Albany

An unusual partnership of Capital District OTB and a Rochester developer is proposing a casino development at Exit 23 of the Thruway at the compound of secluded homes where the prominent Noonan family lives on the outskirts of Albany.

Asked repeatedly about the project, the developer, David Flaum, issued a statement late Thursday indicating that he and Capital OTB have put together a plan that could give Albany County millions of dollars in revenue, $10 million alone for the city. Flaum said he is planning to make a presentation to the Albany Common Council at noon on Friday.

"We are excited to have the opportunity to make our one-of-a-kind presentation ... to the Common Council," he said. "Our $300 million 'E23' plan will create 1,800 permanent jobs, 1,500 construction jobs and provide millions in revenue for many upstate communities that need it. Our plan fits seamlessly with all the inherent beauty and history of Albany."

"E23" stands for Exit 23 and property owned by the Noonan family, a person familiar with the plan said. Flaum said his location in the city will cause "a windfall of revenue" for city and county coffers if his project is built.

The City of Albany's host community revenue, he said, would reach $11.4 million and would be shared with Albany County, plus the city will get a property tax infusion of $5 million.

Capital OTB is a party to the plan. John Signor, president of the multi-jurisdiction betting corporation, joined Flaum in issuing the statement and confirmed his relationship. Signor has long wanted to add video lottery machines to his operation.

"We look forward to having the opportunity to earn the support of city's elected officials and community leaders," Flaum and Signor said.

Flaum has had his sights on building a casino somewhere in the state for years. He has shared his plans for Albany with Albany Mayor Kathy Sheehan recently, according to people familiar with his proposal.

That has resulted in Sheehan discussing with top advisers the pros and cons of supporting a casino in Albany, according to several people who have consulted with the mayor about Flaum's intentions. Noonan Lane, where he is targeting his development, is where Polly Noonan, U.S. Sen. Kirsten Rutnik Gillibrand and other family members have called home.

It appears that someone associated with Flaum has entered into an agreement with property owners there, said Assemblyman John McDonald, whose district includes the site.

On Thursday, Sheehan said she is not "prepared to talk about it." She declined to say if she is knew that Noonan Lane is in Flaum's plan, but said she has begun to weigh the problems that could result if Rensselaer becomes the site of a casino because of its proximity to Albany.

"I don't support downtown casinos in downtown centers," Sheehan said. "I would have significant concerns about a casino right across the river in Rensselaer without anything to compensate the city."

Flaum is a Rochester shopping plaza developer who is on Gov. Andrew Cuomo's Republicans for Cuomo team. He has been eager to find a suitable site for a casino license in the Capital Region. His current favorite, according to people familiar with his plans, is the neighborhood created by the Noonan family, who have long ties to the Democratic Party.

Flaum had previously held the rights to the land that housed the former Tobin First Prize plant off Central Avenue. He ended his quest to develop that site because of scant support from local political leaders, according to a representative.

Instead, he looked at other parcels in the region, most notably the Noonan property, which has been for sale for several years. The property, with five dwellings, is about 84 acres sheltered by trees, about 3 miles from downtown.

Polly Noonan Rutnik, the senator's mother, said four Noonan children own homes on the lane and the properties have been for sale. She said she could not discuss whether a representative of Flaum had approached her about acquiring her residence at 2 Noonan Lane, but that no one has told her about a casino on the site. "I'm not at liberty to speak," she said.

A man identifying himself as Peter Noonan said the Times Union would be wrong to report that the properties are part of a casino project. "If there is any such a thing going on, it's private, it's not public," said the man, who called after a Times Union photographer took pictures along Noonan Lane. "I can tell you right now there is nothing going on between our properties and a casino developer."

The lane includes the former home of Dorothea "Polly" Noonan, who was a close friend of legendary Albany Mayor Erastus Corning 2nd and part of the Democratic machine that controlled the city.

Assembly members Patricia Fahy and McDonald, who represent the Albany/Bethlehem area that would be affected by a development at Noonan Lane, said they met with Sheehan on Wednesday night. The mayor had assembled key transition team members for what was billed as an important discussion.

The key topic of the meeting was the Noonan property and the feasibility of a casino there, the Assembly members said. Its out-of-the-way location could be a positive, they said. They also noted that it is cut off from neighborhoods and has easy Thruway access.

Fahy said she has disliked the idea of a casino in Saratoga Springs because she sees it as adding to sprawl in Saratoga County. Operators of the Saratoga harness track and racino have been working to put together an application for a casino license for their site, but have been confronted by a hostile group of residents and politicians.

Sheehan, according to some of the officials in the meeting with the mayor, expressed concern that Albany could lose the economic benefits of a casino if Flaum, or some other developer, builds across the river in Rensselaer County. Fahy said the concern is that the city could receive the negative impacts of a casino if it goes to Rensselaer, and it could lose control of the development, perhaps causing harm to the Albany cultural, entertainment and eating enterprises in the city.

Meanwhile, the Galesi Group, planning a major commercial development at the former American Locomotive Co. site in Schenectady, is very interested in adding a casino to the project but has not made a decision to do so, according to Assemblyman Angelo Santabarbara, who represents the city. He said the proposal has been discussed with community leaders and has the support of Proctors Theater management and others.

The New York Gaming Commission will announce its request for casino license applications, with details on bid terms, by the end of this month, state officials say. The Schenectady-based commission will accept applications until June 30.

By early fall, the commission intends to grant up to four casino licenses in three regions of the state.

jodato@timesunion.com • 518-454-5083 • @JamesMOdato