Vernon Downs minority owner calling on Liquor Authority to rescind Turning Stone / CD Beverage license

Story Created: May 21, 2010 at 8:49 AM EST

Story Updated: May 21, 2010 at 4:15 PM EST

VERNON, N.Y. (WKTV) - A minority owner of Vernon Downs is calling on the State Liquor Authority to rescind the license given to CD Food and Beverage and Turning Stone Resort and Casino. However, the majority owners say his view does not officially represent Vernon Downs.

According to Downs Minority Owner Gary A. Greenberg, a full investigation is warranted to the activities of the SLA, CD Food and Beverage and Turning Stone before a vote was taken on May 6.

On May 17, 2010, Greenberg sent the following email letter to the three board members of the SLA:

"We here at Vernon Downs (Mid-State Raceway) find your decision to allow a full Liquor license at Turning Stone resort to be a disgrace. The meeting you had on 05/06/2010 was a farce. In my 30 years of involvement in business and government I have never witnessed an authority or government entity voting on a matt or before it, and totally disregarding concerns brought before it. Each of you took a vote seconds after hearing public comments and all three of you made comments that were pre-planned. Your decision was made before the meeting began.

I never heard any mention of any letters written in opposition from Jeff Gural and Scott Freeman and who knows who else. I did hear Chairman Rosen go over letters in favor of the licensee and even make a point with Mr. Katz the licensee's attorney to verbally announce who had sent a pro letter. Ms. Greene made mention of pro letters in her pre planned comments. Ms. Healey took a sworn statement from Mr. Katz that was prepared before the meeting started.

Mr. Gural Chairman of Newmark & Company is a prominent figure in real estate and horse racing in New York. It is a direct result of his efforts that there are VLTS in New York State, which now are running at eight tracks in New York. The State of New York gained over one billion dollars in revenue from VLTS in the 2009-2010 fiscal year. He put 30 million of his own money into Vernon Downs to save it. He also brought an old track in Vestal, NY Tioga Downs and that track has provided over 20 million in revenue to state and local governments with Vernon Downs providing over 15 million in revenue in 2009.

Mr. Freeman is General Manager of Vernon Downs. He has a strong and impeccable background in Casino management. He wrote a letter to you expressing the damage to Vernon Downs that a license at Turning Stone would bring.

I am a minority owner of Vernon Downs. My family has had a 55 year relationship with the track starting with my late grandfather William Rosen. I fought for shareholders in US bankruptcy court and won the right of over 100 shareholders to be involved in 2006. I spent my own time, my own money representing myself, and shareholders, and I am not a lawyer. We fought for and supported Mr. Gural in his plan to run Vernon Downs. This was done all legally, and Vernon Downs follows all the laws in New York State.

Vernon Downs now employs over 350 people. It does banking in Oneida County, and supports many businesses in the County. It has 100 shareholders who live mainly in Oneida and Madison County, hundreds of horsemen, horsewomen, trainers and owners are involved.

You never did any research on the impact granting a license to Turning Stone would have on the business community in Oneida County. When, and if Vernon Downs closes as a result, your poor decision will sure have a major impact. I did not know you needed a liquor license in New York to collect a hotel tax and sales tax. The Oneida nation has taxes of their own, now is that not interesting.

I gave you specific testimony at the meeting on May 06, 2010. Vernon Downs is against great odds. Oneida Nation took in over 250 million dollars last year and without paying one dime of taxes to anyone, but themselves. Mr. Katz stated we are thriving in competition, competition is good. What a joke.

There was a total disregard for comments made from people like myself, and others who took their time to express themselves. These people came from the Utica area to be heard. You ignored their voices. Your decision was pre-made and it is very political and this is an example of why the citizens of this state have lost faith in state government."

In response to the letter, the Oneida Indian Nation released the following statement from Nation Spokesman Mark Emery:

"Attacking Turning Stone for doing what happens in the business world everyday, everywhere is a double standard," Emery said.

However, Vernon Downs' Majority Owners were not pleased to hearing of Greenberg's letter.

"While we are disappointed by the recent vote by the Liquor Authority regarding Turning Stone, Gary Greenberg does not speak for the majority owners and operators of Vernon Downs," Vernon Downs Director of Marketing Ursula A. Hardin said in a released statement. "Our business this year is up substantially and we are hopeful that the decision by the Liquor Authority will not negatively impact Vernon Downs. As everyone knows, a significant portion of our revenues go to the State and local communities for education as well as sales taxes, hotel occupancy taxes, and real estate taxes. Obviously, if this decision has a negative effect, we will address the matter at that time."
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