$100M in Public Mitigation Work
MGM/Empire City, Yonkers Reaching Accord On Community Benefits, Use of Local Labor
By JOHN JORDAN
YONKERS, NY—In its $2.3-billlion quest to secure a downstate casino gaming license later this year, MGM Empire City has agreed to spend approximately $100 million in mitigation-related projects in the City of Yonkers.
It has also reached an agreement in principle with the city on a Community Benefit Agreement that will require it to spend tens of millions more and commit to a host of labor policies, including working with labor unions and paying prevailing wages on all construction jobs.
The details of the community benefit agreement were spelled out in a letter authored by Yonkers Mayor Mike Spano to the MGM Empire City Community Advisory Committee on Aug. 6 in advance of the committee’s hearing on Aug. 7 at the Yonkers Riverfront Library.
Officials with MGM Empire City presented to the Citizens Advisory Committee the fine details of its multi-billion-dollar plan to expand its existing gaming facility. MGM Empire City President and COO Louie Theros also briefed the panel on the mitigation package previously agreed to during the project’s land and environmental impact reviews before the city and the Community Benefit Agreement that must be approved by the Yonkers City Council.
The project has received all municipal approvals and can proceed to secure building permits if certain conditions are met. These include the Community Advisory Committee granting a finding of community support. If all goes according to plan, the state’s Casino Gaming Commission could grant MGM Empire City its full gaming license by the end of this year.
Among the chief items in the Community Benefit Agreement include:
- $10 million to purchase and renovate a new library/community center.
- $2 million to fund small business façade improvements on Yonkers Avenue.
- $2 million for Yonkers Avenue streetscape improvements.
- $1.25 million for park improvements.
- Subject to, and if permitted by applicable law, a $1.5-million initial payment to the Yonkers Economic Development Corp. and $500,000 annually thereafter (50% in cash and 50% in kind) to be used by YEDC for economic development and community needs determined from time-to-time by the YEDC Board.
- A minimum guaranty of $19.6 million in annual tax revenue from the state’s Commercial Gaming Revenue Fund, regardless of MGM Empire City’s ultimate gaming tax rate.
The Community Benefit Agreement also pledges a commitment to local labor with hiring policy initiatives that include:
- Cooperate and collaborate with labor unions for qualified union workers who reside in the City of Yonkers or Westchester County.
- Local preferences to fill vacancies after completion of construction and during the operational phase, giving “reasonable preference to qualified residents of the City of Yonkers and Westchester County, and cooperating and collaborating with labor unions with their trade/craft training programs.
- Pay prevailing wage for construction jobs consistent with any collective bargaining agreement to which MGM Empire City may be a party.
- Cooperate and collaborate with applicable unions to achieve diversity on the construction site and provide equal opportunity to construction jobs.
- For the construction period and for future capital improvements during operations, “make reasonable efforts to cooperate and collaborate with general contractors to seek out local subcontractors and vendors, including actively solicit bids through local advertisement and such other reasonable measures as the City of Yonkers may from time-to time-request.
- Undertake a host of training programs and events to promote local hires.
The approximate $100-million mitigation program in place with the City of Yonkers now calls for:
- $2 million in annual funding for police officers.
- Partial funding to replace the waterline on Central Park Avenue or full funding for cleaning and relining.
- Improving traffic flow in and around MGM Empire City.
- Improving traffic intersections and upgrading communications technology.
- Replacing five acres of impervious surfaces (asphalt) with new water-efficient landscaping.
- Adding new landscaping to act as light and sound buffer.
- Significantly improve collection and detention of stormwater runoff.
- Reduce electricity usage through sustainable building practices.
MGM Empire City’s Theros began his remarks to the Community Advisory Committee noting that MGM Empire City is the only one of the seven casino applicants that is located outside of the City of New York and will be housed in the state’s third largest city.
During its presentation, MGM Empire City officials noted the significant support the project has received from the region’s building trades, labor unions and business organizations, including from the Construction Industry Council of Westchester & Hudson Valley, Inc., the Building Contractors Association as well as the Business Council of Westchester.
After he and his staff and consultants detailed the additions, tax benefits, architecture and other benefits the project will bring, if approved, he concluded, “This proposal is the culmination of years of planning. It is a thoughtful expansion of our existing gaming facility taking into consideration Yonkers stakeholders and it provides substantial benefits to the city and community. Simply put, Yonkers and our employees have waited years for this project. They have earned it and deserve it.”
At press time, the Community Advisory Committee had scheduled a public hearing on the MGM Empire City casino proposal on Mon., Aug. 11, at the Grinton I. Will Public Library, located at 1500 Central Park Ave. in Yonkers beginning at 6:00 p.m.
Published: August 15, 2025.
