Gov. Andrew Cuomo's goal of ensuring that economically distressed areas of the state have the opportunity to create jobs and develop their economies through destination resort casinos is commendable. But he seems to be rushing things.
Recent news stories have suggested that the proposed state budget is counting on new revenues in March 2015 — just 13 months from now. This raises serious concerns.
No one is suggesting that developers should have an open window to bring their casinos to fruition. But we simply cannot sacrifice true long-term economic development for short-term state revenues. The timetable that the governor originally proposed, with revenues to the state flowing by 2016, or 24 months after an entity is awarded a license, makes much more sense.
If we don't adhere to that original time frame, existing racinos could be given priority in licensing, because they can simply throw on an addition and begin operating what they call a "casino." Fast-tracking an existing racino would severely limit the creation of hospitality and tourism jobs generated by full-service resort destination casinos with amenities like hotels, golf courses, spas, world-class culinary options and performing arts venues.
It will also eliminate thousands of construction jobs across upstate, where they are so desperately needed.
Let's face it: if we structure the process in a way that simply encourages a small expansion of an existing facility, destination resorts will not be created.
Racinos have done well and have provided revenues to the state and to local governments where they are located. However, if we merely expand existing racinos, the state will leave money and jobs on the table. To maximize potential revenues and job creation, we need new facilities that are separate from those already in existence. Otherwise, the economic revenue models to pay for tax cuts, schools, hospitals, roads and bridges, simply won't work.
Developing destination resort casinos from the ground up will provide a boost in economic activity and sales tax revenue from construction and related spending by developers. It would also provide the state and local governments with significantly more tax revenues in the long run, and the host communities with scores of stable jobs that can support working class families.
Any attempt to give a leg up to existing gaming operations will likely preclude extremely qualified and experienced companies from coming to New York at a time when the governor has made it a priority to attract new business to the state. If New York focuses on short-term revenue only, we may lose out on far better opportunities.
Local support will be vital to making these ventures successful. Some areas of the state not only want full-scale destination resort casinos, but have been working toward and preparing for this type of development for years — which is why we have been so supportive of the governor's leadership. However, structuring the process in a way that eliminates the best deal for all levels of government and local employment is not the way to go.
Cuomo has the potential to unlock an economic boon to New York communities, providing billions in long-term revenue and tens of thousands of jobs. We cannot sacrifice getting it right for getting it done quickly. There is a balanced approach to getting it right — which the governor originally laid out — and it's one that we should stick to.
Marc Baez is president/CEO of The Partnership for Economic Development in Sullivan County.