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| April 26, 2010 A state advisory commission appointed by Gov. Chris Christie is moving quickly to fix problems in New Jersey’s gaming, entertainment and sports industries, but some lawmakers worry that the commission may be moving too quickly, and wielding too much power. Last Tuesday, the Governor’s Advisory Commission on Gaming, Sports and Entertainment acknowledged it was working with a group that wanted to add 5,000 video slot machines to the Meadowlands racetrack. In return, developer David Hanlon said he would pay the state $600 million. News of the proposed deal revealed just how much power Christie had bestowed upon the commission’s seven members, who have been able to work quietly with the developer without telling anyone other than the governor. Several politicians now regard the Hanlon proposal as just one of perhaps many to come — and worry about a commission that can cut deals without their knowledge or approval, something the commission has already done. Christie laid out that power in February, when he said the unpaid commissioners would “give recommendations, but also can help the administration where appropriate negotiate with the interested parties.” State Sen. Barbara Buono, D-Middlesex, said she found it “odd” to hear a developer had directly approached an advisory body to the governor, and handed over a business plan. “Why would they do that?” she asked. Meanwhile, racing groups see their chance to influence what may be the final decision in the long struggle between racetracks, largely in northern New Jersey, and Atlantic City’s gambling interests, which have long subsidized racing purses but now face increased competition from Delaware and Pennsylvania. With Hanlon’s video lottery terminal proposal now in the hands of the influential commission, one horsemen’s group is raising funds to launch a public-relations campaign. Governors have launched commissions before to look at the two industries — gambling and horse-racing — which both provide revenue to the state. Most recently, former Gov. Jon S. Corzine enacted a commission on horse-racing that Christie disbanded. Typically, commissions produce written recommendations, but have little meaningful impact. But the man picked to head the new advisory commission knows this time will be different. “We’re broadly advisory, but we do have a negotiating function,” said Jon F. Hanson, a former head of the state authority that manages the Meadowlands complex. So far, he said, the only business proposal has come from Hanlon’s Global Enterprises Meadowlands group, which proposed taking over the running of the Meadowlands raceway, building a VLT facility and possibly building a hotel. Hanlon, the developer, admitted last week that taking his idea to the commission meant the governor could study it while the public could not. When asked for a copy of the executive summary, he refused to provide it, saying, “It’s not a public document yet.” A spokesman for the Governor’s Office said the advisory commission is not bound by either the Open Public Records Act or open-meetings laws. “They are purely advisory. They’re not paid by us, nothing they do is funded by us, and nothing they do is binding for the government,” Mike Drewniak said. One eyebrow-raising point in Hanlon’s proposal was the offer to pay the state $600 million for the rights to operate the Meadowlands and the new VLT facility. State Sen. Jim Whelan, D-Atlantic, said he staunchly opposes the proposal by Hanlon, a former Harrah’s executive. He further criticized Hanlon’s use of the advisory commission as a way to market his “racino” idea, saying, “It sounds like an attempt by someone to preempt the Legislature.” Buono likewise knocked back any assumption on the developer’s part that the governor could allow VLTs by executive order. Because the state’s constitution confines gambling to Atlantic City, Buono said, “They would need a referendum and legislation to do that, if they’re thinking of bringing slots in.” But Hanson said Tuesday that when the governor received the commission’s recommendations, he wanted to be able to make decisions that could affect gaming and racing’s future. “Our job is to bring him the best stuff we hear,” Hanson said, referring to Christie. “That means we have to ask questions, and if necessary assess the financial impact of these ideas.” He said the commission’s negotiating powers allow him to reach out to private developers. “It’s an important function, and one I’ve already used,” he said. At the time the commission was created, the state was losing money as the Nets basketball team looked to leave the Meadowlands-based Izod Center, operated by the state’s Sports and Exposition Authority, in favor of the Prudential Center in Newark. Hanson spent three weeks in discussion with the team, resulting in agreement that they would pay $4 million over two years as penalty for breaking their lease. Christie hailed that deal in late February as a success. Mike Gulotta, a horse-racing advocate, said in a statement released Tuesday that his new goal was to help the governor hear about Hanlon’s VLTs proposal. “The proposal is getting a lot of press,” Gulotta said. “We want to make the people of New Jersey aware of all the benefits of putting a casino facility at the Meadowlands, so we can compete with our neighbors in New York, Delaware and Pennsylvania.” Gulotta is listed as an honorary trustee of TrotPAC, a horse-racing political action committee that has made $13,750 in political donations since last June, according to financial disclosures, including $3,400 to Christie’s campaign and another $500 to his inaugural committee. Casino organizations are forbidden from making campaign donations. On TrotPAC’s website, the group claims that in two weeks, the harness-racing community raised nearly $100,000 for Christie’s run. Gulotta said new public donations to TrotPAC totaling $60,000 would buy advertisements that will run twice per day on 11 New Jersey radio stations, reportedly highlighting state tax revenue the slots will provide. Lawmakers, too, are starting to cheer or jeer the proposals from the sidelines. Atlantic County Republican Assemblymen Vince Polistina and John Amodeo released a statement saying they had heard no guarantee David Hanlon’s plan would earmark profits to boost race purses or benefit horsemen. Polistina said that was in response to a call from 12th District legislators, led by Sen. Jennifer Beck, a Republican whose district includes Monmouth Park racetrack, saying developers should now send their business plans for racinos to the commission. Christie has repeatedly said he does not want to interfere in the commission’s discussions before they report recommendations on June 30. In February, however, he highlighted the importance of the success of the Meadowlands to state racing interests. “That real estate is the most valuable real estate in the state of N.J. And we cannot permit individual special interests to make the decision of how that land can best be utilized,” he said. Asked Monday about the commission’s work, he said he was personally unaware of Hanlon’s VLT proposal, and only commented on their offer of $600 million to boost state coffers. Despite a state deficit of more than $10 billion, which the governor is attempting to close through deep cuts to some departments, Christie said, “I don’t put my budget out to bid.” |
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