ALBANY, New York, Feb 7 (Reuters) - New York lawmakers have agreed on "substantive provisions" for a pact extending the New York Racing Association's franchise for the state's three horse tracks, a top gubernatorial aide said on Thursday.
Democratic Gov. Eliot Spitzer has granted the nonprofit association, which filed for bankruptcy last year, several extensions of its franchise after clashes with the state senate and assembly blocked an accord.
Paul Francis, who runs government operations for Spitzer, did not confirm many details disclosed by Republican Senate Majority Leader Joseph Bruno, including whether a deal for video lottery terminals at Aqueduct Racetrack with Capital Play Inc or SL Green Realty Corp could be signed within 30 days after an accord was signed.
Spokesmen for the two companies and the New York Racing Association were not immediately available.
Capital Play's partners include the Mohegan Tribal Gaming Authority and Victoria Racing Club, according to its Web site: www.capitalplayny.com.
The New York Racing Association for decades has run Aqueduct, located in New York City's borough of Queens, Long Island's Belmont Park and upstate's Saratoga Race Course.
Bruno had fought hard against extending the association's franchise and on Thursday he did not say why he backed down.
Spitzer's aide, who spoke to reporters after Bruno, said: "The differences between us are language issues."
Warning that the accord still might change, Francis added: "I think on the substantive provisions we are essentially all on the same place."
Bruno said the accord calls for the state to appropriate $75 million to help the racing association exit bankruptcy and $30 million to keep it afloat during its first year.
The racing association's new franchise would run for 25 years, and include a series of three-year benchmarks, Bruno said, estimating the group had $364 million of debt.
Bruno said the new accord would require the association to agree that the state owns the tracks, an issue that has been one of the biggest battles between the state and the group.
The oversight board now monitoring the association would remain in place, Bruno said. The governor might name six or seven people to the association's new board and the senate and assembly would each name two, he said. Bruno added it was not clear how many board members the association would name.
Spitzer's latest budget includes revenues from video lottery terminals at Aqueduct. Francis said the state would borrow money to help the association exit bankruptcy, and get repaid by a private investor in video lottery terminals or revenues from the machines. He did not disclose any figures.
Francis added the accord now being negotiated does not include video lottery terminals for Belmont, which Democratic Assembly Speaker Sheldon Silver on Thursday said he still opposes.
Nor does the agreement solve the problem of New York City's Off-Track Betting Corporation, Francis said.
Mayor Michael Bloomberg has warned he will shut the corporation in June when it will run out of cash. Bloomberg says the state has siphoned off too much of its money and urged it to include the corporation in a deal for the tracks.
Francis said he was "very hopeful" that an agreement could be reached before Feb. 13, when the latest extension Spitzer granted the racing association will expire.
Silver was a bit less optimistic, telling reporters: "Until there is a deal put forward that is spelled out clearly, there won't be a deal." (Reporting by Elizabeth Flood Morrow in Albany, with additional reporting by Joan Gralla in New York; Editing by Braden Reddall)
