Nassau OTB to sell Farmingdale building to church group for $3.2M
Facing an overdue $3 million payment on a short-term note to a Manhattan investment bank, the cash-strapped Nassau County Regional Off-Track Betting Corp., has agreed to sell their Farmingdale branch, shown here, to a local church for $3.2 million, agency officials said Monday, June 6, 2016. Photo Credit: Newsday / Alejandra Villa
Cash-strapped Nassau Regional Off-Track Betting Corp., facing a $3 million debt payment to a Manhattan investment bank, will sell their Farmingdale branch building to a church next door for $3.2 million, agency officials said Monday.
The 6,800-square-foot building, at 4747 Hempstead Turnpike, will be sold to Living Faith Christian Church, which plans to renovate the property and use it for administrative offices, counseling centers and ministry training.
The agency expects to close on the $3.21 million sale later this month, said OTB president Joseph Cairo. OTB owes $ 1.2 million on the building’s mortgage and would net $2 million.
“We are streamlining expenses to make OTB break even on the racing side,” said Cairo, adding that OTB has not turned a profit since 2008.
OTB will use the proceeds of the sale, along with other revenue, to settle a $3 million debt with Roosevelt & Cross, a Manhattan investment bank.
In 2014, OTB borrowed $5 million by selling revenue anticipation notes. In December 2015, it paid off $2 million and refinanced, for three months, the remaining $3 million.
The money was due in March, but OTB missed the payment as it finalized a deal transferring its authority to install 1,000 video slot machines to Aqueduct Racetrack in Queens.
Details of the VLT transfer, along with a long-term plan for OTB’s financial future, will be submitted to the State Gaming Commission for approval next week, Cairo said.
The 1.2-acre Farmingdale property has 126 parking spots that the church plans to use to expand its membership.
“OTB is the only property within walking distance on our side of Hempstead Turnpike that can provide enough parking for these things,” the church said in a newsletter.
Farmingdale, one of three branch buildings owned by the agency, has faced declining handles in recent years and is less than four miles from OTB’s Levittown location.
Some of the Farmingdale’s 17 employees could be relocated to other OTB branches. Others, Cairo said, may take a retirement incentive that OTB expects to offer in the coming months. It’s unclear, Cairo said, if layoffs will be necessary.
Nassau OTB has 201 employees — down from 300 in 2010 — and $12 million in total debt, including its operating deficit.
Genting struck a deal in March to acquire OTB’s authority to install 1,000 VLTs. OTB had planned to build a casino at Belmont Park but faced community opposition.
The deal calls for Genting to make a $5 million payment to OTB and another $4 million by year’s end. Next April, Genting would begin making monthly $750,000 payments to OTB, totaling $9 million for 2017. In April 2018 — or sooner if Genting has the VLTs in place — it would send OTB monthly payments of just over $2 million, or $25 million for the year.
Future payments would be $25 million per year, plus an amount adjusted for inflation.
Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.
SAYVILLE'S LYNDA NICOLINO JOINS BETHPAGE FEDERAL CREDIT UNION AS CORPORATE GENERAL COUNSEL
Bethpage Federal Credit Union, New York State's largest credit union, announces the appointment of Lynda Nicolino as Corporate General Counsel of Bethpage Federal Credit Union. A new position for the credit union, Nicolino will focus much of her time on handling the growing government regulation issues in the banking and credit union arenas, working closely with Bethpage and government regulators.
Prior to her appointment at Bethpage, Nicolino was the General Counsel and Secretary of the Long Island Power Authority (LIPA) where she worked for 15 years. During her tenure at LIPA, she was involved in the formation and negotiation of numerous energy initiatives and agreements, including securing new and replacement generation and transmission, energy efficiency and renewable projects for Long Island. Over the years, Lynda worked on nearly every aspect of LIPA's business, including working closely with LIPA's large Board of Trustees, in pursuit of Long Island's electric resource needs.
"Lynda is a seasoned attorney with a keen ability to effectively navigate highly complex regulatory issues – something that will surely benefit Bethpage as we continue to grow," said Kirk Kordeleski, President and CEO, Bethpage. "Her vast experience also includes a proficiency in corporate legal issues which will be of great strategic benefit to Bethpage. We are very fortunate to have Lynda join the Bethpage team."
Prior to joining LIPA, Lynda supervised and managed the Suffolk Regional Office for the NYS Attorney General for nearly four years as Assistant Attorney General in Charge. Prior to her work with the Attorney General's Office she worked for both a private law firm and as an Assistant District Attorney in Suffolk County.
"Lynda has attained many great achievements for Long Island over the years and is a recognized leader, known for her valued counsel. We look forward to a strong working relationship," continued Kordeleski.
"Bethpage is a recognized leader in the banking arena, with many accomplishments under its belt," said Lynda Nicolino, Corporate General Counsel, Bethpage. "Now, more than ever, financial institutions have to operate under a more complex regulatory environment. I look forward to assisting Bethpage through this process, helping to continue to grow the credit union into the leading financial institution on Long Island."
Lynda is a life-long resident of Long Island, having earned her undergraduate degree from Stony Brook University and her law degree from Hofstra University Law School. She is a graduate and member of the Board of Advisors for the Energeia Partnership of Molloy College, comprised of Long Island leaders dedicated to promoting civic responsibility and exploring solutions to issues affecting the region. Lynda also served on the Touro Law Center Board of Governors for several years and in 2012, was named one of Long Island's 50 Most Influential Women by Long Island Business News. In 2013 Lynda was honored by Stony Brook University as a Distinguished Alumni, and continues her alumni activities related to student mentoring and speaking engagements. She currently resides in Sayville, NY.
Bethpage Federal Credit Union is a not-for-profit financial cooperative, existing solely to serve its members and has experienced rapid growth in recent years to become a strong alternative to banks. Bethpage was approved for the largest federal community charter in the U.S. in 2003 and now is New York State's largest credit union and Long Island's primary community financial institution with 232,000 members, 28 branches and 60 shared service center locations throughout Nassau and Suffolk Counties. As a financial cooperative, Bethpage offers the best-in-market rates, low fees and world-class service, and a full menu of personal and commercial financial services.
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Bethpage maintains branch locations in Bay Shore, Bay Shore King Kullen, Bethpage, Central Islip, Commack King Kullen, East Meadow NuHealth, Elmont, Farmingdale, Freeport, Glen Cove, Hempstead, Huntington, Levittown King Kullen, Long Beach, Lynbrook, Massapequa, Melville, Mineola, North Babylon, Patchogue, Port Jefferson, Riverhead, Seaford, Smithtown, Roosevelt, Valley Stream King Kullen, West Babylon and Westbury with over 500 surcharge-free ATMs throughout Long Island, including King Kullen, CVS Pharmacy, Costco and 7-11 locations. For more information, call 1-800-628-7070or visit www.bethpagefcu.com
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