By Dan Israeli
The agreement did not include video lottery terminals at Belmont, much to the chagrin of local legislators who pushed hard for the inclusion of the machines, which will be installed at Aqueduct over the next couple of years.
The 25-year franchise agreement - which took two extended deadlines to complete - was OK'd by NYRA and the trio of Gov. Eliot Spitzer, Senate Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver. Under the terms of the deal, NYRA will relinquish its ownership rights to the tracks and facilities, and the state will provide $105 million in financial support to help NYRA out of bankruptcy. NYRA will seek bankruptcy court approval from the state, confirming its Chapter 11 plan on March 5.
Spitzer applauded the deal, saying that an agreement was reached "that represents the best vision for the future of the horse racing industry, and will ensure that operations at the tracks will continue uninterrupted and have the financial resources they need to thrive in the future."
NYRA Chairman C. Steven Duncker said, "This legislation contains the key components for [NYRA] to emerge from bankruptcy and to improve upon what is already the best racing in the world."
Not sounding so victorious were state representatives from Nassau County, 40 out of 41 of whom voted against the new agreement because they felt it did little for Belmont Park and its surrounding communities, Elmont and Floral Park. Assemblyman Tom Alfano (R-Franklin Square) was vocal in his stance that video lottery terminals for Belmont should be included in the deal. Instead, Spitzer, Bruno and Silver ultimately decided to reserve the machines just for Aqueduct.
"I don't think NYRA cares about Elmont at all," Alfano said. "It was a failed franchise, and this new bill should have been structured a lot better. Even Aqueduct was spelled wrong." Alfano voiced his displeasure on the Assembly floor Feb. 13, saying that Belmont was not considered at all during the negotiations. "This bill was negotiated by three men in a room," he said, "and got 40 no votes in Nassau."
State Sen. Dean Skelos (R-Rockville Centre) has also lobbied aggressively for VLTs at Belmont, but was even more upset that no "host community" aid was planned for Elmont. "There is nothing positive to report," said Skelos spokesman Tom Dunham. "There's no VLTs. There's no host community aid. There's no community advisory board. There isn't even a requirement for NYRA to better maintain the facilities of Belmont Park."
Nassau legislators supported a community advisory board that would allow the public to have input in the economic development of Belmont and the surrounding area, according to Assemblyman Bob Barra (R-Lynbrook). "The Belmont community wanted to be part of what every other community with a race track across the state has experienced," Barra said. "Instead, Belmont Park and its surrounding community in Nassau County are being treated like second-class citizens."
While the agreement did not include any call for oversight of the racetracks' grounds, it did include the creation of a new Franchise Oversight Board, which will evaluate NYRA's operations to assess whether it has met certain financial and performance benchmarks. The agreement also stipulated that the racing association board be reconstituted to 25 members, with 14 appointed by the existing NYRA Board of Directors, seven by the governor, and two each by the Senate and Assembly.
The makeup of the board was a "sticking point" in negotiations, according to NYRA spokesman John Lee, who said that an amicable compromise was reached. As for whether or not the agreement neglected Belmont, Lee said that NYRA recognized a need for improved community relations in Elmont and Floral Park. "We hope we can turn a new leaf with our neighbors, a fresh start," Lee said. "We hope this spring that people in the community will come to Belmont, because we are going to make it a great destination."
As for VLTs, Lee said that South Ozone Park, where Aqueduct is located, is not receiving any more revenue from VLTs than any other community, and that the money earned from the machines will be used to improve all three tracks. "If [VLTs] come to Belmont in the near future, we'll be fine with that, too," Lee said. "We'll provide a location for them if that's what the state and community really want."
According to Dunham, the lack of VLTs at Belmont will have a direct effect on the surrounding communities, since lottery revenues are used to fund education. While VLTs at Aqueduct are expected to generate more than $300 million annually for state education, $30 million will be earmarked for Ozone Park schools because it is a host community. "Aqueduct is an extremely troubled track financially," said Dunham. "[Silver] is willing to put VLTs in Aqueduct to bolster that park at Elmont's expense. Elmont deserves to be treated the same, because it bears the same burden. It's not the people in the community's fault that they aren't getting the aid."
Alfano said he would continue to lobby for VLTs during budget negotiations in March, and that he would also push for the creation of a community advisory board. "We need community involvement," he said. "We are not going to wait another 25 years for change. We are going to hold [NYRA's] feet to the fire from day one, and they are going to become good neighbors or we will take them to task."
Barra agreed that whatever goes for Aqueduct should also go for Belmont. "According to the Assembly leadership, one major reason why Belmont Park got shortchanged is that they do not want Belmont competing with Aqueduct for VLT revenue, since they believe the parks are too close geographically," Barra said. "This reasoning seems rather faulty when you consider that the Mets compete with the Yankees, the Islanders with the Rangers, the Giants with the Jets, yet no team is at a loss for fans."
Comments about this story? Disraeli@liherald.com or (516) 569-4000 ext. 214.
