By Dan Israeli
The racetrack had fallen on hard times, similar to other tracks in the state, due to declining numbers in fan attendance and the economic staleness that followed.
Now Yonkers Raceway, and its new addition, Empire City Gaming, pays more property tax to the city than any other entity in Yonkers, and is also tops in its over 1,2500 new employees. The complex welcomes roughly 90,000 patrons a week, a growing number. On top of that, Empire City's success has trickled down to Yonkers as a whole, helping make the Westchester city a destination point, from its downtown area to the waterfront.
The economic surge can best be credited to its catalyst - the inclusion of video lottery terminals (VLTs) to the track in 2006, which have raked over $300 million annually. $20 million of which was earmarked for the Yonkers public school district's 2007-08 budget as host community aid, an annual payment that will continue to help offset the city's nearly $500 million in school spending.
Belmont Park, however, has not received the necessary state approval to house the machines. Nassau legislators fought to get VLTs approved in the New York Racing Association's (NYRA) newly signed franchise agreement in February, and then again in the state budget in April, but were unsuccessful both times. It is their belief that what happened in Yonkers a few years back can also occur in the currently stagnant Elmont community - economic revitalization.
Assemblyman Mike Spano (D-Yonkers) said that slot machines at Yonkers Raceway were first proposed over ten years ago as a way to stimulate the local area, but that the idea was dismissed by then Gov. George Pataki for being unconstitutional. When Indian reservations proposed the idea of VLTs, and were granted to set them up, Spano and others tried again to get the new gaming technology to the track. The governor's office still wouldn't budge.
"After 9/11, the bottom fell out of the budget," said Spano. "It was only then, when the state deficit got so high, that the governor office looked at VLTs more seriously." As a result, a new state law was passed allowing for the establishment of racinos, which combined horse racing and video lottery gaming. Similar racinos were developed at Saratoga Race Course and Monticello Gaming and Raceway, and next year, Aqueduct Racetrack.
Spano acknowledged the benefits of a racino at Yonkers Raceway, and what a few thousand video machines have done for the whole city. "It's been an all-around success for Yonkers," he said. "It's the single biggest thing to happen to the city in the past 20 years." Aside from the hundreds of local jobs created, Spano noted that the community involvement included several public meetings leading up to the installation of the machines, to gain input from the public on bringing the division of lottery into their racetrack.
The city's school district has benefited to the tune of $20 million in annual funding, to help offset a budget that totaled $485 million this year. Since the district is dependent of the city, the aid is given directly to City Hall which uses the entire earmarked amount on education. "You cant underestimate what the money means to the city's public school budget," said Simpson. "They are entitled to it, and it makes a huge difference."
Unlike Belmont Park, Yonkers Raceway is not a part of NYRA, which only operates the state's three thoroughbred racetracks - Belmont, Aqueduct and Saratoga. Up at Saratoga, where the machines also exist, the local school district does not receive aid from VLT revenue. The city does receive roughly $3 million, while Saratoga County gets around $1 million, all of which goes to municipal costs like public safety and infrastructure repairs.
While Belmont Park is similar to Saratoga Race Course for being a NYRA operated track, legislators still view Yonkers Raceway as more of a model for what Belmont can become. Assemblyman Tom Alfano (R-Franklin Square) has fought for VLTs at the park, and said he will continue to do so. "We know this works," he said. "We know we can do this successfully at Belmont, and that VLTs could be the engine that Elmont needs to thrive. And this isn't a drop dead concept. You don't have to be an MIT economist to understand what the benefits are."
While Alfano and other legislators, namely state Sen. Dean Skelos (R-Rockville Centre), intend to have five surrounding communities receive aid from potential VLTs at Belmont, there is no doubt in their minds of the immediate impact the machines could have on Elmont. In Yonkers, the ascension of Empire City as a tourist destination has boosted local restaurants and hotels, something that Alfano envisions for Elmont if an economic strategy falls into place. Currently, the Elmont Coalition for Sustainable Development is looking at methods of urban renewal, and has a visioning process for economic growth. The coalition supports VLTs, and the private sector investment they think will follow.
Spano said the racino was a complete home run for Yonkers, and didn't disagree that Belmont could similarly hit one out of the park. "I would imagine that if Belmont got these advantages - minding that they take all the necessary precautions that Yonkers did, providing that they get the community involved - it could be a very positive addition to their community."
Alfano, a long proponent of what VLTs could simply do for local schools, has spoken to Spano on numerous occasions about how the machines have helped Yonkers, and how they could one day do the same for Belmont. "I'm a realist. We have a serious deficit in this state and we have to create revenue," he said. "We're not going to give up our fight, we're going to continue our efforts. It's too important."
Comments about this story? DIsraeli@liherald.com or (516) 569-4000 ext. 214.
