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Senate, Assembly pass Vernon Downs relief measure
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Alex Cooper / Observer-Dispatch Jockeys race on the track during opening day on Friday, May 5, 2017, at Vernon Downs
Posted Jun 29, 2017 at 11:09 AMUpdated Jun 29, 2017 at 4:57 PM
Vernon Downs owner Jeff Gural was getting a haircut Thursday afternoon when he got the phone call he was waiting for.
“I said, ‘I have to take this call,’” Gural said.
The news was exactly what he hoped it would be.
In what is called an extraordinary session, the state Senate passed a measure Thursday that would save Gural’s enterprise $2 million per year for the next two years, resulting in Gural being able to save 300 jobs at his facility that includes the historic harness track, casino and hotel.
Gov. Andrew Cuomo signed the bill Thursday afternoon.
STATEMENT FROM MOHAWK VALLEY NINE
The Mohawk Valley Nine, an alliance of state legislators representing Herkimer, Madison and Oneida counties, weighed in on the passage of the Vernon Downs relief bill Thursday afternoon:
"The Mohawk Valley Nine made Vernon Downs a top priority during the extraordinary session and forced a relief package into the final legislative agreement — saving 300 jobs and stabilizing a key component of our local economy. This is a win for Vernon Downs, our schools that will continue to receive $12 million a year, and most importantly, the families of those who work at the racino."
A state Senate staffer explained that because Vernon Downs will remain open, $12 million per year will be able to be funneled to school districts.
The Mohawk Valley Nine is composed of: Sen. James L. Seward, R-Milford; Assemblyman Bill Magee, D-Nelson; Sen. Joseph A. Griffo, R-Rome; Sen. David J. Valesky, D-Oneida; Sen. Jim Tedisco, R-Glenville; Assemblyman Marc Butler, R-Newport; Assemblyman Ken Blankenbush, R-Black River; Assemblyman Anthony Brindisi, D-Utica; and Assemblyman Brian Miller, R-New Hartford.
“The future of Vernon Downs is secure for the foreseeable future,” Gural said. “It’s a good day.”
The money is a relief to the beleaguered “Home of the Miracle Mile.” Gural recently threatened to close the track, casino and hotel if the state did not offer it some kind of tax relief. Gural has stated publicly that casino competition is taking a bite out of his business. Further, he has canceled some racing programs this year due to a lack of horses.
The mechanism of the measure, which passed the Assembly Wednesday night, would work by lowering some administration fees the track pays for video lottery terminal usage.
“Basically, instead of paying the (state) Gaming Commission 10 percent in administration fees, we only pay 2.5 percent,” Gural said. “We just have to show financial hardship which won’t be a problem.”
Assemblyman William Magee, D-Nelson — whose district includes Vernon Downs — said the move also requires the track to keep the same number of part-time and full-time employees.
“I’m pleased that they were able to come to some agreement,” Magee said.
The situation at Vernon Downs has been in limbo for several months.
Gural announced in April that the opening day of racing would be delayed from its April 21 date. He claimed to have lost about $150,000 a month since November because of the increased competition from Yellow Brick Road, Lago and Rivers casinos. Live harness racing began May 6.
Over the last few weeks, the state Senate and Assembly passed differing measures to help the facility but couldn’t agree on a plan until Thursday.
Vernon Downs’ stakeholders were happy with the announcement.
“It’s great news that Jeff Gural, the legislature and Gov. Cuomo came together to insure that Vernon Downs stays open for the foreseeable future,” said Gary A. Greenberg, minority shareholder at Vernon Downs. “The tax break will keep 300 full-time jobs, allow horsemen to continue to operate and the Vernon community to continue to benefit economically from Vernon (Downs).”
SARATOGA SPRINGS >> John Hendrickson has sent a loud, clear message to Gov. Andrew Cuomo, whom he said hasn’t been listening lately – I quit.
Hendrickson, Marylou Whitney’s husband, resigned his post Tuesday – four days before the Belmont Stakes – as Cuomo’s special advisor on matters relating to Saratoga racing.
He has grown increasingly frustrated over Cuomo’s handling of New York Racing Association, which has been under state control since October 2012.
“I was appointed to help give a voice to Saratoga, but it’s clear the governor is not listening,” Hendrickson said. “Marylou and I are sorely disappointed. We hope the governor finds some newfound enlightenment soon.”
Instead of advising Cuomo, Hendrickson said his role turned out to be a “nightmarish job of ‘Whack-a-Mole’ ” as he constantly tried to stop Cuomo from doing things to hurt racing.
One of the latest episodes was the state’s approval, in an omnibus bill, of 1,000 new gaming machines at Aqueduct Racetrack to benefit Nassau Regional Off Track Betting.
The slot-like video lottery terminals will be located at Aqueduct’s casino, which generates revenue for racing. But none of Nassau OTB’s machines will benefit racing.
“We thank Mr. Hendrickson for his service and wish him well. The governor and the Legislature saved NYRA from yet another bankruptcy in 2012 and installed a board and management team that, by every metric, has been a success. We seek to continue this progress,” Gov. Cuomo spokesman Rich Azzopardi said in a statement. Former NYRA board member Charles Wait of Saratoga Springs said Hendrickson’s resignation is a “disaster for Saratoga, a disaster for racing and a disaster for the governor.”
Saratoga is losing an important voice, he said.
“This is the governor’s hand-picked advisor and he’s quitting because he can’t get anywhere,” Wait said. “I hope this gives the governor pause about the advice he’s getting or his own direction.”
Hendrickson and Whitney are highly respected in the world of thoroughbred racing and have done a great deal to improve the lives of Saratoga’s many backstretch workers. Hendrickson said he and Whitney plan to continue sponsoring their annual Backstretch Worker Appreciation Program, which provides daily activities during the 40-day meet, this summer.
But Hendrickson’s split from Cuomo is clear evidence of their disapproval with the governor’s racing policies.
In October 2012, Cuomo reorganized a 17-member NYRA board with 12 state appointees, and charged the group with returning the firm to private hands within three years.
But early last year, after NYRA President and CEO Chris Kay developed such plans, Cuomo instead extended state control of NYRA until this fall.
Most recently, it’s believed he favors a plan that would effectively keep a majority of state appointees on the board, while at the same time taking some of the money NYRA gets from Aqueduct’s casino and transferring it to the state general fund.
Under NYRA’s latest franchise agreement, the contract called for NYRA to get a share of gaming revenue in return for giving the land, worth $1 billion, at its three tracks – Saratoga, Belmont Park and Aqueduct – to the state.
Hendrickson said it’s now apparent that Cuomo wants to control the money generated by VLTs.
“Maybe this was his original course all along,” Wait said. “Racing is one of the greatest upstate industries there is. The governor says he’s open for business. This sends a message that he’s shutting upstate down.”
The group Concerned Citizens for Saratoga Racing is extremely upset at Cuomo, charging that taking money from NYRA will hurt Saratoga Race Course, one of the Capital Region’s most important economic engines. Maureen Lewi, the group’s chair, said Hendrickson’s resignation is a setback for Saratoga and racing.
“John is one of only a few notable figures that speak the truth, regardless of personal consequences, a virtuous asset in today’s society,” she said.
Only a few years ago, the best horses and stables in the country began moving to New York, attracted by the lure of higher purses resulting from gaming revenue at Aqueduct’s casino. Now, the reverse could happen if Cuomo takes money from NYRA, Wait said.
“I can’t imagine anybody investing in any business if they don’t have certainty about what the state is going to do,” Wait said. “It was his (Cuomo’s) word that he would privatize NYRA in three years. He has not lived up to his commitment.”
Last year, Wait resigned from the NYRA board when it became apparent that Cuomo’s plan was to continue state control over the firm.
Hendrickson’s departure leaves Georgeanna “Georgie” Lussier of Saratoga Springs as the region’s lone representative on NYRA’s board, a position she’s held since last September.
“I’m clearly upset,” she said. “I relied and depended on John’s input throughout this process. As long as I’m on the board I will represent his views and thoughts to the rest of the board.”
The board is not scheduled to meet again until August in Saratoga Springs.
Oneida County Executive Anthony J. Picente Jr. said keeping Vernon Downs afloat required teamwork.
“This is a prime example of what we can accomplish when we work together on the local and state level,” he said. “Vernon Downs has been a vital part of this region for many years and I hope it will continue to be for many years to come.”
Follow @OD_Cleaver on Twitter or call her at 315-792-4956.
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