Islandia Marriott casino plan subject of July public hearing

The Buffalo company hired by Suffolk OTB to build a mini-casino with up to 1,000 video lottery terminals has asked Islandia officials for a permit to build the facility at a 10-story hotel in the village.

The betting parlor would be built at the Islandia Marriott hotel on the north service road of the Long Island Expressway, according to an application for a special permit filed earlier this year by Delaware North, the entertainment conglomerate developing the casino plan for Suffolk Regional Off-Track Betting Corp.

The two-page application is the first public acknowledgment of OTB’s plans to site the VLT facility in Islandia. The application was reviewed Thursday at Village Hall by a Newsday reporter.

In addition to lottery terminals, the application seeks permission for OTB racing simulcasts and food and beverage concessions.

The Islandia Village board of trustees has scheduled a July 5 public hearing at Village Hall to consider the special permit request. The meeting is scheduled to start at 7:30 p.m. and is open to the public.

Delaware North and Suffolk OTB officials shifted the VLT plan to Islandia after abandoning efforts to construct the facility in Medford, where the proposal had faced opposition from residents and Brookhaven Town officials.

Newsday had reported the Islandia hotel was one of several sites under consideration for the casino. OTB officials have not confirmed they were interested in the site, though they have acknowledged that a new location for the casino had been chosen.

Suffolk OTB vice president Tony Pancella declined to comment Wednesday, saying he was barred by a confidentiality agreement from discussing the plan.

In a statement, a Delaware North spokesman said Thursday the company “is participating in a public hearing on July 5, 2016, in the Village of Islandia. ... The project being discussed will bring significant economic benefits, including creating new permanent operational jobs and short-term construction jobs.”

The statement does not mention Suffolk OTB or the VLT proposal.

Islandia Mayor Allan Dorman would not confirm that the special permit request was related to the OTB plan.

“I’m not going to comment on it,” he said Wednesday. “We’re going to have a public hearing and after that we’re going to make a decision. It’s the July 5th meeting.”

OTB officials have said the casino is crucial to efforts to dig the struggling agency out of bankruptcy.

During a hearing in April at U.S. Bankruptcy Court in Brooklyn, a lawyer for OTB said officials were confident the new casino site would be supported by the local community.

OTB officials have said previously that Delaware North plans to buy a hotel and lease space for the casino to OTB. The Islandia Marriott is owned by Columbia Properties Islandia LP of Crestview Hills, Kentucky, according to the special permit application.

A Brookhaven Town spokesman said Thursday the application for the Medford site has not been withdrawn, but there has been no activity regarding the application for several months.

Medford Taxpayer and Civic Association president Brett Houdek, who opposed the Medford plan, said he also would oppose a casino in Islandia.

“I just don’t think VLTs are appropriate for Long Island,” Houdek said, citing possible crime and traffic problems at the site. “I just hope the people in Islandia are not going for the quick buck at the expense of their neighbors.”

By Carl MacGowan

carl.macgowan@newsday.com,sophia.chang@newsday.comCarlMacGowan,

Carl MacGowan is a Long Island native who covers Brookhaven Town after having previously covered Smithtown, Suffolk County courts and numerous spot news and feature stories over his 20-plus year career at Newsday.