Yonkers mayor calls for investigation after MGM abruptly withdraws casino bid
YONKERS, New York (WABC) -- The mayor of Yonkers is calling for a state investigation now that MGM has folded its bid to build a casino in the area.
MGM was a leading contender to win one of the state's three casino licenses before pulling their bid Tuesday night, and whittling the field down to three.
"I got a call of the rumor that they might not be putting their paperwork in, 10 minutes to 4 p.m., and I said, 'there's no way that's true,'" Spano said.
Unfortunately for the city of Yonkers, the rumor was true.
The $2.3 billion deal to renovate and expand the Empire City Raceway into a casino is dead.
"I found out on the press release," Spano said.
The press release from MGM reads in part, "The newly defined competitive landscape - with four proposals clustered in a small geographic area - challenges the returns we initially anticipated from this project."
MGM added that the proposal was predicated on the receipt of a 30-year commercial casino license, but said they now expect to qualify for only a 15-year license.
"The gaming commission proposed changes to the contracts six days ago," Spano said. "It took Yonkers and said, 'you know what, the max you can have now is a15-year license.' And with a lot of unanswered questions, that made it very difficult for MGM to put together a business plan."
The MGM Yonkers Empire Casino is one of four bids to survive the community approval process, passing unanimously on September 25, along with the Queens Aqueduct Racetrack bid.
Four days later, a Bally's bid to build a casino at the former Trump golf course in the Bronx also passed.
On September 30, a Citi Field casino proposal also passed unanimously.
But three weeks Later, MGM abruptly withdrew its bid on Tuesday.
Mayor Spano is questioning the gaming commission for changing the rules so late in the process, calling for Governor Kathy Hochul to launch an investigation.
"My point is... you don't do business like this," Spano said.
Gov. Hochul on Wednesday, both agreed and disagreed with Mayor Spano.
"I share the mayor's disappointment that this did not continue, but I, at this time, am not aware of any reason to launch an investigation," Hochul said.
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