Gov. Andrew Cuomo just might be onto something: Closed-door deals work.
They work in business, so why not government, especially for a cash-poor state such as New York that is trying to nurture an environment conducive to public-private partnerships.
A closed-door deal worked last month when the tax overhaul was pushed through with speed not seen since the deals made by Gov. Nelson Rockefeller, Albany Mayor Erastus Corning and Democratic party boss Dan O”™Connell to build the Empire State Plaza. And a closed-door deal will probably work again with the building of a convention center ”“ not just any convention center, but the largest in the nation ”“Â that is proposed to be built at Aqueduct Raceway in Queens.
Cuomo first announced the convention center in his State of the State address, which conveniently dovetailed into another part of his address ”“ his plan to amend the state constitution to legalize gambling. You see, the Genting Group, which paid New York state $380 million to run the racino at Aqueduct, has deep pockets and an extensive knowledge of the gaming industry worldwide.
No need for only American Indian tribes to pocket gamblers”™ losses.
“It”™s estimated that over $1 billion of economic activity from gaming can be generated in our state,” Cuomo said.
In a letter to legislative leaders last week concerning the convention center, Cuomo wrote, “The reward is approximately 10,000 construction jobs, 10,000 permanent jobs and $4 billion investment in the state. This investment would be one of the largest in the state”™s history at no cost to the state.
“A new convention center also frees the Javits site for redevelopment. I think the merits are clear.”
The merits are monetarily clear and so is the moral: The ends justify the means. At least we hope they do.
However, transparency remains one of the foundations of good government and we would have hoped that the development of the convention center would have gone out to bid in the spirit of competition.
The governor has taken the bull by the horns ”“ he has no tolerance for a plodding state Legislature. When he was elected, he made it clear that he was the new sheriff in town and Assembly Speaker Sheldon Silver would be relegated to undersheriff. The days of Silver strong-arming David Paterson or Eliot Spitzer or George Pataki were over. We now have a strong governor who has no problem flexing his political muscle.
But perhaps he felt public perception of his pronouncement of building the nation”™s largest convention center sounded a bit too imperious. Or maybe it was his statement about “a reimagined government that can make our plans a reality.” Or maybe editorials concerning his rush to build.
Whatever the reason, he felt compelled to write to the state leaders:
“In the past selection of gaming operators, racetrack issues, VLT designations have raised serious ethical and legal issues for the state. To be sure, the state”™s current gaming arrangements are varied and controversial. I look forward to the opportunity to bring a logic and strategy to gaming operations in the state over the next two years through development of casino legislation and regulations.
“In the interim, any transaction that the state makes with Genting or any modifications to the current state agreement will be submitted to the Legislature for full review and action before becoming binding. Given the past history, while I may have the legal authority to proceed unilaterally, I choose to only proceed in full public view and with support of the Legislature in a spirit of cooperation.”
Take note, dear legislators, it appears the governor may have fired a warning shot across your bow.
When it comes to economic development and the future of the state, the lawmakers should heed his words and actions and keep in mind, the house always wins.
