Silver is asking the IG to review the procedures used by the state Division of the Lottery "and other relevant state agencies" in reviewing bids for the contract to develop and operate a video lottery terminal facility at Aqueduct Racetrack. He is also requesting that Fisch inquire about how the state lottery will "assure that the conditions I conveyed to the governor on Jan. 29, and restated in my Feb. 3 letter to him, are met."
In that Feb. 3 letter, Silver warned Gov. David Paterson that the conditions the speaker mandated for his approval of the Aqueduct deal are "not negotiable." Those conditions include: the AEG consortium paying a $300-million upfront licensing fee by March 31; use of the existing footprint as the basis of a State Environmental Quality Review Act approval on the normal timetable, with no requests for waivers or expedited approval; and ensuring that all key AEG stakeholders obtain licenses from the state lottery.
A spokesman for Paterson says in a statement that all relevant documents, "including all submissions, bids and solicitations," will be released Tuesday. "There is nothing to hide, and all of these documents were shared with the legislative leaders during the selection process."
The spokesman adds that the governor will ask Fisch to conduct an investigation "expeditiously," with the full cooperation of the Lottery Division, and that Paterson also expects cooperation from Silver and the legislature. A spokeswoman for Fisch did not respond to GlobeSt.com's inquiries by deadline. In a statement, AEG says the group "adhered to the bid process as outlined by the State of New York and [was] selected on that basis" and that it has not been contacted "by any law enforcement or regulatory agency of any kind."
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
