Local officials are defending Governor David A. Paterson’s decision to award the Racino franchise to local business group Aqueduct Entertainment Group (AEG), despite a virtual river of mud in tabloid reports following the announcement.
“It is imperative that New York State moves expeditiously to finalize the contract,” said Assemblymember Audrey Pfeffer in a statement calling for an end to eight years of delays, jointly signed by State Senator Joseph Addabbo and Community Board (CB)10 chair Betty Braton.
Aqueduct Racetrack, the eventual site of the 4,500 Video Lottery Terminal (VLT) facility – which will include a hotel, entertainment complex and shops under the AEG plan – is entirely inside CB10.
“We’ve roundly criticized the process; it’s not the best way to make this kind of a decision, but it’s time for this project to move forward without any further delay,” Braton said. “The AEG selection meets our criteria and we can work with them,” she added.
“The potential economic development in southern Queens is needed now, not later. The state has to deal with its budget now, not later,” said Addabbo.
In their joint statement, the trio pointed out that the selection process is identical to the process set in motion by then-governor Eliot Spitzer, which failed when winning bidder Delaware North could not come up with a promised $370 million down payment before April 1, 2009.
“There was controversy then, as there is now,” the statement reads. “Yet no call for a special investigation or media attack was evident then,” it continues.
Pfeffer was one of three Democrats on “The Ad Hoc Committee on the Future of Racing in New York,” a bipartisan group established by former Governor George Pataki to recommend an operator for Saratoga, Belmont and Aqueduct racetracks, as well as the operation of VLTs at the tracks – first authorized in the wake of the terrorist attacks of September 11, 2001.
Spitzer dissolved the group, ignored any of their findings, and set up the system whereby he, the Majority Leader of the Senate and Assembly Speaker would choose an operator.
Assembly Speaker Sheldon Silver has announced that he will not sign-off on AEG’s contract until New York State Inspector General Joseph Fisch investigates the process.
“I think everything should wait until that information is available,” Silver said of the investigation being conducted by Fisch.
State Comptroller Thomas DiNapoli, however, is warning that not receiving the $300 million up-front payment from AEG before the end of the fiscal year would push New York’s current budget more than $2 billion into the hole.
Observers point out that since, in exchange for the payment, the state is supposed to float a $250 million bond issue to help finance the construction (with the interest paid out of VLT profits) further damage to the state’s financial picture could raise the cost of the bond issue.
A spokesperson for Fisch’s office declined to comment on the investigation.
