The governor was developing a close connection to Jay-Z at the same time the feds say Aqueduct Entertainment Group (AEG) began courting the rapper to be part of their team.
Paterson chose AEG in late January to turn the aging track into a slick gaming venue with 4,500 video slot machines, but the deal is under federal investigation after questions were raised about the secrecy involved in the selection process.
Jay-Z, born Shawn Carter, and Paterson were together on Aug. 31 to announce the rapper’s 9/11 benefit concert at Madison Square Garden. It was around the same time, in September, that AEG chairman Richard Mays approached Jay-Z through his business partners and asked whether he would be interested in joining the consortium — which at the time ranked last among six bidders seeking the lucrative project.
Within days, Jay-Z had agreed to take a 7 percent stake in AEG through one of his companies, Gain Global Investments Network LLC.
Jay-Z, 40, had previously expressed interest in the project, according to sources, and in spring 2009, was in talks with casino mogul Steve Wynn about joining Wynn’s bid to operate the racino. No deal was reached, and Las Vegas-based Wynn Resorts Limited, ultimately bowed out.
“Paterson directly told Wynn he needed to have a minority partner, so he went and got Jay-Z. But when Wynn pulled out, Jay-Z was without a home,” a source told The Post. “AEG went and grabbed Jay-Z after his deal with Steve Wynn fell through.”
AEG is accused of noting Paterson’s close relationship with Carter and snapping up the rapper to get a leg up in the bidding process. Jay-Z and the governor were spotted dining together in June and hanging out in the Hamptons.
After attending the 9/11 concert at Madison Square Garden as Jay-Z’s guest, Paterson wrote to MTV: “I can personally attest to his commitment to New York and the impact he has on New Yorkers of all ages. He is most definitely deserving of the top-MC-of-2009 title.”
AEG denies that it courted Jay-Z to curry favor with the governor.
“Given [Jay-Z’s] superstardom and his long and deep connection to New York, the partners thought he could bring a unique perspective to shaping a facility that would truly be an entertainment destination,” AEG spokesman Jonathan Rosen said. “The partners were looking to bring in someone who could bring marketing and community advice to the team.”
A Paterson spokeswoman added: “There is absolutely no relationship between Governor Paterson’s friendship with Jay-Z and the choice of AEG.”
The suspicion of the connection is heightened due to Jay-Z’s shady past and the consortium’s normal aversion to such activities in their partners. He brags in his music about having dealt drugs in the past and pleaded guilty to misdemeanor assault and was sentenced to three years’ probation for stabbing a record executive in a 1999 nightclub brawl. People change, but one member of the AEG consortium, Darryl Greene, has already been forced to drop out over his criminal past.
Paterson’s relationship with others in the AEG consortium has also drawn criticism. Three days after the winning bid was announced this month, he met with the Rev. Floyd Flake, an AEG partner and Queens political kingmaker, in the governor’s Harlem office. The two later said that they talked politics but that there was no quid pro quo.
Meanwhile, Paterson continues to pal around with Jay-Z, even lauding him last month in Esquire for supporting the administration through some rough patches.
“Jay tells me, ‘I’ve got your back,’ ” the governor told the magazine. –gerald radford (sourced from newser.com)
