Serious NYRA question...

[PaceAdvantage]

Only serious replies will be accepted...no bashing....no BS.

Recently, we have seen NYRA come under fire for hiring a bankruptcy firm to handle matters in case NYRA becomes insolvent. The new NY State Racing oversight board has complained that nobody consulted them before NYRA went and hired this firm. They are also complaining that NYRA doesn't own the property they are looking to sell in order to raise funds to cover costs for the next few months.

In any event, I have a good question (I think it's a good question).

A number of years ago, land was SOLD OFF (much in a similar way that NYRA wants to sell off more land today) from the AQUEDUCT parking lot to HOME DEPOT, so that Home Depot could build a store. The land was sold, the store was built, all was well.

I believe additional land was also sold to the Port Authority a number of years back for use at JFK airport, which is right next to Aqueduct.

This all begs the question, WHAT PROCEDURES WERE FOLLOWED when this land was sold? Did NYRA just sell the land outright and pocket the $$$? Did they have to consult with any state agencies?

Like I said, this happened many years ago, before anyone was investigating NYRA, or any federal monitors were in place. I believe if you can answer the question posed in this thread, you will solve the mystery of "Who owns the land upon which NYRA sits?"

[karlskorner]

http://news.bloodhorse.com/viewstory.asp?id=30896

Prior to the Oversight Board, nobody was really watching NYRA. Maybe, just maybe they sold something that wasn't really theirs. Don't think it hasn't been done before, hundreds/thousands of times. The question did they sell something they did not own and where did the money go certainly will come up in near future.

[PaceAdvantage]

That article never addresses what happened years ago with the Port Authority and Home Depot.

I've bought and sold land before. It's not easy to sell land that isn't really yours.

Still waiting for answers....

[Tom]

Sure sounds like precedent has been set - an important point in law. did NYRA get the money from the sale? If so, a strong argument can be made that they own it.

[Figman]

Here is a question?

NYRA is a non-profit racing association that has been granted a franchise by the State of New York.

If the franchise is taken away what "legal standing" does NYRA have should it challenge its fate in litigation? It is no longer an entity of any type.

[PaceAdvantage]

Figman, this will steer the discussion away from the topic, which I am trying to avoid. However, does NYRA ONLY exist because of this franchise? I don't think so....especially if they DO own the land....

[Tom]

Not go to far off, but if NYRA owns the land, building, etc. someone else can get the franchise, but they will not get the brick and morter. NYRA could lease it out, sell, whatever. What good a franchise without the tracks themselves?

[Figman]

NYRA is a nonprofit racing franchise that came to being in 1954 when the four operatring thoroughbred racetracks in NY were saved from financial demise by the State. See #2 below from the section of the Racing Law applicable to NYRA:
§ 202. Incorporation of nonprofit racing associations on or before
June twenty-fifth, nineteen hundred eighty-three. On or before June
twenty-fifth, nineteen hundred eighty-three nonprofit racing
associations may be incorporated under this article for the purpose of
conducting races and race meetings at the thoroughbred racing facilities
located in Queens county, Saratoga county or jointly located in Nassau
and Queens counties and known as Belmont Park racetrack, Aqueduct
racetrack and Saratoga thoroughbred racetrack, improving the racing
facilities, increasing the conveniences available to patrons and serving
the best interest of racing generally and improving the breed of horses.
Notwithstanding any provision of law to the contrary, a non-profit
racing association incorporated under this article may apply to the
board for a license to conduct harness racing at any of its facilities
and the board may grant such license in accordance with the provisions
of article three of this chapter. The certificate of incorporation of
such nonprofit racing association shall contain in addition to the
statements required by section two hundred one of this chapter:
1. The provision that no assets of such association shall be paid or
distributed on its capital stock by way of dividend or otherwise or be
used for the purchase or retirement of its capital stock.
2. The provision that upon termination of the existence or earlier
liquidation of such association all of its assets after payment of or
provision for its liabilities will be assigned, transferred and conveyed
and distributed by the governor then in office in accordance with
applicable provisions of law.

[PaceAdvantage]

Yes, but losing the franchise wouldn't necessarily terminate or liquidate NYRA, if you want to go by the letter of the law.

Now, let's get back to how the sale of land was handled years ago with the Home Depot / Port Authority sales....

[WINMANWIN]

I read the other day that the Port Authority is allocating like 550 parking spots to N.Y.R.A. I dont know why, I believe it may have mentioned more land would be allocated when the slots are On-line. Is it possible that the Port Authority is leasing some land from them ? Bill Nader probably knows the scoop, he's friendly and very personable, betcha you can talk to him personally. Good Luck, Hope them precious paintings that they want to Auction off fetch some money for them, things are looking bleak. ;)

[PaceAdvantage]

I tried researching online, but could find nothing about the sale of land to Home Depot and/or the Port Authority. Surely there must be someone out there familiar with what went down about 10 years ago.....anyone? Bueller?

[the little guy]

I'll ask Bill tomorrow or Tuesday, and if he doesn't mind, I'll repeat what he tells me here.

[weegee]

The catalog for the auction is up at www.sothebys.com (http://www.sothebys.com) (you'll have to log in). Not all of the paintings are NYRA's so you'll have to guess which are theirs. I'm thinking they are the first bunch listed.

[eclecticapper]

As a native New Yorker, I was still in NY when Cuomo proposed the sale of Aqueduct in its entirety to the Port Authority. The idea was to use the proceeds of the sale (I think it was to be for $200 million) to help Cuomo balance the budget, while the Port Authority would then lease the land back so racing would still be conducted. Cuomo was not able to sell others on this deal (using accounting tricks to mask budget deficits is generally considered a bad idea), but a portion of land was eventually sold to the Port Authority. Unfortunately, this all happened more than a decade ago so my memory for the details is rather hazy. I believe the interpretation at the time was that Cuomo could not take action without NYRA's consent. Hopefully, this will jog someone else's memory.

[weegee]

I do remember it, though not in detail. Cuomo tried to bully NYRA into going along with it by threatening to stack the board of trustees with his political appointees who would then okay the deal. I know the Port Authority didn't want to do it. Not sure why it fell through except that it was such an obviously bad idea that Cuomo could get no support for it. He had to settle for the sale of 23 acres to Port Authority and 12 acres for a Home Depot, yielding $54 million. The community was not happy that they were excluded from the decisions. They apparently consider the track preferable to what could replace it. So I wonder how they feel about slots.Sometime around 1991-1992, there was a commision to look into the future of NY racing, and Steve Crist was on it. I believe they made many of the same recommendations put forward now.

[Zman179]

NYRA has paid millions of dollars to New York State in the form of property taxes.

My question is: Why would an entity pay property taxes on property that it doesn't even own? When land was sold to Home Depot and the Port Authority of NY and NJ, it was in the newspapers and all, in other words it wasn't hidden.

It sure seems to me that NYRA owns the property; you KNOW that this'll wind up in court eventually.

[NYPlayer]

Here is a question?

NYRA is a non-profit racing association that has been granted a franchise by the State of New York.

If the franchise is taken away what "legal standing" does NYRA have should it challenge its fate in litigation? It is no longer an entity of any type.

I tend to agree. if there was a good case to be made by any legal precedent by the prior sale of land or otherwise, NYRA would probably have exploited it by now.

[Figman]

Anybody see the story on the front page of the Wednesday NY POST newspaper about "The Love Judge?" The prosecutor involved whose picture is on the front page is one Meryl Lutsky.

Could this be the same Meryl Lutsky that compiled the scathing NYRA reports? See last paragraph of this story.
http://www.oag.state.ny.us/press/2003/jun/jun14a_03.html

[Figman]

And is resposible for prosecuting the "Clerk of Scales" fiasco.
http://www.oag.state.ny.us/press/2005/sep/sep21b_05.html

[weegee]

Gee, I hope so. How did you remember that, Figman?