Officials: Aqueduct video slots deal final, by Michael Gormley - AP - 23rd October 2008

ALBANY, N.Y.

New York Gov. David Paterson and the Senate's Republican majority said Thursday the deal is final to put lucrative video slot machines at Aqueduct race track. The project promises to bring more than 1,000 jobs to Queens and $370 million upfront to the state as it faces deepening deficits.

But just hours after announcing the agreement in separate statements, Paterson and the Republican majority couldn't even agree if their the deal is the same one that the GOP Senate rejected almost two weeks ago, before the economic development issue became a political issue.

The Aqueduct plan will include a 328,000-foot gaming and entertainment facility for the 4,500 video slot machines, a hotel with as many as 500 rooms, a spa, a 60,000-foot conference center, 3,000-seat "event center," and up to 30,000-square feet of retail space, according to Delaware North Cos. of Buffalo, the winning bidder. The facility is scheduled to be complete in 12 to 14 months, according to the company.

The video slot machines will operate through the state Lottery Division and provide the state at least $10.3 billion earmarked for education over 30 years, according to the agreement.

"Delaware North presents the strongest financial proposal with an upfront payment of $370 million," said Paterson, who said the state will have a $2 billion deficit this fiscal year.

"It will revitalize the neighborhood surrounding the race track and bring new energy to the community," said Sen. Serphin Maltese, a Queens Republican whose district includes Aqueduct.

The project is expected to require 1,000 construction workers and will employ about 1,100 Delaware North workers in Queens and 100 in the main office in Buffalo.

After years of review, the agreement was further delayed when it became a big political issue in Maltese's bid for re-election, a race that could help decide whether Republicans keep the Senate majority.

Just hours before the formal announcement of the deal, Senate Democratic leader Malcolm Smith was saying Republican "foot-dragging has already cost the state $13 million ... that will never be recaptured.

The project has been in the works since the Legislature looked for ways to boost revenue after the Sept. 11, 2001, attacks. Two weeks ago, Paterson and the Assembly's Democratic majority chose Delaware North. But the Senate Republicans refused to go along, saying the company's plans for improvements and jobs near the track in Queens were lacking.

Maltese and Senate Republican leader Dean Skelos insisted on hearing details of spin-off commerce to help the community before they would support Delaware North. State officials and the competitors had warned that the Republicans couldn't seek changes in the company's plan because that could have violated rules designed to make competitive bidding fair.

After the proposal was altered to include community input and the economic development that includes a hotel and commercial space, the Republicans agreed.

"It's not the same proposal. We significantly adjusted and changed it," said John McArdle, spokesman for the Senate majority.

"Anyone can sue," McArdle said. He said no contract or legal agreement has yet been signed, but the Republican majority is now on board.

"The proposal submitted today is exactly the same as it was 13 days ago," said Paterson spokesman Morgan Hook.

A Republican senator in a close race, Maltese announced the GOP's changed position during a televised debate Wednesday.

The 15th Senate District features one of the closest races in the state as Democrats try to erase the Republicans' one-vote majority in the Senate. Maltese is being challenged by Joe Addabbo, a New York City councilman, for the seat he's held since 1988. Paterson endorsed Addabbo a day before he announced the Aqueduct deal that the Republicans then refused to join.

The other competitors were:

_ A partnership between developer SL Green and Hard Rock Entertainment, which operates Hard Rock Cafes, that offered $250 million up front.

_ Australia-based Capital Play, with an office in New York City, which offered $100 million up front through its partnership with the Mohegan Sun casino.

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