R. Donahue Peebles: ‘We Will Land Aqueduct Deal’ - Page 2 of 2
Entrepreneurship

R. Donahue Peebles: ‘We Will Land Aqueduct Deal’

would be paid within three years. We would build phase one with 1,200 slots and that would open up by the end of this year. Then the remaining facility would open within seven to eight months, essentially bringing us to August or September 2010 for the full facility to be operational.

We would have three years from March 31 of this year to pay the balance of the $270 million. And during that period, until the $270 [million] was paid, the state would get all of the profits from the gaming operation — so obviously it would be paying down debt significantly. And it would be likely that they would be paid from the operations within that three-year period anyway. The state initially had agreed to accept that. But the legal counsel to the governor ruled that it was enough of a change in our proposal to warrant litigation from the other two finalists. So in an effort to avoid litigation, they’re required to re-bid it out.

Delaware North offered $170 million more than the next highest bidder anyway. If they don’t believe that the governor has the authority to accept our revision then they will go back out and do a re-bid and the deadline would be March 31. By April 6, they will make a selection. So it’s a very short process. We firmly believe that we’ll have the best proposal again and win it again.

Some of the news reports say this deal is dead in the water.

These stories have gotten to the point where they’ve gotten so ridiculous that I made a decision not to talk to anybody. And I urged Delaware North not to as well. They just issued a news release and that was it. For what it’s worth, I haven’t spoken to any media. I’ve talked to no one about this. You’re the only interview I’ve done, and the only one I’m going to do. I have a [several] interests here. One, I want Gov. Paterson to succeed. Two, I’m a property owner and own a home in New York state, and I know the state needs the money. And three, I’m confident we can build a world-class facility and pay them the most money for it.

Further Reading

Credit Crunch Scuttles Aqueduct Racetrack Deal for Peebles, McKissack

Delaware North Recruits Minority Firms

Real Estate Mogul Celebrates Book Launch


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