Monticello, NY – The St. Regis Mohawk Tribe Saturday approved off-reservation gaming in the Catskills. Tribal officials said voter turnout was good at 936 with the measure approved by an unofficial vote of 538 in favor to 371 opposed with 27 ballots voided. The Tribe said the next hurdle is to clear the so-called Kempthorne decision, made during the Bush Administration. That rule disallowed off-reservation gaming at Monticello. The Obama administration is currently reviewing that and is being pressured to change it by the likes of US Senator Charles Schumer and New York governor David Paterson. The Tribal Election Board will later officially certify the results of Saturday’s vote after a five day period, pending any appeals. (Source: www.MidHudsonNews.com / YWN-112)

A decision on the future of Native American casino gaming in the Catskills could be known in the coming weeks. Senator Charles Schumer got the word from Interior Secretary Ken Salazar. If the blanket ban set by former Secretary Dirk Kempthorne is overturned or modified, the senator is also urging the Interior Department to evaluate the applications that have already been submitted instead of forcing interested parties to go through a reapplication process. The Stockbridge-Munsee seeks to build a casino in the Town of Thompson and the St. Regis Mohawks sought to build one at Monticello Raceway. In January 2008, Kempthorne denied their applications along with 21 other off-reservation land-into-trust applications. “After over a year of hard work, a decision on whether to overturn the flawed Kempthorne precedent is tantalizingly close,” said Schumer. (Source: MidHudsonNews)

MONTICELLO, NY – There is no sign of life at the site of the former Concord resort, just some piles of debris, a stack of prefab metal skeletons, and what appears to be initial site work, done six months ago.  Not one person, or piece of construction equipment could be seen, when we checked the site Thursday. Things could change, soon, Henry Zabatta, a general manager for the Concord Resort and Golf Club, told the Community and Economic Development Committee of the Sullivan County Legislature, Thurday. “After about a year of review, we have the final signoff on the site plan for the hotel-casino and the racetrack”, said Zabatta. “Last Thursday, we picked up a building permit for the actual construction.  We’re in the process of finalizing our financing.  We hope that before the end of the month, we’ll have the financing in place.” Failure to complete the massive money package is generally what is believed to have brought developer Louis Cappelli’s billion-dollar entertainment city project to a halt. The county legislature needs to take care of some business, including a local law authorizing the operation of video lottery gaming within Sullivan County.  The CEDC signed off on that, yesterday. (Source: MidHudsonNews)

Monticello, NY – The company that owns and operates Monticello Gaming and Raceway Friday announced its net revenues fell $1.3 million, or eight percent, in the first quarter of 2009 as compared to the same period in 20008. But, in a first quarter filing, it said it may not be able to meet its financial obligations. Empire Resorts’ credit facility with the Bank of Scotland requires repayment of approximately $7.15 million on May 29, 2009. The holders of its Senior Convertible Notes ($65 million principal balance due) have the right to demand repayment of the principal amount due on July 31, 2009. “We do not presently have a source of repayment for this credit facility or for these notes and our operations will not provide sufficient cash flow to repay these obligations,” the company said. On April 21, 2009, the company received a letter from Bank of Scotland in which Bank of Scotland stated that it had received information that one or more defaults or events of default exist within the credit agreement with Bank of Scotland and that although the parties will engage in good faith discussions to address the situations that resulted in such defaults or events of default, Bank of Scotland reserves its rights and remedies under the credit agreement. On April 15, 2009, the company received a letter from Plainfield, a holder of $22.5 million in principal amount of the company’s senior secured convertible notes, pursuant to which Plainfield stated that, among other things, it is a member of an ad hoc group of holders of the company’s senior secured convertible notes and that each of the members of the ad hoc group intends to exercise its put right in accordance with the terms of the indenture. Revenue from racing operations at Monticello Gaming and Raceway was unchanged; revenue from video gaming operations fell by about $1 million, or seven percent, and food, beverage and other revenue decreased by approximately $68,000, or seven percent. The company said their video gaming operations continue to be adversely affected by the competing VGM facility at Yonkers Raceway and slot machine facilities in Pennsylvania. Monticello’s daily visits decreased about 11 percent and the daily win per unit fell from $91.51 for the three months ended March 31, 2008 to $85.41 for the three months ended March 31, 2009, or seven percent. That happend as casinos nearby in Pennsylvania reported double-digit increases in revenues for the same period. Racing costs decreased by approximately $122,000, or seven percent, to about $1.6 million for the three months ended March 31, 2009. “We have been able to reduce some operating expenses at our facility while our revenues derived from sources other than live racing at our facility remained comparable to the corresponding quarter in the prior year,” the company said it its first quarter report. (Source: MidHudsonNews)

MidHudsonNews reports: The proposed Concord Resort and hotel in Kiamesha Lake took a major step forward with the announcement Wednesday that it has secured $225 million in financing for the project from Entertainment Properties Trust, a Kansas City-based real estate investment trust. Cappelli Enterprises has invested $100 million, completing the equity of $300 million required under state legislation that will open the door for state incentives. The entire project will cost $1 billion; the initial $255 million was facilitated by the Sullivan County Industrial Development Agency through tax incentives it approved. Plans for Concord Entertainment City Resort include a 750 room hotel, 300,000 square feet of casino, ballrooms, meeting rooms, retail, entertainment and other commercial uses; the relocation of Monticello Raceway to be re-branded as concord Downs; the development of a 125 room hotel and spa; reconstruction of existing golf courses including “the Monster” to be branded by the likes of a world-renowned golf course designer like Jack Nicklaus and others. Negotiations are underway with Great Wolf Lodge to bring a themed hotel and indoor water park to the resort. Actual construction could begin shortly. Thompson Town Supervisor Anthony Cellini said foundation building permits are expected to be issued in the next few days with concrete work for the new facilities to begin almost immediately. (MidHudsonNews.com)

Concord Redevelopment Project supporters showed up at the Thompson Town Hall in droves Tuesday to demonstrate to Sullivan County Industrial Development Agency board members the project’s worth, and to encourage them to approve all tax incentives sought by developers Cappelli Enterprises, Inc, and Empire Resorts, Inc. Some 200 residents, business owners, local officials, and construction workers from the Concord site, showed at the public hearing, one held just days before a decision will be made as to which tax incentives will be given to Cappelli. Concord Raceway Empire Corporation and Concord Associates are asking the Sullivan County IDA for nearly $85 million in tax abatement’s following the multi-phase Concord project, which includes a new Monticello Gaming & Raceway operation, a 1500-room hotel and conference center, and renovations to its existing golf courses. The total proposed cost of the project surpasses the $1 billion mark, and is expected by many to bring thousands of jobs to the area, and help stabilize the county workforce and economy. Pattern for Progress President Jonathan Drapkin spoke in favor of the project. “Derelict and faded resorts are this county’s Brownfields,” explained Pattern for Progress President Jonathan Drapkin.  “The footprint of this project is not hundreds of pristine acres, but rather a sad reminder of a bygone era.”  Drapkin added that is project will “breathe new life into the county.” Vice President of Planning and Marketing at Orange Regional Medical Center Rosemary Frado also praised the project for economic reasons.  She noted the county’s current unemployment rate is the highest in the state at over six percent, and that there is a direct connection between that and health. “Without jobs, there is no healthcare, and without healthcare, people put off accessing healthcare until there is an emergency situation or until it evolves into a more serious chronic condition.” Several business owners, including Gary Schmidt of Schmidt Wholesalers in Monticello, praised also praised the venture.  “People need rooms, a place to stay in the county so that they’re money stays in Sullivan County.  This project will give us direct rooms onsite.  This project will give us the growth we need to let Sullivan County shine again, like in the old days, but only better.  Let’s get this project done.” The Sullivan County IDA board will be voting on the tax abatement application Thursday evening. (Source: MidHudsonNews.com)

Kiamisha, NY: As the Cappelli Concord Resort project continues to move forward, U.S. Senator Charles E. Schumer, joined by developer Louis Cappelli and local officials, toured the future site of the world-class resort and announced his continued push to ease access for visitors to and from the region and resort.  The multi-million dollar project will provide a significant economic boost to Sullivan County and the entire Catskills region. In an effort to revive the much-needed tourism industry and provide an economic shot in the arm to the county, Schumer detailed his continuing efforts to add a third lane to Route 17 and pledged his support for easing access to and from the region, including a new, high-speed EZ pass at the NYS Thruway, Route 17 interchange. “A world-class resort is just what the doctor ordered for Sullivan County and this project will be a much-needed economic shot in the arm for the county and the entire Hudson Valley area,” Schumer said. “It is critical that Sullivan County gets the assistance it needs to make it an easily accessible vacation haven for visitors from New York and beyond. A high-speed EZ pass and widening Route 17 will provide crucial access. If a two-hour commute turns into a four hour traffic nightmare, you better believe it’s going to effect tourism.” Developer Louis Cappelli is partnering with Empire Resorts to build a mega-resort in Monticello at the site of the Old Concord Hotel that would provide an enormous economic boost to Sullivan County. The site will have several hotels, golf courses, spas, shops, and national retailers. A project of this size needs much support both from the state and federal governments. An incentives package, signed into law by Governor Paterson, requires the developer to invest $1 billion, create 2,000 permanent jobs, generate $50 million in local tax revenues, and double education aide. In light of the proposal’s potential to provide an economic boost to the region, Schumer today detailed his continuing efforts to expand Route 17 and pledged his support for making an easy access road for visitors to and from the region. Citing traffic bottlenecks and backups in Harriman, where the NYS Thruway meets Route 17, Schumer is additionally calling on the New York State Thruway Authority to establish a high-speed EZ Pass at the Harriman toll plaza. In 2005, Schumer secured $1 million in the Transportation Reauthorization bill to begin the process for the expansion of Route 17. Schumer long led the effort to widen Route 17 to three lanes in both directions. The stretch of road in Sullivan County is notorious for back-ups that will worsen if the planned Catskill casino is constructed. Schumer announced today that he would be making the expansion of Route 17 and the establishment of high-speed EZ passes priorities in the 2009 Transportation Bill. The legislation, entitled the Safe Accountable Flexible Efficient Transportation Equity Act: a Legacy for Users (SAFETEA-LU 2005), authorizes federal surface transportation programs for highways, highway safety, and transit every 5 years and is one of Congress’ largest funding vehicles for transportation and infrastructure investments. “One of my biggest priorities in next year’s Transportation Bill will be to secure the dollars necessary to expand this vital corridor and make traveling to the Catskills as efficient and problem-free as possible. If we are

NYS Governor David A. Paterson today announced an agreement with the Legislature that will pave the way for the development of a major resort and VLT gaming facility in the Catskill Region at the current site of the Monticello Gaming and Raceway. The program bill will lower the tax rate on VLT revenue in return for a one billion dollar investment, a commitment to increase education funding and the creation of 2,000 permanent jobs. The investment will be made by Empire Resorts, Inc., which recently acquired from Concord Associates LP, a development group managed by Westchester developer Louis R. Cappelli, the Concord and Grossinger’s Resort Hotels and golf courses. This new Monticello project must be completed by January 31, 2011, and includes plans for the construction of a hotel, convention center, new racino, retail space and a parking garage. Additionally, at least one eighteen-hole golf course will be redeveloped. “There was a time when the Catskills were the pre-eminent vacation destination on the entire East Coast. The beauty and majesty of the region has not changed, and this deal will help return the Catskills to their former glory a destination spot,” said Governor Paterson. “This agreement is a big win for Monticello, Sullivan County, and all of New York State. Government and the private sector have worked together to structure a deal that will at least double the amount of money for education that the State expected to generate from the Monticello Racetrack and to create 2,000 permanent new jobs.” The new VLT facility will provide a minimum of $38 million annually for education; twice the amount currently expected to be generated by Monticello Gaming and Raceway in the absence of this upgrade. The amount of VLT profit the operator will be allowed to retain will be tied to the number of jobs created and maintained. Governor Paterson called the deal a major breakthrough for the Catskill region, which has suffered economically in recent years, and specifically thanked Senator John Bonacic and Assemblywoman Aileen Gunther for their efforts on the project, and for introducing the bills in their respective houses. Senate Majority Leader Joseph L. Bruno said: “This agreement is a positive step toward the creation of 2,000 new, good-paying jobs for Catskill Region workers and their families. By creating a world class casino that will be a tourist destination for visitors from all around, we will provide a lift to the local economy and ensure greater resources for education for students all across this State. I commend the Governor for his leadership, and thank Senator Bonacic for all he has done to advocate for this important project.” Assembly Speaker Sheldon Silver said: “Today’s agreement reflects the type of smart, effective economic development strategy that the Assembly Majority has advocated for years. By taking advantage of the strength of Sullivan County as a widely recognized tourist destination, a casino and resort project such as this brings us closer to successfully revitalizing our communities – particularly upstate. The Catskill resorts have always been more than a community of grand hotels, they are a part of the fabric of New York. It has been an absolute pleasure to work with Assemblywoman Aileen Gunther, a leading advocate for Sullivan County and my Assembly Majority colleagues in working for economic development and job creation

YWN has been following the developments regarding the possibility of gambling casinos coming to Sullivan County very closely. (Click HERE to see all articles on this topic). The following are excerpts of an Associated Press article just hitting the wires: As work crews smash apart the Concord Hotel developer Louis Cappelli surveys the rubble and sees a new shot at glory for the Catskills. Over the rumble of demolition, Cappelli talks about a $1 billion resort here with gambling, golf, shopping, a spa, a water park and horse racing. He sees Vegas, the Hamptons without the traffic, something that will finally lift this old tourist haven northwest of New York City from its long torpor. People here began dreaming about casinos in the Catskills soon after station wagons full of families stopped coming decades ago. But they could never land one. But Cappelli, a big-thinking developer sometimes called “the Donald Trump of Westchester,” said the gambling will help attract tourists from the metropolitan area and revive the Catskills. Locals officials — used to gambling deals that never come through — have embraced the deal forwarded by Cappelli and track owner Empire Resorts. But there is still a catch: the deal depends on financial help from Albany — and there is no firm commitment from the Capitol as the legislative session winds down this month. The Concord, with some 1,200 rooms, was a Catskills mainstay in the days when the area was packed with summer tourists, many of them Jewish families up from New York City. Tourism declined by the ’70s with the rise of cheap air fares and air conditioning. Locals looked to casinos to fill the void, but were unable to amend the state constitution to legalize them. But the casino pursuit played out like a long game of three-card monte: The winning card never came up. The death blow to local Indian casinos came this year when federal officials rejected two proposals here because they would be hundreds of miles away from tribal lands. The new Catskills gambling plan involves Monticello Raceway, a shopworn harness track three miles down the road from the Concord. The raceway — once a would-be casino site — is among the eight New York harness tracks given permission several years ago to install video lottery terminals. The flashy machines look and act like video slot machines. But payouts are controlled centrally by New York’s lottery, making them legal video lottery terminals, or VLTs. The Legislature is due to end its annual session June 23. Cappelli said he needs an agreement among Gov. David Paterson, the Assembly and the Senate before then. It’s not clear if that will happen. Democrat Gunther and the local state Sen. John Bonacic, a Republican, both support the project and are in the majority of their respective houses. A spokesman for Paterson said the administration is evaluating the proposal and is committed to helping the Catskills. (Click HERE to be redirected to the CBS2 HD website and read the complete story)