Man Hit By Car on Crossbay Blvd and Liberty Avenue - April 29th...

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I took the above photos on Friday evening, April 29^th at about 6:15 pm, as I was going to the Ridgewood Democratic Club for the monthly meeting.

I observed a man who was hit by a black sedan lying on the ground at the intersection of Crossbay Blvd and Liberty Avenue in front of the former OTB.

The EMTs from Jamaica Hospital and cops from the 106 Pct showed up while I was still there. The driver remained at the scene.

Witnesses told me that the driver of the car was impatient and jumped the red light striking the man as he entered the crosswalk and dragged him a about 10 feet before coming to a complete stop. The driver of the car was a middle-aged black woman, she was accompanied by a male passenger.

The pedestrian seemed to be injured and in shock. He remained on the ground until the EMT's arrived and placed him on a back board and a neck brace. I heard him complaining of back and neck injuries while he was on the ground.

DC #37 Lobby Day with Senator Shirley Huntley

On May 3, 2011 Senator Huntley met with many members of District Council 37 (DC 37) in her Albany office and at the convention center. Senator Huntley has supported the hardworking efforts of DC 37 and the millions of middle to working class people who are a part of the group. DC 37 spoke with Senator Huntley about legislation and other pending bills that would be very controversial or have their football spirit.

Some of the issues DC 37 supports include a wide range of topics. Renewal of Rent regulation was very important to members due the fact that there is a housing crunch in New York City for affordable housing. They also support restarting New York City Off-Tracking Betting to bring more jobs and revenue to the communities they live in. Most of the DC 37 members supported extended the Personal Income Tax surcharge. They felt everyone had to pay their fair share, but the wealthiest New Yorkers were not doing so and wanted them to be charged more.

The bills DC 37 did oppose included the Last In, First Out and New York City Property Tax Cap.

Genting Wants More Than 4,500 VLTs by James M. Odato - Capitol Confidential

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It has yet to open its Aqueduct race track racino, but Genting officials this morning already started talking about currently illegal expansion to allow for Las Vegas-like casino games.

Michael Speller, president of Genting’s proposed racino in Queens — named Resorts World New York — told a Senate racing and wagering hearing that he foresees no obstacles to opening the new facility by midsummer. But he told the Senate panel that it would be swell for Aqueduct, the state and the other racinos statewide to offer table games.

He said the competition in New Jersey, Pennsylvania and Connecticut can all offer such casino games, and it would be wise for New York to do the same to keep revenues in the Empire State, Speller said. Genting entered into a contract with the state to become a Division of the Lottery franchise offering up to 4,500 video lottery terminals at Aqueduct.

“I agree with you,” said Senate Committee on Racing, Wagering and Gaming Chairman John Bonacic, R-Mount Hope. He said he would like a constitutional amendment to allow for such additional gambling. He also mourned the fact that past attempts to change the Constitution to accommodate for casinos all failed.

“I have visited those places you refer to, and they’re all eating our lunch,” Bonacic said.

Other participants in the hearing on the future of gambling in New York included the New York Racing Association, which suggested that Off-Track Betting corporations should be working with NYRA for operational efficiencies and that the racing and wagering model in New York must be restructured to avoid disaster. NYRA President Charles Hayward said that there should be no concern that the Saratoga meet won’t occur this year. Last year his calls for financial help from the state set off speculation that the summer racing schedule would be in jeopardy. Others spoke about their interest in having the OTBs consolidate. Bonacic said he suspects a bill calling for that will emerge.

CB 10 Talks OTB in Year-end Meeting by Stephen Geffon - Queens Chronicle

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Community Board 10 held its last meeting of the year on Dec. 2 in South Ozone Park and wrapped up business in 33 minutes, a record, according to Chairwoman Betty Braton.

Board members heard from state Sen. Joe Addabbo Jr. (D-Howard Beach) who discussed his view on the state bailing out the cash-strapped New York City Off-Track Betting Corp.

He said the days of writing a blank check to bail out any entity at this point has to be considered very cautiously. He added that although he is very concerned about 1,000 people losing their jobs at city OTBs centers if it closes, he is hopeful that something can be worked out in Albany to keep it open.

“Hopefully we can save these jobs and hopefully work out an arrangement, but I am not prepared to make Medicaid cuts and cuts to services for our seniors or youth or anyone just to bail out the OTB,” he said.

The Senate on Tuesday, however, rejected the OTB rescue plan, and its doors may shut before the end of the year.

In other business, CB 10 Budget Committee Chairman Sean McCabe reported that although community boards have been exempted from the newest citywide budget cuts, they were recently informed that they would not receive the additional $8,000 each that was promised to them by Mayor Bloomberg in November.

Braton said that the board had received a notice of application for a liquor license filed with the state Liquor Authority by the Ballroom Company, Inc. seeking to open a billiards parlor at 98-07 Liberty Ave. in Ozone Park, site of the former Chemistry Lounge, which was closed for allegedly violating state liquor laws. It was also the site of alleged numerous violent altercations.

District Manager Karyn Petersen reported that Con Edison residential electric customers in one-to-four family homes are eligible for cash incentives for recycling their old, energy-wasting, “second” refrigerator. The utility will remove regular-sized, extra refrigerators, which are often kept in garages and basements, at no charge.

The utility will also collect and recycle old, inefficient window or wall air conditioners. Con Edison customers will receive $30 for second refrigerators, $35 for window air conditioners and $100 for wall air conditioning units. Appliances must be in working condition in order to be picked-up and recycled. For more information, call 1 (800) 430-9505.

Braton informed the audience that Genting New York, which will be operating a casino at Aqueduct Race Track, now has a website for job opportunities and other information, www.rwnewyork.com. 

Lack of OTB Action Brings Bigger Crowd to Aqueduct by David Grening - ESPN

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There was something seen Saturday at Aqueduct that is rarely seen this time of year.

Lines. Lines at the mutuel windows. Lines at the food concessions. Though perhaps not enjoyable for those who had to stand and wait in those lines, the sight of people at the racetrack was encouraging to New York Racing Association officials who are trying to cope with the potential significant loss of business due to the closure of New York City Off-Track Betting Corp. on Wednesday.

A crowd of 5,444 attended the races at Aqueduct on Saturday, a 61-percent increase over last year's attendance of 3,378 for the corresponding Saturday. The ontrack handle of $1,065,015 was up 21 percent from the $882,760 wagered ontrack last year. All-sources handle was $8,798,355, down 7 percent from last year's $9,491,999 last year.

Intrastate handle was down $1,122,938 from last year with $1,044,255 of that having been handled at NYC OTB, according to NYRA statistics. Interstate handle was $6.4 million, a 4-percent increase from last year.

"I thought today exceeded my expectations a little bit," said Charles Hayward, NYRA president and CEO. "It was nice to see the place packed."

A total of 164 patrons took advantage of NYRA's free bus service from select OTB locations in Brooklyn, Queens, Manhattan, and Staten Island to Aqueduct. That service will be expanded beginning Wednesday - see nyra.com for details - but is not offered for dark-day simulcasting. Also, NYRA signed up an additional 105 NYRA Rewards Accounts on Saturday with "hundreds" more inquiries.

Due to Saturday's large crowd, NYRA was expected to open two additional concession stands at Aqueduct on Sunday. Also, Sunday, NYRA was to begin its experiment with opening Belmont Park's first floor, the Belmont Café, as a simulcast facility. On Monday and Tuesday, both Belmont and Aqueduct will be open for dark-day simulcasting.

Hayward said that he feels NYRA has made progress with New York City officials in its attempt to restore the signal to Channel 71, the channel formerly utilized by NYC OTB in the five boroughs.

"We're hopeful to get it back on Wednesday," Hayward said.

As far as the video-streaming of NYRA's races on-line, that is something that is still being discussed.

Hayward said he sent a letter to the New York State Racing and Wagering Board proposing a 120-day pilot program, during which any regulated in-state advanced deposit wagering entity could video stream NYRA's races.

"We're hoping to resolve that one way or another next week," Hayward said.

OTB Restructuring Fails Senate, Corp. Set To Close Tonight by Matthew Hampton - Forest Hills, NY Patch

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Closed OTB on Crossbay Blvd/Liberty Avenue in Ozone Park. Photo: Lost in the Ozone 

The restructuring bill that would have saved New York City's Off-Track Betting Parlors in the city was voted down in the senate Tuesday afternoon, possibly sealing the fate of up to 1,000 workers in New York City.

The rescue, which required 32 votes for passage, received 29 out of 50 votes in the senate on Tuesday afternoon.

The vote broke down almost perfectly along party lines, with State Sen. Frank Padavan, R-Bellerose, and Roy McDonald, R-Saratoga, the only Republicans who voted for the plan.

In and around Forest Hills, every local senator voted in favor of the restructuring.

State Sen. Toby-Ann Stavisky, D-Whitestone, voted yes on the restructuring plan, which was put together by Gov. David Paterson and passed the assembly earlier this year. State Sen. Joe Addabbo,D- Ozone Park, who spent much of his first term working to put together the Aqueduct revitalization, also voted yes on the restructuring. State Sen. Shirley Huntley, D-Jamaica, voted yes.

Stavisky said she was extremely disappointed in the vote because of the jobs which are likely to be immediately eliminated in the city.

"I was hoping to save the 800 jobs, quite frankly. This is not the time of the year when you tell 800 people goodbye," she said. "But it just continues the Republican pattern of voting 'no' on anything."

Stavisky added that in a state where horseracing used to be king, the repurcussions of the loss of off-track betting in New York City would be widely felt.

"This is going to have a statewide impact. Horsebreeders, farms, this affects way beyond the five boroughs," she said.

There were 10 senators who did not attend the vote, including several from New York City.

New York City Councilman David Greenfield, of Brooklyn, took to Twitter to register his frustration.

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Notice on Door of OTB at Ozone Park branch. Photo by - Lost in the Ozone 

New York State Senate rejects OTB bailout by three votes. It might have passed, but 10 Senators didn't even show up," Greenfield wrote.

Many in the chamber voiced their displeasure with the fact that there was no way to work with the state Assembly on a compromise bill, since the Senate went into extraordinary session alone.

A statement on NYC OTB's website stated that the corporation would begin closing processes effective immediately.

"Due to a lack of unrestricted funds to continue in business, NYC OTB will be ceasing all pari-mutuel wagering operations today, Tuesday, December 7, 2010 as per our Board of Directors vote, and will proceed to the orderly winding down of its business affairs," the statement read.

Three sites, including the OTB parlor in Forest Hills, will be open for six extra days, starting Dec. 8, to allow customers to cash out accounts.

Future of OTB in City is Cloudy at Best by Bryan Yurcan - Queens Chronicle

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If a person could place a wager on whether New York City Off-Track Betting Corp. will exist next year, he might get even odds.


The future of the embattled, cash-strapped organization is very much in doubt as the state Senate left a special session Albany this week without voting on a bill that would have extended a lifeline to the quasi-government agency.

Gov. Paterson has said the agency could shutter its doors this month if the Legislature didn’t pass the bill, which includes concessions from the agency, its unions and creditors.

The governor’s proposal calls for cuts in statutory payments to state racetracks, which have long been cited as a main reason for OTB’s money-losing ways.

The proposal would also expand free-play programs at racinos and gives OTB the authority to negotiate out-of-state simulcasting deals on behalf of all New York tracks.
And it would also permit a track consortium called the New York Racing Network to take over control of OTB if it fails to have a balanced budget.

However, state Sen. Joe Addabbo (D-Howard Beach) said the proposal had not been completely finalized when the Senate was ready to vote on it Monday.

“We went up there with the intention of handling this matter, but major chunks of the legislation were still being negotiated,” he said.

Addabbo, who chairs the Senate’s Racing, Gaming and Wagering committee, said he is concerned about the hundreds of jobs that will be lost if OTB indeed shuts its doors.

But, he said, that doesn’t mean the state is in a position to write the agency a blank check.

“We would like to see them come up with a plan that shows they can better manage their money,” Addabbo said.

Addabbo said he expects the Senate to vote on the measure before the year is out.
Paterson has said that if OTB closes, the state will be on the hook for more than $500 million in retiree health care and pension costs, and that around 500 employees would be laid off.

OTB was $228 million in debt when it filed for bankruptcy last year.

In June, the state Senate passed a bill that if signed into law would create a new Franchise Oversight Board, which would oversee OTB’s policies, capital and operating plans, simulcasting and budget. The oversight board would have the authority to approve or disapprove many of OTB’s functions.

The agency was created in 1970 and operates 70 betting parlors across the five boroughs.

New Oversight Board Proposed for OTB by Bryan Yurcan - Queens Chronicle

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Cash-strapped New York City Off Track Betting Corp. may have to answer to a newly created government agency designed to oversee its spending.

Last week, the state Senate passed a bill in committee that would create a new Franchise Oversight Board, which would oversee OTB’s policies, capital and operating plans, simulcasting and budget. OTB operates nearly 70 betting parlors across the five boroughs.

State Sen. Joseph Addabbo Jr. (D-Howard Beach), a member of the Senate Racing, Gaming and Wagering Committee, said the oversight board would have the authority to approve or disapprove many of OTB’s functions.

“This legislation amends the racing, pari-mutuel and breeding law to provide that NYC OTB shall transfer all wagering accounts to the new oversight board,” Addabbo said. “In addition, this proposal would prohibit the appointment of any former or current OTB member to the oversight board.”

NYC OTB was created in 1970 by the state as a quasi-government agency. It is run like a private enterprise, but is legally required to turn over a portion of its earnings to the state, as well as horse racing tracks, which have long complained that OTB cuts into their revenue.

While OTB flourished in the city in the 1970’s and 80’s, its popularity has waned in recent years.

In December, the agency filed for Chapter 9 bankruptcy protection, and said it was on pace to run out of money by March.

OTB later asked the state for $300 million in tax-free municipal bonds to finance its turnaround, a request that was denied.

In April, OTB laid off 35 non-union employees in an effort to cut costs. The agency said the layoffs help cut about $2 million.

Addabbo said that the days of “writing them a blank check financially” to continue operating are over.

“I think they’ll be treated similar to the MTA, we’ll try to help them to an extent, but we also want to see how they’re operating financially,” he said, adding that OTB has operated with little oversight in the past.

“We don’t want to be wasting money,” he said. “With this oversight board, the state can look at how they are operating and make recommendations if necessary on how they can operate more efficiently. And we can say that if they don’t comply, then future financial assistance may be in jeopardy.”

A spokesman for OTB said the agency would not be able to comment on the legislation at this time.

Under the provisions of the bill, a public bidding process would be undertaken to award the ability to conduct and manage account wagering to a third party.

Any fee derived from such management would be dedicated to pay off any outstanding obligations or liabilities on the part of OTB.

OTB would also be required to retain a unionized workforce pursuant to collective bargaining agreements.

Addabbo said the oversight board could be created and appointed by the end of this year, once the bill passes both the Senate and Assembly, and that the new agency would add a “much-needed” oversight to the OTB and increase revenues to the state.

“This is a win-win situation for both taxpayers and the racing industry in New York state.”

State Approves Loan of $25M for NYRA by Stephen Geffon - Queens Chronicle

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State legislators approved a $25 million loan to the New York Racing Association Monday night, averting NYRA’s threat to close Aqueduct, Belmont and Saratoga race tracks on June 9 and lay off 1,400 employees.

“Enactment [of this legislation] will provide a bridge until VLT revenues are in place to fund NYRA’s operating and capital expenses,” a memorandum accompanying the NYRA loan bill states. “Absent enactment of this bill, NYRA will not have enough cash to continue the racing season at Belmont beyond the Belmont Stakes and the Saratoga racing season will be canceled.”

Under the terms of the deal, NYRA must repay the loan by March 31, ensuring it is counted within the state’s 2010 fiscal year.

If NYRA does not pay back the loan by the end of next March the state will take the proceeds from the future casino operator — from money to be paid to the association as part of the revenue sharing deal — until the $25 million is repaid.

“When we’re out of money, we stop,” NYRA President and CEO Charles Hayward told reporters at a press conference last week in Saratoga Springs. He said that the association needs $20 million to keep operating the tracks.

Hayward had been warning state officials since last December that NYRA would run out of money this summer.

NYRA officials have also claimed that the bankrupt New York City Off-Track Betting Corp. owes them $17 million. Adding to the association’s cash flow problem is the state’s failure to pick a casino developer for Aqueduct.

NYRA is slated to get a negotiated percentage of the revenue from the video lottery terminals at Aqueduct once they become operational. The state issued yet another request for proposals a few weeks ago and Gov. David Paterson has said a racino developer is expected to be chosen in August.

“The future of Aqueduct’s existence depends on NYRA’s viability,” said state Sen. Joe Addabbo Jr. (D-Howard Beach). “For the sake of my constituents, I intend to work with NYRA and continue to push for progress on the Aqueduct bidding process.”

NYRA is already facing scrutiny by elected officials concerned about its financial and operating efficiency.

Last December, state Comptroller Tom DiNapoli subpoenaed NYRA’s records to examine the millions of dollars in state payments made to the association over the past couple of years and monies owed to the state by NYRA.

The state Senate Racing, Gaming and Wagering Committee and the Committee on Investigation and Government Operations are also looking at the group’s records.

And NYRA’s problems don’t end there. The state Department of Environmental Conservation has alleged that the association violated its discharge permit by allowing horse manure, wastewater and other pollutants to run into Jamaica Bay.

NYRA has been cited with a total of 14 violations by the DEC — three at Aqueduct, nine at Belmont Park and two at Saratoga, according to a Dec. 21 notice sent to the association.

NYRA officials have said the group lacks the funds to fix and improve the facilities.

The association could be fined $37,500 daily for the pollution violations.

NYRA May Face More Troubled Times Ahead by Stephen Geffon - Queens Chronicle

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As if the New York Racing Association didn’t have enough problems, now the group is facing fines of up to $37,500 a day for pollution violations, according to officials. The most egregious citation is for the dumping of horse manure, wastewater and other pollutants into Jamaica Bay.

NYRA has been cited with a total of 14 violations by the State Department of Environmental Conservation — nine violations at Belmont Park, three at Aqueduct Race Track and two more at Saratoga Race Course upstate, according to a Dec. 21 notice sent to the association. DEC spokeswoman Lori Severino said the notice was for illegal discharges and not complying with the deadlines in their existing consent orders. It further stated that in order to resolve the matter, NYRA officials must attend a compliance conference.

According to DEC spokesperson Yancey Roy, the agency had preliminary discussions with officials at NYRA and its legal office is attempting to get the association to enter a consent agreement to settle the infractions.

NYRA declined to comment.

“I applaud the DEC for their diligence in protecting our natural resources,” said Assemblywoman Audrey Pheffer (D-Ozone Park). “NYRA must comply with all state laws, as must every other business in New York State, and we will not allow them to continue with these heinous actions.”

NYRA already faces scrutiny by elected officials concerned about its financial and operating efficiency after the association announced that it may run out of funds by next summer.

In December, NYRA President and Chief Executive Officer Charles Hayward said the group may run out of money in June if the state doesn’t pick a bidder to construct and operate the Aqueduct video lottery terminals soon. NYRA is slated to get a negotiated percentage of the revenue from the 30-year Aqueduct VLT contract, Hayward said.

Another factor cited by Hayward for NYRA’s running out of cash was a 10 percent decline in wagering at Aqueduct this year. In addition, the bankrupt New York City Off Track Betting Corp. owes NYRA $18.7 million.

State Comptroller Tom DiNapoli subpoenaed records from NYRA last month after it denied his office access to them.

“Less than six months ago, NYRA said it was financially stable,” DiNapoli said in a statement. “Now NYRA says without VLT money it may not be able to stay in operation until the Belmont Stakes. NYRA operates for the benefit of New York. Taxpayers have a right to know what’s going on, and we’re going to audit NYRA and find out.”

DiNapoli’s audit, which NYRA agreed to last week, will examine the millions of dollars in state payments made to the association over the past couple of years and monies owed to the state by NYRA.

“We are complying,” said NYRA spokesman Dan Silver. “Aside from that we have no further comment.”

The state Senate Racing, Gaming and Wagering Committee and the Committee on Investigations and Government Operations also want to have a look at NYRA’s records. Last week the committees’ chairmen sent a joint letter to NYRA requesting all its financial records, including cash statements, liabilities, debts and tax returns.

The letter stated that although the chairmen were encouraged by NYRA’s decision to share much of its financial information with and open its books to the comptroller, “much more disclosure is required to shed light on the ways in which tax dollars have been spent and to explain the causes of NYRA’s possible exhaustion of its funds.”

The letter also invited NYRA officials to testify at an upcoming joint committee public hearing on Feb. 3.

Silver said NYRA officials have received the letter and are reviewing it.

Albany and Mayor at Odds Over Future of Off-Track Betting by Sewell Chan - City Room - Metro - New York Times Blog

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Gov. David A. Paterson and the leaders of the Legislature announced on Friday a deal under which New York State would take over the financially unprofitable Off-Track Betting operation from New York City, the biggest change in the governance of the state-regulated gambling entity since its creation of 1970. But Mayor Michael R. Bloomberg — who had moved to shut down the operation, saying that it was not profitable and that it was not in the city’s interests to continue running it — said the deal was unfair to the city and immediately vowed to move forward with a plan to close all 71 O.T.B. outposts this weekend. The political dispute meant that the agency’s future remained uncertain.

Mr. Paterson said the state takeover would preserve “1,500 jobs and the health of racing in New York State.” The Off-Track Betting Corporation, which was created by the State Legislature in 1970, would be replaced by a new entity, the Empire State Off-Track Betting Corporation. In addition, Governor Paterson said he would nominate State Senator John D. Sabini, a Queens Democrat, to the state’s Racing and Wagering Board and name him chairman of that board.

Mr. Paterson — who has the support of Joseph L. Bruno, the leader of the Republican majority in the State Senate, and of Sheldon Silver, the speaker of the Democratic-controlled State Assembly — said the state would “immediately begin to pursue initiatives to substantially improve the profitability of O.T.B.,” including eliminating redundancies, moving the agency’s headquarters from Times Square to the Aqueduct Racetrack, and exploring public-private partnerships.

The announcement by Albany leaders quickly led to a back-and-forth, reflecting vigorous disagreement over the financial implications of a change in the status of Off-Track Betting.

Mr. Bloomberg’s office issued a statement raising concerns and expressing disappointment about the deal:

The City of New York still has substantial legal and economic issues that need to be settled before the future of off-track betting in the five boroughs is resolved - and it is very disappointing that these concerns have not been addressed. Without a settlement of these outstanding issues, we will have no choice but to go forward with our plan to close the city’s O.T.B. parlors on Sunday. We hold out hope that a satisfactory solution can be reached. But I want to reiterate the City’s position: We will fight to prevent gambling operations in the City unless they provide a public benefit to the City. Every other locality that has O.T.B.’s receives a benefit from them — and our legislative representatives in Albany should ensure we do as well.

Mr. Paterson’s communications director, Risa B. Heller, issued a retort in response to the mayor’s statement:

Earlier today the governor and legislative leaders announced an agreement by which the State will assume both the assets and liabilities of the New York City Off-Track Betting. This agreement was reached in response to the City’s request for state intervention.

The agreement ensures that the 1,500 employees of the New York City O.T.B. will keep their jobs and that the New York racing industry will continue to receive the critical financial support it gets from the New York City O.T.B. It is distressing to hear of the City’s objection to an agreement that will meet the Mayor’s long-stated demand for a permanent fix that would ensure that the City not have to subsidize New York City O.T.B.

Host municipalities who run O.T.B. receive a surcharge for winning bets placed at their O.T.B.’s or at tracks located in their county. The City insists that it should keep the surcharge benefit even when they are no longer running O.T.B. and the state has taken responsibility for all liabilities. It makes no sense for the state to take over responsibility for the operations of New York City O.T.B. and the $201 million of outstanding liabilities on O.T.B.’s books, while allowing the City to continue to collect the roughly $18 million it currently receives from New York City O.T.B.

District Council 37, the city’s largest union of municipal workers, had agitated against the closing of the corporation, and embraced the news of the deal in Albany.

Lillian Roberts, the union’s executive director, said in a statement released by Mr. Paterson’s office: “The winners in all of this are the 1,500 OTB employees who can sleep soundly tonight knowing that they are no longer at risk of losing their jobs and New Yorkers who will continue to benefit from the $1.1 billion generated by the New York City OTB. All of us at DC 37 are appreciative of the work that went into putting together this agreement.”

Under the deal supported by Mr. Paterson, Mr. Sabini, as chairman of the Racing and Wagering Board, would receive a salary of $120,800 per year for a six-year term. The appointment is politically convenient. Mr. Sabini had recently been denied the support of party leaders for re-election this November; instead, Queens party leaders threw their support to City Councilman Hiram Monserrate, another Democrat, to fill the seat.

New York State Betting on OTB by Daniel Massey - Crain's New York Business

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The state reached a deal to take over the city’s Off-Track Betting Corp. on Friday, just two days before Mayor Michael Bloomberg planned to shutter the operation that employs 1,500 workers across the five boroughs.

“There is a deal,” said Gov. David Paterson at a news conference at his office in New York City. “People should come back to work on Sunday or Monday.”

Details of the agreement are still being worked out, but the governor said the state will pass legislation Monday that will create a public benefit corporation to run the OTB operation. The transfer to the state will be completed within 90 days.

The deal saves 1,500 jobs at the 61 OTB betting parlors across the city.

“If OTB would have closed, everybody would have lost,” said Lillian Roberts, executive director of District Council 37.

The city was on track to begin running the financially troubled OTB branches at a loss this month, and the mayor threatened to shut them down if an agreement with the state could not be reached.

“We're not going to subsidize it,” the mayor said in his weekly radio address Friday morning. “I have to make a choice: People who work in a bookie operation, or cops who walk our streets? People who work in a bookie operation, or teachers who teach in our classrooms? We're not going to lay off cops and firefighters and teachers to support this.”

The state will immediately begin an overhaul of OTB to improve its profitability by eliminating duplicate functions between the city’s OTB, the New York Racing Association and the five other OTB branches around the state. The headquarters of OTB will be moved from Times Square to Aqueduct Racetrack in Ozone Park, Queens, saving $5 million a year in rent.

The governor also announced the nomination of State Sen. John Sabini, D-Queens, as chairman of the New York State Racing and Wagering Board. Upon confirmation, Mr. Sabini, who had been running for re-election, will step down from his Senate seat. The development virtually assures City Councilman Hiram Monserrate, D-Queens, will win the seat this fall.

Sabini And OTB - A Two-For-One Deal (Updated) by Elizabeth Benjamin - The Daily Politics - NY Daily News

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The imminent appointment of Sen. John Sabini as a senior advisor on racing to Gov. David Paterson, ending his likely bloody re-match against Councilman Hiram Monserrate in 13th SD, is part of a package deal that includes a state takeover of the city OTB operation, according to sources familiar with the deal.

The OTB agreement is all-but done, and could be announced as early as this afternoon.

Despite the fact that an administration job was one of several potential exit strategies were offered Sabini when it became clear the Queens County Democratic organization, followed by numerous labor unions, would abandon him in favor of Monserrate, this agreement didn't come together until just yesterday.

Another option Sabini rejected was a run for City Council in 2009.

The deal is a win-win all around.

Sabini, who is the ranking Democratic member on the Senate Racing and Wagering Committee, doesn't have to suffer through a primary he stood a good chance of losing.

Senate Minority Leader Malcolm Smith, who had pledged to support Sabini, doesn't have to spend cash he needs for competitive GOP-on-Democrat races to protect an incumbent.

Gov. David Paterson, whose peace with Senate Majority Leader Joseph Bruno and disinterest in helping Senate Democrats raise money for a takeover had caused some consternation among minority members, earns some points for helping avoid a primary.

Queens Democratic Party Executive Secretary Mike Reich insisted his organization didn't have a hand in this deal, but he's nonetheless happy it's going down.

"I think it's great that John has a landing place," Reich said. "I think it's a significant position for him and opportunity for him to advance his career, and we congratulate the state for making this decision."

"..In the end this is probably working out the best for everybody, for John, for the community for the Queens County Democrats and for the state."

UPDATE: Paterson's office just announced a 3 p.m. press conference at his Manhattan office.