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The Shinnecock bid which will be submitted to the state tomorrow aims to upend plans for a smaller video-lottery complex at the Thoroughbred race track in Ozone Park. Queens. Three companies are expected to submit bids to run that lottery facility a racino slated to have 4,500 video terminals.
But the Shinnecock — who are teamed with a Michigan sports mogul who operates a Detroit casino — have a far grander vision rivaling Foxwoods and Mohegan Sun in Connecticut.
The bid calls for a million-square-foot casino with 10,500 slots. 350 gaming tables and 12,000 employees. A 1,200-room hotel and other amenities would be built with community input the tribe says."It would be great for the City of New York," said Fred Bess a Shinnecock trustee. "New York is tired of watching all the gaming revenues going to Atlantic City and Connecticut."
Though casinos are illegal in New York federally recognized Indian tribes can build gambling facilities on their reservation land. In 2003 the Shinnecock sparked an uproar by breaking ground for a casino on an 80-acre parcel called Westwood on the east end of Long Island. The town of Southampton and the state responded with a federal lawsuit seeking to stop the tribe. A trial ended in May and a decision from the judge could come any day. The Shinnecock believe they are likely to win the case — and they are also hopeful about a pending suit that lays claim to 2,800 acres of Hamptons land and demands billions from the state for seizing it. The litigation they believe can be used as leverage to forge a deal on Aqueduct. Powerful opponents of a Hamptons casino theoretically would lobby for the Shinnecock to run a facility in the city instead. But
even if the political stars aligned the Shinnecock would face another stumbling block: They must be federally recognized as a tribe to open a casino. A federal judge's ruling recognized the Shinnecock in 2005 but the tribe is still trying to force the U. S. Department of the Interior to acknowledge it. A lawsuit was filed last year.
Bess said he is optimistic the tribe can negotiate a global settlement with the state and feds — giving it tribal recognition and making the land around the racetrack reservation property."I think it's a good shot and anybody who looks at it will have to give serious consideration," Bess said. The Shinnecock have no experience running a casino but they have partnered with Gateway Casino Resorts a venture of Michigan business mogul Marian Ilitch. Ilitch who co-founded Little Caesar's Pizza and owns the Detroit Tigers and the Detroit Red Wings owns the MotorCity Casino Resort in Detroit and should be considered a serious player an industry analyst said."They're kind of a small company but I think they have a lot of respect," said Roger Gros publisher of Global Gaming Business magazine. He said MotorCity has performed as well as the MGM Grand Detroit under Ilitch's control. "That has really impressed me," he said.
The Aqueduct bid estimates a full-size casino would bring in $2.1 billion annually. The city and state would share a 25% kickback from the $1.5 billion generated annually by the casino's slot machines and would receive added tax revenues. By contrast the video lottery racino that opened at Yonkers Raceway last October with 5,500 terminals grossed $350 million in its first year.
The Shinnecock would have nothing to do with horse racing. Gov. Spitzer has endorsed a plan for the New York Racing Association to continue operating the track.
Before the Shinnecock Indians entered the fray three private companies were vying to run the gambling operations at Aqueduct Racetrack. Empire Racing. Excelsior and Capital Play all submitted proposals to take over horse racing at Aqueduct. Belmont and Saratoga and run the video lottery terminals at Aqueduct. But Gov. Spitzer has recommended the New York Racing Association keep the horse-racing franchise at all three tracks — and a separate contract be awarded for the video slots. The deadline for bids is tomorrow. It's unclear who will step forward. But here's a look at the companies that have expressed interest:
could you imagine getting all dressed up to go to the casino and then hop an A train to Ozone Park! haha the fact that its so close to manhattan is a major boon but that is such a crappy neighborhood the calls that its going to bring in the wrong crowd is not an exaggeration ive been in that area many times if you want to see what you're getting check out the OTB in the area and see the future clientele
While the plan has been at various stages for years state officials are aiming to choose among the three bidders vying to develop the racino in a matter of weeks though final agreements among state leaders often prove elusive in Albany. But given the weakening economy and widening budget deficits the state is motivated to expedite the process and a bidding group led by the developer Stephen L. Green and the operators of the Hard Rock Cafe chain is even promising to open a temporary racino by the end of this year. At stake is the $10 billion to more than $20 billion in revenue that the state will reap over the life of what would be a 30-year lease depending on which bidder is making the projections as well as an upfront licensing fee.
“We would hope that in roughly a year we’d have a facility open,” said Paul Francis director of operations for Gov. David A. Paterson.
There are several racinos in the state but none at the three state-owned thoroughbred tracks: Aqueduct. Belmont and Saratoga. Like many issues decided in the capital the bids are secret — beyond what details the bidders were willing to release — and the winner will be chosen behind closed doors by the so-called three men in a room who run the state. Governor Paterson and Assembly Speaker Sheldon Silver both Democrats and the Senate majority leader. Joseph L. Bruno the state’s top Republican. Because the process is private it will not be clear to what extent merit or political influence and campaign contributions affect the decision making. The secrecy. Mr. Francis said. “will help the policymakers make a decision on the merits of the proposals rather than on a political campaign that seeks to promote the merits of one bid and the demerits of an alternative proposal.”The bids range in ambition. All of the bidders are proposing renovating the aging facilities with enough of a gloss to entice a flurry of traffic before considering a second phase of development. The state will raise $250 million through a bond offering for the construction project.
Connecticut’s Mohegan tribe which operates the giant Mohegan Sun resort and casino is part of a bidding group called Capital Play which has an ambitious plan to transform Aqueduct over the next several years into a Mohegan-style entertainment complex. The group even talks of extending the AirTrain from the nearby Kennedy International Airport to the Aqueduct site. Their bidding group includes Extell Development
a major Manhattan-based real estate developer and Plainfield Asset Management a large hedge fund. But the group’s upfront bid is on the low end a $250 million investment that includes a $100 million licensing fee and $150 million to redevelop the site. The state is already counting on a $250 million licensing fee to balance the budget. To sweeten the pot the group is promising to spend an extra $25 million to $30 million a year on marketing above the state’s requirements which it believes will bring in substantially more revenue over time. The group also says it intends to spend an additional $700 million on a second phase of development within a couple of years which would be used to add a hotel and mall.
“You have to build a hotel and retail so it becomes a Mohegan-style complex so it’s not focused on gaming as much as entertainment,” said Karl O’Farrell the president and chief executive of Capital Play. “There will be good-quality restaurants nightclubs.”
The group owned by the Jacobs family of Buffalo would pay the state a $370 million licensing fee upfront though it would not use more than the state is offering through its bond sale to develop the site. The group envisions a racino similar to a popular one it operates in Saratoga Springs. N. Y. which is attached to a harness racing track and would include a large parking deck.
“It’s going to have a lot of electricity a lot of lights and a lot of entertainment,” said William J. Bissett president of the gambling and entertainment division of Delaware North. “It’s going to feel like a place you want to be.”
which was acquired by the Seminole Tribe of Florida in 2006 along with the real estate firm SL Green. The group is offering $250 million as a licensing fee and a $130 million investment in the construction project. In addition it is proposing to spend $28.5 million to finance upstate horse farms and breeding which could appeal to Mr. Bruno who is himself a horse breeder upstate. The group says it would spend $30 million to $100 million over the life of the lease on capital improvements.
This group is proposing to open a temporary gambling floor by the end of the year while it works on overhauling the existing facilities. And in a proposed second phase of development it would add a Hard Rock Cafe.
With so much money on the line there has been a whisper campaign as the bidders vie for supremacy and even resentment among local New York tribes that bristle at the idea that the state would let an out-of-state tribe run the racino. “This is a New York project,” said Frederick C. Bess chairman of the Shinnecock Indian Nation on Long Island which has sought to develop a casino at Aqueduct and elsewhere but lacks federal tribal recognition. “I would think if any tribes would be considered it would be a New York tribe.”Some critics also suggest that the Mohegan Sun group would not aggressively compete to keep New Yorkers here since its business in Connecticut has been enriched by cross-state traffic. When asked about the issue. Marc Holliday the chief executive of SL Green said. “I think that it’s in the interest of New York State to have a gaming operator whose sole focus is going to be on maximizing revenues at the facility in New York City and not have any competing operations in Pennsylvania. New Jersey. Connecticut or other competing areas.” Mr. O’Farrell said however that Mohegan’s database of its New York customers and its system of rewards points which can be used at any Mohegan resort would be a competitive advantage. The bidding process is the latest step in the state’s tortuous oversight of its thoroughbred racing franchise. In February after years of delay the state granted a 25-year extension to the New York Racing Association to oversee racing at the state’s three thoroughbred tracks. The association has been plagued by scandal and mismanagement and is in bankruptcy court.
While racing has often been a sinkhole for taxpayers state officials would like to see the Aqueduct racino — and its 4,500 video lottery terminals referred to as V. L. T s — help plug a $5 billion deficit projected for next year. “The State of New York has made it crystal clear to us they want revenue generated as soon as possible,” said Mr. Bissett of Delaware North.
John McArdle a spokesman for Mr. Bruno said: “The sooner there’s an agreement the sooner we can get V. L. T s up and running and have revenue for the state. That’s the bottom line.”
I haven't been there but they've had a lot of success with Empire City in Yonkers. My childhood neighborhood was in the area (South Ozone Park) and I still go there sometimes to visit so this is interesting to me. With that location in the country's biggest city it's a guaranteed success something else to put Queens on the map. No doubt half of Brooklyn will be there...
A report on bidders seeking Aqueduct's gaming contract is in the hands of the state's top leaders indicating that a decision might be made soon. After conducting background checks the state Lottery Division has deemed each of three bidders qualified to run Aqueduct's proposed 4,500 machine video lottery terminal facility.
Lottery's report following review by the state Inspector General's Office was given to Gov. David Paterson. Senate Majority Leader Dean Skelos. R-Long Island and Assembly Speaker Sheldon Silver. D-Manhattan several days ago.
"At this point they can begin to have discussions about which one will be best for the state," said Morgan Hook a Paterson spokesman. "I wouldn't put a timetable on it."
The bidders are Delaware North Companies partnered with Saratoga Harness Racing Inc.; SL Green Realty Trust and its partner. Hard Rock Entertainment; and Capital Play Inc partnered with Mohegan Sun casino. Extell Development and Plainfield Asset Management. Paterson. Skelos and Silver discussed VLTs during a more than hour-long meeting focused on the state's economy at the governor's mansion on Sunday. Hook said."The three of them can sit down and meet any time," he said. "It's not that hard to arrange." ____________________________________
by Paul PostJuly 24. 2008Background checks were conducted by the state Division of Lottery which oversees video lottery terminal operations.
Lottery’s report following review by the state Inspector General’s office was sent to Paterson. Senate Majority Leader Dean Skelos (R-Long Island) and Assembly Speaker Sheldon Silver (D-Manhattan) within the past few days.“At this point they can begin to have discussions about which one will be best for the state,” said Morgan Hook a Paterson spokesman. “The three of them did discuss it briefly on Sunday.”The trio met in person at the governor’s mansion in Albany. Talks focused on the state’s fiscal condition the economy and property taxes.
Aqueduct is a closely related subject because New York is facing a nearly $5-billion budget deficit and loses $1-million each day that VLTs are not operational.“If that [racino] had been up five years ago we’d be $2.5-billion better off in this state,” former Senate Majority Leader Joseph L. Bruno said recently.
Lottery’s report concluded that each bidder is qualified to run Aqueduct’s gaming facility. The selection requires approval from all three state leaders. Entities seeking the contract are Delaware North Companies which is partnered with Saratoga Harness Racing Inc.; Manhattan’s SL Green Realty Trust and Hard Rock Entertainment which is owned by Florida’s Seminole Indians; and Capital Play Inc and its partners: Mohegan Sun casino of Connecticut. Extell Development and Plainfield Asset Management. Delaware North owns Finger Lakes Racetrack the state’s only Thoroughbred venue that currently has gaming located southeast of Rochester in upstate New York. Delaware North also runs VLTs at Saratoga Gaming and Raceway a Saratoga Springs harness track directly across the street from Saratoga Race Course. The company is counting on these ties to help it win the Aqueduct contract. However. Capital Play/Mohegan Sun touts its experience in the New York City marketplace saying it already has a large well-established customer data base to draw upon. Likewise. SL Green is one of New York’s largest owners of commercial real estate and has 67 properties in the greater metropolitan New York area. Hard Rock’s highly successful and well-recognized name is a cornerstone of the group’s bid. There are no indications however about which entity might have an inside track with state leaders and while Lottery’s report is complete there’s no guarantee that a decision will be made soon.“I wouldn’t put a timetable on it,” Hook said. “The three of them can sit down and meet any time. It’s not that hard to arrange.”
Inside of racino that will have 4,500 slot machines and giant buffet key draws. BY KENNETH LOVETT October 13th 2008Here's a first look at a proposed new Las Vegas-style video slot machine parlor at Aqueduct race track in Queens.
The 330,000-square-foot "racino" will boast 4,500 video slot machines says would-be developer Delaware North of Buffalo. Like Vegas food will be a key draw with a 25,000-square-foot buffet with seating for 600 people plus a steakhouse and Italian and Asian restaurants.
The facility which is expected to draw 20,000 people a day and generate $1 million a day in revenue for the state will also include a large food court several bars and a stage for entertainment. And
Gov. Paterson and Assembly Speaker Sheldon Silver picked Delaware North's proposal over two other bidders last week. But Senate Majority Leader Dean Skelos has balked saying that while Delaware North would provide more money upfront the plan may not be as good in the long run. Unlike the other finalists. Capital Play and SL Green. Delaware North has not come up with plans for the site beyond the video slot machine parlor. Skelos noted.
Delaware North officials said Monday that while the company submitted no additional plans it intends to ultimately build a "world-class four-star conference center and hotel facility."In June the firm hired The Peebles Corp. said to be the country's largest African-American real estate development company specializing in urban redevelopment. Chairman and CEO Donahue Peebles said he is designing plans that would include a 3,000-seat theater for concerts and boxing. There would also be a 60,000-square-foot conference and meeting facility with a ballroom a 5,000-square-foot spa and a 2,000-space garage.
In addition. Peebles said there would be 15,000 square feet of "boutique retail" along the entrance to the racino - with more once the hotel is built."The idea is to take Aqueduct and make it a world-class destination attraction," he said. Delaware North and Peebles hope to meet with Skelos this week to outline their plans. Once the final approvals are in place.
it should take 12 to 14 months to build the racino said Delaware North Cos. Gaming & Entertainment President William Bissett.
He said Delaware North and its partners have cash reserves and lines of credit that would let them pay the state $370 million upfront and build the $250 million racino which will open first. The hotel conference center and a possible regional shopping center would follow within five years. Bissett added.
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