MTA CEO with Stake in West Side Casino Plan Faces Conflict of Interest Concerns
Posted on: October 4, 2023, 06:41h.
Last updated on: October 4, 2023, 06:41h.
John “Janno” Lieber, the chief executive officer of New York’s Metropolitan Transit Authority (MTA), is facing scrutiny over his involvement in a casino proposal for the West Side. With a stake in a real estate project partnering with Parx Casino’s parent company, Lieber’s ties have raised concerns about conflicts of interest.
Before joining the MTA, Lieber spent 15 years at Silverstein Properties. Now, he holds a 3% stake in the land that Silverstein hopes to develop into a 46-story tower for the casino project. This makes Lieber the highest-ranking government official in the state to have financial interests in a casino proposal.
The New York Daily News reported today that Lieber owns a 3% stake in the land, raising concerns about potential conflicts of interest.
As the MTA CEO, Lieber has close ties to the Democratic party. His appointment to the transit authority was made by former Governor Andrew Cuomo, and he was permanently appointed by Governor Kathy Hochul, both of whom are Democrats. With his background as a transportation advisor and his current role, Lieber’s involvement with the casino proposal is drawing attention.
Conflicting Opinions on Lieber’s Involvement
The MTA Communications Director has stated that Lieber has not participated in any negotiations related to the casino and has recused himself from direct involvement with Silverstein Properties. However, others argue that Lieber’s stake in the West Side property raises questions about potential conflicts of interest.
MTA Union President John Samuelsen has called for an investigation into Lieber’s Manhattan real estate interests, expressing concerns about potential “self-dealing.”
Additionally, Related Cos. is seeking to develop the western part of Hudson Yards, near the Silverstein property. Related is also partnering with Wynn Resorts in their bid for one of the three downstate casino permits. There have been meetings between Related staffers, Lieber, MTA officials, and local politicians, but these meetings may be related to the transit authority’s ownership of rail tracks on the land.
Uncertainty Surrounding the Casino Proposal
Next year, New York regulators are expected to announce the winners of the three downstate casino licenses. While Parx and Silverstein may be contenders, there is no guarantee. The prevailing belief is that MGM Resorts’ Empire City Casino in Yonkers and Resorts World New York in Queens will receive two of the three permits, leaving 10 companies competing for the remaining license.
Despite rumors and speculation, it is unclear which companies will secure the third license. However, Las Vegas Sands and Wynn are currently seen as the frontrunners for the third permit.