Aqueduct bidders raise the opening stakes

Here is an article by Lisa Fogarty, editor of the Queens Chronicle on the latest bidding process for the Aqueduct Race Track.

Now that the dust has cleared from last week’s announcement by Wynn Resorts that it is backing out of the Aqueduct Race Track bidding process, its rivals for the prize have a message for Gov. David Paterson: anything Wynn can do, we can do better.

Immediately following the Las Vegas titan’s confirmation last Wednesday that it had pulled out of the deal to develop a 4,500 video lottery terminal racino at Aqueduct — a decision revealed just days after Paterson sent a letter to all the bidders, asking them to provide proof they can pay the state $200 million upfront — the Peebles and MGM Grand team issued a statement attesting to their strength as contenders.

“We have long believed that our proposal for the redevelopment of Aqueduct Raceway will provide the greatest return to the state, best benefit the community and is the most reliable option for all-around success,” a representative from Peebles said in a statement. Peebles’ pitch, which includes an upscale full-service hotel and business conference center, promises to provide the state approximately $17 billion in revenue and $5 billion for support of the horse racing industry over the initial 30 years.

Peebles also confirmed it would give the governor what he wants and offer $200 million right away. Each bidder had until Friday to respond to Paterson’s request for a greater initial bid. SL Green Realty, the largest landlord in Manhattan, with partner Hard Rock International, confirmed Tuesday they have raised their overall bid from $275 million to $300 million.
William Bissett, president of Delaware North Companies Gaming & Entertainment, confirmed this week his company submitted a letter to the state, certifying its ability to pay an upfront license fee of $200 million within 30 days of signing a memorandum of understanding with Albany.

“We remain confident that we are the best choice for the community and the state, and look forward to a decision in the near future,” Bissett said in a statement.

Aqueduct Entertainment Group, as well, communicated to Paterson it would pay at least $200 million immediately, without conditions or caveats.

“We also reiterated our commitment to the state that AEG will be open within six months of executing an MOU,” said Larry Woolf, chief executive officer of Navegante Group and AEG’s gaming operator. “Our promise will mean real revenue, jobs and economic opportunity from a development team that has proven time and again they are capable of delivering large-scale projects on time and on budget.”

The fifth bidder, Penn National Gaming, already offered the state $200 million upfront in its initial proposal. ©Queens Chronicle 2009