MTA Head Lieber Has Financial Stake in New York Casino Enterprise
John Lieber, current CEO of New York's Metropolitan Transit Authority (MTA), previously held positions at Silverstein Properties for approximately 15 years. Silverstein Properties is the real estate developer involved in a partnership with Greenwood Gaming and Entertainment (parent company of Parx Casino) in proposing a New York casino project. Lieber invested in a 3% stake in the land on which Silverstein aims to construct a 46-story tower before joining the MTA in 2017 as chief development officer. The involvement of Lieber, a high-ranking government official, in a casino proposal has raised concerns over potential conflicts of interest as he is the first such official to have economic associations disclosed.
Lieber's ties to the Democratic Party are numerous, having been appointed by then-Gov. Andrew Cuomo in 2017 and named permanent CEO by Governor Kathy Hochul last year. He also previously served as a transportation advisor for former Mayor Ed Koch and worked in the Department of Transportation under President Bill Clinton, all of whom are Democrats.
Controversy arose when Lieber claimed he's had no engagement in the downstate casino negotiations and has withdrawn from any direct involvement with Silverstein Properties. Nonetheless, some perceive his 3% investment in the West Side property as a potential conflict of interest.
MTA Union President John Samuelsen suggested Lieber's involvement in the property, which may eventually house a casino hotel, as "self-dealing." Furthermore, Related Cos. are seeking to develop the Hudson Yards on the West Side of Manhattan adjacent to the Silverstein property. Related is working with Wynn Resorts to obtain one of the three New York casino licenses. There have been meetings between high-ranking MTA officials, the MTA Communications Director Tim Minton, and local politicians regarding the rail tracks owned by the MTA on the land that Related wishes to develop.
The state's New York State Commission on Ethics and Lobbying in Government has not made clear whether Lieber's stake would be considered a conflict of interest, as they're yet to make an announcement on the three downstate casino licenses. Some have speculated that MGM Resorts' Empire City Casino in Yonkers and Resorts World New York in Queens will secure two licenses, leaving about 10 companies vying for one license. Among the competing companies are Las Vegas Sands and Wynn, who are seen as the current frontrunners for the last permit.
It remains to be seen if Lieber will profit from any New York casino project, with winners of the three available licenses expected to be announced in the upcoming year, although the process could stretch into 2025. This brings to light the complex relationships of various stakeholders who stand to gain from these ventures.
