New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 74 - OFF-TRACK WAGERING AND ACCOUNT WAGERING › Subchapter 2 - APPLICATION FOR INITIAL OFF-TRACK WAGERING LICENSE; APPLICATION FOR RENEWAL OF OFF-TRACK WAGERING LICENSE › 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

Current through Register Vol. 56, No. 14, July 15, 2024
(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;