State Senate leader nixes hearing on Aqueduct deal

By JAMES T. MADOREjames.madore@newsday.comFebruary 22, 2010

ALBANY - The State Senate will not hold a public hearing to investigate the awarding of a lucrative contract to operate slot-like gambling machines at Aqueduct Racetrack in Queens, officials said Monday.

Sen. John Sampson of Brooklyn, the Democratic chief, rejected the hearing proposal by Sen. Dean Skelos (R-Rockville Centre), the minority leader. Skelos has been pushing since Feb. 3 for a public examination of how Aqueduct Entertainment Group came to be the choice of Gov. David A. Paterson and leaders of the legislature's Democratic majorities.

AEG is a consortium whose partners include the Rev. Floyd Flake, a former congressman from Queens and friend of Paterson, and Senate president Malcolm Smith (D-St. Albans). Flake's small stake has raised questions of possible conflicts of interest in AEG being chosen to install 4,500 video lottery terminals at Aqueduct.

AEG spokesman Jonathan Rosen said the group "won because its bid offered the best value for New York's taxpayers and the best plan for the residents of Queens."

State Inspector General Joseph Fisch is investigating.

Sampson said Monday that Fisch should be permitted to finish his probe. "The IG and everybody else is looking into this," the senator said. "I don't think there's a need for hearings now."

Sampson added there was no public examination of Delaware North Cos. after it was selected in late 2008 to run the Aqueduct facility. That selection was made by Skelos, when he was Senate majority leader, Paterson and Assembly Speaker Sheldon Silver (D-Manhattan).

But the Buffalo-based company backed out of the deal in March 2009 because it couldn't come up with the required $370 million upfront payment owed to the state.

Skelos shot back that Senate Republicans had called for a public forum in Queens about Delaware North. Referring to Flake, Skelos added, "There is probably a reason why Senator Sampson and Senator Smith don't want the public hearing, because people might find out why they supported the selection of AEG in the first place."