Editorial – New York Post – Sunday November 8, 2009
New York Can’t Wynn
Even as taxpayers are being squeezed, Albany is turning away potential gold-chip investors who can generate new tax revenues. That’s just terrific.
Las Vegas casino king Steve Wynn last week unexpectedly withdrew his bid to run a video-lottery “racino” at Aqueduct Racetrack in Queens, citing his frustration at ongoing “delays in the process” of selecting an operator.
His withdrawal is understandable: Gov. Paterson was expected to name a winning bidder from six contenders by Labor Day; that stretched out to the end of September — six weeks ago. Still no decision.
Meanwhile, Paterson’s office has been changing the rules for the contract to operate 4,500 video-lottery terminals: It recently notified bidders that it’s raising the minimum amount of up-front cash the winner must put up.
Wynn was reportedly among the frontrunners for the contract. Whether he had the best bid isn’t at issue; the point is that New York can’t afford to be turning away top-rate, big-buck investors. Particularly on account of Albany’s inability to make a timely decision.
Crain’s New York Business Sunday November 8, 2009
A 2-Horse Race At Aqueduct – NY, Champing At Bit For Cash, Near Racino Decision
“By now, this decision should have been made, shovels should be in the ground and money should be flowing into the coffers of the state,” says state Sen. Joseph Addabbo, whose district includes Aqueduct.
Two bidders—Penn National Gaming Inc. and SL Green Realty Corp.—emerged as front-runners, a source close to the process says, after casino mogul Steve Wynn withdrew his bid. Mr. Wynn bailed last week, allegedly out of frustration with the ever-changing parameters of a process that is largely playing out behind the closed doors of Gov. David Paterson, Assembly Speaker Sheldon Silver and Senate majority leader John Sampson.
Editorial – New York Daily News – Saturday November 7, 2009 – Off Track On Betting: Casino Mogul Steve Wynn Folds in Albany’s Rigged Aqueduct Game
Albany’s destructive drive to turn decrepit Aqueduct Race Track into a gambling casino has begun to reek of incompetence, insiderism and desperation.
Hatched eight years ago by then-Gov. George Pataki and latched onto now by Gov. Paterson, the plan is dead wrong for the city. Most fundamentally, it is designed to wring money out of those New Yorkers who are hard-core wagerers. At the same time, it will all but guarantee that the huge track property will never be put to fruitful use for purposes such as housing and productive commerce.
No matter. Chasing a pot of gold, three governors and the Legislature have targeted the track as the site for slot machines. They have managed to blow three rounds of bidding by gambling interests, and they are now in a fourth attempt to award a franchise.
True to form, Paterson and legislative leaders are making an odiferous mess of it. Everything is secret. No one knows what the various developers are proposing, on what basis the pros and cons are being weighed or, for that matter, when Paterson, Senate President Malcolm Smith and Assembly Speaker Sheldon Silver will reach their final joint decision.
Still crazier, the rules of the game keep changing. All of a sudden, after months of deliberations, Paterson has demanded that contenders agree to pay the state at least $200 million as an up-front fee within 30 days of signing a deal. He’s reaching for the money to help plug a $3 billion hole in the state budget.
Under these circumstances, it’s no wonder that one of the big players, casino mogul Steve Wynn, abruptly pulled out of the running. Wynn had promised to invest big bucks in transforming the track into a glitzy destination. But after months of dealing with Albany’s dysfunctional ways, he knew a bad bet when he saw one.
