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Friday, October 17, 2008

Bond Concerns

- An official in the NY State Comptroller's office tells Bloomberg, of the state's plan to collect an upfront fee and then issue $250 million in bonds to finance the Aqueduct racino: "It is unusual to get one-shot revenue, and then incur a long-term liability."

The planned bond sale would continue the state's practice of borrowing for capital projects without an adequate planning process, [assistant director of budget policy Andrea] Miller at the comptroller's office said.

"We don't do a good job prioritizing our capital spending," she said. "Economic development such as the Aqueduct project is certainly very important," though it needs to be evaluated in a process that considers all the state's needs. [Bloomberg]
Also noted is the fact that the state has postponed $652.4 million of debt sales this year because of unfavorable conditions in the municipal bond market.

Just a couple of weeks after developer Louis Cappelli, who is also depending on a bond sale ($400 million worth), said that the "game plan remains intact and on schedule" for the new Concord racino and entertainment complex, much of the financing remains up in the air amid the global lending crises, Sullivan County Industrial Development Agency officials said this week.
"They are in a bit of redesign process, which results from a need to scale back the grandeur of the project to cut costs," attorney Walter Garigliano told the IDA board on Tuesday.
Garigliano told the IDA board it could be some time before financing closes, while also indicating volatility in the financial markets could affect bond interest rates. [Record Online]


Anonymous said...

In case anyone is actually interested in non poly crap horse racing there is a terrific card with a big carryover at Belmont.

Anonymous said...

The debt markets are frozen with GE and Goldman Sachs begging for cash yet we are to believe Delaware North's financing and credit lines are in order. Nice try.

NY State has bled NYRA and NYC OTB dry and they are getting a head start on the BIG A racino. A one shot is not enough, make it a double!

This double shot is included in the current state budget so they have to try to move forward soon.

In my opinion, it is too late. This project can not be justified in the current economic climate.

Mohegan and Foxwoods are retrenching and Las Vegas Sands is 92% below its 52 week high.

Anonymous said...

O.K., now I see. Blow off the Aqueduct project due to market conditions and lack of financing, then when real estate recovers, sell the Big A to developers and move the VLT project to Belmot Park in order to satisfy the old Spitzer plan. Geez, I hope not.