, was perilously close to dipping below the $2-million mark. 

plungegraphsmY DOLLARS. This comes after Gazette columnist Sara Foss called this week for a review of the inflated revenue projections we got from the three new casinos in New York State. While this site was temporarily called “Stop the Schenectady Casino”, we pointed out the practice of over-promising revenues. That included, as even the Gazette reported prior to endorsing the Casino, that “In Philadelphia, for example, SugarHouse was projected to generate $320 million in gross revenue its first year but only generated $212 million.” 

casinowalkers BODIES. We hope that Foss or another journalist will look into the promises Rush Street made about how many people the Casino would bring to Schenectady. It projected 2.8 million a year. The fact that we have never been given any attendance numbers past the first couple of days suggests that the projected body-count was another cynical exaggeration. 

 

red check For those readers who are wondering how, after the Gazette endorsement of Porterfield, Farley and Mootooveren for City Council, to choose between John Mootooveren and Mohamed Hafez when using their third vote, I’d like to point out the following, regarding each man and the Casino:

Incumbent Councilman John Mootooveren:

  • JMootooverenHas acted as if Schenectady were a Supplicant, and a Second-Rate City, during the casino license application process, and thereafter, rubber-stamping the Mayor’s Supine Schenectady position, giving the Casino applicants their every wish, while making no demands. In contrast, all other potential casino locations use their leverage, to assure additional income from the casino, including mitigating its added expenses for infrastructure, public safety, and social problems; seeking guarantees of minimum revenue payments; and demanding local preference for jobs, and a buffer period in which property assessments would not be challenged by the developer.
  • Never questioned any claim made by the Casino applicants prior to voting to approve their Application for a Casino License in Schenectady as to projected revenue and the absence of likely negative effects.
  • Never sought an independent study of potential negative effects and realistic benefits, despite his claims of financial expertise.
  • And, never questioned or challenged any of the drastic changes in our zoning ordinance, demanded by Rush Street Gaming and the Galesi Group. As a result, the Council and the Mayor took away the guarantee of public access in perpetuity to enjoyment of the riverbank when the harbor was developed, and the requirement that 10% of residential boat dock space be reserved during the day for the public.

In contrast, Candidate Mohamed Hafez:

  • MHafez Was a leader in the Stop the Schenectady Casino campaign, pointing out the many problems raised by locating a casino in an urban area and the need to fully consider likely problems and realistic benefits.
  • Demanded over and over, at City Council meetings, and in writing to the press, that the City use its leverage to demand/negotiate the best possible agreement with the Casino to maximize revenues and local employment, and minimize and offset added financial and social costs.
  • Wrote a letter to the editor we reprised here: “wise words from Mr. Hafez“; and
  • Asked the Mayor directly about host community agreements at a City Council meeting on May 11th, and at subsequent meetings, leading to the Mayor writing a guest column in the Gazette debunking the notion of having an HCA or needing to ask for any moneys in addition to required taxes, and our responding at length at this website. E.g., “the Lago Casino HCA and the Mayor.”

Empty Chair. One final note about the two candidates: Mohamed Hafez, a registered Democrat running on the Republican and IndependenceParty lines, attended every candidate forum during the current City Council election campaign. John Mootooveren, the incumbent Democrat who is 1/4th of the Mayor’s 4-person rubberstamp majority on the Council, failed to appear at the League of Women Voters forum, the Gazette Candidate forum at Proctors, the Woodlawn neighborhood association forum, and the Goose Hill Neighborhood Association meet the candidates event.

Gazette covers half-year Casino revenues

Today’s Schenectady Daily Gazette has an informative article headlined “A look at Rivers Casino’s gaming numbers 6 months after opening” (by Brett Samuels, August 21, 2017). It includes a “look at how much Rivers Casino has paid out to local municipalities in state gaming tax through July.” For Casino Realists like myself, here’s the core of the article:

 If business continues at its current pace, the city and county would each get a little more than $2 million in gaming money at year’s end. As has been the case from the start, the casino appears poised to fall well short of what was expected by each government entity.

In budgeting for 2017, the city and county both used the low-end projection from the casino’s application and pro-rated it to a March opening. That leaves each government expecting about $2.75 million in gaming revenue for 2017. Gaming revenue is expected to stabilize by 2019.

 Of course, we need to ask: “Stabilize” at what level? And, we might also ask what Schenectady County spokesman Joe McQueen means when he says that “thanks to the infusion of casino money, . .the county is now expecting to see about $855,000 in annual savings.” Is this figure based on some sort of “netting out” of revenues received due to added expenses and reduced receipts from other sources, such as sales or property taxes because of the Casino’s Substitution Effect?

  • As we wrote here more than three years ago, research by the successful citizens’ group “No Downtown Casino” in Hamilton, Ontario, Canada, led them to conclude in their Position Statement

    Greater negative financial impact on nearby businesses – the good numbers go down.

    Studies show that property values near a casino decrease by 10% or more once the casino opens. Part of the reason for that is because the casino never closes. It operates 24/7. Commercial buildings, apartment buildings, condominiums, etc. decrease in value which means over time they pay lower property taxes. Research also shows that 60% of businesses that existed before the casino opens, go out of business within 2 years of the casino opening. Lost jobs. Lost taxes. Failed entrepreneurs. Empty storefronts.

It may be too early for such effects to be apparent in Schenectady, but we need to be vigilant when speaking about how much the Casino has enhanced our tax coffers.

updates on the proposed Mohawk Harbor signs

questionmarkkeyoverRed BZA follow-up (November 16, 2017): Click for a copy of David Giacalone’s Comments to BZA regarding the Special Meeting today to review another Mohawk Harbor variance application for a 30′ pylon. What happened this evening? BZA approved a pylon virtually identical to the one they rejected on October 4, 2017. See “BZA pylon flip-flop“.  Short URL:  http://tinyurl.com/BZAflip

(November 15, 2017): I learned today that on November 1st, 2017, Board of Zoning Appeals granted Mohawk Harbor variances that would permit it to install a pylon sign 22′ tall and 122 sq. ft., at the location involved in the discussion below. The Zoning Code permits a sign 7′ tall of 75 sq. ft. at that location. Had I known of the application, I would have strongly opposed it as presenting the same problems as the 30′ pylon rejected by BZA on October 6, 2017.

  • Mohawk Harbor was apparently so shook up by the rejection on October 6, that Galesi sent Big Guns, to literally beg BZA to permit the pylon application. Dave Buicko, Galesi Group CEO and Ray Gillen, Chairman of Metroplex, came to press the Board members. I am told that Mr. Gillen said, “I have never asked you for a favor, but please, please, please grant this variance.”

disbelief-foreheadsmack Moreover, I learned late yesterday afternoon (Nov. 14), thanks to TU reporter Paul Nelson, that BZA had announced a special Meeting to be held tomorrow, November 16, in which Mohawk Harbor has resubmitted its previously rejected application for a 30′ pylon of 265 sq ft. The only difference is that it has given up asking for a 1′ setback instead of the required 3′ setback from the right of way. Click here for the Resubmitted 30′ pylon application.

Original Posting

 post BZA update (10 PM, Oct. 4, 2017)This evening, the Schenectady Board of Zoning Appeals granted a variance for a “monument’ sign at the entrance to Mohawk Harbor at Mohawk Harbor Way and Erie Boulevard, but denied the request for a variance to permit a 30’ tall pylon sign along Erie Blvd, that had a large LCD screen and 22 lighted “tenant signs”. [But see, “BZA pylon flip-flop“.]

 . . variance denied . .MH-pylonrenderingOct2017

  • MH representative Paul Fallati had asked BZA to allow a 265 square foot pylon sign, with a height of 30 feet, a message board 12 feet wide, and a 1 foot setback from the NYDOT right-of-way. 
  • A variance was needed because the sign schedule in the City Zoning code for the C-3 Waterfront Mixed-Use District only permits a 75 square foot sign, with a height of 7 feet, a message board 8 feet wide, and a setback of 3 feet. (Larger sizes are permitted for Casino-related signs but not for non-casino signs.)
  • The Board found that the requested variances were significant, not justified, and could adversely impact close properties.  BZA refused to merely accept the Planning Commission’s actions in support of a 30′ design. Click to see the odd and inadequate Variance Application for the Pylon Sign; also, the Variance Application for the Monument Sign, and a Site Plan illustration of the signage location and setbacks.
    •  A co-owner of Sev’s Luxury Used Car, located directly across the street from the proposed pylon on Erie Boulevard, pointed out to the Board the potential negative effects on nearby properties that desire to upgrade to more attractive uses, and asked if the large cement wall behind the proposed pylon was meant to protect Mohawk Harbor tenants from the glare of the bright pylon lights and screen.
    • deskdude David Giacalone, proprietor of this website, stated that BZA should have made its own independent review of variance issues before the Planning Commission spent two months helping MH design a 30-foot sign for a 7-foot sign location. He also stressed that (1) Mohawk Harbor is asking for a shopping-mall-style sign despite touting the development as an upscale mixed-use residential and commercial neighborhood; he presented a collage (seen below) to make the point; (2) a large, bright sign so close to a busy, complicated roadway presents many safety issues, including distracting drivers (intentionally) and creating major glare; and (3) the Applicant could not show that its difficulty under the zoning code is not “self-created”, because Mohawk Harbor was intimately involved with drafting the revamping of the C-3 District rules two years ago, and specifically left the original C-3 signage limitations for non-casino signs.  These and additional issues are more fully discussed below.
  • update (5 PM, Oct. 5, 2017): According to an article in the Daily Gazette posted this afternoon,The board rejected the plan for the 30-foot sign by a vote of 4-2, said Avi Epstein, the city’s zoning officer.” In addition, “The proposal was denied because the board felt it would cause an undesirable change in the surrounding neighborhood, and that the applicant could achieve the purpose of the signage through another method, City Planner Christine Primiano said.”

MH-pylonOct2017 [Earlier] BZA Update (October 4, 2017): This follow-up relates to the requests by Paul Fallati, on behalf of Mohawk Harbor, for area variances to permit the two signs at the Mohawk Harbor Way entrance to the complex. The matter is before the Board of Zoning Appeals for the first time this evening, October 4, 2017. (Click to see the Variance Application for the Monument Sign, the Variance Application for the Pylon Sign, and a Site Plan illustration of the signage-intersection location and setbacks.) The issues are basically the same as discussed below regarding the appropriateness of the sign for the location, but the Board of Zoning Appeals should, I believe look closely at the statutory and code requirements for granting an area variance, and not let the Planning Commission preempt variance decisions, which places BZA in a rather awkward position.

 The PYLON VARIANCE PROPOSAL: On behalf of Mohawk Harbor PAUL FALLATI requests Area Variances for 220 Harborside Drive located in the C-3 Waterfront District 

  • to allow for a 265 Square foot pylon sign, with a height of 30 feet, a total width of 18′, and a message board of 12 feet wide , with a 1 foot setback, 
  • where a 75 square foot sign with a height of 10 7 feet is allowed, and a minimum setback of 3 feet required. [Ed. Note: And, when the Schenectady Zoning Code defines a pylon sign as having a base no more than 5′ wide, with a message board no more than 8 feet wide. Code §264.]

The Application for the Pylon Sign in no way meets the criteria for granting a variance.

As in my August 2017 letter to the Planning Commission, a key issue is whether a giant pylon sign is appropriate, given the goals of the C-3 Waterfront District and the claims of the developer that this is a unique and upscale mixed-use residential-commercial neighborhood. As this updated collage suggests, the 30′ pylon, with its 22 lighted tenant signs and large LCD screen along a busy road is far more appropriate for a strip mall or shopping plaza. (click on the collage for a larger version)

compareshoppingmallsigns

This this update will be completed after this evening’s BZA meeting.  Until then, please  Click here  for an 8-page set of Comments submitted on August 16, 2017, to the Planning Commission by David Giacalone regarding the Mohawk Harbor signs, which starts with the following summary: 

 SUMMARY: First, the proposed signs are far larger than permitted for non-casino signs in the C-3 zone, and area variances must be obtained.  On the merits, the placement of a large LED screen so close to a busy intersection and complicated roadway system is particularly worrisome from a safety perspective [from driver distraction and confusion, and glare], and the use of a shopping-center/strip-mall type pylon is contrary to the stated upscale aspirations of the developer and the goals of the City’s Waterfront zoning provisions. It cheapens the image of the Harbor Area, lessens the quality of life of residents in the vicinity, and reduces the attraction of adjacent property for higher use.

 

 BELOW is a set of Updates to our post on August 4, 2017, “another sneaky pylon ploy“, on the proposed Mohawk Harbor pylon-style sign (14′ W by 32′ H, with an LED screen on top, 12′ W by 6′ H) and monument sign (40′ W by 10′ H), which are on the Schenectady Planning Commission agenda for August 16, 2017. In the Aug. 4th post, I argue that the signs are too large to be allowed in the C-3 district, because they are not casino-facility-related, and must comply with the normal regulations of Article IX of our Zoning Code. . .

share this post with this short URL: http://tinyurl.com/MHsigns

 Commission Meeting Follow-up (Aug. 17, 2017): Important points, in addition to delaying making a decision until next month:

  • As expected, the Commission declared itself the Lead Agency for purposes of SEQRA environmental review and adopted a negative impact statement.  Interested Federal and State agencies, and the public may comment — e.g., statements about the impact of the signs on traffic safety, and nearby residents — over the next 30 days. In addition, the Commission correctly demanded detailed renderings showing the appearance, exact location, and orientation to the roadways, of the signs.
  •  Despite the statement to me by the Principal Planner earlier this week, Mohawk Harbor did not reduce the size of its proposed signs in deference to the need to seek a variance for each, which State law says must be the minimum increase required to meet the valid needs of the applicant. More worrisome, no Commission member spoke of the need for a variance, nor reminded Mohawk Harbor that only casino facility signs were exempted from the Zoning Code’s Article IX restrictions on the size of signs.
  • Paul Fallati of the Galesi Group stated that one reason for such a large monument sign was to help screen out the sight of STS Steel.
  • Commissioner Bradley Lewis correctly pointed out that the proposed large pylon does not actually have the name Mohawk Harbor prominently displayed, so as to alert drivers they are approaching the development.
  • CrosstownPlazaSign-Aug2017

    Crosstown Plaza pylon

    David Giacalone [proprietor of this website] stated that variances were needed, and that a large pylon with signs for 22 tenants would make upscale Mohawk Harbor look like any old shopping mall. [image to the right is Crosstown Plaza’s sign; with $480 million to spend, I am pretty sure the Lupe family would have developed a very tasteful plaza at Crosstown.] Giacalone reminded the Commission that they need to consider the safety elements of having a large LED screen, plus the lighted tenant signs, just a few feet from a busy road.

    • To my argument that the miSci sign on Nott Terrace is adequate as a branding sign at 12′ W by 10′ H (see discussion and images below), Mr. Fallati said the traffic is much faster on Erie Blvd. so drivers could not see 22 little signs on such a small structure. See “Decision on Mohawk Harbor signs put on hold” (Gazette, by Brett Samuels, Aug. 17, 2017). He apparently missed my argument that we do not need to have a cluster of tenant signs at all, and that 22 tenant signs would not be very informative no matter how large the pylon is — i.e., the Crosstown Plaza pylon is 14′ W and 50′ H (grandfathered in at that height) and passing traffic surely does not become well-informed about the tenants..

 

ORIGINAL POSTING:

Schenectady’s Principal Planner, Christine Primiano, gave me some helpful information this morning (Aug. 11, 2017), with a quick reply to a few questions about the Mohawk Harbor signs and process. She wrote that “The signage below the LED screen [on the proposed pylon] are panels with the business names and they will be lit. The LED screen will change message, advertising events and businesses within the MH complex.” Individual products or sales will not be advertised on the screen. In addition, Ms. Primiano wrote that “The [monument sign] is intended to name the complex and provide some visual screening of the STS Steel site, however, they are already talking about making it smaller because there are size and setback issues.”  Christine also wrote that:

  • On 8/16 the Planning Commission will declare Lead Agency for the SEQR review which starts a 30 day window for interested parties (i.e., Mohawk Towpath Scenic Byway) and involved agencies (NYSDOT and Sch’dy BZA) to comment on the proposal. 

  • The Planning Commission will not take any other action on 8/16 other than to give their feedback on the design. 

  • It’s anticipated that on 9/20 the Planning Commission will take action to either issue denial or conditional approval of the proposal. If they issue approval, it must be conditioned upon approvals by NYSDOT and Sch’dy BZA.
  • 10/4 Board of Zoning Appeals to review the area variances needed to allow the signs.

DSCF3299  . . DSCF3294

. . above: proposed locations on either side of Mohawk Harbor Way at Erie Boulevard for the proposed monument sign [L] and pylon sign with LED screen atop. Click on each  image for a larger version. Click here (for the Monument Sign) and here (for the pylon sign) to see the two Special Use Permit applications.

  MHMonumentSketchDetail . . . MHpylonsketchAug2017  For additional details, please see our Pylon Ploy posting about the two MH signage applications, including the submitted sketch images of the Pylon and Monument signs, and legal discussion of the need for variances due to the excessive height and square footage. The Planning Commission staff appears to agree that variances will be needed unless there are significant reductions, and is therefore contemplating referring the final proposals (relating to allowable dimensions) to the Board of Zoning Appeals for variance review, with possible action by BZA in October.

ISSUES AND ANALYSIS

Here is the Schedule I list of signage regulations in the various districts. Mohawk Harbor is, of course, in the C-3 Waterfront Mixed Use district, and Schedule I and all Article IX provision on Signs apply to the applications before the Commission, because they are not covered by the 2015 Amendments, which exemption granted to casino-facility-related signage.

Sched1SignReg

.

SIZE & STYLE: Given the City of Schenectady’s goals for its mixed-used waterfront district, how much leeway should Mohawk Harbor’s owners have when it comes to the size and design of its freestanding roadside signs?

Here’s how Mohawk Harbor describes itself on the homepage of its website:

Mohawk Harbor is a 60 acre master planned community that integrates luxury living, high-tech offices, restaurants and retail along one mile of the Mohawk River. When complete, Mohawk Harbor will consist of over 1 million sf including 206 apartments, 50 condominiums, 15 townhouses, 2 hotels, 100,000 square feet of harborside retail/dining, 74,025 SF of Class A Office space, and  one of New York State’s 1st licensed casinos, Rivers Casino & Resort.

And, River House, the residential element of the project, is said to offer, “a new style of living in the Capital Region with its a one-of-a-kind, resort-style residences. ” And,

 Situated along the new “Mohawk Harbor”, the Riverhouse provides a unique urban lifestyle that is one-of-a-kind in Upstate New York. Featuring 206 waterfront apartments that overlook the Harbor, it provides the perfect balance of serenity and vitality with its scenic river and mountain views in combination with the vibrant energy of downtown Schenectady

THE PYLON STRUCTURE and SIGNAGE

MHpylonrequest . . . close to River House and future homes

MHpylonsketchAug2017 Given its stated aspirations and pretensions, it is difficult to understand why Maxon Alco Holdings LLC would want to put what is basically a “shopping center” pylon on Erie Boulevard as its branding sign, with twenty-two internally lighted tenant signs shown in the sketch submitted to the Planning Commission. The following collage (click on it for a larger version) asks: If Mohawk Harbor is an upscale, mixed-use “neighborhood”, why does it need a mall-style pylon with tenant signs and large LED screens?

shoppingmallsigns-002

Of course, such things are a matter of taste, but in my experience, it seems that the most “tasteful” shopping plazas and galleries, and mixed-use developments (such as Wisconsin Place, in Chevy Chase, MD, a couple blocks from District of Columbia’s northwest border) do not place tall tenant signs, much less huge LED screens, along their entrances. A kiosk inside the complex is far more palatable.

miSciPylon How large does an effective Branding Sign have to be, especially for a destination-establishment that constantly receives boatloads of free media exposure, for the entire complex and for each new “tenant” business? MiSci, the Schenectady Museum of Innovation and Science, gets far less publicity, but its branding pylon sign on Nott Terrace seems to do the job well, at 12′ W and 10′ H, with an LED screen about 9′ W and 3.5′ tall. See the image at the right. The following collage shows what a Mohawk Harbor sign of the same size might look like at miSci’s Nott Terrace location, and what it would be like at the 32′ by 14′ dimensions requested the the Applicant, including a 12′ by 6′ LED screen. [click on the collage for a larger version]

miSci-MH-signs2

Similar questions need to be asked about the appropriate size of the monument sign at the entryway to Mohawk Harbor. Just a block to the east, on Nott Street, the Golub Corporation has its headquarters, for its Price Chopper and Market 32 chains of supermarkets, in a building developed and owned by the Galesi Group. As you the see in the next collage, it does rather well making itself known to passersby with a freestanding branding sign no larger than 8′ H by 18′ W.

golub-MHsigns2

The desire of Mssrs. Galesi and Buicko to block the view of STS Steel is silly and inappropriate, and the Planning Commission and Board of Zoning Appeals should say so, especially given the brazenly excessive application for a monument sign that would be 40′ W and 10′ tall. For many of us, the STS Steel factory and complex is at least as attractive as most of Mohawk Harbor (especially its boringly ugly Rivers Casino neighbor), and symbolizes much of what was best in Schenectady’s history and desired for its future. The Planning Commission cannot simply trust the taste and good intentions of the Applicant. It must do its job, along with BZA, to assure that the size and design of Mohawk Harbor is consistent with the goals of the C-3 district, and the best interests of our entire community. That includes people who will soon be living at Mohawk Harbor or across the Boulevard in new homes, and those investors the City hopes to entice to take a chance on new businesses across from Mohawk Harbor.

One final thought: We are well past the time when the Galesi Group or Rush Street Gaming can be allowed to rush applications past our City officials and boards with exaggerated deadline claims. The Planning Commission, and then the Board of Zoning Appeals, must demand detailed descriptions and renderings of the proposed signs, especially the pylon that will be tall, very close to Erie Boulevard, and topped by a frequently-changing, high-intensity, LED screen. Crucially needed is a precise description and depiction of the location of the pylon and its orientation to the road and to residences in Mohawk Harbor. [Please see our discussion of safety issues relating to the use of electronic message displays along urban roadways at tinyurl.com/electronicdisplayfactors.] 

new high (big rush) at Rivers Casino

 Lucky Coincidence? Just as the Schenectady Gazette ran an editorial urging that we “Give it more time for revenue from Rivers Casino” (July 17, 2017), Schenectady’s Casino was ending its best week ever for Gross Gambling Revenue. The week ending July 16, 2017, its 23rd week in business at Mohawk Harbor, saw GGR of $3,882,454. That is the best week since its first full week in business back in February.

  • Oddly, although the take last week was up 36.8% from a relatively good prior week, both Slots GGR and Poker Table GGR were down. All of the impressive increase came from Table Games, which had a GGR of $2,039,456. It was the first time Table Game gross gambling revenue was over two million dollars. Did a party of high-rollers (maybe the Bluhm Clan in town for the Casino’s Hotel opening) show up last week to let the good times roll?
  • Or, did Billy Fuccillo show up to throw a huuuge party at the craps tables?

Whatever the reason, after giving space to the many poor GGR weeks at Rivers Casino at Mohawk Harbor, I thought we should spotlight today it oddly good news. I’m not sure, however, if even six more months of weeks like Week 23 would meet Rush Street’s happy projections or even the County’s sober first-year hopes.

 follow-up (Aug. 6, 2017): See “first lap of the Casino Horse Race.”

 

good at gaming the system: from cash cow to cow chips

When it comes to gaming the political system for tax breaks and special perks, it’s hard to beat the gaming industry. In New York State, there are different rules and tax rates for its full-blown casinos, video-gaming racinos, and Indian casinos. Such factors help complicate the casino industry’s tax-gaming game, making for increased melodrama, campaign contributions, and lobbyist income.

. . share this post with a shorter URL: http://tinyurl.com/CashCowChips

Last week, the Times Union reported, in Harness tracks, racinos, feel the heat from casinos” (by Rick Karlin, June 18, 2017), that:

 Jeff Gural, majority owner of the troubled Vernon Downs harness track and video lottery game “racino” in Vernon, Oneida County, said he would have to close his doors this fall if he didn’t get a tax break. [note: Mr. Gural is a major contributor to Gov. Cuomo.]

And, today, the Schenectady Gazette published “2 harness track racinos look to state for relief“ (by John Cropley, June 19, 2017), and noted:

Two harness racing tracks that host electronic casino operations are looking to the state for help amid increased competition from the proliferation of casinos across upstate New York.

One piece of legislation would allow Saratoga Casino Hotel in Saratoga Springs to use 4 percent of its net win for capital improvements.

Another would increase the percentage of the net win retained by Vernon Downs Casino Hotel in Vernon, near Utica.. . .

Both bills have been approved by the state Senate but have been sitting in committee in the state Assembly. The 2017 legislative session is scheduled to end Wenesday.

In response to this year’s crop of Gaming Groveling and Gambits, the Times Union published a Sunday editorial, “No subsidies for the casinos” (premium online content).

The Issue:

Citing financial problems, an upstate gaming venue seeks a tax break.

The Stakes:

Taxpayers should not have to support cash cows that morph into albatrosses.

“Lets be clear what a tax cut means: A loss of revenue that other taxpayers have to make up. It will be what casino proponents insisted would never happen: state taxpayers subsidizing gaming halls that were supposed to be cash cows.”

The TU editorial concludes: “Certainly it’s fair to find equitable ways to spread the benefits so that hard-pressed local economies like Oneida County’s don’t suffer. What’s unfair is to ask taxpayers to continually cover venues for the bad bets they’re proving to be.”

No matter what happens in this Legislative session, I’m betting that billionaire Neil Bluhm’s Rush Street Gaming minions here at Schenectady’s Rivers Casino at Mohawk Harbor are already looking into ways to reduce their gaming and property taxes and gain advantages over their casino and racino competition. That is what they have always done at other casino venues, in good times and bad.  Best bets for Boo-Hooing from Rush Street:

  • using the failure to meet their revenue projections as the justification for seeking a reduction in the gaming tax revenue rate
  • pointing to lower gaming tax revenue rates at racinos and at other casinos (under Legislative compromises meant to aid locations in less populated or poorer areas) as “unfair” competitive advantages for their competitors
  • challenging property tax assessments whether or not they are having financial success

Unlike casino owners elsewhere, Rush Street has made no promise in Schenectady about putting off challenging property assessments. Here’s what the Worster Massachusetts VoteNoSlots group said a couple years ago about Rush Street and taxes:

At each of their four casinos, Rush Street Gaming has either fought to have its property assessment reduced, or threatened to reduce it:

  • As soon as Rush Street opened Riverwalk Casino in Vicksburg, Mississippi, it fought to have its property assessment reduced from $78 million to $30 million.
  • Almost as soon as they opened Rivers Casino in Pittsburgh, they began lobbying to have their property assessment HALVED, and have continued to do it every single year.
  • The city of Philadelphia also was involved in a legal dispute with Sugarhouse Casino over property tax.
  • If the state (of Illinois) approves a Chicago casino or slots at horse tracks, then Bluhm wants to be able to add more slot machines and pay lower tax rates in Des Plaines. “We absolutely need both,” Bluhm said when asked whether he would accept one without the other. “We couldn’t possibly survive. The numbers won’t work. If we just lower tax rates and couldn’t expand, we would be crushed.”

As we reported here when arguing against naming the primary road into Mohawk Harbor “Rush Street,” after failing in their campaign to achieve the 60% reduction in their property tax assessment they had sought in Vicksburg, Mississippi, Rush Street sold their Riverwalk Casino, in 2012, just four years after it opened.

But, Rush Street Gaming doesn’t have to be doing poorly to try to avoid taxes. As reported in some detail just last year at BetterGov.org, in “Rivers Casino’s Jackpot: $1 Million Property Tax Break” (by Chuck Newbauer & Sandy Bergo):

RiversDPCasinoWindfall

Rivers Des Plaines

The owners of the wildly successful Rivers Casino in Des Plaines have received more than $4 million in property tax cuts since opening nearly five years ago, by aggressively arguing that the property was worth tens of millions of dollars less than it cost to buy and build on.

Since 2012, Rivers has reported annual revenues of more than $400 million, after winnings, state records show. Its revenues are twice as large as any of the other nine Illinois casinos.

Despite their success, the Rivers owners claim the value of the casino and parking garage has declined, justifying tax relief. . . .

Tellingly, several successive reductions by the elected Cook County Review Board (from $104 M to $88 M each year) “is not enough” for Rivers Casino in Des Plaines: “The owners have gone to court seeking refunds of taxes paid in three previous years, arguing the assessments are still too high.” Rush Street’s primary owner Neil Bluhm is a well-known contributor and “bundler” in the Democratic Party. Although he did not donate to the Cook County’s elected Board members, his tax attorneys and appraisal firms have given substantial amounts.

The BetterGov.org article also makes a point similar to the Times Union Editors:

Whatever the case, the casino’s gain is their neighbors’ loss. Home owners and other property owners in Des Plaines and some surrounding communities have to pick up the slack to fund budgets for local schools, parks and other local government expenses to make up for the Rivers tax cuts.

Beyond property assessments, Rush Street Gaming is definitely not shy about efforts to change the rules in place when it received its casino license. For example, it has tried strenuously to fend off competition to its successful SugarHouse Casino from a second Philadelphia casino, although the State Legislature had for many years envisioned the second casino. First, it said the State Racing Commission could not re-issue the license after the first licensee failed to get necessary funding. That stalled the competition for years, before the argument was rejected by the State Supreme Court. “Pa. High Court Affirms Propriety of 2nd Philly Casino License” (Law360.ocm, by Alex Wolf). Nonetheless, SugarHouse’s lawyers have raised other issues in court, which have stalled the large South Philadelphia casino project even further. See  “Whatever happened with that South Philly casino?” (Billpenn.com, by Anna Orso, Jan. 6, 2017). Expectations are that SugarHouse and the other plaintiffs will lose again, but its Rush Street owners have “won” several years of added profits by operating as the only casino in that big town.

  . . click for cash cow cartoons & cow chips cartoons 
From Cash Cow to Cow Chips, Are they Too Important to Let Fail in Schenectady? Should Rivers Casino Schenectady start to seem more like a Cow Chip Factory than a Cash Cow, you can count on the local leaders who bet their reputations on the Mohawk Harbor casino to help in efforts at the State and local level to seek subsidies of various kinds to alleviate Mr. Bluhm’s suffering. It would be an amusing drama to watch, if it weren’t so important (and predictable). Stay tuned.

another nadir on the River (with updates & lowdowns)

(update: June 23, 2017): Rivers Casino in Schenectady set yet another new low for revenue generation in the week ending June 11, 2017, its 18th week in operation at Mohawk Harbor. Its net revenues were $2,062,162, down 23% from the prior week, and almost $100K below its previous low-point.

RiversRev23June2017

. . is our favorite Cash Cow becoming a Cow Chip factory? casinocowchips

. . and see, “psst: the casino cash cow has too many calves” (June 21, 2014)

Original Posting

 In its 15th week in operation, Rivers Casino at Mohawk Harbor in Schenectady set a stunning new low for overall net revenues at: $2,129,115, with slots income also the lowest to date, and poker table GRR under $100,000 [$99,503]. Here’s screen shot of its Report for the week ending May 21, 2017, which was posted late due to the Memorial Day weekend:

Meanwhile, at the Times Union, reporter Paul Nelson’s latest article is headlined “Poker winner nets $46k at Rivers Casino” (online May 29, 2017). I do not know whether that is a lot of money for a tournament that Rivers Casino General Manager Mary Cheeks says “attracted 1,095 players from seven states and Canada, exceeding expectations.” Ms. Cheeks is also quoted saying:

 “We had a fantastic turnout for the Capital Region Classic, and we heard a lot of positive feedback from players who have been looking for big poker tournaments in this area for years,”

Of course, this is the same Casino that keeps telling us how satisfied it is with revenues and attendance so far, despite averaging far below, and never yet meeting, the weekly average GRR it needs to make the lowered expectations it projected for its first year in operation.

. . use this short URL to share this post: tinyurl.com/RiversNadir

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.

. . share this post with this short URLhttp://tinyurl.com/RiversDown

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.

another big drop in Casino revenues

 The numbers are out for the fourth full week (ending March 12, 2017) of revenues generated at Rivers Casino at Mohawk Harbor in Schenectady: just under $2.8 million; the worst week yet; and no snow storm to blame.

  • a 21% drop from the first full week
  • 9.9% less than last week’s numbers, which were down 11% from the prior week, and were never reported by the Gazette

  • The weekly average needs to be $4.3M to reach the $223 million annual gaming revenue number so often repeated by Mayor McCarthy, which is the projection for the “stabilized” 2019. So far, the four full weeks have averaged about $3.2 million, which won’t even generate the significantly lower first-year projections of the Casino and County.

  • Today’s Gazette tells us there are changes coming to Rivers Casino due to patron requests and frustrations. Changes in works at Rivers Casino, including poker tournaments: Some customers have expressed frustration”, by Brett Samuels, March 17, 2017). It would have been a nice place to mention the slide in revenues, rather than: “[I]t has continued to net at least $3 million per week in gaming revenue and pulled in $10.8 million in its first month from slots and table games after payouts.”

On St. Patrick’s day, we must ask our good boyo Mayor Gary McCarthy if anyone but leprechauns believes in magic pots of gold?

 . . from Hallmark

10 P.M. Update: The Times Union has covered the newest revenue figures, in the online article “Revenues drop again at Rivers Casino in Schenectady” (Eric Anderson, March 17, 2017). The piece gives some context for the numbers:

So far, the casino hasn’t reached the $4.28 million weekly average figure that was projected in an economic impact study by New Orleans-based The Innovation Group.

But that figure was for 2019, and by then the casino hotel should be open and construction at the neighboring Mohawk Harbors completed.

It’s also not clear whether bus tours to the casino have yet started. That also can be a lucrative source of revenues.

. . find the weekly Rivers Casino revenue stats here: http://tinyurl.com/RiversSchdyRevs

. . and, see our post: “what do those Casino revenue figures mean” (March 5, 2017)

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, state:

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

the Gazette takes problem gambling more seriously

After long silence on the topic, I am pleased to say that the Schenectady Gazette has devoted significant space to the issue of casino-related problem gambling this week, in preparation for today’s Grand Opening of Rivers Casino at Mohawk Harbor. Here are excerpts from three articles:

sfoss In her opinion piece “More resources needed for problem gambling: Lack of services in Schenectady seems like serious omission” (Feb. 5, 2017), Gazette columnist Sara Foss raised important issues for our community. 

  • “There’s years of documentation and research showing that within 50 miles of a casino you see dramatic rises in problem gambling,” explained Philip Rainer, who serves as chief clinical officer at Capital Counseling, the non-profit agency that runs for the Center for Problem Gambling.

    Rainer and Hill are certain the Capital Region will see an uptick in gambling addiction due to the new casino. They are also certain that resisting the urge to gamble there will be a challenge for their clients, who have been talking about Rivers Casino & Resort for months.

  • Given the fact that a casino is about to open in our own backyard, the lack of gambling services in Schenectady seems like a serious omission.

    nycpgjaimecostello “Ease of access increases problems,” Jaime Costello, director of prevention, training and special programs for NYCPG, said. “More programs are definitely needed. It would help if gambling services were available in every community.”

  • It would be nice to think that Hill, Rainer and other experts in problem gambling are wrong – that the casino won’t lead to an increase in problem gambling and other social ills. But I suspect that they’re right, and that within the year we’ll have a better understanding of the casino’s downsides.

    One of those downsides is sure to be an increase in problem gambling, and we need more resources for the people who can’t control themselves when they step onto the gaming floor.

An article dated February 7, 2017 reports on a Siena College poll with findings on the attitudes of Capital Region residents toward the Rivers Casino. (“Poll: Residents have mixed feelings on casino impacts“, by Brett Samuels, Daily Gazette.) Polling was conducted Jan. 8-11, and the poll has a margin of error of 4 percentage points. The poll found that over 50 percent of people plan to visit the casino. Click here for the Siena College Research Institute Press Release. As for problem gambling:

While many see the casino as a positive economically, 55 percent believe the new casinos will cause increases in problem gambling and crime. The majority of respondents said problem gambling is a disease, but only 11 percent said they are aware of treatment services in their area.

 “The survey results support our view that both raising awareness of problem gambling and providing resources for problem gamblers and their families is crucial as new casinos open,” Jim Maney, executive director of the New York Council on Problem Gambling, said in a statement.

Also, in “Concerns over Rivers Casino persist for some ahead of opening day” (by Brett Samuels, Feb. 5, 2017), the discussion also focuses on the likelihood of an increase in problem gambling (which Rush Street has denied will happen here), including extended remarks by Jim Maney, Executive Director of the New York Council on Problem Gambling:

Aside from city finances, there’s the matter of personal finances. The most recent federal study on gambling shows problem gambling roughly doubles within a 50-mile radius of a new casino. Experts consider proximity and opportunity the biggest contributors to a gambling habit.   

 

Prior to Rivers, the nearest full casino to Schenectady was Turning Stone Resort and Casino, located almost 100 miles west in the town of Verona, although there is also the racino in Saratoga Springs, which has numerous gambling options, though not as many as either Turning Stone or Rivers.

nycpgjimmaney “If someone had to go to Turning Stone but could only go once a week because it was too far, now you can go every day. You can go after work, you can go between errands,” said Jim Maney, executive director of the New York Council on Problem Gambling.

 

The biggest warning signs of a possible addiction include making more frequent trips to a casino and betting higher amounts, or lying about the frequency of those visits, Maney said.

 

Consequences of problem gambling can surface in different ways, he said. For some, it might be reflected in unpaid bills or a dependency on social services. For others, it might lead to stress and additional doctor’s visits.

 

While problem gambling affects a small percentage of the population, Maney said it’s an issue that can affect an entire family if bills go unpaid and money dries up. The best way to seek treatment is to call the state’s help line, he said.

pgposterdetail For much more on the need for problem gambling education and prevention programs in our community, see our posting last March, during Problem Gambling Awareness month. Of course, we need action — real programs backed with committed resources — not just words. Let’s see who comes forward to make it happen.

.

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.

casino choices in Upstate New York: who will choose Schenectady?

The Snowmen Effect #1: This posting is the first in our new The Snowmen Effect category, in which we will point out how inadequate protection of the public interest has resulted in a less attractive, less safe, less successful, and/or less responsible Rivers Casino in Schenectady. Here, we discuss the lackluster design of Rivers Casino, due to the failure of our snowmen-like leaders to demand better.

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UpstateNYMap2018 If you lived more than 40 or 50 miles from Schenectady, would you choose Schenectady’s Rivers Casino at Mohawk Harbor, with its touted $320 million investment by Rush Street Gaming, over the half dozen other casino choices in upstate New York? More than once? (Click on the Upstate NY Casino Map to the right for a larger version; Google Map.)

How will residents of cities like Watertown, Kingston, Binghamton, or Rochester, choose between the casino options available in Upstate New York? Each of the casinos has ample “gaming” options, and similar guest incentive programs, with apparently sufficient dining and hotel accommodations, and entertainment, along with fairly comparable weather. How important will the visual appeal of the casino complex be (architectural design, lighting and landscaping, physical setting)?

riverscasino13jan . . entrance, Rivers Casino at Mohawk Harbor, Schenectady

riverscasinodesignsThe main entrance of Schenectady’s Rivers Casino can be seen above (Click on the image for a larger version). As detailed in this posting, the final rendition submitted to the public of the casino entrance, in July 2015, looked quite different. Click on the thumbnail image to the right to compare. [note (Feb. 5, 2017): The Galesi Group is still using the July 2015 image in its promotion of Mohawk Harbor, as in the Gazette‘s January 31, 2017 advertising supplement, The Road to Rivers. click to view.]

Here are images of the front façade or casino entrance for each of the three other new Upstate  NY “commercial” casinos granted licenses by the NYS Racing Commission (click on each for a larger image):

. . del Lago  dellagocasino  . .

above: rendering of the casino portion of Del Lago, Waterloo-Tyre NY, opens 01Feb2017;  below: [L] a rendering of the Tioga Downs Casino, Nichols NY, opened 2Dec2016, plus a photo of the Tioga Downs entrance; [R] a rendering of the Montreign Casino, Monticello, opening March 2018

tiogacasinofront . . Tioga Downs Casino  . . tiogaentrancetwc

Montreign Casino . . montreignentrance

There are quite a few choices besides our Rivers Casino (click on the link for each casino in the list below to learn more about its outside appearance, indoor ambiance, and amenities):

  • dellagocasinoimagesThe $440 million Del Lago Casino in Waterloo-Tyre NY (Sullivan County) opens February 1, 2017, a week before the Rivers Casino; click here for a recent article about it, and click on the collage at the head of this sentence for views of del Lago.

update (Feb. 1, 2017): Del Lago opened today at 10:30 AM. On Syracuse.com, the website of the Syracuse Post-Standard, you can find a “first look” video shot two days ago. Here is a photo taken on January 30 for Syracuse.com by Dennis Nett, showing that the final result is faithful to the original rendition:

dellagocasino30jan2017 

  • follow-up: see our posting “a quick look at del Lago’s exterior” (April 7, 2018), which has many photos taken April 2, 2018 on-site, plus some comparable images from Schenectady’s Rivers Casino.

 

  • tiogacasinocollage Tioga Downs Casino, in Nichols NY, has been revamped (with a $122 million capital investment) and is already opened (since December 2016) in the Southern Tier, with a “country-fair themed” experience; click the collage to the right for more images of Tioga.
  • saratogacasino [on left] The upgraded Saratoga Casino and Raceway [FAQs], which is about 22 miles up Rt. 50 from Schenectady, is located in a proven tourist town that offers good taste, upscale shopping, and history; it is still a “racino”, but has over 1700 slot machines and electronic table games;
  • montreigncasinovThe Resorts International Catskills Casino  [f/k/a Montreign Casino at Monticello (image on right)], scheduled to open early next year, with a much larger budget [$1.3 billion when the complex is completed] than Rivers Casino in Schenectady, and the vision of renewing the Catskills as a top-level tourist destination, with a four-star hotel (and a less pricey one being built in its expansive entertainment center), and, a top-flight gold course. Follow-up (Dec. 26, 2017): In “Bet on busy flights to casino: Resorts World downstate to fly in gamblers from Newburgh-area airport” (Times Union, by Rick Karlin, A1, Dec. 26, 2107), we learn of plans by Resorts World to fly in high-rollers from around the world. The Albany Airport has not yet noticed any flyers coming here for the casinos.
    • CatskillWaterpark The Times Union also has reported (by Eric Anderson, Jan. 17, 2018) on a two-acre indoor waterpark being built by a Colonie firm for the Catskills casino’s  Kartrite Hotel. “The new hotel and waterpark, a more than $150 million project, will open in early 2019 and be one of three hotels on the campus.”

and, of course,

  • turning-stone-casino The Oneida National tribal casino-resort Turning Stone at Verona, NY, is 24-years old and doing $20 million in upgrades to compete with del Lago; and
  • FallsViewFallsview Casino in Niagara Falls, ON Canada, opened in 2004 as a $1 billion investment. It is owned by the Government of Ontario, and managed by a consortium that includes a company owned by Neil Bluhm, the original developer of Fallsview, and the primary owner of Rush Street Gaming. [image on the right]

In an Appendix at the bottom of this posting, I have compiled the distances of the various casinos from Albany, Binghamton, Buffalo, Ithaca, Kingston, Rochester, Syracuse, Watertown, and Utica. Here are the distance figures for Syracuse:

  • from Syracuse NY
  • to Del Lago: 43 miles
  • to Turning Stone: 89 miles
  • to Tioga Downs: 104 miles
  • to Rivers Casino/Schenectady 156 miles
  • to Monticello/Montreign: 164 miles
  • to Fallsview Casino, Niagara Falls, Canada: 165 miles
  • to Saratoga Casino: 187 miles
casinoscomparecollage

three new upstate choices: at Schenectady, Waterloo/Tyre & Monticello (click to enlarge)

Taste is, of course, very subjective, and I do not expect universal agreement on which casino design is “better,” more attractive, classier, “more tasteful,” most likely to sway potential customers, etc. As a longtime resident of the Schenectady Stockade historic district, a photographer, and sometime haiga-haiku poet, I am especially drawn to things that are visually attractive in a low-key, classical way, but also at times to visually striking scenes. As I have said often over the past two years (e.g., here and there), for my money, Schenectady’s Rivers Casino looks like a flashy-tacky version of a 20th Century shopping mall’s cineplex wing. (Others have pointed out that Schenectady actually has a far more attractive cineplex downtown; and better looking gas stations, too.) It looks like a humdrum regional (maybe even local) attraction; boxes next to or on top of boxes. For me, the competing casinos seem visually much more “attractive” (able to attract).

riverscasino-erieapproach

a look at Erie Blvd.

Indeed, many people who are inclined to be kinder than I in their assessment of our Casino’s visual appeal, probably would come to the same conclusion. That’s without contrasting the eyesores greeting visitors on the way to and from Mohawk Harbor along Erie Boulevard (see collage to the right) with the physical setting in the vicinity of Montreign, del Lago, Saratoga, Tioga, etc.

In June of 2015, when there was still plenty of time to get Schenectady’s casino design “right”, or at least adequate as a true tourist destination, we raised many questions in a posting titled “why does Schenectady get Rush Street’s scraps?“:

MinorLeagueSchdy

Rush Street designs

  It seems obvious that a “destination resort casino” should be designed to look and feel exciting and extraordinary.  The Gazette editorial board thinks so, and so [purportedly] does our Planning Commission.  Why, then, has Rush Street Gaming handed us two three minor league designs, just boxes on boxes, and a casino complex easily relegated to the realm of humdrum regional facilities? It is not because Rush Street does not know how to put a little sparkle or class in a casino design [click on collage to the right, and read the full posting].


Our first guess as to why Rush Street does not try very hard for Schenectady is that it has had our “leaders” fawning over it ever since the first rumor of a casino was in the air early last year.  This morning’s Schenectady Gazette suggests another reason: As with the earlier zoning amendments, the normal Planning Commission process has been aborted (hijacked?), with the skids greased by the Mayor to make sure Galesi and Rush Street never have to wait very long to get their wish list fulfilled, and with public input stifled whenever possible. . .

For discussion and details on the Planning Commission’s many acts of omission in reviewing momentous changes to the City’s Waterfront Zoning provisions (listed here) and casino design requirements, see “Schenectady’s waterfront zoning: a rubber-stamp in a Company Town” (Jan. 29, 2015; short URL: http://tinyurl.com/CasinoTown). And, see “McCarthy only wants snowmen on his planning commission” (Feb. 09, 2016, which in part stated:

Yesterday [in another February 8th disaster for our City], Schenectady Mayor Gary McCarthy made public his decision not to re-appoint to the Planning Commission its newly-chosen chair, Matthew Cuevas, ending Cuevas’ service after more than two decades. Clearly, the Mayor is not interested in keeping a Planning Commissioner, especially one with the powers of the Chair, who is actively interested in enforcing the zoning laws, fulfilling their promise to protect the interests of all residents of Schenectady, and not merely those of the Mayor’s favorite few applicants and their proposals. . . .

update (March 16, 2016): Our sheep-herding Mayor continues his deterrent-minded culling of the flock on his volunteer regulatory boards. Of course, he is not culling out the weak, he is removing the independent members who refuse to act like sheep. See Faces changing on Schenectady planning board (Times Union, by Paul Nelson, March 15, 2016; subscription req’d). The Mayor has failed to renew the appointment of Planning Commissioner Thomas Carey, who was the only member to vote No last year on the Site Plan review of the Casino compound plans. . . .

[Similarly,] Speaking about the Mayor’s failure to re-appoint herself and fellow Historic Commission member Frank Donegan, [former Chair] Marilyn Sassi told TU reporter Paul Nelson:

“We believed it’s because we spoke out against several projects the mayor is in favor of and he’s just eliminating anybody that doesn’t agree with him,” said Sassi . . “Right now, I’m relieved because I don’t want to have any part of a rubber stamp board, I want to be free to be able to express my feelings and concerns.”

flexibleharbor Another reason for the humdrum design was suggested to me by an outgoing City Council member, and raised by others: If the Schenectady Casino fails, the owner of the land, The Galesi Group, wants the buildings left on the site to be easily converted into almost any new use — from big box store to light industrial use, to small shops or offices, etc. The last thing Mr. Galesi wants on his land if the Rivers Casino fails is a building that “looks like a casino”.  Under this scenario, Rivers Casino is so iffy a project, that we got a casino compound that could be walked away from without too much of a mess for its landlord — a second-rate design in case Plan B is needed in the not too distant future.

GEsignBlDice Rather than acting as if “Schenectady” were the Mohawk language equivalent to “Second-rate-City”, or submissively resigning itself to the status of a mendicant Casino-run Company Town, there were many ways that a vigilant City Council and Planning Commission (or Metroplex), could have ensured that the City of Schenectady got a quality design for its casino, as a true tourist destination. First, of course, they could have used the tremendous leverage they possessed as the host City. Rush Street Gaming needed City Council approval of its application to the Racing Commission for a casino license. Rush Street also desired major changes to our zoning laws to develop its casino without restrictions meant to protect the community. Other cities, as is the universal practice in the industry, take advantage of this leverage to provide benefits for the residents and community. Asking for a quality casino design — which would benefit the casino owner as well as the City — would have been more than appropriate.

Next, our political and business leaders could have simply orchestrated public pressure to achieve an improved design, as when the universally disliked “factory-retro look” was rejected by the community. The very minor tweaks to that plan that resulted in our current design should also have been strongly rejected.

More fundamental and direct, however, was using the Site Planning process to require that the casino design live up to the expectations, and certainly not detract from, such things as the upscale image that The Galesi Group had been creating for its mixed-use Mohawk Harbor development, and the Metroplex ongoing renewal of downtown, along with capitalizing on (and preserving) the appeal of the historic Stockade Historic District, a gem merely one-half mile down Front Street.

According to a February 2015 Gazette article, “Schenectady City Council mulls zoning for Mohawk Harbor: Riggi wants city to reiterate Planning Commission’s authority”, even Corporation Council Carl Falotico confirmed the Planning Commission’s site plan authority:

“Falotico stressed that the commission has the ability to evaluate the aesthetic visual impact of the project even if the plans satisfy zoning requirements.”

 

What a site plan accomplishes “The purpose of site plan regulations is to ensure that the development of individual parcels of land do not have an adverse impact on adjacent properties or the surrounding neighborhood. Such regulations also ensure that the parcel’s development fits properly into the community and conforms to its planning objectives. The development of individual parcels must conform to the provisions of local zoning which contain use and dimensional requirements for site development. Zoning, however, does not contain specifications regulating the details of a site’s development that protect, for example, the design of vehicular access to the site, the provision of needed landscape features, the location of parking areas, and the architectural features of buildings. Site plan specifications go beyond those of zoning, and protect adjacent areas and the community’s residents from flooding and erosion, traffic congestion and accidents, unsightly design, noise pollution, and the erosion of neighborhood character. This is their distinct purpose.”

Conclusion: Schenectady deserves a spectacular design for its casino. From the start, Rush Street’s competitors understood a destination casino must look special, while our applicant seemed to be willing to settle for a very modest “regional” casino look, and the City Hall yes-persons failed to ask for something better. Local business leaders were quite surprised to learn at a recent meeting with casino management that the primary geographic market targeted by Rivers Casino was only a 60-mile radius. Sadly, that fits in with the casino design they have given us.

The result will surely be far less revenue, and trickle-down tourist dollars, than the City and County assumed when they readily caved in to the Casino Gangs’ every demand and proposal. The Upstate, and soon Massachusetts, rivals of Rivers Casino at Mohawk Harbor must be pleased. Our community will now have to rely on local residents spending undue amounts of their disposable (as well as indispensable) income to keep Rivers Casino successful enough for Rush Street to want to stay. That is not exactly the future Schenectady deserves; unless, we deserve the leaders we elect and the future they create.

APPENDIX – Distances from various cities to the casinos

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Schenectady’s infamous February 8th

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As James Kirby pointed out in a Letter to the Editor of the Gazette (December 4, 2016), the February 8 opening of the Rivers Casino coincides with the date of the Schenectady Massacre in 1690. Here is my Dec. 6 comment to that Letter at the Gazette website, amplifying on the irony:

Re: Massacre and Casino: Sadly, the timing of the casino opening has much more irony than merely coinciding with the date of the Schenectady Massacre. The website name “Stop the Schenectady Casino” was changed to “Snowmen at the Gates,” to symbolize that inviting in the Casino and capitulating to its proponents is part of a long history of Schenectady’s leaders not fulfilling their duty to protect the City and its people.

The marauders from Canada decided to attack Schenectady rather than Albany on the night of February 8, 1690 because (1) there were no sentinels on guard at the main gates of the Village, but snowmen standing in their stead, and (2) the gates were left open by citizens who refused to remove snow blocking the closing of the gates, in defiance of an order given to the mostly Dutch settlers by their hated English commander Captain John Sander Glen to close the gates. As explained more fully at the posting, “Have we learned the lessons of the 1690 Massacre?”, http://tinyurl.com/MassacreLessons :

snowmencameoBW-004 Our website name “Snowmen at the Gates” refers to the legendary snowmen “standing guard” in a blizzard, on February 8, 1690, outside the open north gate of the sturdy stockade fence that was built to protect the little village of Schenectady. Although messages had been received from the larger outpost at Albany warning that a war party was on the way that evening, the appointed sentries apparently decided to leave their posts to have a tankard or two at the nearby Douwe Aukes tavern. That dereliction of duty allowed a band of 114 French soldiers and 96 Sault and Algonquin Indians to enter the stockade, burn down the village, and massacre, kidnap, or scare away its residents.

casinotownlogo We who watched every element of our cheerleading City and County government [along with the Gazette] cave in to every demand of the Casino Gang (with only Mr. Riggi and Ms. Porterfield in opposition on the City Council), and ignore all warnings and research concerning the likely negative effects of a casino and ways to mitigate them, do not believe the lessons have been learned from the 1690 Massacre. Our Mayor, Metroplex Chair, and County Legislature prefer to have harmless, voiceless and blind Snowmen sitting on our boards and councils, turning over the keys of the City and the decision-making machinery to the Casino Gang.

Perhaps we shouldn’t have expected the folks from Chicago’s Rush Street Gaming to recall the date of the Schenectady Massacre. But, didn’t anybody at City Hall or Metroplex Central see that date and point out the public relations problems it entails? Or, is this a new notion of civic honesty about the casino and its impact on Schenectady?

Last year, I left a comment much like the following paragraph at the Gazette website concerning an editorial about review of future Casino requests:

Our leaders and servants at City Hall need to be watchdogs protecting the public, not cheerleaders repeating the casino’s claims, or weaponless and mute Snowmen guarding the gates of our City, like on the night of the 1690 Massacre. Our leaders must take their time, use common sense, ask probing questions, and require full submissions about the factual basis of an Applicants’ claims, and deadline assertions, especially on projects as big and important as Mohawk Harbor and its Casino.

And, they must actually listen to the warnings and suggestions of community members who want what is best for our City, not simply the best for their financial and political futures.

Will the City, County and business leaders who are taking so much credit for bringing Rivers Casino to Schenectady, and did virtually nothing to mitigate or prevent its likely negative effects, melt like snowmen under the spotlight and heated questions that they can expect when things start to go wrong? Or, will they take responsibility, come up with meaningful solutions, and ensure that we are much more than a company town (a Casino Town)?