Nyra Bailout
wire2wire
Senior Member
story...www.bloodhorse.com...w2w
wire2wire
Senior Member
Comments
Jim Odato reports in the Albany Times-Union that it was opposition to the NYRA loan by the DC-37 union which represents OTB workers that prompted Governor Paterson to include the measure in the budget extender. The union complained that NYRA was getting a bailout but OTB was not, several government officials said. That made the bill's prospects in the Senate uncertain. You know, because, of course the Senate wouldn't want to pass a bill opposed by a union representing workers of an entity that tried to dupe them into screwing over the rest of the industry by pleading poverty when they really had money in the bank. Right?
NYRA is to repay the $25 million loan by March 31, 2011, or 30 days after the execution of a memorandum of understanding with the operator of a video lottery facility at Aqueduct racetrack.. Since the Lottery is supposed to recommend an operator to Governor Paterson by August 3 (and because, for reasons explained previously, the recommendation is likely to be quickly agreed to by the other two leaders), NYRA should be able to pay the loan back early, like Chase and Goldman Sachs, rather than go to the deadline. After that date, the Lottery would collect any remaining loan balance from the vendor fee that would other be due on or after that date to the New York Racing Association.
Of course, all of this presumes that there actually will be, if not actual VLT's in place by next March (only a realistic possibility with a temporary slots facility), at least an operator who will front NYRA the money within 30 days as a loan of its own against slots revenue.
And those excitable parks advocates can't be too happy at this point in time either, as the legislature failed to approve a measure to reopen the 41 shuttered parks by the holiday weekend. But at least they can go to the track.