Caesars Palace Times Square Bid Redirects $22.5M Funding Amid Wider West Side Outreach

The developers of the proposed Caesars Palace Times Square casino, including SL Green, Caesars Entertainment, and Roc Nation, have revised their community investment strategy in response to growing West Side criticism.

At the end of July, during its inaugural Community Advisory Committee (CAC) hearing, the team revealed plans for a $250 million 10-year community investment plan. That included $22.5 million plus 0.5% of future casino profits to contribute to Manhattan Plaza, a subsidized housing complex, tied to Broadway performers.

However, the plans sparked backlash from other West Side residents and organizations. They argued that the Manhattan Plaza pledge represents an unfair concentration of benefits to one location.

Revised Plan: Broader Distribution via West Side Community Fund

On August 11, the developers announced changes to the plan. The West Side Community Fund, a non-profit supporting local groups in Hell’s Kitchen, Chelsea, and Hudson Yards, will administer the money.

“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.

“We believe that all development should generate benefits for the community.”

An initial $1.5 million annual commitment, plus the 0.5% share of casino operating profits, will be contingent on the bid winning one of three downstate casino licenses later this year.

Caesars Palace Times Square is one of eight candidates for the three licenses. Two of them, MGM Empire City and Resorts World New York City, are existing racinos. As they require less effort to convert to a full-scale casino, they are considered frontrunners by many.

Context: Community Investment and Support Amid Licensing Push

At the July 23 meeting, the developers presented details of the $250 million benefits package in front of the six-member CAC. Highlights included:

• $22.5 million over 15 years to Manhattan Plaza, plus 0.5% of profits (now redirected)
• $98 million for Broadway workers (child care, health care, student debt relief, and job support)
• $81 million toward public safety infrastructure
• $5 million donation to Callen-Lorde, an LGBTQ+ health center
• $15 million toward establishing a Civil Rights Museum
• Over $25 million for sanitation, public restrooms, and streetscape improvement
• $7.9 million in traffic mitigation
• A 24/7 Ambucycle™ emergency response service with response times under three minutes.

Additional Cultural and Community Support

Caesars Palace Times Square has attempted to win over community support via multiple initiatives.

The latest is a $10 million fund for the New York Coalition of Legacy Theatres of Color Fund. A board of “diverse and respected arts leaders”, including actor and producer Wendell Pierce, will govern the fund.

Previously, the developers announced a partnership with civil rights activist Rev. Al Sharpton and Ryan Williams, founder of real estate investment platform Cedre. The partnership aims to include local households in the project by offering $500 ownership stakes.

Despite these commitments, the project faces pushback from multiple local associations and trade groups that serve the theater industry’s interests. Some of them include the Broadway League, IATSE, Sardi’s, The Shubert Organization, and block associations.

Additionally, some local lawmakers, such as state Sen. Brad Hoylman-Sigal, also oppose the project. Some of the arguments include a rise in crime, gambling addiction, and the destruction of the theater district.