An attorney for the Village of Floral Park outlined a series of legal hurdles the village thinks a proposed video casino at Belmont Park must face in a letter last month to the state Franchise Oversight Board.
In the Feb. 23 letter to Robert Williams, chair of the state Franchise Oversight Board that oversees development at Belmont Park, attorney Michael Murphy of the Manhattan law firm Beveridge & Diamond argues state law would have to change for Nassau Regional Off-Track Betting Corp.’s casino plans to go forward.
State tax law explicitly prohibits video lottery terminals, or VLTs, at Belmont Park, the letter says.
Nassau OTB aims to use a provision in the New York Racing Authority’s lease for the Elmont racetrack, which the Franchise Oversight Board owns, to “circumvent the express statutory prohibition,” Murphy wrote.
The lease would allow the state to “recapture” the eight-acre parcel north of Hempstead Turnpike for OTB to build a 100,000-square-foot VLT parlor, or by another developer for “any other purpose complementary to horse racing,” such as a hotel or resort.
Nassau OTB also plans to construct a temporary facility with 1,000 VLTs while it awaits approval from the state Legislature for the permanent video casino.
But the tax law’s prohibition qualifies as a “statutory requirement” with which any Belmont Park would have to comply under the recapture provision, Murphy wrote.
The lease also requires a competitive bidding process before the state can recapture the land, and Murphy argued there’s “no basis to avoid” that requirement.
Plans for a temporary or permanent VLT parlor would be subject to the State Environmental Quality Review Act, the letter says.
Murphy argued the environmental review must consider the VLT proposal in conjunction with potential development of the 28-acre parcel south of Hempstead Turnpike.
“The communities surrounding Belmont Park have the right to understand the scope and impacts of development on both parcels and not merely (Nassau OTB’s) proposal in isolation,” Murphy wrote.
Nassau OTB told Newsday its attorneys are reviewing Murphy’s letter.
The agency announced Belmont Park as its chosen site for a VLT facility in December.
The site has met strong opposition from residents and officials in Floral Park, Elmont and other nearby communities since then.
Opponents argue a casino would increase crime and traffic, decrease property values and otherwise harm the surrounding area.
Proponents, including Republican Nassau County legislators and OTB employees, say a casino would bring much-needed revenue to the county and create quality jobs.
Nassau County Executive Edward Mangano has included $15 million in casino revenue in his 2016 budget.
The Village of Floral Park retained Beveridge & Diamond to fight OTB’s plans in court.
OTB has not formally submitted its proposal to the Franchise Oversight Board, Floral Park Mayor Thomas Tweedy said.
Tweedy has asked the board to notify the village when OTB submits its plans.
The village will file a lawsuit once that happens, he said.
