It”™s been 10 years since developer Louis Cappelli bought the land where the high-spirited echoes of Milton Berle, Alan King and Henny Youngman can be heard if you listen closely enough. The Concord Hotel, home to some of the most famous comedians and singers of the ”™50s and ”™60s, is quietly waiting for someone to breathe life into the once-famous resort area.
After what seems longer than a bad Shecky Green monologue ”“ and allowing for vagaries of financing ”“ the town supervisor now believes “everything is a go.”
Ending the legal claims over financing for his stalled Catskills resort and casino project in June 2010, Cappelli agreed to transfer the 1,500-acre Concord Resort property to Entertainment Properties Trust (EPT), a publicly traded real estate investment trust based in Kansas City, Mo., which was to repay its $56.25 million project loan from Canadian Imperial Bank of Commerce. That settlement ”“ which featured legal offshoots in Westchester”™s New Rochelle and White Plains ”“ freed Cappelli from repaying an outstanding $133.1 million loan from EPT.
The agreement allows Cappelli to keep control of the 100-plus-acre site of his planned $600 million casino and hotel development at the Concord. EPT also gave a Cappelli affiliate a two-year option to reacquire the 1,500-acre resort property for $143 million.
EPT also effectively forgave an additional $30 million in loans to Cappelli in exchange for up to $15 million in casino-generated cash taken in by Cappelli”™s company as a minority owner in the gaming venture.
“The Monster” golf course ”“ world renowned ”“ is included in EPT”™s Kiamesha Lake real estate holdings. True to the complexity of the dealings, Cappelli retains some golf course rights.
Cappelli still owns 116 acres at the Concord site and announced in May he would develop a hotel and casino in concert with the Mohegan Tribal Gaming Authority, owners of Connecticut”™s popular Mohegan Sun resort. The $600 million project is considerably scaled back from the Valhalla-based developer”™s plan for the original parcel, a $1 billion complex he dubbed Entertainment City.
“Right now, everything is supposedly a go,” said Anthony Cellini, Thompson town supervisor. “Mr. Cappelli is out shopping for financing.”
Cappelli did not return calls seeking comment.
Cappelli”™s newly proposed resort complex would include a hotel, video lottery terminals and a harness race track.
Empire Resorts ”“ with its Monticello Raceway next to the 40,000-square-foot Empire Casino, 1,000 VLTs and new electronic gaming tables ”“ quickly issued a statement upon news of Cappelli”™s new partnership with the Mohegans, saying it would oppose any plans to develop a harness track less than three miles away from its own.
In July, Cellini organized a meeting with interested parties who have, at one time or another, announced plans to bring casino gambling to the Catskills: the Stockbridge-Munsee Tribe; the Oneida Nation; the St. Regis Mohawks; and now, the Mohegan Tribal Gaming Authority and Cappelli Enterprises Inc.
While Empire Resorts and EPT did not attend that meeting, the two companies met with Cellini privately, according to Brian Moriarty, EPT”™s vice president of corporate communications.
Empire Resorts and EPT, along with Chicago-based casino/resort developers MSEG L.L.C., recently signed an agreement to select Hart Howerton Partners Ltd. of New York City to design plans for the 1,500 acres EPT owns at the Concord site.
“This is an important milestone in our efforts to revitalize this part of New York state, and we are confident that a concept that realistically accommodates a variety of resort destinations will be well received,” said David Brain, president and CEO of EPT, in a statement. “Hart Howerton brings the proven experience necessary for this important role and we are pleased to be partnering with them.”
According to Moriarty, “Mr. Cappelli has some options on ”˜The Monster”™ golf course; therefore, until such time as he”™s acted on his options, or those options lapse ”¦ we are not articulating plans for the site. We have already made a significant investment in the land itself. At this time, we”™ve selected a master planner, but cannot speculate on further development at this time.”
Cathy Soper, public relations manager for the Mohegan Tribal Gaming Authority, said its agreement to build a hotel complex and casino with Cappelli at Kiamesha Lake is moving forward. “There has not been any change in our plans,” Soper said in an interview Aug. 8.
There may be a new wrinkle, however, if proposed legislation S1424, also known as the Off Reservation Land Acquisition Guidance Act, introduced July 27 by U.S. Sen. John McCain, R-Arizona, is signed into law. Early in the process, it is impossible to say what might emerge as law, but it places a tighter leash on far-flung Indian deals.
The legislation requires the Department of Interior to consider if the taking of off-reservation land into trust is in the best interests of the tribe or the municipality and seeks some element of proximity ”“ akin to commuting distance ”“ between tribe and casino.
It further requires the Department of Interior to assess the benefit to the tribal unemployment rate. Interior would also be charged with determining whether a proposed gaming casino would disrupt local government operations; its potential impact on real property taxes; and if casino assessments would impact adjacent property. The bill further requires the land be compatible with existing land and zoning requirements in the municipality where it would be located.
For EPT”™s Moriarty, legislative abstractions ”“ might become law; could be grandfathered ”“ take a back seat to the company”™s vision: “Our goal is to ultimately revitalize the area,” he said. “There are multiple entities involved here, but we believe we are best positioned to develop in the area. We are not dependent on any agreements with any Indian tribes and Empire Resorts has extensive knowledge of the gaming industry and the necessary licenses; we have an excellent land development planner combined with a serious commitment to succeed with our investment in the region.”
Reporter John Golden contributed to this story.
I grew up in the Boarding House, and Recreation Park business in Pine Bush, during the 40’s and 50’s in ninteen sixty two I worked at building NY Worlds Fair. we, my wife, and I, own the weekly newspaper Ye Olde Tri-Valley Townsman and we would love and I also sing like Sinatra, Bennett, Martin, and the rest of the male greats of the past 100 years.
Because of the economy, and being one gas tank from NYC, I would love to see two Amusement Parks one for the kiddies, and one for the teens that are still teen’s at 50, bringing the hotels back to life…
Use this money to promote the changing of laws to create a Las Vegas of the East the people here deserve it under the constitution. The right to pursue “The American Dream”
thanks for the chance to comment.
Frank Comando
Have a great day
I don’t believe any of this until my rear end is seated at one of the tables. Gambling has been floated for years, and a lot of the local Mayberry types don’t want it. They are opposed to other businesses too. One just has to look at the abandoned Apollo Plaza… Target wanted to redevelop it. A truck stop wanted to develop it. Nope. A power station was proposed near the Sullivan County dump. It too was shut down. Yet the locals complain there are no jobs. But Broadway Monticello has a newly paved asphalt. So you can drive buy empty stores without hitting a pothole.
My parents own property near Monticello. We also have been going up there for years – my parents did the sinlges scene up there before they were married. My dad worked the hotels. We camped there. I want my kids to enjoy it too.
I’m not bitter, just a realist. I would love to see a convention center for business meetings and trade shows. Gambling is not a big deal for me, but I understand those who want it. I agree with Frank. I would like a one tank gas trip from the NYC area and activities for kids and teenagers.
If Mr. Cappelli can put this off, good for him. Otherwise, gambling has been floated for 50 years up there.