GENTING HITS INSIDE TRACK

Genting New York presented its plan for a renovated Aqueduct Racetrack at a public hearing held by Community Board 10 last Thursday, July 15 in South Ozone Park. As shown above, an architect’s rendering of the proposed renovation of the complex. The last remaining bidder for the contract to operate 4,500 video lottery terminals (VLTs) at Aqueduct Racetrack unveiled its proposal to remake the South Ozone Park facility at a public hearing hosted by Community Board 10 last Thursday, July 15.

Genting New York, an arm of the international casino giant Genting Malaysia Berhad, promised community members “a one-of-a-kind entertainment experience,” with over 135,000 sq. ft. of gambling space and food and beverage seating capacity for over 3,000 people. The company also pledge to create over 2,000 construction and permanent jobs, and vowed to be a good neighbor.

While legal challenges from ousted bidders have yet to be resolved, Genting has the only bid recognized and under consideration by the New York State Division of Lottery, and is thus the odds-on favorite to receive the contract on the Tuesday, Aug. 3 date set by the state.

A brief history

The state legislature approved the operation of video slot machines at Aqueduct all the way back in October 2001. Two years later, the New York Racing Association (NYRA) selected MGM Mirage to run the VLTs, but the gaming company backed out during a federal probe into NYRA operations.

It wasn’t until September 2007 that then-Gov. Eliot Spitzer reopened the bidding on the Aqueduct contract, and in October 2008 Gov. David Paterson awarded the contract to Delaware North.

The project was further delayed, however, when Delaware North failed to deliver the $370 million upfront fee specified in its bid in March 2009. Paterson reopened the bidding, soliciting bids from seven groups, and eventually selected the Aqueduct Entertainment Group (AEG) in January 2010.

AEG’s hold on the Aqueduct con- tract proved short-lived, as the Lottery Division ultimately rejected AEG’s application amidst controversey over the political connections of former congressman Rev. Floyd Flake and other members of the group.

When the state issued a new requests for proposals in May, Genting got involved in the process for the first time. AEG dropped out of the process in June, and two other bidders— Penn National and SL Green—were disqualified for failing to promise a state-mandated $300 million upfront fee payable on winning the bid.

While a State Supreme Court hearing tomorrow, July 23 will consider AEG’s claim that its bid was improperly rejected in March, it appears that Genting is currently the only bidder under consideration by the state.

“We weren’t expecting to be the only presenters,” Genting spokesman Jay Walker said at Board 10’s July 15 hearing. “You should be reassured we take nothing for granted, certainly not in New York. We want to earn your respect, we want to earn your enthusiasm and hopefully many of you will be our customers if things work well.”

The proposal

Walker opened his presentation by leading the audience through a slide show of artist renderings of the proposed “racino.”

Walker said that physical improvements would include a new grand entrance with a three story atrium and a “spectacular” water show; a 93,000 sq. ft. gaming area on the first floor and a 42,500 sq. ft. gaming area on the second floor; a 200-seat high-end signature restaurant; a 200-seat “high quality” Chinese restaurant; an enclosed sky-bridge from the racino to the A train; and a new, 2,200-car parking facility.

Walker noted that Genting would work with JCJ Architecture—designers of a number of gaming destinations, including the Mohegan Sun at Pocono Downs, a Pennsylvania racino— and Keating Building Corporation, a subsidiary of Tutor Perini, the builder behind the recent $350 million runway renovation at John F. Kennedy Airport.

According to Genting, the video slots are expected to generate tax revenues exceeding $300 million annually, with another $90 milliom in annual expenditures on goods, services and marketing.

Jobs Renovations, said Walker, will create 1,300 construction jobs, with another 800 new permanent jobs created when the casino is up and running.

Walker further expressed confidence that Genting would exceed the state-mandated requirement of 25 percent employment of women and minorities in construction and ongoing operations, and said that Genting would strive to hire residents from Ozone Park and surrounding areas.

“If we are successful in winning the bid,” said Walker, “the day after we’re going to find an empty storefront on Rockaway Boulevard and open up a jobs office.”

Schedule

Keating executive Brad Statler told community members that they can expect a limited opening of 1,600 VLTs within six months of Genting signing a contract with the state.

Within one year, Statler said, all 4,500 VLTs, as well as the food court, parking facility and transit hubs will be open; and within 18 months, the project will be complete.

“We know that time matters,” Statler added. “You want action, this facility wants action. They’ve been waiting for 10 years, you’ve been waiting for 10 years. We build casinos on time, even under difficult time constraints and tight schedules.”

Traffic, hours

On the subject of traffic, Walker said that Genting would work with community members to mitigate concerns.

“Traffic is ultimately a function of good planning and good listening,” he said. “We’ve heard a lot about the Linden [Boulevard] and Pitkin [Avenue] entrances, and from the very start we’ve heard you loud and clear, you don’t want them open. We agree.”

“The good news about traffic,” he continued, “is that casinos have very steady, for the most part, traffic flow. It’s not like a Mets game, or a race. It doesn’t fill up or empty out.”

The flip side, however, is that the racino will open seven days a week, about 20 hours a day.

“It’s not a big line out on Rockaway Boulevard,” Walker reiterated. “People come and go to a casino all day long. Friday night and Saturday night will be busier, but it’s going to be open almost all the time. I think that’s going to work very well for job creation in Ozone Park.”

Response

Response to Genting’s presentation was mostly positive, as community members seemed ready for the drawn-out bidding process to wrap, and eager for the jobs that the project will create.

In addition to community board members, an organized labor contingent, and residents of Ozone Park and surrounding neighborhoods, a number of elected officials were on hand to comment on the process.

“We need construction jobs to be started tomorrow,” State Sen. Joseph Addabo said.

“What we want is jobs and a good neighbor,” echoed Assemblywoman Audrey Pheffer.

“I think the time has come for us to stop splitting hairs and approve a vendor for a racino at Aqueduct,” Assemblyman Mike Miller said. “Moving forward with this process will enable us to bring contruction jobs to the area.”

City Council Member Eric Ulrich said he was impressed by the presentation, but worried about the stress the casino would place on mass transit serving the area.

“The A train is already bursting at the seams and bus service is wholly inadequate,” Ulrich said.

Board 10 member Carmela Malizia hoped that the project would finally get underway.

“I liked the presentation,” she said. “As long as they make it nice and don’t devalue our homes, it’s ok.”