http://www.globest.com/news/1393_139...sector=newyork
SL Green Brings Suit Against Delaware North
By Cody Lyon
April 21, 2009
NEW YORK CITY-SL Green Realty and Aqueduct Development Partners LLC has initiated legal action, Friday, against Delaware North (DNC) related to the Aqueduct Race Track redevelopment project in Queens. In the complaint, SL Green says that among other things, DNC had "derailed" its bids to operate wagering and other facilities at three New York thoroughbred racing facilities.
Court documents filed by SL Green and its wholly-owned subsidiary, Aqueduct Development Partners LLC allege that DNC engaged in "unlawful conduct in misappropriating for its own benefit the rights to operate wagering and other facilities." The complaint goes on to say SL Green now seeks to "recover its damages, as well as the damages inflicted on its former affiliate Empire Racing Associates, LLC caused by DNC’s unlawful scheme."
A spokesperson for SL Green says in a statement that "Delaware North’s actions as outlined in the complaint, damaged SL Green and Empire Racing Associates shareholders significantly." The same statement adds "they also harmed the people of New York, given the VLT’s at Aqueduct otherwise could have been up and running by now and would be delivering revenue to the state at a time the state sorely needs it."
Reacting to the news, Delaware North president William J. Bisset says in his own statement that DNC was made aware of the litigation yesterday, but as of today, had not been officially served papers. He added that "based on what we have read in the press reports, it appears to be a desperate attempt by SL Green to try to enhance their standing in the re-bid process."
For its part, SL Green says that yes, it is in fact still interested in developing the project and is now reviewing the state’s instructions released last week in anticipation of the new proposal.
"We are in the best position to move forward with the project right away, especially given that we already have been fully vetted," says SL Green in a statement. "If given the go-ahead, we could be producing revenue for New York’s taxpayers within six months."