Expectations are rising ahead of Governor David Paterson’s anticipated announcement of the winner in the race to operate a gaming and entertainment complex at Aqueduct Racetrack.
Published reports say that four of the six groups bidding on the franchise have upped the ante on their offers submitted by the May 8 submission deadline – but the governor is keeping mum, and sources close to several bidders said he asked them to do the same.
However, a Paterson spokesperson confirmed to The Courier that changes have been made.
“The May 8 deadline was to submit bids – we have accepted no additional bids since the deadline,” said Morgan Hook, of the governor’s office. “However, there was no specific rule against bids being adjusted or enhanced,” he said.
A spokesperson for real estate giant SL Green told The Courier that their group, which includes Hard Rock Café, did add $25 million to their offer of $250 million in “up front” money – and an opening-day guarantee.
“The SL Green/Hard Rock team is using plans that had already been developed and approved,” said Rick Matthews, referring to the aborted 2005 Racino plan between MGM Mirage and the New York Racing Association (NYRA).
“We are using the same architect. We have agreement with the building trades. If we don’t have this thing up and running in eight months, we have a ‘self-imposed penalty fee’ of up to $25 million – that’s how confident we are,” Matthews said.
MGM is back in the race in partnership with mega-developer R. Donohue Peebles and others as the Aqueduct Casino Group. Peebles spokesperson Kendall Pryles said that the company was honoring the governor’s request and directed inquiries to their web site, www.theaqueductcasino.com.
As the largest African American developer in the country, Peebles’ group is also promising significant benefit to the community, including the involvement of the Peebles Entrepreneurship Academy for local youth.
Aqueduct Entertainment Group reportedly added $100 million to its $151 million bid – but only if the state ups the number of video lottery terminals (VLT) to 7,650 from the current 4,500.
Published reports say the group claims that it will be able to deliver the first 1,200 VLTs along with some restaurants and bars on April 1 – earlier than the other bidders.
The combine includes Turner Construction, casino operator Navegante Group, Reverend Floyd Flake’s Empowerment Development Corp. and Douglaston-based Levine Builders.
International casino name Steve Wynn entered this hopefully final round of bidding with a reported offer of $150 million and then doubled it to $300 million. Wynn has been pointing to his operations’ outperforming others as one reason he should get the 30-year franchise.
Bidder Aqueduct Gaming said it will give the state a $300 million licensing fee, including a $100 million upfront payment, but didn’t say whether this was an increase over the May 8 package, according to a published report.
Delaware North, the company that had won the VLT deal but couldn’t come up with $370 million in front money by April 1, is a partner in Aqueduct Gaming.
Rounding out the bids is one by Penn National Gaming for a reported $5 million with a conditional $150 million.
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