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)

Five years ago Tuesday, the racino at Monticello Raceway opened with as much flair as the rainbow-colored fountains that flowed in the track’s Borscht Belt heyday. The throngs who ran to the beeping slot machines represented 40 years of Catskill gambling dreams come true, said supporters. The racino was the first step towards the full-fledged savior, a casino. The protestors standing outside said the place that touts itself as “a little Vegas in your backyard” would be the first step on Sullivan County’s road to ruin. It would clog roads and tempt problem gamblers. Today, Monticello Gaming & Raceway is neither savior nor devil. It’s a business fighting for survival. Its daily take per slot is the lowest of New York’s eight racinos — the second-lowest of all 42 casinos and racinos in the Northeast, according to the most recent Gaming Industry Observer’s East Coast Slot Report. Attendance continues to plummet, down 11 percent from last year. It owes creditors $72 million, with $65 million due by the end of next month. It does not have the money. “We do not presently have a source of repayment … and our operations will not provide sufficient cash flow to repay these obligations,” says its most recent government filing. It is, however, actively seeking solutions, including new financing. The factors that were supposed to guarantee the racino’s success in 2004 — proximity to the metropolitan area and the Poconos — are now cited as reasons for its decline, with the Yonkers racino and Poconos casinos taking huge chunks of the Monticello market. Five years after it opened, the racino at Monticello Raceway — under new management this month — is at a crossroads. It’s gambling on a couple of shots in the arm to survive: A new racino, Entertainment City at the old Concord resort, owned by its parent company, Empire Resorts. Video table games, to be installed at all New York racinos, including Yonkers and a future racino at Aqueduct. At stake isn’t just Sullivan’s decades-long gambling dream. The racino employs some 300 workers in a county with one of the state’s highest unemployment rates. It also pays some $1.7 million per year to three municipalities: Monticello, the Town of Thompson and Sullivan County. “It’s just extremely important to us all,” says Thompson Supervisor Tony Cellini. (Source: Times Herald Record)

Empire Resorts, the company that owns Monticello Gaming and Raceway, and Concord Associates today announced plans to move the gaming and racing facility to a 160-acre tract at the site of the old Concord Hotel in the Town of Thompson. Construction on the $700 million, 1.5 million-square foot facility is expected to begin later this year with a grand opening in 2010. Under the agreement, the parties said they will develop a “world-class gaming and entertainment facility,” which will include a 100,000 square foot gaming area, convention center, hotel, golf, retail stores, restaurants and family entertainment. The gaming floor will be built within the hotel and a 5/8th mile harness racetrack will be developed next to that. Officials of this new venture emphasize that engaging in this deal does not mean Empire Resorts is withdrawing from its plans to build a Native American casino at the present racetrack site with their partner St. Regis Mohawk Tribe. In fact, Empire Resorts’ CEO David Hanlon said they have offered the Tribe the opportunity to invest one-third of Empire’s contribution to the new project. “This could be their first commercial opportunity outside their of their own reservation while waiting for the next year or two until the Kempthorne final decision is reversed by a court,” said Charles Degliomini, Empire vice president. “This is a win across the board for Empire’s shareholders and Sullivan County’s residents,” said Hanlon. “The local economy will get the boost it needs in terms of jobs and this project is expected to enhance the value of the company for our shareholders, who will finally be rewarded for their patience in waiting for the day when we can build a world-class resort and gaming complex in the Catskills.” Concord Associates’ Managing Member Louis Cappelli said the “ambitious project will create thousands of union jobs for the region and the Catskills.” He said the project will create “thousands of jobs throughout the entire upstate economy and bring the former Concord Hotel back to its glory as one of the region’s truly great convention, destination and resort hotels.” (Source: MidHudsonNews.com)

Empire Resorts, the St. Regis Mohawk Tribe’s Sullivan County casino development partner has notified the Tribe of its intention to abandon the Mohawk’s Catskills casino project at Monticello Raceway – MidHudsonNews reports.The Tribe received a letter from Empire on February 5, 2008 informing the Tribe of their intentions to “shut down” their Monticello Development office and to immediately cease funding of necessary pre-development expenses associated with the Mohawk project. Empire has previously communicated its intent to enter into a joint venture with a competing gaming interest to move the raceway and VLT operations to a different location a few miles from the existing Monticello Racetrack. The St. Regis Mohawk Tribal Council has determined that Empire’s notice constitutes an express breach of its gaming agreements with the Tribe and is committed to aggressively pursuing any and all appropriate legal remedies to protect the interests of the Tribe. On January 5 YWN reported (HERE) that the federal government had rejected plans for two casinos in the Catskill Mountains, saying that the reservations of the two tribes that submitted the plans were too far from where the casinos would be built, in Monticello and in the town of Thompson. The decision was a major setback in the 30-year effort to bring gambling to Sullivan County. One of the proposed casinos, at Monticello Raceway, received the support of Gov. Eliot Spitzer and was expected to attract six million visitors a year, generate 3,000 jobs and provide the state with an estimated $100 million a year. But the plans faced intense opposition……… (Source: MidHudsonNews.com)

The Times Herald Record reports: Gov. Eliot Spitzer is calling for a congressional oversight hearing to force Interior Secretary Dirk Kempthorne to explain why he has not acted on the St. Regis Mohawk casino in Monticello. (Click HERE for original story.) “The Secretary has had all of the information he needs to reach a decision for months; yet, he continues to let the application languish,” Spitzer wrote in a Sept. 17 letter to Rep. Nick J. Rahall II, chairman of the House Natural Resources Committee. In February, Spitzer OK’d the casino at Monticello Gaming & Raceway. The Mohawks previously cleared the other major hurdle when the Interior Department approved the environmental piece. Kempthorne still must agree to take the land into trust for the proposed $600 million casino. He has put about two dozen other tribes with pending applications for off-reservation casinos, including the Mohawks, on notice that final approval is not guaranteed.

It’s been five months since NY Govorner Elliott Spitzer gave his approval to build a casino in Monticello, and the project is exactly where it was five months ago. It seemed that everything was ready to go, but still no word from Interior Secretary Dirk Kempthorne on whether he’ll approve the St. Regis Mohawk casino at Monticello Gaming & Raceway. According to the Times Herald Record, the Bureau of Indian Affairs completed its review more than a month ago. “Governor Spitzer has spoken on several occasions to Secretary Kempthorne, and he’ll continue to press the secretary for his approval,” Spitzer’s spokeswoman, Christine Pritchard, said. “The conversations were substantive in nature, including the governor’s explanation as to why the casino would benefit both the tribe and New York state.” Kempthorne is touring Guam and other American possessions in the Pacific. Spitzer is planning another call when Kempthorne returns this week. “The Tribe has remained confident and optimistic “¦,” the Mohawks said in a statement yesterday. “We are hopeful approval is in fact imminent.”

Monticello, NY – If Empire Resorts wants to continue its efforts to develop a Native American casino at Monticello Gaming and Raceway, it will have to find a new partner. The St. Regis Mohawk Tribe Saturday conducted a vote of its community members and the majority turned thumbs down on continuing with the off-reservation gaming project. The vote among its members was 178 “no” and 140 “yes”. The next step for the tribe would have been to seek the reversal of the so-called Kempthorne Policy, which, under the Bush Administration, prohibited the St. Regis Tribe from building an off-reservation casino in Sullivan County. Sullivan County Partnership President Timothy McCausland Monday said while he is disappointed that the tribe has decided not to pursue the project, he can respect their process. “I hope that the folks at the track can identify another partner that can come forward and become part of the tremendous support that the county, the Town of Thompson and us here at the Partnership have for casino gaming,” he said. (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 NY State Assembly late Tuesday afternoon gave final legislative approval to a financial package that will pave the way for the resort that will rise out of the ashes of the old Concord Hotel in Kiamesha Lake. The Senate passed the measure sponsored by John Bonacic on Monday and on Tuesday, the Assembly carried Aileen Gunther’s bill. She talked of the many benefits of the involved when the resort, hotel, conference center, harness racetrack and racino are built. “The contribution to education form the VLTs will be at least double and 2,000 new jobs will be created,” she said. “This is a great day for the people of Sullivan County and the Mid-Hudson region.” The partnership group plans to invest $1 billion into the facilities, which will include moving Monticello Gaming and Raceway to the new site. “After 10 years of failure and frustration the champagne cork has finally popped for the Catskills,” said Charles Degliomini, Empire Resorts’ vice president. “After everyone has had a few sips, it’s time to build.” Governor Paterson has promised to sign the incentive bill, which will provide for the group to retain 75 percent of the profits from the video slot machines, up from the current 50 percent.

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

The Times Herald Record reports that the Kutsher family, owners of Kutsher’s Country Club, the famed, century-old hotel, has agreed to sell their resort for $35 million to Concord owner Louis Cappelli. Cappelli has already paid $2.5 million for an option to buy the property within a year, and has also paid them another $1 million to keep the hotel and golf courses open through 2008. Kutsher’s, the last operating resort from the tourism heyday of the Sullivan County Catskills, will open in April, a week before Pesach. Last year Kutsher’s made a deal with Satmar Camp (Rov Tov), to lease for one year the land that for 39 years was home to Kutsher’s Sports Academy on Anawana Lake Road. Just last month, YWN reported (HERE) that Cappelli announced last month that he had reached a $700 million deal with Empire Resorts, the company that owns Monticello Gaming and Raceway, to move the gaming and racing facility to a 160-acre tract at the site of the old Concord Hotel.

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)

Governor David Paterson Tuesday signed the Concord development bill paving the way for the $1 billion project to move forward, MidHudsonNews reports. The plan is for Louis Cappelli’s Concord Associates and Empire Resorts to build a new gaming resort with a hotel, conference center, racino and Monticello Raceway. The racetrack and video slot machine operation will be relocated from their current location in Monticello to the site of the former Concord Hotel in Kiamesha Lake. The project is expected to bring with it 2,000 permanent jobs and an increase in the current contribution to state education. Senator John Bonacic, who sponsored the legislation in the Senate, said with 14 percent of Sullivan County’s population at or below the poverty level, this project will serve as a major economic boost for the region. “The people of the county need permanent jobs, a substantial increase in education funding, and dollars invested into the regional economy.” Construction is expected to begin in the weeks ahead with the first phase to be completed in two years. Demolition has been underway for weeks to remove the old Concord building. (Source: MidHudsonNews)

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)

NY Governor Spitzer wants to yank half of the money that communities get from video gaming machines at racinos next year — and that’s going to mean a loss of more than $1 million used to reduce taxes in Sullivan County, the Village of Monticello and the Town of Thompson – the Times Herald Record reports. Contained in Spitzer’s budget is a proposal to cut the state aid to 17 communities that comes from eight racinos, including Monticello Gaming & Raceway. Local governments get 3.5 percent of the take from the VGMs, of which 25 percent goes to the county and the remaining 75 percent to the local communities. Spitzer proposes to cut that amount in half in 2009-10, and in 2010-11 force communities to justify their aid by doing a cost-benefit analysis of having a racino, a move that likely will reduce the amount further. Funding for this year will remain the same. In 2007, Sullivan, Monticello and Thompson received more than $2.3 million; Monticello and Thompson used most of their share to offset tax increases or for road repair. This year, the communities will receive slightly less money because gaming revenues have declined. Assemblywoman Aileen Gunther, D-C-Forestburgh, and Sen. John Bonacic, R-C-Mount Hope, say they’ll try to defeat the proposal. “Reducing state aid amounts to a property tax hike,” Bonacic says. “It is as simple as that.” (Source: Times Herald Record)