Batavia Downs

Press release:

Registration begins today (July 22) for one of the most popular promotions of the season at Batavia Downs Gaming -- the annual dachshund or “wiener dog” races, which will be held on Sunday, Aug. 23.

Sponsored by Genesee Feeds of Batavia, a total of 10 heats will be contested with eight wiener dogs competing in each. The first race will begin after the last live harness race of the day, which will be approximately 4:20 p.m. The wiener dog races are the final feature of Family Fun Day at the races. The 2015 live harness racing season gets under way on Monday, July 27.

Last year, Kristy Drabek’s 2-year-old dachshund named Brinkley stormed down the stretch of America’s oldest lighted harness racetrack to win the championship final after competing for the first time ever. The official margin of victory was a half (dog) length. Six-year-old Pablo Penders, owned by Adrienne Penders, surged at the wire to nip 5-year-old early leader, Ruby, owned by Sarah Farley, for second.

The first 80 dogs entered will receive a canine gift bag courtesy of Genesee Feeds of Batavia. But the dogs won’t be the only winners here; their human counterparts are in line for a nice payoff as well. Each “puprietor” will be eligible to receive some nice prizes if their pet pooch proves prolific.

The owners of each heat winner (10 in all) will receive $25 in gaming free-play. And the winning, second and third place owner in the championship final will receive $100, $75 and $50 in gaming free-play respectively along with two complimentary clubhouse buffets each as well.

To register or for more information, all owners should call Arna Tygart at 585-343-3750, ext. 437, during regular business hours.

Dealing just with hard numbers -- setting aside speculation on hoped-for new revenue and "the multiplier effect" of jobs created -- the tax abatement plan approved Thursday by the Genesee County Economic Development Center Board for a new hotel at Batavia Downs should be profitable for taxpayers, according to data obtained by The Batavian from a GCEDC staffer.

The abatements will save developers about 11.5 percent on their $5.49 million investment, and the new taxes the project generates will be about a 100-percent return to taxpayers, if you accept the notion that the project doesn't get built at all without the tax incentives. If not, it's at least 42-percent return.

By law, the developer must certify that the project requires a tax break to be feasible, according to Rachael J. Tabelski, marketing and communications director. That is a requirement for all projects considered by the GCEDC.

"We have to trust the applicant that when they say this project won't be a viable project without the tax incentives," Tabelski said.

ADK Hospitality, the hotel's developer, will save $638,000 in taxes over the next 10 years, but it won't be getting off totally free. The hotel's owners, over the next 10 years, will pay $1.1 million in various taxes.

Tabelski was quick to point out that the $638,000 in tax breaks is not money taken from taxpayers. It's just money that isn't paid to the government; money that doesn't exist if the project isn't built. Thus, the $1.1 million in taxes ADK will pay over the next decade is all new revenue for schools, the county and the state (but not the Town of Batavia, which doesn't have its own tax on property).

That figure doesn't include sales tax generated by the hotel, or any anticipated increase in sales tax generated by the hoped-for increase in business at Batavia Downs. It also doesn't include employment taxes generated by the anticipated $600,000 in payroll for 25 full-time equivalent new hires at the hotel. 

The developers told the GCEDC Board that the project would generate a total of $2.8 million in tax revenue between now and 2025, but there isn't a breakdown available on what categories of taxes comprise that total. It likely covers fire district, property, bed tax, sales tax and payroll tax.

The $1.1 million in hard numbers we have includes:

• $56,000 paid to the Town of Batavia Fire District;
• $550,000 paid in county bed taxes;
• $500,000 paid in property taxes over the life of the PILOT.

A PILOT is a tax break given to developers of projects that industrial development agencies, such as GCEDC, believe will create or retain jobs. It is a reduction in taxes on the increase in assessed value of a property.

Let's say a property is valued at $100,000. A business ads a new wing to its building and increases the assessed value to $150,000. The business continues to pay all property taxes on the initial $100,000 in assessed value, but gets a reduction in taxes on that additional $50,000. PILOT agreements vary, but typically, there would be no taxes due the first two years of the increase, and then taxes would be incrementally increased every two years until the 10th year, when the property owner is paying the full tax bill on the increase in assessed value.

In the case of the hotel property, the developers are buying land from Western OTB, which is currently tax-exempt and has no assessed value. It will be assessed next year, and its assessed value will go from zero to whatever that assessed value is, and the PILOT will be calculated based on that increase, unless the project is not yet completed, in which case there will be only a partial assessment with a full assessment to come during the next annual assessment period after the project's completion.

The PILOT on this project is worth $300,000. The remaining abatements are for the mortgage tax on the purchase and on the sales taxes due on material purchased during construction.

As for the multiplier effect, that's a controversial notion to some, but the idea is that if you create a new job and pay that person money, they will spend some amount of that money locally, and the churn of that money will help pay other people's wages, lifting everyone's boats. That $600,000 in new payroll could be worth millions in economic growth locally.

These figures also don't include wages paid to construction workers and purchases made from local vendors -- if any -- during construction.

The Genesee Economic Development Center Board voted unanimously to approve ADK Hospitality’s application for approximately $638,000 in tax exemptions during a special meeting this afternoon.

ADK is planning to build an 84-room hotel connected to the Batavia Downs gaming facility. The investment is estimated at $5.49 million.

The board agreed with ADK Hospitality that the project falls under the tourism destination requirement with the general municipal law, which states the destination must bring in outside traffic.

In response to the Clarion Hotel’s opposition to the project, Steven Hyde, GCEDC president and CEO, stated that ADK’s project application was different from the Clarion’s project application submitted in 2012.

According to GCEDC records, the Clarion Hotel submitted an incentive application for window and stucco upgrades to their facility as well as debt refinance. Staff responded to the application and said the project may not meet law requirements to enhance the destination and attract more visitors. The Clarion Hotel then removed its application.

For ADK's project, Hyde stated many full-fledged casinos offer lodging and the hotel is a good opportunity to increase traffic at Batavia Downs.

“Today we’re looking at brand-new construction, a new feature integrated to the destination and a market study that confirms the projections will meet law requirements,” Hyde said.

Wolcott Hinchey, chairman, thinks the hotel will significantly contribute to continued growth and economic development in Genesee County.

“One of the things that I liked about this project is that we’re taking a tax-exempt property and selling it to a private developer and putting a property in the Town of Batavia back on the tax rolls,” Hinchey said. “I think the benefits of the project to the community outweigh the negatives.”

Michael Nolan, vice president of Western Regional Off-Track Betting, is looking forward to starting hotel construction.

“The staff here has been wonderful with looking at every detail of the project and what it will mean to the community,” Nolan said. "We can’t thank them enough for all the professionalism that they displayed throughout the whole process. As soon as the legal work dealing with the closing of the property is complete, we will start construction at the Downs.”

In addition to ADK's project, the GCEDC approved an application submitted by Manning Squires Henning Co. for approximately $170,000 in tax exemptions to expand its facilities. The company plans to add 5,000 square feet and renovate its existing shop and office space. The project’s investment is approximately $1.3 million.

An attorney representing the Clarion Hotel and members of the community voiced concerns regarding the application submitted by ADK Hospitality, LLC, to Genesee County Economic Development Center for incentives to build a hotel at Batavia Downs.

A public hearing was held Monday night by the GCEDC to gain input from the community on the application they received from ADK, a private developer seeking to build a hotel at Batavia Downs, requesting approximately $630,000 in incentives.

Vivek Thiagarajan, attorney representing Clarion owner Chat Patel, argued that when his client looked into applying for GCEDC incentives to build the Palm Island Indoor Waterpark in 2012 he was told the project would be denied funding because it was not considered a tourist destination. Thiagarajan argued that ADK's hotel is not a tourist destination and Batavia Downs should not receive tax incentives either. 

"There is no tourist destination about the hotel itself," Thiagarajan said. "Maybe the name makes it look like it's affiliated with Batavia Downs but the hotel is merely just like any other hotel. As a result, the public shouldn't be forced to fund something that only benefits the private owners of that hotel."

Thiagarajan also argued that the purchase price of $600,000 is less than the $630,000 in incentives the project would receive from the GCEDC.

In addition to Thiagarajan's opposition, John Sackett, a past county legislator, questioned whether the hotel would create full-time jobs and believed the hotel should be built without incentives.

A representative from the Northeast Regional Council of Carpenters expressed concern over whether Batavia Downs and ADK would use union construction workers to build the hotel. The union agreed it would support the hotel project if union construction workers were used.

A variety of local businesses wrote letters in support of the proposal. The businesses included Sport of Kings Restaurant, Harness Horse Breeders of New York State, Sloat Tire Shop, Genesee Feeds, Nothnagle Realtors, Genesee County Chamber of Commerce, WNY Harness Horsemen's Association and U.S. Foods. The businesses stated that Batavia Downs is a primary asset for attracting tourism and the addition of the hotel would bring more people and business to the community.

Anthony Baynes, managing member of ADK, provided details on the hotel project and the economic impact it would have on Genesee County. In the presentation, Baynes stated the $5.5-million hotel will be a four-story structure with 84 rooms. Itl will also be connected to Batavia Downs Gaming and complement the design elements of the new gaming entrance. There will be no restaurant or bar in the hotel.

"The hotel will positively impact Batavia Downs and local tourism on a permanent basis," Baynes said. "It will generate incremental gaming, banquet, food and beverage revenue at Batavia Downs, which will result in increases in tax collection, jobs preserved and additional jobs created."

According to Michael Nolan, vice president of Western Regional Off-Track Betting, the corporation that owns Batavia Downs, the hotel will help the gaming industry expand and allow them to compete with other casinos that are building hotels.

The hotel will result in the creation of 23 jobs. There also will be more job growth due to the number of wedding and conventions Batavia Downs will host because of the hotel.

"We think our banquet facility is going to multiple 10 times due to the hotel," Nolan said. "It's well within reason that there will be 50 jobs coming with the addition of the hotel."

According to statistics provided by Hotel & Leisure Advisors, a national hospitality consultant firm, the total impact of the new gaming revenue, new food and beverage sale and increased banquet business will be $2.6 million for the first year of operation. In the first 10 years of operation, the impact will be $31 million.

The GCEDC Board of Directors is having a special public meeting to consider a final resolution for the project. The meeting will be held at 11:15 a.m. on Thursday at the Innovation Zone Conference Room at MedTech Centre.

Press release:

The Board of Directors of the Genesee County Economic Development Center (GCEDC) has scheduled public hearings on June 22 and June 23 for project applications submitted by ADK Hospitality, LLC, and Manning Squires Henning Co., Inc. The public hearings are required because both projects have applied for incentives totaling more than $100,000 from the GCEDC.

A public hearing for ADK Hospitality will be held at 7 p.m. on Monday, June 22 at Batavia Town Hall. The company is proposing to build an 82-room hotel connected to Batavia Down’s gaming facility. ADK Hospitality is seeking an estimated $638,193 in sales tax, mortgage tax and property tax exemptions. The planned capital investment is approximately $5.49 million.

A public hearing for Manning Squires Hennig Co. will be held at 4 p.m. on Tuesday, June 23, at Batavia Town Hall. The company is proposing to expand its corporate offices and maintenance facilities in the Town of Batavia by up to 5,000 square foot. Manning Squires Hennig Co. is seeking an estimated $170,556 in incentives.

Press release:

Representatives from Western Regional Off-Track Betting Corporation (WROTB) announced today that wagering at WROTB on Saturday’s Belmont Stakes totaled $1,168,559.  American Pharoah captured the first Triple Crown in 37 years. This was down just 6.2 percent from last year’s handle of $1,246,239 while nationwide; handle was down 10.5 percent versus last year. The 2014 race featured three more horses, which increased wagering. Batavia Bets.com, WROTB’s online wagering platform, had handle of over $110,000 for the day, up 28 percent from last year.

“It was great to see a Triple Crown winner. Those watching at Batavia Downs and our Branches were witness to a great horse fulfilling his destiny," said Batavia Downs and WROTB Marketing Director Ryan Hasenauer. "I have no doubt that if this race had more horses, we would have beaten last year’s numbers.”

“Kudos to the connections of American Pharoah, they did a great job with the colt,” said GM of Live Racing and OTB Handicapper Todd Haight. “Hopefully we’ll get to see him race a few more times this year before he heads to the breeding shed to begin his next career. In any event, we can all look forward to seeing his offspring run.”   

TV viewing ratings topped a 12.3 rating with a 27 share. It was the first time in back to back years that the Belmont had higher than a 12 rating.​

Tonight was the Festival of Hope at Batavia Downs. Among the events, a 5K run and walk.

Officials at Western OTB think the odds of hitting a jackpot are better if their proposed hotel overlooks the Batavia Downs racetrack.

It is, after all, the oldest lighted harness racing track in America and the reason Batavia Downs exists in the first place.

Shoehorning it into the constrained space around the track, however, will require some bending of the rules.

There are zoning variances needed to lot size, lot frontage, front, side and rear setbacks and building height.

The scope of the variances prompted county planning staff to recommend disapproval of the project.

After Western OTB VP Mike Nolan pleaded with the board to support the project, saying it's the only viable option to ensure Batavia Downs continues to thrive and generate millions of dollars for the local economy, planning board members were unwilling to say no to the plan. They also didn't say yes.

The board took no action and the plan is now kicked back with no recommendation to Town of Batavia planners. It will be up to the town's Planning Board to decide whether to grant the variances.

Yes, Town of Batavia, not City of Batavia.

When the hotel plans were first announced, for the 80- to 100-room hotel, officials were talking about a location on the south end of the track, near Tops Plaza, but Nolan said further study on that location indicated it just wasn't viable. It's simply not big enough.

The current proposed location is on the north end of the track and would require the removal of some of the current paddock area.

It's critical, Nolan said, that the hotel be attached to the gaming facility and that it have suites with balconies overlooking the track.

A board member asked, why not in the parking lot on the west side of Park Road?

"It's important that horse racing stays strong and vibrant," Nolan said. "Over in the parking lot, it wouldn't have the same appeal as overlooking the oldest lighted harness racing track in America."

The target audience for the hotel aren't travelers passing through the area, but people willing to travel to Batavia specifically to place bets on races and drop coins in slots.

The desk for the hotel would, in fact, be in the gaming facility itself. (Some of us might call it a casino, but the state's compact with the Senecas prohibits Batavia Downs officials from calling it a casino).

The gaming environment in WNY is getting more competitive, Nolan said, and with the Senecas planning a new $400-million casino a short drive away, it's critical Batavia Downs up its wager on local gaming. Western OTB recently completed a $28-million upgrade to Batavia Downs and the hotel represents the next phase in making Batavia Downs more attractive to gambling dollars.

The land for the hotel would be sold to private investors who would own the hotel and operate it as a franchise of a national hotel company.

Nolan noted that when Western OTB took over Batavia Downs, since Western OTB is a public benefit corporation, it took $3 million in assessed value off the tax roles. The new hotel would be assessed at something in the neighborhood of $7 million, and while tax abatements used to help fund development would delay the full value of that tax levy being realized by some local governments, eventually it would generate substantial tax revenue for the county and school district.

Even if the private developers decided to eventually sell the property and Western OTB became the owner, the property would stay on the tax roll, Nolan said.

Press release:

Representatives from Western Regional Off-Track Betting Corporation (WROTB) announced that total wagering at WROTB on Saturday’s Kentucky Derby topped out at $1,930,585.30 with payouts of 2,067,622.80. Wagering handle was the second highest in WROTB’s history, and its payout to winning bettors was $800,000 more than last year and higher than it took in wagers, a first. 

“It’s the first time we’ve ever seen more payouts than money taken in," said WROTB Handicapper and Live Racing GM Todd Haight.

The complimentary Derby programs given out at WROTB Branches, EZ Bets and at Batavia Downs on Saturday touted Haight’s Hot Picks on the cover, which correctly selected the top four Derby finishers in exact order. The bettors of Western New York certainly benefitted as WROTB paid out $600,000 in winning Trifecta bets and over $630,000 in winning Superfecta wagers, both records.

Wagers placed at Batavia Downs Gaming totaled $62,248.50, an increase of nearly 5 percent over last year. Wagering using BataviaBets.com, WROTB’s online Web site, on the Derby was $53,821, a 26.6-percent increase over last year. Nationally the handle on the Kentucky Derby was up 4 percent and was its highest ever at $197 Million.

“It’s so exciting to see that interest in the Kentucky Derby is alive and well in Western New York," said Ryan Hasenauer, director of Marketing of Batavia Downs and WROTB. “We’re all pulling for a Triple Crown contender in American Pharoah. All our Branches will be open at 10 a.m. on May 16th, the morning of the Preakness, and we’ll be having another party with live tellers at Batavia Downs. Our Trifecta special includes food, Free Play and a complimentary Preakness wager like we had for the Derby.”

Owned and operated by 15 Western New York counties and the cities of Rochester and Buffalo, Western Regional OTB is a public benefit corporation with headquarters in Batavia. WROTB owns and operates 28 branches, as well as Batavia Downs Gaming, a standardbred racetrack and gaming facility.

The Genesee Society of Model Engineers held its biannual model railroad show at the Clarion Hotel in Batavia this weekend. There were about 100 vendors and railroad preservation societies exhibiting. Attendance was very strong. The Clarion parking lot was filled and cars were parked in the mall and the streets. Attendees came from all over the state as well as Pennsylvania and Ontario, Canada.

The city is ready, willing and able to help get construction started quickly on a new, five-story, 80- to 100-room hotel at Batavia Downs, said City Manager Jason Molino.

While developers and Western OTB officials have yet to agree on the precise location of the hotel, COO Mike Nolan said this morning the most likely spot is overlooking the southwest turn of the track, adjacent the grandstands, near the Tops Plaza.

That location is within the boundaries of the City of Batavia, meaning it will be the city's zoning and planning boards that will be called on for plan, design and environmental reviews.

"Being able to get this project reviewed and in front of all the proper boards is something we're committed to," Molino said. "We will make every effort, including holding special meetings, to move this along as swiftly and as smoothly as we can to meet the goals of the developers. I don't think this is a concern for us. We've worked with these size projects before and we can get it through smoothly."

Nolan said the developers, a Buffalo-based group that will purchase the property for the hotel from Western OTB, would like to break ground in 60 days and have the hotel open within nine months.

"The best part of this story is that back in 1998, when Western OTB bought Batavia Downs, it took $3 million (in assessed value) off the tax rolls," Nolan said. "Now, in 2015, $7 million plus is going back on the tax rolls for a facility that was closed and drawing nothing but cobwebs."

The increase in tax revenue won't hit local governments all at once, since the developers are likely to seek tax abatements from Genesee County Economic Development Center, but the exact structure of tax relief won't be clear until applications are made and abatements are approved.

Typically, tax abatements from GCEDC include relief on sales tax for construction material and furnishing, mortgage tax and a PILOT, which graduates the amount of property tax paid over a 10-year time frame, until the property owner is paying 100 percent of the taxes on the fully assessed value.

State law prohibits industrial development agencies from providing tax assistance to retail projects, unless they qualify as tourist destinations or are intended to attract visitors from outside the area.

Projects that are with economically distressed areas, or adjacent to such areas, are also exempt from the law.

Julie Pacatte, coordinator for the Batavia Development Corp., said one advantage Batavia Downs can realize by building the hotel on property within city limits (Batavia Downs straddles the City/Town line) is the census track is adjacent to a census track that includes Downtown Batavia, which qualifies as an economically distressed area.

"We're thrilled at the idea of having a distinctive hotel within the city," Pacatte said. "What they're planning, where you arrive in a very Vegas-style, shared lobby area, where you can check into the hotel and stay within the facility throughout your weekend, and being on the track, overlooking the last turn from a balcony, is pretty exciting."

Because the hotel won't offer other amenities, but is geared entirely toward the visitor looking for casino and harness racing entertainment, the folks at Western OTB don't believe it will compete with existing hotels, Nolan said.

"With this becoming a more competitive casino market in Upstate New York, we felt we needed to step up," Nolan said. "There's a casino coming to Seneca County, and the Seneca's already have casinos at their Niagara and Salamanca properties. In this new and up and coming casino market the way it is, we needed to offer some hospitality for our casino customers."

The other advantage the city offers a water-hungry facility like a hotel is lower water rates. Rates in the city are $3.14 per thousand gallons of water compared to $5.46 in the town.

The developers are negotiating with a couple of different hotel chains, so it's possible the new hotel will be operated under the banner of a Hilton Garden Inn or a Courtyard Marriott, or some other banner.

Batavia Downs is just wrapping up a $28 million remodeling and expansion effort and th hotel will complement that growth, Nolan said.

"We have a tremendous opportunity for convention-type of events and banquet-type of events that require lodging," Nolan said.

The hotel, Molino said, will certainly be a boost to the local economy, bringing in more visitors, creating jobs and spurring other types of economic growth. 

"This is a great opportunity and a great project," Molino said. "Everybody in my office, with the BDC and in planning are excited to work with the developers. We're going to do everything in our power to make sure it moves as quickly as it can and move as promptly as possible. That would be a win-win for everybody involved."

The new entrance and lobby for Batavia Downs is nearly complete and is open now.

There is some finish-up, "trim" work to complete, said Ryan Hasenauer, marketing director for Western OTB, but otherwise, it's good to go.

Press release:

As a direct result of the relentless snowstorm that has crippled most of Western New York, Batavia Downs has announced that it will forgo live racing for the remainder of the week. The programs that were originally scheduled for tonight (Nov. 21) and Saturday (Nov. 22) have been cancelled.

The decision was made jointly on Thursday by Batavia Downs management and the Western New York Harness Horsemen’s Association (WNYHHA) and both parties agreed it was the only thing to do.

Bruce Tubin, president of the WNYHHA said “In view of the devastating storm that has kept our horses from their daily exercise routine, our trainers from leaving their homes, and our blacksmiths and veterinarians from attending to our horses, I have mutually agreed with Batavia Downs management to cancel our Friday and Saturday race cards. There was physically no way for us to properly prepare our horses to race this weekend.”

Todd Haight, director/GM of live racing at Batavia Downs added “It would have been impossible for the equine athletes to compete at the highest level when most haven't been able to leave the barn for days. The decision to cancel this early takes the pressure off all parties involved.

"Our main goal now is get the barn area cleared of snow and the racetrack in the best possible condition for next Wednesday. We regret having to cancel but it was the right thing to do to make sure we didn’t experience any injuries on or off the track.”

Further concerns cited were about horsemen who ship in from areas that have been devastated by the snow and the changing conditions forecast over the next two days taking the weather from cold and snowy to a rapid meltdown and flooding by the weekend.

In light of these cancellations, pending approval from the New York State Gaming Commission, there will be two double-headers carded on the last two Saturdays of the meet. Nov. 29 and Dec. 6 will now offer two complete cards of racing at 12:15 and 6:35. Live racing at the Downs is scheduled to resume on Wednesday, Nov. 26. That leaves eight cards of live racing over six days.

Please note the new draw schedule. The Friday and Saturday afternoon cards will be drawn on Tuesday. The Saturday night cards will be drawn on Wednesday. And the final two Wednesday’s will be drawn on Friday, as always. The box will close at 9 a.m. If you have any questions please contact Race Secretary Joe Zambito at 585-344-6161.

Haight also noted that starting Wednesday, Nov. 26, the purses will increase by 20 percent in an effort to help the horsemen through the cancellations and as they come to the five week winter break at the end of this meet.