New York Governor David Paterson, with the help of his legislature, yesterday joined forces to work out arrangements for a $25 million loan to keep the New York Racing Association running the rest of the year
.
When labour unions representing workers at New York City OTB threatened to disrupt the rescue, complaining NYRA was getting help but they weren’t, a quick Plan Two was put in effect, adding the relief measure as a budget extension rather than a standalone bill.
NYRA, or whoever gets to run the Aqueduct casino, will pay the $25 million back from the 4,500 slots that will be operating at Aqueduct sometime, under someone, and then be repaid by NYRA or a redirection of NYRA’s share of the slots revenue. The vendor, still unknown after nine years, will get $250 million from bond sales to help build the racino, less the $25 million payback from its slots. That really represents upfront money, because there is a deadline of March 31, 2011.
The Empire State Development Corporation, meanwhile, would take enabling action to repay the loan within 30 days after the state officially signs a deal with the successful vendor.
(With files from Harness Tracks of America)