Ohio Harness Horsemen's Association

Paterson to Release Aqueduct Bid Details

February 14, 2010

New York Gov. David Paterson says he will publicly release documents next week detailing the controversial bid process for the construction of a casino and hotel complex at the Aqueduct race track downstate.

Paterson also welcomes an investigation into the awarding of the massive project to Aqueduct Entertainment Group, a Queens-based development team of eight companies.

Paterson will release documents—including all bids the state received—by Feb. 16, said spokesman Peter Kauffmann.

“There is nothing to hide,” Kauffmann said.

Last month, Gov. David Paterson and top Democratic legislators announced they had selected an entity called Aqueduct Entertainment Group to build the “racino” at the Aqueduct thoroughbred horse racing track in Queens. The project includes installing 4,500 video lottery machines, generating revenue that will, in part, be used to renovate Saratoga Race Course in Saratoga Springs, N.Y.

Ever since, the bidding process—and questions about what set AEG apart from four competitors—have come under increased scrutiny and criticism.

In the past two days, state legislators of both political parties have called for hearings to probe the bid process; Assembly Speaker Sheldon Silver (D-Manhattan) called for an investigation by state Inspector General Joseph Fisch.

Paterson will also ask Fisch to investigate, Kauffmann said.

Aqueduct Entertainment Group was one of at least six teams to bid on the project in May 2009. Eight companies are a part of the Aqueduct Entertainment team, including Turner Construction, which has offices in Albany.

Losing bidders included one led by Buffalo-based Delaware North Cos., whose team involved Saratoga Gaming and Raceway, which has a smaller, similar version of the “racino” to be built at Aqueduct.

Aqueduct Entertainment Group has committed to pay a $300 million upfront licensing fee, most of which will be due by the end of next month. A formal agreement between the group and the state has not been signed yet.

Revenue from the lottery machines—generating an estimated $1 million a day for the state—will help reduce an $8.2 billion state deficit.

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Paterson to Release Aqueduct Bid Details