N.J. Admin. Code § 13:74-2.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:74-2.6 - Progress benchmarks that must be satisfied for a well-suited entity to maintain its right to open an off-track wagering facility

(a) A well- suited entity shall file an application for the grant of an off-track wagering license upon the Attorney General's approval of the successful bidder in accordance with N.J.A.C. 13:74-2.2(a)2v. However, the well-suited entity approved by the Attorney General must demonstrate to the satisfaction of the Commission that it continues to make progress on an annual calendar basis towards opening the off-track wagering facility for which its bid was successful. The following requirements shall commence on the date the Attorney General approves the well-suited entity:

1. By December 31 of the year in which the well-suited entity's bid is approved, the well-suited entity must file an application for an initial license for operation of the off-track wagering facility it was chosen to operate. This deadline may be extended at the request of the well-suited entity to December 31 of the following year if the well-suited entity was approved by the Attorney General after June 30 or for other good cause shown. After filing the application for an initial off-track wagering license, the well- suited entity shall also demonstrate compliance with each of the following requirements:

i. The applicant has submitted to the Commission all information and documentation required by N.J.A.C. 13:74-2.2;

ii. The applicant has demonstrated to the Commission that the proposed off-track wagering facility is in a suitable location and the applicant has obtained fee title ownership of the proposed property or obtained a leasehold interest in the proposed property for a period of not less than five years;

iii. The applicant has obtained sufficient financial resources to pay for the design, construction, development, and other costs necessary to establish the proposed off-track wagering facility. The applicant shall provide to the Commission:

(1) A detailed project development budget informed by a qualified professional design and construction team. The budget shall include all hard and soft costs associated with the project to bring the off-track wagering facility into operation and the applicant shall bear the burden of establishing that the budget is a reasonable, informed, and realistic projection of all applicable costs; and

(2) Documentation that the applicant has either placed monies into escrow or secured an irrevocable letter of credit in an amount equal to or greater than the project development budget that is sufficient to finance the licensure, construction, and commencement of operation of the off-track wagering facility that is the subject of the application. All committed capital shall be supported by financial statements prepared by a certified public accountant and shall demonstrate the applicant's commitment of such funds to the establishment of the off-track wagering facility. Any third-party capital shall be supported by documentation of a fully-executed and binding irrevocable letter of credit;

iv. The applicant has demonstrated to the Commission that the operational capacity and market feasibility of the proposed off-track wagering facility will benefit the horse racing industry in this State. The applicant shall provide to the Commission:

(1) A third-party market study completed by a qualified firm, which demonstrates the market feasibility of the proposed off- track wagering facility;

(2) A five -year financial pro forma detailing the projected revenues and expenses of the proposed off-track wagering facility in sufficient detail to support an acceptable market rate of return on the project; and

(3) Detailed information on key individuals necessary to operate the proposed off-track wagering facility, which shall demonstrate that the applicant has the requisite staff to operate the facility;

2. By December 31 of the year after the application is submitted, the well-suited entity's application must be deemed complete by the Commission. Prior to the application being deemed complete, the applicant must submit all the necessary documentation set forth in (a)1 above and rectify any deficiencies in the application via delivery of supplemental documentation and information requested, and in the timeframe stated, by the Commission; and

3. By December 31 of the year following the year the application is deemed complete, the off-track wagering facility referred to in the benchmark requirements of (a)1 and 2 above shall be opened for business and begin accepting wagers.

(b) Should a well-suited entity fail to meet the benchmarks established by this section, the well-suited entity's right to open an off-track wagering facility shall be forfeited and the Commission shall begin the process of making the forfeited off-track wagering facility available to another well-suited entity pursuant to N.J.A.C. 13:74-2.2. A well-suited entity's right to open an off-track wagering facility cannot be put up for bid until that well-suited entity has exhausted its right to appeal the forfeiture.

(c) As set forth in N.J.A.C. 13:74-2.2(a)2, the successful bid of a well-suited entity shall be considered a non-refundable filing fee should the well-suited entity fail to open the off-track wagering facility for which it was approved by the deadlines set forth in (a) above.

N.J. Admin. Code § 13:74-2.6

Adopted by 51 N.J.R. 1772(a), effective 12/2/2019