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The latest proposal to revitalize the Aqueduct Race Track was shot down on Friday by a Republican led insurrection in the State Senate.

The proposal that placed Buffalo-based Delaware North at the helm of the proposed “racino’s” video lottery terminal facilities was put on hold by Senate Majority Leader Dean Skelos and other Republican leaders, including State Sen. Serphin Maltese (R-Glendale), who had long pushed for a deal at the ailing Queens racetrack.

Maltese, who has trumpeted the value of redeveloping Aqueduct in the past, turned on the deal and opposed the plan, saying Delaware North was everyone’s “third choice.”

“Aqueduct has enormous potential to be a major tourist attraction and destination venue and we must not lose sight of that fact in making any decision. The surrounding communities have lived for years with problems caused by Aqueduct and now that such a major undertaking is finally coming close to fruition, those same communities that have been adversely affected should be the ones to share in the benefit,” Maltese said.

Governor David Paterson and Assembly Speaker Sheldon Silver had backed the deal on Friday before it was scrapped by the senate.

“It is shocking that Senator Skelos, who claims to understand the importance of this revenue stream and who has repeatedly and publicly called on the Governor to award this contract, has now decided to stall a significant economic development project.

“Equally troubling is that he has refused to state what proposal he supports and why. In this time of a financial crisis, every day we delay hurts New York. We must work together to ensure that we maintain the integrity of the State’s finances instead of allowing political interests to undermine our fiscal health,” Paterson said. “We look forward to hearing from Senator Skelos on which alternative would better serve the needs of New Yorkers from Queens to Cheektowaga.”

Skelos, like Maltese, insisted that the Delaware North proposal was the least attractive of the three contractors that had submitted plans.

“Of the three Aqueduct proposals, Delaware North offered the most up-front money as a one-shot to provide revenue to help address the state budget deficit. Unlike the other bids, Delaware North’s plan did not include an economic development proposal that would be a greater benefit in the long run,” Skelos said.

The company has partnered with the state on other ambitious projects, including Saratoga Gaming, Finger Lakes Gaming and Fairgrounds Gaming, and offered the most upfront funds, $370 million, but was the least ambitious of the developers, according to Republican lawmakers.

A complete overhaul of the racetrack could generate as much as $1 million per day in education revenue for the state, Maltese said.