Byron Brown, the former five-term mayor of Buffalo is stepping into his new role as president and CEO of Western Regional Off-Track Betting/Batavia Downs. Last week, The Batavian sat down with him for an interview.
Brown said is primary focus is on running the OTB as a business, growing revenue and increasing profits for the 17 municipal owners.
"I'm not coming here to be a politician. I'm coming here to be a focused business executive," Brown said.
He didn't follow much news about Batavia Downs before learning of the search for a new executive to replace Henry Wojtaszek. He said he has little knowledge of prior controversies. The evidence he sees so far is that Wojtaszek did a good job running the organization and he sees no signs, as some have charged, of corruption.
"Henry's been the CEO for 15 years (actually eight years as CEO and 15 years as general counsel)," Brown said. "I had never heard any negative talk about the place until last year. So, being here, seeing how the staff operates, seeing how the staff interacts with him, seeing his command of the knowledge of how this organization works, I have been impressed with him as I've gone through the orientation learning about Batavia Downs, as I look at the financials, as I look at the earnings of this organization, it is very, very profitable. Whatever the controversy might be, Henry Wojtaszek is doing something right because this place is now earning record amounts of money, more than it has ever earned, and producing that revenue to 17 municipalities."
He will leave it to the board to set OTB's legislative goals, but he is confident he can help the board achieve those goals.
"As mayor of the second largest city in the state of New York, I'm talking to state legislators all the time, not just members of the Western New York State legislative delegation, but state legislators all across the state of New York," Brown said. "Some of the state legislators I served with are still in the legislature, and I've stayed in contact with many. I've had to work very closely with Governor Kathy Hochul. Governor Hochul is a resident of the city of Buffalo, so I do have access to state legislators, I have access to the governor, and I have had open lines of communication with all of these individuals for many, many years."
Here is a full transcript of the interview:
The Batavian: If you were speaking to all of Genesee County right now, how do you introduce yourself?
Byron Brown: I introduce myself as a person who's been selected to be the president and CEO of Western Regional off-track betting Corporation. I am very pleased with this opportunity to move in a different professional direction and to extend my years of public service. I will be working in a corporate environment, but serving 17 member municipalities and trying to raise the revenue that Western Regional Off-Track betting Corporation provides to 17 member municipalities, including Genesee County,
Having served as Mayor of the City of Buffalo for over 18 years, I understand how important these revenues are in the city of Buffalo's budget, and I know that they are important to the budgets of the other 16 municipalities that receive proceeds. I will work as hard as I can, as smart as I can and as collaboratively as possible to continue building this organization and making it even more profitable. It is already profitable, but I aim to help make it even more profitable.
Q: One of the things Dennis Bassett said to me is that relative to Monroe County, Erie County, and Buffalo, the revenues for Genesee County and the other rural counties are more significant. Even though the revenue is smaller, numerically, it's much more significant budget-wise. Is that something you're aware of, and want to ensure that it is maintained?
A: It is definitely something I'm aware of. I'm aware of the revenue that goes to all of the 17 member municipalities, for all of the municipalities, including the smaller municipalities. Not only do I want to maintain the revenues that they are receiving, I want to grow the revenues that they're receiving.
Q: Any hobbies or interests? What do you do when you're not a public servant?
A: I have been pretty much a workaholic, but I like to walk with my wife. We have great parks in the city of Buffalo, so we walk some of those parks. I have some friends I cycle with, ride a bicycle, and I enjoy that. I don't get to watch a lot of TV, but I like Westerns when I do, and my wife and I are helping to raise our six-year-old great nephew and seven-year-old great niece. I like spending time with them, including our son, who is 34 now. Something my great niece and I have started doing together is watching Star Trek at eight o'clock before her bedtime.
Q: Which series are you watching?
A: The original.
Q.: The original, great. Starting her outright.
A: Yeah, starting her outright.
Q: I've seen everything. I grew up on Star Trek.
A: So I've, yeah, I've seen every episode many, many times over.
Q: I've seen all the other series.
A: I have, too.
Q: I've watched Discovery and everything.
You kind of touched on this, but just what attracted you to this job? Well, it's kind of a two-part question. What did you know about Batavia Downs before, and then what attracted you to the job when you found out it might be available?
A: I didn't know much about Batavia Downs before applying for the job or coming here, there were a couple of people that said, hey, this position is available. You should take a look at it. I did. The major thing that jumped out to me is its revenue to the 17 member municipalities. I was very attracted by that because I knew of the revenue that came to Buffalo. I didn't really pay much attention to the revenue that might have gone elsewhere. When I really researched where the revenue goes, I felt that the function of this organization was very important in Western New York and in the state of New York, and I saw it as an ability to move into a corporate environment. This is a public benefit corporation. It's got to be run like a business. I saw it as an opportunity to utilize the management skills that I've been able to develop over the years and, most importantly, help 17 municipalities in Western New York, including the city of Buffalo and Erie County.
Q: It sounds like you have a passion for municipalities. Does that come from your background as mayor?
A: It does. I have a passion for municipalities. Before I ever ran for any office, I had the opportunity to work at senior levels in city, county and state government. Before my five terms as mayor of the city of Buffalo, I was a member of the New York State Senate. I was in the Senate for three terms. One of the committees I served on was racing, gaming and wagering. So certainly, you know, I have exposure to that committee and its functioning, and before that, I was a member of the city council for three terms in the city of Buffalo. Because of those experiences, my alma mater, Buffalo State University, recruited me to teach a course with other professors at the university in municipal governance, and so I was recruited to be a professor of practice at Buffalo State and really leaned into not only my own understanding and learning about local government and municipalities but also the importance of those governments in our state,
Q: You were mayor of one of the finest cities in the state of New York. And it is the state of New York, and this (Batavia Downs) is a much smaller footprint; some might say that's a kind of, it's not even a lateral shift. It might be seen as being a bit of a step-down. I realize it's higher pay, but there's not the same jazz, is there?
A: You know, some people have said that. I don't feel that. I think all work is important, meaningful, and valuable. There are at least 430 people that work in this organization. Their jobs and ability to support themselves and feed their families are critically important to them. The revenues -- since this organization was established in 1973 and began paying proceeds to municipality municipalities in 1974 -- it is almost $300 million that has been paid out to the 17 member municipalities in that period of time. That's significant. That means something; those dollars go to all of those communities in Western New York. I saw it as exciting to be able to come in as president and CEO and not only maintain that but find ways to grow that. So, I see it as an exciting management challenge in an organization that has an important function in the state of New York, and I am honored to have been selected to do this work, which I think is important.
Q: One of the things I've talked with Dennis Bassett about is your legislative experience. That was, I think, a major selling point for him and the board. Please talk about your legislative goals and what you think you can deliver.
A.: My legislative goals are the board's legislative goals. The board will set a legislative agenda. Gaming is something that the board is looking at; maybe expanding the Video Lottery Terminal footprint is something else that the board is looking at, and reducing the tax rate is another.
Q: Explain the tax rate.
A.: The tax rate on Western Regional Off-Track Betting proceeds, so reducing the tax rate ...
Q: That goes to the state?
A: That goes to the state. If that were reduced, the proceeds to the 17 member municipalities would be increased. Those are some things in the legislative agenda that the board has talked to me about.
As mayor of the second largest city in the state of New York, I'm talking to state legislators all the time, not just members of the Western New York State legislative delegation, but state legislators all across the state of New York. Some of the state legislators I served with are still in the legislature, and I've stayed in contact with many. I've had to work very closely with Governor Kathy Hochul. Governor Hochul is a resident of the city of Buffalo, so I do have access to state legislators, I have access to the governor, and I have had open lines of communication with all of these individuals for many, many years. I can certainly have a conversation with them about what's important to this organization and 17 municipalities.
Q: We've talked about how good the revenue has been and the profits going to the municipalities. I've watched over the last few years the ramping up of events here, concerts, and other activities that help bring people here. Are those policies and practices you plan to continue, and what additions might you start?
A: The organization has done a good job in ramping up profitability, increasing hotel stays, increasing the number of events that are here, and when people come here for events, they often find themselves on the gaming floor, or they find themselves at the racetrack. All of those things help with profitability. So I certainly will continue those things. I'll be looking at -- are there additional things that we can do to bring more people here? I see Western Regional Off-Track Betting and Batavia Downs as kind of a resort-type experience in Genesee County in Batavia, New York.
Q: Do you support expanding the hotel?
A: I have been briefed on the hotel expansion. That is ultimately a decision that the board of directors has to make. But from everything that I have been able to review, from the pro forma I've looked at, I think that expanding the hotel would increase the profitability of this organization. It looks like a winning proposition. And when you look at all of the hotels in this geographic area, the Batavia Downs Hotel is, I would say, the most well-used of all of them. The percentage of people who stay at this hotel is higher than all of the other hotels in this area. So there's tremendous demand to stay here, to come here, and that certainly makes a case for expanding the hotel.
Q: Back to concerts. Are you a music fan?
A.: Yes, I'm a music fan. I like all kinds of music. I like country music, I like rock, I like soul music, I like jazz, and I like classical music. You know, people have been talking about the concerts that do really well here, and, you know, building on that concert experience, concerts --
Q: That's honestly one of my number of concerns. I like covering concerts here and I know Henry is a big music fan, so I want to see the concerts continue.
A: I'm a music fan. They will continue. What kind of music do you like to listen to?
Q: Pretty much everything you listed. Probably, primarily country, Americana, but I like a broad range. And one thing I've got to ask -- Buffalo? Rick James?
A: Definitely a Rick James fan, 100 percent.
Q.: I have almost everything he has on vinyl. I'd love to see the Stone City Band here sometime.
A: You know, I used to be a DJ in college, so I also have a pretty significant collection of vinyl. And so I have a number of Rick James albums.
Q: That's great.
A: You might even see me do some DJing here.
Q.: Oh, really?
A: Yeah.
Q.: Okay, that'd be great. When you do that, I gotta come down here and get some pictures. Come down and hang out, too.
We probably already touched on this, but I'd say specifically, more than on the legislative side, just as the operation of primarily Batavia Downs, but in general, are there other ideas that you have yet that you want to pursue?
A: It's a complex operation. There are a lot of good things that are happening out here. Three restaurants that do very well. I've eaten in all of them now. The food is very good. The service is excellent. I think about that very famous commercial, 'We don't want you to just like coming here. We want you to love coming here.' The hospitality is great here. The people in almost every facet of this operation are warm, friendly, and welcoming, and I think that translates to success.
I think, you know, building on the events that take place here and businesses being able to hold retreats here, there are a lot of things that can be done to bring more people here. I know coming up, Roswell Park Comprehensive Cancer Center is going to have a major event here. I think getting more events like that from corporate organizations at the facility is something that can be done. They're currently working on that. I look forward to working on that with my new colleagues. So I'm very impressed with the hotel and the operation. They call it a luxury boutique hotel. In my capacity, I've stayed in hotels all over the country, and it's a beautiful place. It's a beautiful space. It's comfortable, and it's a really nice stay. And I think, you know, the more people see what Batavia Downs has to offer, the more they'll want to come here.
Q: Henry's controversial figure. What's your estimation of how he's run the Batavia Downs? Do you think there are issues there with him? What's your estimation?
A: I did not know a lot about Batavia Downs before I applied for the position. To me, the talk about controversy is very new. Henry's been the CEO for 15 years (actually eight years as CEO and 15 years as general counsel). I had never heard any negative talk about the place until last year. So, being here, seeing how the staff operates, seeing how the staff interacts with him, seeing his command of the knowledge of how this organization works, I have been impressed with him as I've gone through the orientation learning about Batavia Downs, as I look at the financials, as I look at the earnings of this organization, it is very, very profitable. Whatever the controversy might be, Henry Wojtaszek is doing something right because this place is now earning record amounts of money, more than it has ever earned, and producing that revenue to 17 municipalities.
My goal will be to continue that profitability and grow that profitability. I will look at all of the issues that people have talked about in terms of their concerns about the operation and will be transparent in the management of the operation, but at the end of the day, this is a gaming resort-type business. It's got many competitors, and it has to be run like a business. It has to compete like a business so that it can earn the money that the business is expected to earn. So, my focus will be on business. Sound, management and no involvement with with politics whatsoever. I think the controversy is bred by Republican-Democratic politics. I'm not coming here to be a politician. I'm coming here to be a focused business executive. And that's that will be what I do,
Q.: That overlaps with the other question I planned to ask you. There are people, even in Erie County -- I'm sure you've seen the story -- who say you're a political appointment. What's your response to that?
A: Well, no, I'm not a political appointment. No, no. Political person. Well, let me say this: I'm not a political appointment. I had to apply blind. I had to go through a number of interview processes. I had to present credentials. I had to go through a background check, and there were 17 board members that had to evaluate my credentials and make a decision unanimously to hire me. That is not a political appointment. The appointment is based on the board, and its 17 members have confidence that I can do this job. My focus is going to be on the business of Western Regional Off-Track Betting Corporation without concern for politics of any kind.
Q.: I think it's Sean Ryan, Senator Kennedy, and Kevin Hardwick, the comptroller. I don't pay that close attention to Erie County politics, but at one time or another, I know at least Kennedy and Hardwick have, and I think Sean Ryan has -- They've called this organization corrupt. Is that a characterization you agree with? Is that a fair question? If that's not a characterization you share, how would you push back?
A: You know, I would say that in particular, Senator Kennedy and I are very close now, Congressman Kennedy; we've worked very closely on many, many things over the years. I can't go back to what people are talking about. I don't know of those things. I can only go forward, since I've been here with all of the documents I've been able to read and review, and it's voluminous, the meetings that I've been able to sit in with various staff, I see a sound operation that is well run. There are some different things that I would do. I certainly will try to erase that perception from everybody's mind. But I haven't seen since I've been here any evidence of (corruption).
Q: So, again, this goes with representing the feedback I get in the community. There's long been an accusation that Batavia Downs was a Republican patronage job. When the board changed to weighted vote, one of the first speculations was that Democrats want to make this a place for a Democratic patronage job. That usually is the biggest concern, say, with middle management. Do you have plans to make changes in middle management? Will party affiliation play any role in who you hire?
A: People's party affiliation and people's last names are of no concern to me. People's performance and qualifications are what I am concerned about. So if the employees here are performing well, we certainly want to see them stay. Anybody applying to come here, if they're qualified for the positions that they're applying for, should be considered. But party affiliation, last name, who's connected to, who? I'm not going to get into that at all.
Q: Okay, so that leads to my next question. It has been reported that there's an issue with Henry's son being hired. Do you have any concerns about him being hired here at his current job, and what's your position on him maintaining employment?
A: Again, the last names of employees that are here are of no consequence to me. I'm focused on the performance of every employee, and as long as the employees here are performing their job duties as expected, then they will be welcome members of this team.
Q.: Do you think there's anything inappropriate about his son getting a job here?
A: Again, I don't know the circumstances around that. I haven't even met the young man yet. So you know, my goal is to go forward, to evaluate performance, to evaluate the effectiveness of employees, and if people are performing their jobs properly and are effective in their jobs, that's my only concern. other
Q.: Another issue that's been raised is Henry getting lifetime health insurance. Do you think that's an issue?
A.: Again, whatever his benefit package was and whatever his benefits are in retirement, those are decisions that have been made by the board of directors. As the incoming president and CEO, those are not decisions that I have the ability to make, and I would suspect if the board made those decisions, they were within their right to make them.
Q. This is pretty much my last question. I know this has been people talking around the community, including elected leaders, concerned that with the change to weighted voting for the board and the Democrats gaining more control, the real end game is to eventually sell this to Delaware North or the Senecas. Have you heard that? Do you have any response to that? What is your position on that?
A.: I have not heard anything like that. Again. This is a very profitable operation. It is a corporation that provides proceeds to 17 member municipalities. There are plans that I have seen to increase the revenues that go to 17 member municipalities in Western New York. And I wouldn't want to see anything happen with the organization that would financially disadvantage 17 municipalities in the state of New York.
Q: (After the recording was off, Byron Brown mentioned plans for a trip to Albany, so we asked him to explain it on the record.)
A: Albany? It's the New York Gaming Association Board meeting. So we'll attend with Henry. We'll see how the board meeting works. We'll meet some of the members of the board, and then we'll try to have some other meetings in Albany while I'm there just to hit the ground running. This is my second day; it's been a lot. There are a lot of lot of meetings, a lot of briefings, lot of stuff to read, and I'm looking forward to going to Albany to the New York Gaming Association meeting
Q.: While we're recording again, is there an excitement about being here? Is it a change you're excited about?
A.: I like the place. I'm excited about it. I'm excited about what the future holds for the place. I'm excited about what I think I can do to grow revenue, to grow excitement, to grow awareness of Batavia Downs. You know, I've looked at some demographics to see where customers come from. I think, you know, a lot more people could come from Buffalo and in Erie County. So certainly, I have some ideas on how to get more people to come here and enjoy what I think is a great experience.
