Posted on: October 24, 2024, 11:04h.
Last updated on: October 24, 2024, 11:15h.
The New York Supreme Court’s Appellate Division on Wednesday overturned a lower court’s ruling that concluded the Nassau County Planning Commission and County Legislature’s decision to transfer the lease of its Nassau Veterans Memorial Coliseum violated open meeting laws.
The Second Judicial Department of the Appellate Division remitted the Nassau County Supreme Court’s ruling last November that temporarily halted the 99-year lease transfer to an entity controlled by Las Vegas Sands. Sands is seeking to redevelop the former home of the NHL’s New York Islanders into an integrated resort and casino through an undertaking that could cost as much as $6 billion.
In a three-page decision published Wednesday, the Second Judicial Department — the state’s second-highest court — sent the case brought by Hofstra University against the county government back to the county’s supreme court. The Appellate Division Court ruled the lower court rushed in issuing a conclusion and directed Sands to be included in the matter.
Case Continued
Wednesday’s decision wasn’t a total win for county officials, who had asked the Appellate Division to dismiss the case.
Contrary to the respondents’ contention, dismissal of this matter is not the appropriate remedy,” the court ruled. “It is premature to consider the merits of the parties’ contentions. We therefore reverse the order.”
County government leaders are supportive of Sands’ effort to bring a Las Vegas-style casino resort to Long Island on the belief that the destination will be a catalyst for economic growth with hundreds of millions of dollars in new tax revenue and over 5,000 permanent jobs. Sands says more than $1 billion in county tax payments will be made over the property’s first 10 years in business.
Sands has also agreed to pay $241 million for the Coliseum lease, money the company with a market capitalization of $38 billion paid last October after the county signed off on the transfer. Sands also delivered the county a one-time “rent payment” of $54 million.
The dispatching of the case back to the Nassau County courtroom will further delay Sands’ formal, legal acquisition of the Coliseum land. Hofstra, along with the Say No to the Casino Civic Association, is ardently opposed to the Sands project, as the university’s campus directly borders the Coliseum site.
Hofstra first challenged the Coliseum lease transfer in April 2023 on allegations that county officials largely worked behind doors in agreeing to hand over the 72-acre arena complex to Sands.
Lawsuit Could Lengthen Sands’ Odds
The New York Gaming Facility Location Board has only three downstate casino licenses to grant in a crowded, competitive bidding pool that numbers at least 10 bids. Sands isn’t the only globally recognized casino giant in the mix, as the field additionally includes MGM Resorts, Caesars Entertainment, Wynn Resorts, Hard Rock International, and Mohegan.
MGM is the betting favorite for one of the coveted licenses, as gaming analysts believe New York officials will award the Empire City operator a full-scale casino concession in exchange for its longstanding partnership running the Yonkers raceway and video lottery racino. The same goes for Malaysian conglomerate Genting, though the Resorts World New York City owner isn’t considered as safe of a bet as MGM because of recent scandals surrounding the organization.
If MGM and Genting do gain permits for slot machines, live dealer table games, and sports betting, Sands, along with Wynn, Caesars, Hard Rock, Mohegan, and several others, would be battling for the lone remaining license. If Sands’ bid doesn’t have a secure property, the company’s odds of landing the license could lengthen.
