NEWS
Bruno waiting for Paterson's input on Aqueduct VLT operator
Posted: Thursday, May 15, 2008 10:57 AM
by Paul Post
New York should name an Aqueduct gaming operator within a week to ten days, Senate Majority Leader Joseph L. Bruno said Wednesday during a visit to Saratoga Springs, New York.
Three entities are seeking the contract to run a 4,500-machine video lottery terminal facility that is expected to generate more than $450-million per year, boosting purses and breeding program revenues in the process.
The center is expected to open in late 2009 and may include a major hotel, entertainment, and a retail complex, depending on who gets the contract. Bidders presented their proposals to state officials during closed-door sessions on April 30.
Bruno criticized the state's executive branch for allegedly stalling the process by its repeated examinations of the gaming operator candidates.
“[The candidates] have been vetted I don’t know how many times. I think there’s one time too many," Bruno said. "We have to do it.
“The governor, it’s his move, to send us a recommendation,” Bruno said. “We’re participating with him. We’re trying to prompt him to do something. I was hoping to do something by this Friday.”
The 2008-'09 state budget anticipates a one-time franchise fee of $250-million from whichever group gets the gaming contract. The fee would be due in full by March 31, 2009.
“We have budgeted a quarter of a billion dollars in this cycle and you’re looking at a $5-billion (state budget) deficit,” Bruno said. “If we don’t get that [gaming center] on line, you’re not going to get the $250-million this year and right now that’s in jeopardy, so it should be a priority to get a decision made and get people on their way.
“All three bidders are highly qualified bidders.”
He declined to indicate which group he prefers.
Entities seeking the contract have offered the state franchise fees ranging from $100-million to $370-million.
Capital Play Inc. is partnered with Connecticut’s Mohegan Sun casino, Plainfield Asset Management and Extell Development. They have offered the state $100-million up front, but promise a greater return to the state over the life of the 30-year contract, based on Mohegan Sun’s current win-per-day slot machine earnings, which rank among the highest in the Northeast.
Delaware North, which owns upstate New York’s Finger Lakes Racetrack, has offered the state a $370-million franchise fee. Delaware North is partnered with Saratoga Harness Racing Inc. and runs VLTs at its Saratoga Springs harness track.
SL Green Realty Corp. has offered the state $250-million along with plans for a Hard Rock Aqueduct and a $28-million investment to promote upstate New York equine economic development programs such as a year-round training facility and educational initiatives in partnership with colleges and universities.
Paul Post is a New York-based Thoroughbred Times correspondent
