The organizations in charge of The Coney, a $3 billion project to build a casino hotel on Coney Island, New York, revealed a strategy to offer locals ownership in the venture.
Thor Equities, Saratoga Casino Holdings, Legends, and Global Gaming Solutions, the Chickasaw Nation's commercial entity, announced on Thursday that if their bid for a downstate casino license is accepted, they will start selling shares to Coney Island residents, allowing investors to take part in profit-sharing from the gaming establishment.
"Shares in the program will only be sold to families in Coney Island to ensure that the project’s benefits stay local. In order to make the program accessible to Coney Island families, the minimum investment amount will be $100,” according to a statement.
Compared to several other local casino ventures around the nation, that minimal investment amount is far smaller. The idea complies with Securities and Exchange Commission (SEC) standards, according to the Coney's supporters.
There are eight bids for three downstate casino permits in New York, indicating that there is intense competition and that bidders must discover ways to differentiate themselves favorably.
One method of achieving that goal is through localized share sales, like the one suggested by The Coney. Bally's used that strategy in Chicago and New York, and with its proposal for the Bronx, the operator is anticipated to try it once more. Similarly, if it is allowed, Caesars Entertainment, real estate developer SL Green, and Roc Nation, the entertainment company owned by hip-hop mogul Jay-Z, are anticipated to offer shares to New Yorkers in their Times Square casino. It is anticipated that the Times Square minimum investment would be $500.
“The community is our most important stakeholder, so it just makes sense that Coney Island’s working-class families, who have been neglected for decades, and whose unemployment rate is amongst the highest in the City, get an opportunity to buy into this project in a way that is affordable so that even more of the positive economic impact stays local,” said Thor Equities Executive Vice President Peter McEneaney in the press release.
The Coney reaffirmed their commitment to a $200 million community trust, which would be used for community grants, workforce development, economic mobility, and improvements to the Coney Island Boardwalk.
The announcement also mentioned $75 million in public safety monies that will support New York's fire and police departments as well as emergency medical services.
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