Relates to the disposition of certain revenue with respect to debt incurred in the redevelopment project at Belmont Park racetrack; authorizes the New York Racing Association, Inc. to enter into a repayment agreement with the state of New York for payment of bonds issued by the state for the renovation of Belmont Park.
STATE OF NEW YORK
________________________________________________________________________
10101--A
IN ASSEMBLY
April 29, 2022
___________
Introduced by M. of A. SOLAGES, PRETLOW -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the disposition of certain
revenue with respect to debt incurred in the redevelopment project at
Belmont Park racetrack; and to authorize the New York Racing Associ-
ation, Inc. to enter into a repayment agreement with the state of New
York for payment of bonds issued by the state for the renovation of
Belmont Park
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings. The legislature finds that it is in
2 the interests of the state to assist the franchised corporation pursuant
3 to section 206 of the racing, pari-mutuel wagering and breeding law, in
4 obtaining the financing the franchised corporation needs to renovate
5 Belmont Park. The legislature further finds that the cost of this
6 project is anticipated to be four hundred fifty-five million dollars and
7 that the state has the ability to issue personal income tax or state
8 sales tax bonds to generate such funds. The legislature further finds
9 that authorizing access to this financing will enable the franchised
10 corporation to make a major investment in Nassau County that will lead
11 to new job opportunities and bolster the local economy.
12 § 2. Issuance of certain bonds or notes. 1. Subject to the provisions
13 of chapter 59 of the laws of 2000, and consistent with any agreements
14 and leases between the franchised corporation designated pursuant to
15 section 206 of the racing, pari-mutuel wagering and breeding law and the
16 people of the state of New York acting by and through the state fran-
17 chise oversight board, but notwithstanding the provisions of any other
18 law, rule, or regulation to the contrary, the dormitory authority and
19 the urban development corporation are hereby authorized to issue
20 personal income tax or state sales tax bonds in one or more series for
21 the purpose of funding project costs for the Belmont Racetrack reno-
22 vation project and other state costs associated with such project. The
23 aggregate principal amount of bonds authorized to be issued pursuant to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15526-02-2
A. 10101--A 2
1 this section shall not exceed four hundred fifty million dollars,
2 excluding bonds issued to fund one or more debt service reserve funds,
3 to pay costs of issuance of such bonds, and bonds or notes issued to
4 refund or otherwise repay such bonds or notes previously issued. Eligi-
5 ble project costs may include, but not be limited to the cost of design,
6 financing, site investigations, site acquisition and preparation, demo-
7 lition, construction, rehabilitation, acquisition of machinery and
8 equipment, and infrastructure improvements. Such bonds and notes of the
9 dormitory authority and the urban development corporation shall not be a
10 debt of the state, and the state shall not be liable thereon, nor shall
11 they be payable out of any funds other than those appropriated by the
12 state to the dormitory authority and the urban development corporation
13 for principal, interest, and related expenses pursuant to a service
14 contract and such bonds and notes shall contain on the face thereof a
15 statement to such effect. Except for purposes of complying with the
16 internal revenue code, any interest income earned on bond proceeds shall
17 only be used to pay debt service on such bonds.
18 2. Notwithstanding any other provision of law to the contrary, in
19 order to assist the dormitory authority and the urban development corpo-
20 ration in undertaking the financing for project costs for Belmont Race-
21 track renovation project and other state costs associated with such
22 project, the director of the budget is hereby authorized to enter into
23 one or more service contracts with the dormitory authority and the urban
24 development corporation, none of which shall exceed thirty years in
25 duration, upon such terms and conditions as the director of the budget
26 and the dormitory authority and the urban development corporation agree,
27 so as to annually provide to the dormitory authority and the urban
28 development corporation, in the aggregate, a sum not to exceed the prin-
29 cipal, interest, and related expenses required for such bonds and notes.
30 Any service contract entered into pursuant to this section shall provide
31 that the obligation of the state to pay the amount therein provided
32 shall not constitute a debt of the state within the meaning of any
33 constitutional or statutory provision and shall be deemed executory only
34 to the extent of monies available and that no liability shall be
35 incurred by the state beyond the monies available for such purpose,
36 subject to annual appropriation by the legislature. Any such contract
37 or any payments made or to be made thereunder may be assigned and
38 pledged by the dormitory authority and the urban development corporation
39 as security for its bonds and notes, as authorized by this section.
40 § 3. Prior to, and as a condition to the state issuing the bonds
41 described in section two of this act, the franchised corporation shall
42 enter into an agreement with the state allowing the funds dedicated for
43 capital expenditures of the franchised corporation pursuant to paragraph
44 3 of subdivision f and paragraph 3 of subdivision f-1 of section 1612 of
45 the tax law shall be directed to the state for repayment of the debt
46 service on such bonds. The franchised corporation shall further agree
47 that should the corporation receive statutory payments pursuant to
48 subdivision three of section 1355 of the racing, pari-mutuel wagering
49 and breeding law, enacted for the specific purpose of holding the fran-
50 chised corporation harmless for any loss of payments pursuant to para-
51 graph 3 of subdivision f and paragraph 3 of subdivision f-1 of section
52 1612 of the tax law, these payments shall also be directed to the state
53 for repayment of the debt service on such bonds.
54 § 4. Contemporaneously with the state entering into agreements with
55 regards to issuing the bonds described in section one of this chapter,
56 the state and the franchised corporation are authorized to enter into an
A. 10101--A 3
1 agreement to determine how the franchised corporation should relinquish
2 its leasehold interest in real property located in South Ozone Park,
3 commonly known as Aqueduct Racetrack, back to the state upon substantial
4 completion of the renovation of Belmont Park.
5 § 5. The New York State Gaming Commission shall ensure that to the
6 extent that the law allows for a franchise agreement with a franchisee
7 other than the franchised corporation, the term of any such franchise
8 agreement awarded after the issuance of any bonds described by section
9 two of this act includes a provision by such franchisee that such fran-
10 chisee will continue to pay the funds required by section three of this
11 act.
12 § 6. The opening paragraph of paragraph 3 of subdivision f of section
13 1612 of the tax law is designated subparagraph (i) and a new subpara-
14 graph (ii) is added to read as follows:
15 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event
16 of the issuance of state personal income tax revenue bonds or state
17 sales tax revenue bonds related to the redevelopment project at Belmont
18 Park racetrack, the amount payable to the franchised corporation for
19 capital expenditures pursuant to subparagraph (i) of this paragraph
20 during any state fiscal year shall instead be deposited into the state
21 general fund up to the amount required to cover any debt service costs
22 incurred by the state in relation to such debt during such fiscal year.
23 Any amount set forth in subparagraph (i) of this paragraph in any fiscal
24 year in excess of the annual debt service costs on such debt shall be
25 deposited in the account of the franchised corporation pursuant to
26 subparagraph (i) of this paragraph; provided, however, that in the event
27 the amount set forth in subparagraph (i) of this paragraph in any fiscal
28 year is less than the debt service cost incurred by the state in
29 relation to such debt, the difference shall be added to the amount to be
30 deposited to the state general fund in the following state fiscal year
31 pursuant to this subparagraph. Once the state has been fully reimbursed
32 for such debt service costs related to the redevelopment project at
33 Belmont Park racetrack, subparagraph (i) of this paragraph shall apply.
34 § 7. The opening paragraph of paragraph 3 of subdivision f-1 of
35 section 1612 of the tax law is designated subparagraph (i) and a new
36 subparagraph (ii) is added to read as follows:
37 (ii) notwithstanding subparagraph (i) of this paragraph, in the event
38 of the issuance of state personal income tax revenue bonds or state
39 sales tax revenue bonds related to the redevelopment project at Belmont
40 Park racetrack, the amount payable to the franchised corporation for
41 capital expenditures pursuant to subparagraph (i) of this paragraph
42 during any state fiscal year shall instead be deposited into the state
43 general fund to the extent necessary to cover, when combined with the
44 amount set forth in subparagraph (ii) of paragraph three of subdivision
45 f of this section, any debt service costs incurred by the state in
46 relation to such debt during such fiscal year. Any amount set forth in
47 subparagraph (i) of this paragraph in any fiscal year that, when
48 combined with the amount set forth in subparagraph (ii) of paragraph
49 three of subdivision f of this section, is in excess of the annual debt
50 service costs on such debt shall be deposited pursuant to subparagraph
51 (i) of this paragraph; provided, however, that in the event the amount
52 set forth in subparagraph (i) of this paragraph in any fiscal year when
53 combined with the amount set forth in subparagraph (ii) of paragraph
54 three of subdivision f of this section, is less than the debt service
55 cost incurred by the state in relation to such debt, the difference
56 shall be added to the amount to be deposited to the state general fund
A. 10101--A 4
1 in the following state fiscal year pursuant to this subparagraph. Once
2 the state has been fully reimbursed for such debt service costs related
3 to the redevelopment project at Belmont Park racetrack, subparagraph (i)
4 of this paragraph shall apply.
5 § 8. This act shall take effect immediately.
