With Penn National and SL Green DQ'd for submitting proposals that did not conform to requirements, one can now certainly picture the scenario in which this latest round of bidding for the Big A racino ends up like all the others which have preceded it - left at the gate. That's an outcome which at one time seemed to be out of the question, with the Lottery, and not the politicians, firmly in control, and a familiar and (mostly) dependable group of bidders back for another go. It was therefore assumed without a doubt that the $250 million loan to NYRA would soon be guaranteed by the designated operator.
Of course, it's entirely possible that Genting, the lone survivor, will sail through the full evaluation that it will be subjected to, prove to be 100% licensable and financially capable, and receive the Lottery's full endorsement when it makes it recommendation to Governor Paterson on August 3. After all, everything has always worked out for the best with this thing, right?
Even if it makes it through however, the legislative leaders who have to accede to the selection may feel more emboldened to challenge this particular company (though I still think that John Sampson and Malcolm Smith just want this whole thing to go away). This Malaysian conglomerate is a company with no local roots (at one time considered to be of paramount importance), and no relations with the local community nor unions that we know of. Will Community Board 10 approve? With Aqueduct located in a key swing district in the upcoming fall elections in the bitter battle for control of the State Senate, a local thumbs-down could have wide implications. What is Genting's commitment to minority and local hiring? Any questions of that nature could cause problems in the legislature. And wouldn't Genting's financial interest in Empire Resorts present a conflict should a racino at the Concord, the owner of which would retain more than twice the percentage of revenues as would the Big A, ever be built, a mere two hours from Ozone Park (at least when there's not construction on Route 17)?
Of course, all of this may just turn out to be fine...
The non-conforming aspects of the bids submitted by SL Green and Penn National contained some alterations which make perfect business sense; and others which give me a feeling that they really didn't have their hearts in it anymore.
Once believed to be a front-runner, SL Green, for example, wanted their minimum $300 million upfront fee to be held in escrow until their conditions were met by the state. The group also wanted the right to make ownership changes without the state’s consent, a cap on any increase in local property taxes at 3%, and a complete exemption of state and local sales taxes for the construction of the racino.
Penn National, meanwhile, wanted to be able to terminate its Aqueduct video lottery license any time it decides the casino has not been profitable for four straight quarters.
The group also wanted a guarantee that no other gaming facility would open within 50 miles of Aqeuduct, despite those who are eying Belmont in the future. [Daily Politics]
10 Comments:
All of these are logical demands for an outlay of $300M except perhaps for the out clause for non-profitability which seems excessive since it is very possible this whole vlt thing becomes saturated through no fault of the state.
It has become obvious there's no will in NY State government for horse racing to succeed. Between this debacle and the NYC OTB mess, any one associated with thoroughbred horse racing in NY should have their head examined. I've scheduled a rorschach test for myself later today followed, I'm sure, by intense, long-term electroshock therapy.
I'm curious as to whether or not the bidding can proceed with only one applicant left. I've done purchasing work in the past (although nothing on this level) and I've seen bids delayed or stopped because there was only one bidder in the pool. If there is only one left, then technically there is no bid taking place.
Amen, Late Scratch. But rather than go for electroshock now let's light a fire under those pols so they will whisk Genting right through and the cash registers can start to ring. What the hell is there to think about?! This Genting outfit has the dough!!! Too late to arrange any more payoffs and favors for your friends, besides, you can shake these guys down later. Get the GD ATM's whirring, you dumb, greedy bastards.
/S/greenmtnpunter
So the new president of NYC-OTB, which last time I checked was in bankruptcy, gets to make $1.5 million per year? Wow. How do I sign up for that gig?
Alan said..What is Genting's commitment to minority.
Sounds racist to me.And what is a Minority.Italians,greeks,Mexicans?
Below is an intesting comment regarding Genting copied/pasted from the Saratagian (authors name withheld):
" Genting New York Inc. is a 100% owned subsidy of Genting Bhd. It is the leading corporation in Malaysia, and is rated as one of Asia's best managed multinational companies, by every financial rating service.
To have Genting N.Y. obtain the license to operate the Aqueduct Casino would be a plus for New York State, and would be advantageous for the N.Y. Thoroughbred
Industry. They are a Gaming, Hotel, Resort, and Entertainment based business, with a worldwide reputation for their first class operations and standards. Wherever they operate, they have made a point of contributing to the economy of that area.
(i.e. In Malaysia they support and own many plantations (farms), that are not located in close proximity to the entertainment businesses. This effort on their part prevented a whole rural way of life and earning a living from disappearing. Their initial support of an unprofitable agriculture business turned it around where today it now profits many).
Two misnomers are currently being said about Genting N.Y.
#1- A link to the Monticello Casino.
Genting Corp. is not involved in Monticello. People who own shares in Genting are, but they themselves have no involvement in the decision making process of Genting aside from the rights of shareholders.
#2- They have no local connections.
(As if that is a bad thing).
Well what is meant by that is they have not made political contributions to our State and Local Politicians. I say that is a good thing. We do not need our elected representatives beholding to a company that he/she must oversee. On the flip side, apparently Genting does not want to be in the debt of political favors for the right to conduct honest business. (That is a big plus in my book).
The history of Genting Corp. is a reflection of the history of Asia since WW II. It is very interesting and I would recommend anyone to check it out.
As for the present, Genting, because of their business, entertainment, gaming, etc, has come under the cross hairs of Muslim Extremists. As a company they are a target because of the freedom they represent in how people conduct themselves in their leisure hours. This is the reason they are now directing some investments to Europe, and now New York. The company is looking to diversify in order to protect it's ability to make money.
So in conclusion, in my humble opinion, Genting N.Y. should get the license to operate Aqueduct. We could have had a lot worse, and maybe by default, we have lucked in to the best. "
Below is an intesting comment regarding Genting copied/pasted from the Saratagian (authors name withheld):
" Genting New York Inc. is a 100% owned subsidy of Genting Bhd. It is the leading corporation in Malaysia, and is rated as one of Asia's best managed multinational companies, by every financial rating service.
To have Genting N.Y. obtain the license to operate the Aqueduct Casino would be a plus for New York State, and would be advantageous for the N.Y. Thoroughbred
Industry. They are a Gaming, Hotel, Resort, and Entertainment based business, with a worldwide reputation for their first class operations and standards. Wherever they operate, they have made a point of contributing to the economy of that area.
(i.e. In Malaysia they support and own many plantations (farms), that are not located in close proximity to the entertainment businesses. This effort on their part prevented a whole rural way of life and earning a living from disappearing. Their initial support of an unprofitable agriculture business turned it around where today it now profits many).
Two misnomers are currently being said about Genting N.Y.
#1- A link to the Monticello Casino.
Genting Corp. is not involved in Monticello. People who own shares in Genting are, but they themselves have no involvement in the decision making process of Genting aside from the rights of shareholders.
#2- They have no local connections.
(As if that is a bad thing).
Well what is meant by that is they have not made political contributions to our State and Local Politicians. I say that is a good thing. We do not need our elected representatives beholding to a company that he/she must oversee. On the flip side, apparently Genting does not want to be in the debt of political favors for the right to conduct honest business. (That is a big plus in my book).
The history of Genting Corp. is a reflection of the history of Asia since WW II. It is very interesting and I would recommend anyone to check it out.
As for the present, Genting, because of their business, entertainment, gaming, etc, has come under the cross hairs of Muslim Extremists. As a company they are a target because of the freedom they represent in how people conduct themselves in their leisure hours. This is the reason they are now directing some investments to Europe, and now New York. The company is looking to diversify in order to protect it's ability to make money.
So in conclusion, in my humble opinion, Genting N.Y. should get the license to operate Aqueduct. We could have had a lot worse, and maybe by default, we have lucked in to the best. "
Below is an intesting comment regarding Genting copied/pasted from the Saratagian (authors name withheld):
" Genting New York Inc. is a 100% owned subsidy of Genting Bhd. It is the leading corporation in Malaysia, and is rated as one of Asia's best managed multinational companies, by every financial rating service.
To have Genting N.Y. obtain the license to operate the Aqueduct Casino would be a plus for New York State, and would be advantageous for the N.Y. Thoroughbred
Industry. They are a Gaming, Hotel, Resort, and Entertainment based business, with a worldwide reputation for their first class operations and standards. Wherever they operate, they have made a point of contributing to the economy of that area.
(i.e. In Malaysia they support and own many plantations (farms), that are not located in close proximity to the entertainment businesses. This effort on their part prevented a whole rural way of life and earning a living from disappearing. Their initial support of an unprofitable agriculture business turned it around where today it now profits many).
Two misnomers are currently being said about Genting N.Y.
#1- A link to the Monticello Casino.
Genting Corp. is not involved in Monticello. People who own shares in Genting are, but they themselves have no involvement in the decision making process of Genting aside from the rights of shareholders.
#2- They have no local connections.
(As if that is a bad thing).
Well what is meant by that is they have not made political contributions to our State and Local Politicians. I say that is a good thing. We do not need our elected representatives beholding to a company that he/she must oversee. On the flip side, apparently Genting does not want to be in the debt of political favors for the right to conduct honest business. (That is a big plus in my book).
The history of Genting Corp. is a reflection of the history of Asia since WW II. It is very interesting and I would recommend anyone to check it out.
As for the present, Genting, because of their business, entertainment, gaming, etc, has come under the cross hairs of Muslim Extremists. As a company they are a target because of the freedom they represent in how people conduct themselves in their leisure hours. This is the reason they are now directing some investments to Europe, and now New York. The company is looking to diversify in order to protect it's ability to make money.
So in conclusion, in my humble opinion, Genting N.Y. should get the license to operate Aqueduct. We could have had a lot worse, and maybe by default, we have lucked in to the best. "
Figless, thanks for proving that your stupidity knows no boundaries.
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