But subdued may be a positive quality in a climate where belt-tightening and conservative estimates seem preferable to glitz — a shift further illustrated by Gov. David Paterson’s insistence two weeks ago that each bidder prove it can pay $200 million upfront to the state upon selection.
   Penn announced late last week it has raised its initial bid to more than $300 million and also agreed to escrow its bid upfront upon selection.
   “As the company in the race with the strongest balance sheet and proven track record in developing and operating these types of facilities, we believe we have the strongest bid of all the applicants,” said spokeman Eric Schippers.
   Penn National is the second largest operator of pari-mutuel gambling facilities in North America with six wholly owned operations and one joint venture. It also owns four racinos — a combination of horse racing and gaming operations — in New Mexico, Maine, Pennsylvania and West Virginia, the latter is the site of popular Charles Town Races & Slots, which has 5,200 video lottery terminals, more than planned at Aqueduct.
   At the Ozone Park racetrack, Penn has proposed building a temporary facility with 1,000 to 2,500 VLTs in operation within eight months of signing a Memorandum of Understanding with Albany. This would be done in an effort to generate money to the state and New York Racing Authority quicker, according to a statement issued by Penn National. A permament VLT facility with 4,500 machines would be opened within one year following the temporary facility.
   When comparing itself to its competition, Penn can’t flaunt a big-name head honcho the way Wynn Resorts did before it backed out of the deal a few weeks ago. It also doesn’t promise waterfall features, sushi lounges or superior entertainment acts. Instead, Penn says its niche is “successful integration of racing and gaming operations” and that it has succeeded already in projects similar in scope to Aqueduct. The bidder also says it poses no financing risks and has no partners or need to obtain outside funds.
   But the operator proved it had a few out-of-the-box tricks up its sleeve last week when it announced its newest community advisor is hip-hop mogul Russell Simmons, a Queens native who founded Def Jam Recordings in 1984.
   “As a Queens native, I am sensitive to the developmental needs, educational opportunities and other conditions that can benefit from Penn National’s plan for the Aqueduct facility,” Simmons said in a statement.
   With Wynn withdrawing its proposal, the remaining bidders are The Peebles Corp. with MGM Mirage; SL Green Realty with Hard Rock International and Caribbean CAGE; Aqueduct Entertainement Group, which consists of the Navegante Group, GreenStar Services Corporation, Turner Construction and others; and Delaware North with Saratoga Gaming and Raceway.