Casino refinance deal is city’s boon

A $325-million debt refinancing by Empire City Casino at Yonkers Raceway will bring the city of Yonkers $3.673 million in revenue, city officials announced Tuesday.

Taking advantage of current low interest rates, Empire City is refinancing its overall debt, including its most recent $40 million expansion, which includes a modern 35,000 square-foot gaming floor and two new restaurants at the Yonkers Avenue harness race track and video gambling casino. The expansion created 100 construction jobs and 200 permanent casino jobs.

The Yonkers Industrial Development Agency will receive the city”™s payments from Empire City as part of the refinancing package approved by the IDA board Tuesday.

Empire City Casino will pay $523,000 in previously negotiated sales tax reimbursements, $3 million in additional payments to the city”™s general fund over two years, $500,000 to the Yonkers IDA for economic development efforts and up to $150,000 in materials or cash for improvements to the Coyne Park Senior and Community Center near the casino.

The IDA approved a mortgage recording tax exemption for Empire City valued at $1.575 million.

Mayor Mike Spano, who also serves as chairman of the Yonkers IDA board, called the agreement with Empire City “a great deal for Yonkers taxpayers. The city is actually getting more money than if we had done nothing at all” and instead collected mortgage tax payments from the refinancing.

“By refinancing, Empire City is going to be in a better position for future expansions, which will bring more jobs and expand the city”™s tax base,” Spano said in a press release.

Tim Rooney Jr., general counsel at Empire City, said it is the city”™s largest private employer with nearly 1,400 employees representing 14 unions.