New York Senate Majority Leader Dean Skelos, R-Rockville Center, last week dropped his opposition to a proposal allowing a company to develop a “racino” at the Aqueduct Race track in Queens.
The state plans to sell $250 million of bonds in fiscal 2010 to finance the development of the facility, and Delaware North Cos. will pay a one-shot $370 million payment that the state has been counting on to help balance its budget.
Gov. David Paterson and Assembly Speaker Sheldon Silver, D-Manhattan, had chosen the firm over lower bids by SL Green Realty Corp. and Capital Play Inc., but the deal required agreement from both houses of the Legislature and the governor.
Skelos had objected to Delaware North’s bid because he said it didn’t contain enough economic development but changed his mind after meeting with the company and learning more details about the proposal. The firm plans to invest $170 million over the 30-year term of the agreement and the racino facility could eventually have a hotel, spa, event center, conference center, and retail shopping.
The state expects to receive about $250 million annually from its cut of profits from 4,500 video gambling terminals. The gambling part of the project is expected to open in fiscal 2010.
