Nassau Regional Off-Track Betting Corp. is selling its Farmingdale, N.Y. branch to pay off revenue anticipation notes it defaulted on in March.
A Nassau OTB spokesman said the 1.2-acre Farmingdale property in Nassau County is being sold to Living Faith Christian Church and that around $2 million will be netted from the deal. Nassau OTB will use proceeds from the sale and other revenue to settle a $3 million debt payment owed to Roosevelt & Cross on the revenue anticipation notes sold in 2014.
A Roosevelt & Cross spokesman said it consented to the real estate transaction, but declined further comment. Great Neck, N.Y-based Capital Markets Advisors was financial advisor on the Series 2014B sale.
The $5 million RAN deal was put together with the expectation that the state public benefit corporation would be able to repay them with revenue from video lottery terminals, in a plan that stumbled against public opposition.
The agency, which has around $12 million in debt outstanding, missed the final March $3 million note payment.
Since then, Nassau OTB has put together an alternative deal that is designed to bring in video gambling revenue.
Nassau OTB had sought to open a mini casino at Belmont Racetrack in Elmont.
Bowing to community opposition there, it instead agreed to deal that allows Genting Group to open 1,000 video lottery terminals at Resorts World Casino at Aqueduct Racetrack in Queens.
Genting is providing Nassau OTB with $9 million in both 2016 and 2017, $25 million in 2018 and then will increase to a $25 million payment by the along with cost of inflation starting in 2019.
