Jul. 3--SARATOGA SPRINGS -- Saratoga Gaming and Raceway and its food and entertainment provider have won a state bid to operate the Gideon Putnam Hotel and Conference Center and the Roosevelt Baths and Spa for 20 years, the state said Monday.
The harness track/betting parlor and Buffalo-based Delaware North Companies will be partners in operating the historic 120-room hotel, conference space and bathhouses in Saratoga Spa State Park, just a few miles from the racino, starting in January.
The state chose the winning bid over two others -- Xanterra Parks & Resorts, which has operated the businesses in the park since 1988, and Saratoga Gideon Partners, made up of the Saratoga Hotel Group and Benchmark Hospitality International of Texas.
The proposal calls for Saratoga Gaming and Raceway and Delaware North Companies' Parks and Resorts to form a new company, Gideon Putnam LLC, to hold the lease, state Office of Parks, Recreation and Historic Preservation Commissioner Carol Ash said.
It will manage the hotel and spa and has pledged to replace and upgrade the furniture, accouterments and bathrooms in the Gideon's guest rooms, reconfigure its first-floor public areas and refurbish the Roosevelt Bath house, Ash said.
The state and Gideon Putnam LLC must now negotiate a contract for the properties so neither gave more specifics about what was in the bid.
"We're very excited and delighted," said Kerry Hassen, spokeswoman for Delaware North Companies.
A five-person committee at the state parks department judged the proposals. In selecting the bid, the commissioner cited the racino group's promised financial return, "green" environmental practices, experience in state and national park operations, and its understanding of public-private partnerships. Delaware North Companies operates concessions at Jones Beach, Robert Moses and Niagara Falls state parks.
In accordance with the bid requirements, the racino group will make a minimum capital investment of $10 million, of which $7.3 million will be spent on the hotel. A base annual rent of $500,000 will be adjusted yearly by changes in the Consumer Price Index. The state will receive a still-unannounced portion of gross receipts from the hotel and spa and $2.5 million over 20 years for additional investments, parks spokeswoman Eileen Larrabee said.
Denver-based Xanterra paid the state 6 percent of its gross receipts for the last four years. The properties in the park earned $8.9 million in 2005, the most recent data available, according to the bid application. Nearly $7.8 million of the 2005 revenue was from the Georgian Revival-style hotel, which was built in 1934.
Saratoga Gaming and Raceway, which opened three years ago, recently almost doubled in size with a 45,000-square-foot addition. More than 2.5 million people visited the racino in 2006, and the facility generated more than $119 million in revenue.
"The Gideon Putnam has a long, rich history in this community, and we are very excited to become a part of it," said Sarah Cappelletti, public relations manager for Saratoga Gaming and Raceway. "Adding the Gideon Putnam to an already impressive entertainment roster that includes gaming, racing, a nightclub and restaurants will truly make Saratoga Gaming and Raceway a destination resort."
Yusko can be reached at 581-8438 or by e-mail at dyusko@timesunion.com.
No comments:
Post a Comment