Westchester County developer Louis Cappelli”™s Concord project in Sullivan County is just “weeks away from financing,” he said, after which construction will soon begin.
“We”™ve been weeks away for weeks,” he added, citing the financing difficulties faced by banks these days. He seemed confident at a White Plains press conference June 1 the plans will proceed.
One involved legislator said the developer is “on a mission” and forces that include the governor”™s office have been enlisted to see him succeed. The scale, however, could now be diminished.
The Concord, which Cappelli bought in bankruptcy court at the turn of the millennium for $11 million, would be transformed from bleak, abandoned property to an ambitious landscape that would offer a top-notch hotel, a conference center, a smaller boutique hotel, spa facilities, restaurants, retail, a harness track and a racino. The price of this new Catskill resort? $1.5 billion. The return? 75 percent of the video slots proceeds if he could get Entertainment City open and off to the races by Jan. 31, 2011 and plenty of tax incentives from Sullivan County to bring construction opportunities and permanent jobs to a decaying region.
With much ado, Cappelli began to deconstruct the Concord last fall, eventually razing its several buildings (some of which were asbestos-laden disasters) and started groundwork preparation. Then, as the economy slid, so did Entertainment City”™s progress. The Concord is gone, but today, the only thing moving around the project site are locals driving by.
As for Empire Resorts, which owns Monticello Racino and Raceway (now officially Monticello Casino and Raceway) and a key player in Entertainment City plans, it continued to sink deeper into debt. Earlier this year, Cappelli Enterprises announced Empire Resorts”™ racino and racetrack would remain in Monticello, while a new racino and new racetrack ”“smaller, but probably more plush ”“ would be built at Entertainment City. Racing conflicts would be avoided by drawing up schedules for harness drivers that would not conflict.
On June 1, Empire Resorts named Joseph Bernstein as the company”™s new CEO. Bernstein originally co-founded Catskill Development L.L.C., the company that bought Monticello Raceway and its 230 acres with an eye to bringing casino gambling to the property several years ago. When the Bush administration”™s Secretary of the Interior Dirk Kempthorne clamped down on off-reservation casinos, Catskill Development sold the property to Empire Resorts.
Now Bernstein is back, his chief aim to get Empire Resorts back in the black, despite red ink seeping into its books.  Cappelli, who sits on its board of directors, remarked in a published statement that Bernstein is a “brilliant choice to lead the new management team.”
Hopes are pinned on the Obama administration”™s new Secretary of the Interior Ken Salazar for change from the previous administration”™s policies. Many communities are hoping Salazar will reverse Kempthorne”™s insistence that Indian casino gambling remain on the reservation.
To add a little spice to the already complicated scenario, the Seneca Nation has announced plans to build a casino and hotel on 63 acres in Bridgeville, just down the road from Entertainment City. The Senecas, who have promised the town of Thompson $15 million a year in revenue, are partnering with Michigan-based Rotate Black. Others are now coming forward with similar plans to bring Indian casino gambling to the Catskills.
Sullivan County Legislator Aileen Gunther, D-Forestburgh, still holds out hope that Cappelli”™s Entertainment City will indeed come to fruition. It”™s my understanding he is still committed to project. He may try to scale it back a bit.” Gunther acknowledged, “With the economy the way it is, it is difficult to get all of the money necessary. Empire is trying to create a relationship with one company and reconnect with the St. Regis Mohawks. He (Cappelli) is close to getting enough money to getting project going.
“He”™s still on mission to finish the project,” continued Gunther, “and, hopefully, he”™ll get there. We just had a meeting with small and big businesses, representatives of the county”™s labor force, government officials down to local community at Thompson”™s Town Hall, which included David Rose representing Gov. Paterson. We all came together, and we have asked the governor to help support this project.”
However, it is not the first time that a gathering of major officials have come to intercede on Sullivan County”™s behalf. In August, 2008, more than 200 supporters of the Concord redevelopment project, businesses and politicians alike, packed Thompson”™s Town Hall in support of Cappelli”™s Entertainment City and Empire Resorts.
Louis Cappelli is no stranger to Sullivan County. In the 1970s, he worked with his father building the Sullivan County Government Center in Monticello. That was back when the Borscht Belt”™s lure couldn”™t be beat.
Cappelli also has purchased Grossinger”™s and has an option to buy Kutscher”™s, too.
