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Mohegan’s bet on $11.2B Manhattan mixed-use development folds

A proposed housing and casino project in Manhattan led by Uncasville-based casino operator Mohegan and developer Soloviev Group, was defeated Monday morning by a community advisory committee in New York City.

Mohegan and its development partner submitted a bid for one of three downstate casino licenses that the New York State Gaming Commission may issue before the end of the year.

The proposed $11.2 billion Freedom Plaza would have contained 1,080 units across two residential towers, along with open space, retail, restaurants, a museum and two hotels.

The hotels — to be owned by Mohegan and Singapore-based hospital company Banyan Group — would have featured modern casinos, generating revenue to offset the cost of housing.

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The development was planned for a 6.3-acre property that runs from 38th Street to 41st Street, east of First Avenue, owned by Stefan Soloviev, chairman of Soloviev Group.

On Friday, in an effort to sweeten the deal for the Freedom Plaza Community Advisory Committee overseeing the bid, Mohegan and Soloviev submitted an amendment to their application promising to make 100% of the 1,080 proposed housing units “permanently affordable.”

Initially, 513 of the units were set aside as affordable.

The six-member Freedom Plaza Community Advisory Committee, which met Monday after holding several public hearings, needed four affirmative votes to advance the proposal to the New York Gaming Facility Location Board.

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The committee voted 4-2 to deny the bid.

“While we’re of course disappointed, we are proud of the application we presented — a proposal that earned 67% support across Manhattan,” said Ray Pineault, CEO of Mohegan. “This was a groundbreaking vision that we believe would have delivered historic public benefits for New York City and served as a global model for integrated resort and gaming facilities.”

The proposal received support from 10,000 Manhattan residents and 250 local small businesses who signed a petition endorsing it, according to Mohegan.

“Unfortunately, the way in which this process was established did not allow for a recognition of the impact we could have had on the broader community of New York and the many individuals who would have benefited from new jobs, housing and community benefits,” Pineault said.

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Two other bids for casino licenses in Manhattan also have been rejected.

That leaves five other bids in contention, including one with ties to President Donald Trump and another proposed by Greenwich billionaire Steve Cohen. They are:

  • Bally’s Bronx: A proposal for a large gaming facility at Ferry Point Park in the Bronx, on the site of a former golf course that was once run by Trump’s company.
  • The Coney: A bid for a casino and entertainment complex on the Coney Island boardwalk in Brooklyn.
  • Metropolitan Park: A large-scale entertainment district and Hard Rock casino proposed by Cohen, owner of the New York Mets, near Citi Field in Queens.
  • MGM Empire City: A proposed expansion of the existing MGM racino facility in Yonkers.
  • Resorts World NYC: A proposed expansion of the existing Resorts World “racino” at Aqueduct Racetrack in Queens.

Final decisions are expected from the New York State Gaming Facility Location Board by Dec. 1.

Earlier this month, Mohegan announced support for Freedom Plaza from a number of state and local officials, including Montville Mayor Leonard Bunnell; Norwich Mayor Peter Nystrom; Kelly Juleson, co-president of The Governor’s Prevention Partnership; Tony Sheridan, president and CEO of the Chamber of Commerce of Eastern Connecticut; and Jason Jakubowski, president and CEO of Connecticut Foodshare.

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