Casino developer MGM Grand’s unexpected move to dissolve partnership with the New York Racing Association threw into disarray plans to install, operate and manage up to 4,500 video lottery terminals at Aqueduct Racetrack, and thrust into center stage future prospects of the racecourse.MGM exits bidding
“We thought MGM was a good neighbor because we did meet with them many times,” stated Assemblywoman Audrey Pheffer, underscoring community frustration as she addressed surprised Board 10 members at the Thursday, May 3 meeting held at Knights of Columbus Hall in South Ozone Park.
The alliance between the Las Vegas-based MGM and the NYRA, which recently filed for federal bankruptcy protection, was designed to boost revenue for the franchise.
In the original plan, MGM Grand would join forces with the NYRA in the supporting role of VLT operator, while the NYRA would serve as the racetrack’s manager.
“We talked about issues that were a problem,” continued Pheffer, “and they seemed to be working with us as far as entrances, exits and everything else. All we can say is [we find] it very disappointing.”
Pheffer stressed that keeping the races at Aqueduct remains the first priority and added that MGM never provided an explanation for their change of heart, even though the gaming corporation previously purchased all of the equipment necessary to operate the VLTs.
Speculation has arisen that an alternative plan for Aqueduct would be considered, which would result in the track’s closure and development.
It was further noted by the legislator that MGM Grand reportedly announced that it would no longer pursue any other partnerships with other organizations currently vying for control of the South Ozone Park racetrack.
The NYRA—which also operates Belmont Park and Saratoga Race Course—is currently in the middle of a bidding war with several other racing consortiums for the right to operate the three thoroughbred racetracks beginning on Jan. 1, 2008.
The prospect of NYRA going it alone gave board member Donna Gilmartin a pessimistic outlook for the non-profit management group.
“Whoever takes it over, I don’t know how they’re going to run the [VLTs] ... NYRA is bankrupt and it shows. The Aqueduct’s outer area is a mess ... I know that there’s not much we can do; we have to live with them, but they have no money,” said Gilmartin, adding, “I don’t see NYRA having a chance as [Aqueduct’s] franchise.”
One positive aspect in the local community’s favor was the fact that the video lottery terminals, according to Pheffer, would indeed be going to the Aqueduct and not to Belmont.
The importance of the VLTs, she indicated, lies in the fact that gambling, not horse racing, is what truly brings in the money for most racetracks.
Board 10 Chairperson Elizabeth Braton still harbored some rancor over MGM’s last-minute withdrawal, saying that it was solely focused on “running a VLT operation,” and not building hotels.
“They were not talking about having 20 zillion other uses.”
Braton also expressed her concern over whether the community will be kept abreast of the intentions of the competing entities.
“There’s an awful lot of suggestions being bandied about—everything under the sun, and nobody’s talking to us, and we’re the people that live here.”
An alternative plan that would address the overcrowding of schools was mentioned by Pheffer and Board member John Fazio, in the eventuality of the Aqueduct being totally lost and shut down.
Pheffer deemed the scheme “a possibility” without any major zoning issues, but before discussing the program in detail she remarked, “we want to be sure that the Aqueduct is going to remain.”
Regardless of which bidding company gets selected, state legislature would still have to approve the franchise, she said.
“I can’t believe [Gov. Spitzer] will make a decision by June 1, but you don’t want to see NYRA hanging on. We want winter racing to keep the horses here.”
Sale of vacant property
Michael Polo, director of the Department of Housing, Preservation and Development’s Office of Queens/Staten Island Planning, unveiled preliminary plans of a potential sale of a 20’ x 100’ parcel of vacant city-owned property at 106-10 Van Wyck Expwy. to the adjacent property owner, New Life Missionary Baptist Church, represented at the meeting by Rev. Isaiah Crumpton.
HPD, said Polo, would normally seek to develop the property for affordable housing and instill a small owner’s program offering ownership opportunities to people in a lottery system.
The dimensions of the land, however, are reportedly too small to make it viable for home ownership.
The agency representative stated that the church intends on using the said property for parking to be utilized by members of its congregation.
In addition, it was also reported that the church might also be looking to install playground equipment on the lot for their daycare programs.
“We’re coming to you early —way before we’ve identified all the zoning issues ... to see where you sit on this,” advised Polo at the conclusion of his presentation.
He also mentioned that the plan hadn’t been “shopped” to anyone else.
The project was met with a favorable consensus from the board, although an approval vote wasn’t taken on the city divestment.
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