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Bidding Reopens on Aqueduct Racino

NEW YORK CITY-Following the collapse of a deal with Delaware North to develop a 328,000-square-foot video lottery terminal facility, the state is trying again.

By Paul Bubny | Updated on April 20, 2009

NEW YORK CITY-The state is seeking new proposals to build and operate a 328,000-square-foot video lottery terminal facility at Aqueduct Racetrack in Queens, following the collapse last month of Delaware North’s deal to develop the racino there. Applications are due by close of business on Friday, May 8.

“Growing our economy through job creation and economic development projects such as the implementation of VLTs at Aqueduct will move our state toward the type of new economy New York needs to get back on track,” says state Senate majority leader Malcolm Smith in a release. “Though it is disappointing that the process has been slowed due to the struggling economy, I am confident that we can find a new partner to build Aqueduct into a gaming location that bolsters the local and state economy.” Citing difficulties in obtaining financing, Delaware North pulled out in early March after announcing that it would miss the deadline on a $370-million upfront payment to the state.

An updated version of the state’s memorandum of understanding was made public on Friday. Under the revised MOU, the state would enter into a 30-year agreement with the winning bidder, with a possible 10-year extension. The winning bidder would pay the full amount of its proposed upfront franchise fee no later than 10 business days after the execution of the MOU. The state would issue $250 million worth of personal income tax bonds through the Empire State Development Corp. to finance eligible VLT project costs.

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