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The surrounding communities of Belmont Park will receive $5 million in host community aid, through an appropriation included in the 2008-09 state budget.
The funds will be used to improve schools, public safety and infrastructure, and promote economic development.
The provision marks the first time in the state that a racetrack without video lottery terminals will receive host community aid, which will be made available to the surrounding communities through grants, as soon as the state's New York Racing Association (NYRA) franchise oversight board approves $50 million in real estate development projects at Belmont. The oversight board, comprised of NYRA and state appointees, will also decide how the $5 million aid is divvied up between the communities - Elmont, Floral Park, Bellerose Terrace, Bellerose Village and South Floral Park - as well as the Nassau County Police Department's Fifth Precinct.
State Sen. Dean Skelos (R-Rockville Centre) first introduced the amendment in a Senate budget resolution last month, which at the time, included the installation of VLTs at Belmont and the creation of a community advisory board. An identical amendment proposed by Assemblyman Tom Alfano (R-Franklin Square) failed to make it in the Assembly budget resolution. Skelos and Alfano originally sought $5 million in host community aid this year and $20 million every year afterward, to be funded by VLT revenue. While both legislators said they will continue to fight for VLTs at Belmont, and more host community aid, they were pleased with what was achieved in this year's budget.
"This money will help reduce taxes, improve our schools and promote economic development and community revitalization," Skelos said. "This was a long, tough process to ensure that the Belmont Park communities were treated fairly. I'm grateful that the community stood by us during this fight and this victory clearly demonstrates that the fight was worth it."
Alfano said it was a landmark legislation, which developed in the final hours of the budget's adoption. "It was a battle royale," he said. "It was quite difficult...there was resistance. In Albany, you're only as good as your ability to fight, and compromise when necessary. It was a collaborative effort and we were able to succeed."
The legislative effort to advocate for Belmont was heightened this February, when NYRA signed a new 25-year franchise agreement with the state, negotiated at the time by former Gov. Eliot Spitzer, Senate Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver. Under the terms of that deal, NYRA relinquished its ownership rights to the tracks and facilities of Belmont, Aqueduct Racetrack and Saratoga Race Course. The Franchise Oversight Board was also created, which pursuant to the agreement, has the power to terminate NYRA's franchise if it fails to meet certain financial and performance benchmarks.
The agreement did not include VLTs at Belmont, already in use at Saratoga, and soon to be installed at Aqueduct. The contract also provided community advisory boards for both Saratoga and Aqueduct, but not Belmont.
Since Belmont is not yet receiving VLTs and the revenue other parks use to aid surrounding communities, the $50 million in real estate projects requirement was added to the budget provision as alternative mechanism of incentive. The $50 million, which can come in one or multiple developments, will need to be unanimously approved by the oversight board as well as a local zoning and planning regulator, most likely the Town of Hempstead Board of Appeals.
The real estate projects, which can range from a restaurant to a hotel, must be developed on the footprint of Belmont Park, according to Tom Dunham, spokesman for Skelos. "There are a number of things we need to do, to monitor efforts and encourage development," he said. "The [franchise oversight] board has the responsibility to push for things to happen. The local chamber of commerce and Elmont Coalition for Sustainable Development can work with the local and broader business community to encourage private development. It's a team effort."
Sandra Smith, co-chair of the Elmont Coalition for Sustainable Development, said she was excited that money will finally be provided for Belmont's surrounding communities. "I look at it as a foot through the door," she said. "We ended up with nothing during the resigning of the contract. We still have a long road ahead of us. Economic development and reducing the tax burden is what we're really looking for."
Skelos and Alfano said that they expect it will take a at least year for $50 million in development projects to be approved. State Sen. Craig M. Johnson (D-Port Washington), who currently has a bill out to recreate a Belmont community advisory board, said it will take a collaborative development strategy to lure in real estate. "There will need to be a bidding process to attract economically feasible businesses," said Johnson, noting the role the Empire State Development Corporation will play in the process. "They are an integral part, a catalyst, in getting things done."
Johnson added that he will also be observing the oversight board - made up of appointees by the governor, Senate, Assembly and NYRA - to see if Belmont's best interests are really being examined. "I am extremely concerned of the role of the oversight board, and will have to see who makes it up," he said. "It's something that will have to be looked at closely."
While $5 million split by five communities is low in comparison to the aid received by Ozone Park, which hosts Aqueduct, and Saratoga, Alfano is confident that the appropriation will set the stage for economic development. "This heightens anticipation that the day will come when VLTs are in Belmont," he said. "We put Belmont on the mind of the state government's leadership, and certainly the governor's."
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