NEWS
Dissent over Aqueduct racino choice
Posted: Friday, October 17, 2008 10:49 AM
by Paul Post
Assembly member Audrey Pheffer (D-Ozone Park), whose 23rd District includes Aqueduct, said on Thursday that she was disappointed by New York Governor David Paterson’s choice of Delaware North Companies to run the Queens racetrack’s gaming center.
Paterson’s announcement, made on October 10, also has drawn fire from community groups surrounding Aqueduct and Senate Majority Leader Dean Skelos (R-Rockville Center), all of whom say it does not do enough to promote local economic development. The proposal, they say, calls for a racino only while other bidders included plans for a hotel, upscale retail shops, and entertainment, all of which would create hundreds of extra jobs.
Pheffer said that Assembly Speaker Sheldon Silver (D-Manhattan), who backs Paterson’s choice, has assured her that additional development will be included before final approvals are granted. Delaware North spokesman Glen White said that a brand-name hotel would be part of second-phase development at Aqueduct, after a racino has been completed.
“The other two proposals included much more vision,” Pheffer said. “The key word is destination, making Aqueduct a place where people would want to go, something that would enhance the community and make people want to come back. Delaware North didn’t really meet with the community.”
Skelos traveled to Buffalo on Tuesday to meet with Delaware North officials, who reportedly have agreed to meet with Aqueduct community groups in the near future. Skelos spokesman Scott Reif said the majority leader voiced concerns to Paterson about Delaware North’s proposal prior to last week’s announcement.
“We had not signed off on it,” he said. “We’ve been urging both former Governor [Eliot] Spitzer and Governor Paterson to make economic development a priority. We’re going to work as expeditiously as possible, but we’re going to get this right.”
Both Paterson and Senate Minority Leader Malcolm Smith (D-Queens) have criticized Skelos’s opposition to Delaware North’s plan, saying he is delaying an important decision that’s costing the state money. The state loses an estimated $1-million per day while waiting for the 4,500-machine racino to become operational.
Pheffer served on a state committee that in 2006 reviewed bids from groups seeking New York’s racing franchise and a contract to run Aqueduct gaming. Later, instead of choosing one party to run both activities, state officials decided to separate the process.
In February, the New York Racing Association was granted a new 25-year franchise to run racing. Now Delaware North is Paterson’s choice to run gaming. Contracts cannot be signed, however, until the governor, Silver, and Skelos come to an agreement.
“We’re waiting for the senator to make his next move, essentially,” said Morgan Hook, a Paterson spokesman. “All of these were good bids from good companies. Governor Paterson made the determination that Delaware North’s bid made the most sense and was best for the state.”
Delaware North offered the financially-troubled state, which is facing a $2-billion budget deficit, the highest up-front payment—$370-million versus $250-million from SL Green Realty Trust/Hardrock Entertainment and $100-million from Capital Play Inc/Mohegan Sun. Other bidders say their plans would generate more money for the state over the life of the 30-year gaming contract.
Paul Post is a New York-based Thoroughbred Times correspondent
