After nearly eight years of negotiations, three Governors and one false start, Aqueduct Entertainment Group (AEG) has been selected to operate the Racino at Aqueduct.
On Friday, January 29, Governor David A. Paterson announced, “I have chosen and legislative leaders have agreed . . . AEG has both the financial viability and ability to pay the required upfront licensing fee.”
The entire bidding process for the franchise to operate 4,500 Video Lottery Terminals (VLT) at the South Ozone Park track had to be restarted last April, when Delaware North could not come up with the entire promised $350 million up-front payment by March 31.
“AEG complied with every request made during the review process and addressed satisfactorily all matters related to licensing ability,” Paterson said. “All of the groups have valid proposals,” he continued, “But AEG presented a comprehensive bid that enjoys community support and also offers strong marketing appeal.”
Assembly Speaker Sheldon Silver issued a statement shortly after the announcement outlining some of the “requests” that gained his approval.
The up-front licensing fee will be increased from $200 million to $300 million.
The facility will occupy no more space that the previously-approved plans submitted by MGM – before they walked away from the project years ago.
No approval shortcuts will be allowed.
All investors and just about anyone else with any responsibilities will have to get a license from the State Division of the Lottery.
Anyone who has been denied a gaming license in any jurisdiction anywhere in the world can’t have a license.
Anyone convicted of a felony in the past 15 years – or tax evasion, fraud, “larceny of any sort, theft, misappropriation or conversion of funds” is likewise out.
“All changes in the proposal including but not limited to partners, investors at any level, management, development or principal employees, and contracts must be reviewed by the Division of Lottery and approved by the three leaders prior to the conclusion of the approval process,” Silver said.
AEG includes Turner Construction, casino operator Navegante Group, Reverend Floyd Flake’s Empowerment Development Corp. and Douglaston-based Levine Builders.
“I thank my colleagues in government for joining me in selecting AEG, so that the State may begin to benefit from the critical revenue stream that this important economic development project will generate,” Paterson said.
