BILL LIBLICK "Mouth that Roars" in the Sullivan County Democrat

Albany must act quickly on Concord plan

by: Bill Liblick

Concord developer Louis Cappelli along with Empire Resorts has come up with a brilliant idea to help it secure the financing it needs to build their massive Entertainment City project at the former Concord Resort site.

Under the proposal before the State Legislature, an extra 4 percent would be added into the Racino take already awarded to Monticello Gaming and Raceway, thus guaranteeing that bankers would receive a return on their investment.

Unlike other projects which receive massive state funding, this proposal has safe guards in place that would only allow the additional revenue if Cappelli and Empire Resorts live up to their end of the bargain.

The current revenue model for Racino operators is flawed, and offers little room in attracting players who are being won over by massive casino projects in Connecticut, New Jersey and Pennsylvania.

The Cappelli/Empire Resorts proposal will change that, because it will allow for the construction of an upscale entertainment venue that will include restaurants, shops, state of the art convention spaces, a luxury resort hotel and spa, and Las Vegas Style entertainment, besides Video Lottery Terminals (VLT) and a new racetrack.

I spoke with Cappelli and Empire Resorts Senior Vice-President Charles Degliomini on Wednesday about their plan. They were determined to get the project started by June and revitalize Sullivan County’s economy. They stressed that they were in no way seeking state aid or Empire State Development funds for the Concord. “We only want to pay our bankers out of the upside, Cappelli said.

State Senator John Bonacic told me the Concord Resort project, contrary to
some reports, will not be funded with taxpayer dollars.

Echoing Cappelli’s words Bonacic said that in order for the Concord to be eligible to receive increased funding from its Racino operation, it will first have to meet three thresholds. “First, it must generate a 50% increase in school aid for the local school district above the amount disbursed by the State. Second, it must provide a $50 million increase to the local and state economy generated by the resort itself; and third, it must create at least 1,000 permanent jobs.”

Bonacic stressed, "if, and only if all three thresholds are met, the Concord Resort owners have asked the State for a 4% return on the total cost of the project to be paid over a minimum of 20 years from a higher share of the VLT revenue generated at the resort.”

Assemblywoman Aileen Gunther, like Bonacic, a strong supporter of the Concord Project said she was pushing for immediate approval of the Cappelli/ Empire Resorts proposal because of the need for economic development in Sullivan County. “We have been waiting for more hotel rooms, conference space and the
reopening of the Concord - this is certainly a project which will bring
a new vitality to our tourism industry."

Cappelli said that Monticello Gaming and Raceway as it stands now cannot survive, and that they can no longer wait for approval of Indian Casinos to proceed. “The Racino is failing, and this proposal is a win win. Everybody will win, with the state winning first.” State proceeds from Racino and Lottery revenue go towards education.

Degliomini pointed out that unlike Bethel Woods which has received millions in grants and tax exemptions, the Concord project will be on the tax rolls and will not be applying for government grants. “We are a larger project on scale, and will be spending hundreds of millions of dollars more.”

Cappelli and Degliomini are envisioning more than just a Racino. They feel the time is ripe for approval for legalized casino gaming in New York State. Assemblywoman Aileen Gunther has been shopping such a bill, and with the casino industry becoming legitimized its prospects might finally be bright.

If Indian Casino gaming is not approved by a new administration at the current Racino site, Cappelli said the property is primed for a shopping mall among other things.

As for his other investments in Sullivan County which includes Grossinger’s and Kutsher’s, Cappelli told me they will become great “destination” resorts that will include golf and spas.

Cappelli said it was his desire to once again turn Sullivan County into one of America’s great resort destinations. Somehow I think he will do it. Now it is up to Albany to act quickly.