SL Green and its Caesars Palace Times Square partners are scrapping plans to funnel tens of millions directly to one Hell’s Kitchen housing complex, shifting the cash instead to a nonprofit that serves the wider West Side.
The development team of the proposed casino — SL Green, Caesars Entertainment and Roc Nation — had promised $22.5 million over 15 years, plus 0.5 percent of profits in perpetuity, to Manhattan Plaza, a 1,600-unit affordable complex long known as a haven for performing artists.
The pledge, part of a $250 million community benefits package, drew fire from other neighborhood groups who argued the windfall should be shared, according to a July report from W42ST.
Under the amended plan, according to the publication, the money will flow through the West Side Community Fund, a nonprofit administering small grants to groups in Hell’s Kitchen, Chelsea and Hudson Yards for the last seven years.
The fund will oversee a program for casino-related benefits. Residents, block associations, tenant groups, and small businesses will determine priorities through a participatory budgeting process.
“We’ve heard from many members of the community, who support our objective but wanted assurances that it would be administered fairly and in a way that truly allowed all of the West Side community’s voice to be heard,” the developers said in a statement
Michael Phillips, president of the fund and of Jamestown, a real estate firm, said the influx could “significantly expand our impact” and promised a focus on Hell’s Kitchen.
The $1.5 million annual commitment and the cut of casino profits hinge on SL Green landing one of three state licenses to open its gaming and entertainment complex at 1515 Broadway.
Public hearings for the SL Green bid and a competing proposal from Silverstein Properties are set for Aug. 13 and Aug. 27, respectively. A six-member community advisory committee is expected to vote on advancing the proposals by the end of September.
The Manhattan Plaza pledge drew skepticism, Crain’s reported, especially after news that the complex’s tenant association president had been offered — and says she declined — a $20,000-a-month consulting contract from Roc Nation.
The reversal marks one of the first significant concessions from any casino bidder since the advisory process began.
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