RSS Feed for this Blog

Friday, October 17, 2008

No Love For Governor's Choice

- More on Aqueduct in the local Queens Chronicle this week; and the free weekly reports that the community has a clear preference: anything but Delaware North.

“We believe that both of the other proposals offer more to the state over the long term,” said Community Board 10 Chairwoman Betty Braton.
We also hear from the other, aggrieved bidders. SL Green spokesperson Bob Bellafiore says that it has offered to invest $130 million to improve the Aqueduct facility, which brings its total up-front spending to $380 million. (That would be in addition to the $250 million the state plans to raise in a bond offering; and as a reader pointed out the other day, good luck with that. The Metropolitan Transportation Authority even hired former NYC Mayor Ed Koch to do some radio ads for a planned bond offering this week, and it had to be postponed.) Capital Play pointed out that their plan would generate $6 billion more over 30 years; that's $200 million per year.

GOP State Senator Serph Maltese, who received a key union endorsement in his desperate battle against the Democratic Councilman Joseph Addabbo Jr. (in a district in which enrolled Democrats outnumber Republicans by far over 2-1), is getting his two cents in too. He told another local paper, the Queens Gazette, that's he's "worked closely" with the community board, and that "Delaware North has all along been nearly everyone's third choice."

It's pretty amazing to me that I really haven't heard a single good word from virtually anyone for Delaware North, have you? I mean, I've gotten a lot of informed-sounding comments on this site from readers, some who have apparently had experience with them at Finger Lakes and other properties, and I only recall one who thought Del North had a good plan. And, as has also been pointed out by readers, we haven't heard a single direct word from Governor Paterson. You'd think he would respond and defend his choice.

Senate Minority (But Hopes To Be Majority) Leader Malcolm Smith criticized Skelos for opposing the Governor's, and Sheldon Silver's, selection, and opined that Skelos' action could result in a lawsuit because Skelos sought more information from one bidder, but not the others. I don't know if SL Green and Capital Play would have the legal basis for a lawsuit, nor who the appropriate target would be if they did. But I imagine that those bidders will want to know why Delaware North was permitted to have what sounds like a do-over in response to the reservations we're seeing the community express. Why doesn't SL Green or Capital Play, who have already satisfied the community, get a chance to respond to the reservations that the state has expressed, and raise their upfront payment offer?

Wednesday, October 15, 2008

Skelos and Del North Talk it Out

- Senate Majority Leader Dean Skelos' spokesperson John McArdle, who I guess is the resident spokesperson for whomever the GOP Senate Majority Leader is, called Tuesday's meeting between the Senator and Delaware North "very productive." Skelos, who was accompanied by Del North lobbyist Patricia Lynch and developer Don Peebles, traveled to Buffalo for the meeting.....though don't think for a moment that the trip was purely for state business. He also took the opportunity to campaign for GOP State Senate candidate Michael Ranzenhofer, who is locked in a tight race with Democrat "Baby" Joe Mesi, the former heavyweight boxer, in another absolutely crucial swing race that will help to determine control of the chamber. Another one of those mixed state business/politics trips, and I forgot, who pays for those now in the wake of Troopergate? The Aqueduct racino is tied up with this election in many ways to be sure.

"We didn't put politics in the middle of this," McArdle said, "but there was an endorsement the day before the governor announced his selection. I find it ironic that people say we're playing politics, when it was just the opposite." [Associated Press]
Del North president William Bissett, who no doubt presented Senator Skelos with his suddenly-enhanced plan, said: "We were very encouraged with the meeting."
Skelos told the company executives to now work with community leaders in Queens to get them to better understand their plan for the site. As for a decision timetable, McArdle said that will depend on the company’s success in getting backing in Queens. [Buffalo News]
Skelos can soon drop by Community Board 10 to see how that's going, and make a campaign stop for Senator Maltese at the same time.

I reminded you guys a few days ago that Delaware North's lobbying team includes people close to Speaker Sheldon Silver. Forgot to mention as well that Patricia Lynch's team also includes David Brand, described as one of Gov. David Paterson's closest friends. Senator Skelos surely must not be feeling the love here, and one can understand his frustration on several levels.

Tuesday, October 14, 2008

Del North Plan Gets Bigger

- Delaware North hopes to take their case directly to Senate Majority Leader Dean Skelos. (Skeptical Skelos, I was going to write, but it's a bit too cutesy for my taste). No doubt in reaction to the reaction to its selection, Delaware North says that its plans are more ambitious than people think. That's probably because those extra ambitions are not spelled out in their proposal.

Delaware North officials said Monday that while the company submitted no additional plans, it intends to ultimately build a "world-class, four-star conference center and hotel facility."

In June, the firm hired The Peebles Corp., said to be the country's largest African-American real estate development company specializing in urban redevelopment.

Chairman and CEO Donahue Peebles said he is designing plans that would include a 3,000-seat theater for concerts and boxing. There would also be a 60,000-square-foot conference and meeting facility with a ballroom, a 5,000-square-foot spa and a 2,000-space garage.

In addition, Peebles said, there would be 15,000 square feet of "boutique retail" along the entrance to the racino - with more once the hotel is built. [NY Daily News]
This is a far cry from their original announcement last spring, when nothing more than a "large parking deck" was in the plans. The article linked to above claims that some 20,000 people are expected to visit the racino daily; and it's not an exaggeration to point out that that's around ten times a normal weekday racing crowd. Hope they're saving some space for the flea market.

- Seems as if Delaware North was merely following instructions. Looking back at an account of the submission of the bids last May, company president William Bissett told the Times Union that state officials encouraged Delaware North to focus on the up-front fee, rather than long-term return. There's some forward-thinking for you. Delaware North must have been either the only company who listened, or the only one who got that advice.

Monday, October 13, 2008

Paterson-Skelos Rift Heating Up

- Senate Majority Leader Dean Skelos' opposition to Governor Paterson's selection of Delaware North is not due to his anger over the governor's involvement in the Senate races, nor an attempt to put slots at Belmont back in play; but rather, he's simply listening to the Queens community, where leaders prefer a destination venue with hotels and a major brand, not just a video slots parlor in a box. That is, at least, according to "people close to Skelos," as reported today on the Times Union's Capitol Confidential blog.

However, Fred Dicker reports in the NY Post that Skelos is privately describing Gov. Paterson as a double-crossing liar, claiming that Paterson personally assured him that he would not involve himself in the election. And the growing animosity between the two was on display at the public budget meeting on October 3.

Of course, Paterson's folks aren't taking that accusation lying down.

But aides to Paterson claim it was Skelos (R-Nassau) who went back on his promise to work with Paterson - especially on the state's worsening fiscal situation - and, as a result, they say the governor now wants to see the Democrats take control of the Senate for the first time since 1965.
....
...Paterson has told friends that he finds Skelos - unlike the recently retired Bruno - almost impossible to deal with.

"I think David initially thought he could work better with Dean than with [Minority Leader Malcolm Smith], but that's no longer the case," said a source close to Paterson. [NY Post]
There's supposed to be some kind of unwritten "understanding" that the sitting governor does not intercede in the legislative elections. Spitzer unrepentantly cast that notion to the wind. Paterson had been more coy about his intentions, especially when his buddy Bruno was still around. But he's clearly taken off the gloves now. The governor has been raising money for Democratic Senate candidates, transferring money to those in pivotal swing races, and endorsing specific candidates. As mentioned previously, he endorsed Joseph Addabbo Jr., the NYC Councilman running against GOP incumbent Serph Maltese in the district that includes Aqueduct (Maltese has expressed reservations about the Delaware North bid).

And on Friday, Paterson, for the first time in one of the contested Senate races against a sitting GOP Senator, personally attended a fundraiser; this for Rick Dollinger, who he has described as a personal friend. Coming on the same day as the Delaware North announcement, this certainly could not have pleased Skelos.
Paterson said he would personally swear Dollinger back in to the Senate and said, “It would be the most exciting experience if he came back and that this election brought the Senate Democrats in the majority.” [Politics on the Hudson]
Late last month, Dollinger was rated 11 points behind Republican incumbent - and one-time Democrat - Joe Robach in the Siena College poll.

- Delaware North President William J. Bissett says that, contrary to what has been reported, its Big A bid includes more than just slots in a box.
The other developments would be undertaken once the casino succeeds.

“We’ve always viewed this project as one of staged development,” he said.
.....
..Bissett said nothing guarantees that competitors actually will build the hotel, retail and entertainment space. And he questioned the estimates of revenue that the state would receive over 30 years.

“We’ve gone in a very conservative fashion so the state can rely on the numbers we project,” he said. [Buffalo News]