The SL Green CEO and others say the Paterson administration should select one of the existing proposals rather than reopen the bidding. "All parties would be best served by the immediate appointment of either Lottery or an independent apolitical committee to review those proposals," Holliday says in the statement. "The decision should then be made on the respective proposals' merits and the bidders' ability to deliver the facility quickly."

The New York Times quoted State Sen. Eric Adams, who chairs the Senate Racing, Gaming and Wagering Committee, as saying, "I think there are eligible vendors that are still there. Let's just move on to the next eligible vendor."

A spokesman for Penn National Gaming says the Wyomissing, PA-based company counts itself in the running for the 30-year contract to operate a racino at the Queens raceetrack. "Throughout the process, Penn National been the highest bidder and has a very healthy overall financial position including over $500 million of cash on its balance sheet," the spokesman tells GlobeSt.com. "In addition, Penn National has the most experience among all the bidders in the successful re-development of pari-mutuel facilities which generate significant tax revenue, employment and other economic benefits in the jurisdictions where it operates."

Buffalo-based Delaware North Corp., which withdrew as the winning bidder a year ago after failing to produce a $370-million upfront payment but bid again in the latest around, is also still interested. Through a spokesman, company president William Bissett says that Aqueduct Gaming, the joint venture in which Delaware North is a partner, remains "ready to perform and committed to the project's success for the benefit of the state, the local Queens community and the stakeholders in the racing industry."

A three-sentence statement issued by the governor's office on Thursday spelled out the administration's position. "The Division of the Lottery has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group," the locally based consortium that won the bid for the 328,000-square-foot facility in January. As a result, according to the statement, "the state has officially withdrawn its support for AEG to develop and operate a video lottery terminal facility at Aqueduct Race Track. The executive branch advocates that the selection of the Aqueduct VLT franchisee be done pursuant to an expedited, transparent, apolitical and publicly accountable procurement process." Gov. David Paterson has reportedly recused himself from the process.

In a statement issued Thursday, AEG attorney Barry Berke calls the state's decision "arbitrary and capricious. As AEG has repeatedly stated, they remain ready, willing and able to finalize the memorandum of understanding and pay the $300-million licensing fee in accordance with the conditions placed upon AEG's selection." Berke adds that if the group is not given "an opportunity to address the issues raised by the Lottery, and the decision to reverse the prior selection of AEG as the successful bidder is not reconsidered," it will pursue "all available remedies."

Instant Insights /

Aqueduct Bidders Say They're Back in the Race

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