Delaware North to break ground on Aqueduct Video Lottery Terminal

According to Governor David Paterson, Delaware North, which was selected to operate the Video Lottery Terminal (VLT) facility at the Aqueduct Racetrack, will add 50 jobs at its Buffalo-based headquarters and will look to break ground on the new facility in Queens by early 2009. The selection of Delaware North was made by governor Paterson, speaker Sheldon Silver and senate majority leader Dean Skelos last week. As part of Delaware North's proposal, the development of the Aqueduct VLT facility will include the participation of two of the nation's most prestigious minority and women's business enterprises. Delaware North will invest $370 million up-front to build and operate the VLT facility. As part of the development package, Delaware North will use the services of the Peebles Corp., one of the nation's largest African-American-owned real estate development companies, and McKissack & McKissack, one of the nation's oldest African-American, woman-owned professional design and construction firms. "Delaware North is a New York company, and I am delighted that we could help ensure that they stay here for a long time to come. This development is about sound investment in our state, which is critical at a time when our economy is reeling," said governor Paterson. "Delaware North employs thousands of New Yorkers, from Buffalo, across Upstate and in New York City. Smart investment is when we put faith in those who have put their faith in New York state." Funds from the VLT facility at Aqueduct will provide sustained resources for elementary and secondary education, while also supporting the operation and improvement of the three thoroughbred racing facilities. Once operational, the VLT facility is expected to bring in at least $8.2 billion for education over the next 30 years. According to the current education funding formula, the Buffalo city school districts would receive allocations of $4.4 million and Erie County school districts would receive $11.8 million during the first year that video lottery terminals are up and running. On April 23, 2008, the state's MOU relating to the VLT franchise at Aqueduct Racetrack was given to each of the bidders, who were asked to submit a best and final offer to the executive and legislative leaders. The three bidders-Capital Play, Delaware North and SL Green-each submitted a proposal and made an extensive presentation to state leaders on April 30. Since then, the offices of the governor and legislative leaders have engaged in an extensive due diligence review of each of the three bids. Their offices were aided in that review by the NYS Division of the Lottery and the Office of the NYS Inspector General as well as the NYS Division of the Budget and the Empire State Development Corp., which both conducted a financial analysis of each of the three bids. Aqueduct Gaming LLC is a partnership between Delaware North Companies, Saratoga Gaming and Raceway, the Peebles Corp., McKissack & McKissack and Mason Capital. Delaware North Companies is one of the world's leading hospitality and food service providers. The company is one of the largest and most admired privately held companies in the United States with revenues exceeding $2 billion annually and 50,000 associates serving half a billion customers in the United States, Canada, the United Kingdom, Australia and New Zealand.