No tax relief means uncertain future

VERNON, N.Y. » On the final day of New York State Legislative Session Wednesday, the Senate and the Assembly each passed a measure to provide Vernon Downs with tax relief. Unfortunately for track fans and owner Jeff Gural, each group passed its own version of legislation and neither of the bills passed the full Legislature.

“I am extremely disappointed that the New York State Assembly failed to come to a compromise with the Senate to pass a bill that would guarantee the survival and future of Vernon Downs,” Gural said. “While the revised bill passed by the Senate provided us with less tax relief than we had originally asked for, it was a step in the right direction, as I certainly do not want to see 300 people lose their jobs.”

Significant financial pressures remain due to the fact that Vernon has a higher tax rate than any of its competitors. Moreover, competing casinos have taken revenue from the property, and caused Vernon Downs to lose on average about $170,000 per month since November.

The NYS Senate bill, co-sponsored by Sen. Joseph Griffo, R-47, would have allowed the Vernon Downs Racino to keep up to 7.5 percent of its net winnings for operational expenses. Additionally, the racino would be eligible for a capital award of up to 4 percent of its net gaming revenue. The bill passed the Senate on Wednesday but was referred to the Ways and Means Committee by the Assembly.

The NYS Assembly bill, sponsored by Assemblyman Anthony

Brindisi, D-119, and cosponsored by Assemblyman Bill Magee, D-121, among others, would have allowed the Vernon Downs Racino to keep up to 3 percent of its net winnings for operational expenses.

Like the Senate bill, Vernon Downs would be eligible for a capital award of up to 4 percent. Furthermore, language in the Assembly bill seeks a threeyear guarantee from Vernon Downs to the Gaming Commission that it will remain open for three years, and the track would be required to submit detailed revenue and expense reports to the state gaming commission, the governor, state Senate and state Assembly.

The Mohawk Valley Nine, a bipartisan coalition of state legislators representing Herkimer, Madison and Oneida counties, voiced their continued support for Vernon Downs.

The delegation says despite the apparent end of the 2017 legislative session, a return to the Capitol is expected and action to save Vernon Downs must be part of the agenda.

“The calendar says the 2017 legislative session is over, but there is unfinished business in Albany and a plan to save Vernon Downs is at the top of the list,” reads a joint statement. “We are committed to protecting this key Mohawk Valley business that employs 300 people, boosts our regional economy, and contributes $12 million a year to our public schools. It is a sure bet that we will return to the Capitol to tie up loose ends and, when we do, a long-term solution to support Vernon Downs must be enacted.”

The Mohawk Valley Nine is comprised of:

•Sen. James Seward (R50) – co-chairman

•Assemblyman Bill Magee (D-121) – co-chairman

•Sen. Joseph Griffo (R47)

•Sen. David Valesky (D53)

•Sen. Jim Tedisco (R-49)

•Assemblyman Marc Butler (R-118)

•Assemblyman Ken Blankenbush (R-117)

•Assemblyman Anthony Brindisi (D-119)

•Assemblyman Brian Miller (R-101)

Gural said he is grateful for the lawmakers who worked tirelessly to reach a compromise. Still, he said the Assembly only managed to pass a watereddown version of the bill that was originally proposed.

However, Gural says the Senate’s revised bill would only be in place two years, and would provide enough relief for Vernon Downs to stay open in the meantime. This would allow lawmakers to revisit the issue down the road, when Vernon Downs knows the true financial impact of increased competition from the addition of three regional casinos with table games.

Despite this disappointment, Gural said he is still hopeful for the passing of this legislation and the future of Vernon Downs.

“We remain confident that the Assembly will realize the importance of keeping Vernon open,” Gural said. “The closure of Vernon Downs would cost hundreds of hard working local employees their jobs, deprive the surrounding community millions of dollars in tax revenue and take away an entertainment destination that is enjoyed by the entire region. I personally asked the Speaker last year about the importance of helping upstate NY rebuild and he made it clear he understood the problems people face in these depressed areas of upstate NY. We continue to believe that our lawmakers in Albany will recognize our struggle and do what they can to help us continue our investment in this region. However, the longer Vernon Downs remains open without resolve, the more money we’re losing, and the closer we are to closing our doors.”