After several deadline extensions, the New York Racing Association (NYRA) finally reached an agreement Feb. 13 with the governor, Senate majority leader and Assembly speaker, enabling it to continue operating thoroughbred horse racing at Belmont Park, Aqueduct Racetrack and Saratoga's racecourse for the next 25 years.

The awarded franchise is considered an important step toward getting NYRA out of bankruptcy. The agreement calls on the state to advance $105 million in financial support to assist NYRA in emerging from bankruptcy proceedings. The state's advance will be paid for through revenue streams from the new video lottery terminals (VLTs) facility approved for Aqueduct.

NYRA President Charles Hayward, a longtime racing fan since 1980, who lives five minutes from the Saratoga racetrack, said he knows how important the dynamics of a racetrack are to a community. And having attended the Senate hearing in Elmont some months back, Hayward said it was a humbling experience.

"I stayed through most of it. They banged on us pretty well and we probably deserved it. But we learned from that..." Hayward said, adding that he'd like to see several things that have been done at Saratoga to be used as an example of what could be done at Belmont Park.

The legislation, agreed upon just prior to another deadline extension, also allows for the installation of VLTs at Aqueduct, but not yet at Belmont Park, like some local officials had hoped.

"This agreement is a slap in the face to the Floral Park and Elmont communities," Assemblyman Tom Alfano, who, back in October, publicly announced his support of VLTs at Belmont because he believes they would bring increased revenue to the track and could be "just the spark" that Belmont Park needs to rejuvenate itself, said.

"The NYRA franchise agreement has no investment in Floral Park. There is no community board. There is no economic development. There is no investment in education. There is no plan to improve attendance at Belmont. And, there is cloudy oversight to an entity that has given our community no confidence in their ability to be a good neighbor," Alfano said.

The assemblyman continued, adding that NYRA has not treated communities surrounding Belmont Park fairly for decades, including Floral Park and Elmont. "Clearly, this agreement sends all the money, all the resources, all the community input and all the investment everywhere except Belmont. The governor should be ashamed that he negotiated this shabby deal. Only in New York could a governor give a 25-year deal to a franchise that ran the racing business into the ground and look people straight in the eye and say this is a victory," he said.

For more than two years, officials attempted to iron out goals for a final agreement that would essentially keep thoroughbred horseracing thriving in New York State. The newly agreed upon racing model aims to "reform the status quo" through more accountability and increased oversight.

"Today we have reached final agreement on a framework that achieves those goals," Senate Majority Leader Joseph Bruno, who represents Saratoga Springs and Rensselaer County, stated on his website. "As a result of this agreement, we have created a new economic model for taxpayers and have advanced new, positive opportunities for development. Future VLT revenues from Aqueduct and, ideally Belmont, will ensure greater resources for education, for NYRA and for the horsemen and breeders."

The improved framework Bruno speaks of also includes a Franchise Oversight Board evaluation every four years, examining NYRA's operations to assess whether or not it's met certain financial and performance benchmarks.

The Senate majority leader said he is pleased that ongoing discussions will be held on several issues, including ensuring that the communities in and around Saratoga, Aqueduct and Belmont have their voices heard.

Senator Frank Padavan, who is adamantly opposed to the installation of VLTs in Queens, said, "Make no mistake, this legislation sets a dangerous precedent and opens the door to more VLTs here in Queens ... I stand in steadfast opposition to placing VLTs in our community. As I have said before, we are only gambling our future away if these proposals are enacted," he said.

Padavan said his major point of opposition to the legislation is the establishment of over 4,500 new VLTs at Aqueduct Racetrack. Revenue from these VLTs will help fund a $105 million bankruptcy bailout for the New York Racing Association, he added.

Padavan, the author of numerous gambling reports, including the 2004 "All Gambling All the Time," stressed that the legalization of VLTs has led to the creation of mini-casinos or "racinos."

These racinos and VLTs have contributed to one of the largest problems facing New York as indicated by the New York State Council on Problem Gambling: New York State has the highest rate of problem gambling in the country, Padavan said.

"Many reports have shown that the most addictive form of gambling is video gambling or VLTs," Padavan continued. "Even the New York State Office of Alcoholism and Substance Abuse Services (OASAS) has raised a red flag with the growth of compulsive and problem gambling in our state. We should be focusing our efforts at creating solutions to the epidemic of compulsive gambling in New York, not feeding into the problem as the NYRA legislative deal and gambling proposals in the Executive Budget do."

New York State is currently negotiating with interested private parties to build and operate the VLT facility at Aqueduct, which, Governor Eliot Spitzer said, would relieve New York of the need to "expend state funds for the construction of the facility." The state expects to conclude these negotiations within approximately 30 days.

According to NYRA's website, if the state decides to operate the facility itself, the legislation authorizes the expenditure of up to $250 million for construction of the VLT facility at Aqueduct. VLT revenues from the facility would recoup the funds.

The installation of VLTs at Aqueduct is expected to generate over $300 million annually for education in the state, the governor said.

"Thoroughbred racing plays an important role in our economy, employing thousands of New Yorkers around the state," Governor Spitzer said in a press release sent to Anton Community Newspapers. "Today we have reached an agreement that represents the best vision for the future of the horseracing industry, and will ensure that operations at these tracks will continue uninterrupted and have the financial resources they need to thrive in the future."

Floral Park Mayor Phil Guarnieri said his village is relieved an agreement was made and that world-class thoroughbred racing will continue at Belmont Racetrack. "It would benefit no one to have a 436-acre park lay fallow and unused, providing, of course, that NYRA gets its financial house in order," Mayor Guarnieri said. "Moreover, with a long-term operator in place, perhaps we will now begin to see some of the policy and infrastructure changes needed for themselves, their neighbors and for racing and gaming in New York."

The mayor acknowledges, though, that there is still unfinished business to tend to. "We find it odd that while community advisory boards for each track were called for within the legislation that only the makeup of the Saratoga and Aqueduct boards were mentioned while Belmont was not addressed. We have every expectation that in the near future these items will be clarified and/or corrected. This being said, we expect Floral Park, in conjunction with our neighbors, will have a significant role to play on this board," he continued, adding that village officials look forward to forging a new and productive relationship with the new NYRA.

Senator Craig Johnson, although he could not be reached for comment, did, along with Assemblyman Alfano send a letter to Governor Spitzer stating: "For years, Belmont has stood as a major force in Nassau County, attracting people from around the nation to the Belmont Stakes, as well as a year-round facility for our local residents. Unfortunately, the track, under the management of NYRA, has failed to play the role of good partner with the surrounding community, specifically in Elmont ... As representatives of the people of our districts as well as the well-being of the State of New York and all of its interests, we hope to play a major role in building a new, better partnership between Belmont and the community as well as shaping the future of racing in the state."

NYRA's franchise officially expired Dec. 31, 2007. Just as early as Feb. 11, negotiations appeared grim, according to some. And if an acceptable _agreement wasn't reached by Thursday, Feb. 14, NYRA officials said they were ready to close the Aqueduct meet and potentially layoff hundreds of workers.

But because officials, just days later, were able to approve the final agreement just before another deadline extension loomed closer, future discussions will now take place on several issues, including the implementation of VLTs at Belmont and finding a realistic solution to the plight of off track betting (OTBs).