by Paul Post
The New York State Legislature on Tuesday approved technical amendments to the New York Racing Association’s franchise legislation that helps clear the way for NYRA to get out of bankruptcy before its temporary extension expires on July 13.
The Senate bill (S-8709) was approved shortly before members headed home for the summer, on the last day of business for 2008. The Assembly bill (A-11502) is matching legislation introduced by Assemblyman Gary Pretlow (D-Yonkers), who serves as chairman of the lower chamber’s Racing, Gaming and Wagering Committee. The Assembly is expected to have another day or two of work before wrapping things up for the year.
“Both bills provided the technical clean-up that NYRA required to go forward,” NYRA President and Chief Executive Officer Charles Hayward said. “The bankruptcy plan of reorganization was approved on April 28 subject to the state and NYRA reaching a franchise agreement, a settlement agreement, and leases for the three tracks. The court asked that these agreements be reached by June 30.”
Each of these agreements is an addition to the technical amendments approved Tuesday.
“We are still working hard with the state to get these agreements done,” Hayward said. “However, we have a franchise extension through July 13 so that if the documents cannot get finalized by June 30, we will ask the court to allow us to get them done by July 13.”
The legislature on February 13 approved giving NYRA a new 25-year contract to run Saratoga Race Course, Belmont Park, and Aqueduct, but the franchise does not become official until NYRA emerges from Chapter 11 protection. NYRA filed for bankruptcy in early November 2006 and shortly afterward filed a lawsuit against the state that was never activated.
The required franchise agreement is a legal contract mirroring the February 13 legislation, which includes NYRA’s relinquishing ownership of the tracks to the state.
The settlement agreement would resolve the outstanding lawsuit.
Lease agreements are needed for NYRA to run the tracks.
In each case, however, the state must first name a gaming operator to run Aqueduct Racetrack’s proposed racino because that firm’s input and involvement is critical to each of NYRA’s issues.
For example, NYRA will be leasing its tracks from the state and the gaming firm’s Aqueduct plans will weigh heavily in how that contract is shaped.
Paul Post is a New York-based Thoroughbred Times correspondent