The Facts about the VLTs at the Islandia Marriott Hotel (now Jake's 58)
On August 12, 2016, following extensive negotiations and public meetings to review the application, the Board of Trustees approved Delaware North, Delaware Properties, LLC’s (Delaware North) application to operate Video Lottery Terminals, two Suffolk OTB kiosk machines and OTB simulcasts at the Marriott Hotel (now Jake's 58), located off the Long Island Expressway’s North Service Road within the Village of Islandia.
As part of the agreement, the Village retains the authority to review the special use permit every two years. In addition, as detailed below, the agreement will provide Village residents with real, significant property tax relief. Village taxes will be reduced by up to 50% within the first two years of the agreement and will be progressively lower each year after that.
Facts about the VLT Operation
• Two-Year Reviews — As part of the agreement with Delaware North, the Village retains the authority to review the special use permit every two years, ensuring that the operation is in full compliance with the restrictions negotiated by the Village.
• Hotel’s Appearance — The plan for the exterior appearance of the hotel will not change, other than the name. There are no plans to add lighting on the building that would make it more visible to passing traffic. New fencing and landscaping enhancements will be added to the appearance of the property.
• Security — Security will be provided around the clock with surveillance and guard presence within and outside the hotel. Parking lot security will be addressed with roving security patrols, surveillance and valet parking attendants managing the lot throughout the hours of operation. Village of Islandia security will be visible on and around the surrounding area 24/7.
• Fire Protection — The Marriott Hotel (now Jake's 58) has been at the same location for over 35 years and is serviced by the Central Islip and Hauppauge Fire Departments. It is also serviced by the Central Islip Hauppauge Volunteer Ambulance Corps (CHVAC).
• Traffic — This hotel is located on Expressway Drive North with access to the Long Island Expressway from both directions. New traffic controls will be implemented to minimize traffic on local roads.
• No Buses — The applicant has agreed that it will not provide an incentive to bus companies to bring patrons to the location.
• No Special Events — Delaware North has agreed that there will be no Vegas-style shows at the hotel. Tony Orlando is not coming to Islandia.
Facts about the Tax Relief and Job Creation Benefits to the Village
• Job Opportunities — Delaware North anticipates that over 200 jobs will be created by way of this approval. It has agreed to give preference to local residents and provide job training to all employees.
• No IDA Tax Abatement — Delaware North is not seeking any IDA benefits. All taxes will be paid to the Village and Hauppauge Schools. During the course of the 20-year term, an estimated $1,460,000 in property taxes will continue to be paid in Village and school taxes to the Hauppauge School District.
• Initial Funding — Upon opening the facility, Delaware North has agreed to pay the Village $1,532,400 for completing the construction and development of the Village’s First Responders Recreational Baseball Field located on Old Nichols Road. The company has also agreed to pay the Village an additional $1 million as a tax relief payment.
• $47 Million in Tax Relief Payments — The operator has agreed to make equal annual payments amounting to $47 million over the course of the 20-year term.
- $2,000,000 each year for the first three years = $6,000,000.
- $2,250,000 each year for the next 17 years = $38,250,000.
Facts about the Lawsuit against the Village
The recent lawsuit filed against Village is a scare tactic. The VLTs will be operational soon; construction is moving forward. The lawsuit was filed by a handful of residents and outside organizations. The goal of some of these litigants is to dissolve the Village, despite the enormous benefits it has provided to its residents. This group also includes residents of Dawson Court, who built their homes at a discount next to the Marriott Hotel (now Jake's 58), despite being surrounded by industrial buildings and a Municipal Park & Ride.