TRR photo by David Hulse Concord developer Louis Capelli. (Click for larger image)

Capelli wants county $22.5 M for convention center

By DAVID HULSE

MONTICELLO — As expected, developer Louis Capelli came looking for money last Thursday as he presented an extensive preview of his $290 million resorts at the Concord for the Sullivan Legislature’s Executive Committee.

But the high impact issue for county legislators was a Capelli request for $22.5 million in bonds to fund construction of a 78,000-square-foot convention center adjoining the new Concord.

The Westchester developer came accompanied by an entourage of technical assistants, including investment bankers, architects and landscape and interior designers.

The appearance was a complete turnaround in approach for Capelli, who most recently had fired off angry words of frustration at the Legislature, following its failure to allow him special tipping fees to dispose of debris he will collect from the demolition of the old Concord buildings. He apologized for the letter, which he said was written in an “angry moment of frustration.”

That said, Capelli brought everything from architectural designs to color swatches to demonstrate the extent of the work already done in planning a new hotel that he said would be “four-stars, plus.” The planning, he said, was comprehensive. “Everything possible to make the Concord a unique four-star hotel is being done. There’s not one thing that we’ve left out or failed to consider,” he said.

The hotel, to eventually include 1,500 rooms, would be completed in phases of about 500 rooms each. Some of the architectural sketches were reminiscent of sketches presented last fall, but Capelli this time also came equipped with revenue numbers.

The new Imperial Theater would be 24,000 square-feet with 3,000 seats.

	TRR photo by David Hulse Sullivan County legislators, left to right, Rodney Gaebel (RC-5), Gordon MacKinnon (D-4), Kathy LaBuda (D-2) and Chris Cunningham (DC-1), are pictured viewing the January 11, Capelli presentation. (Click for larger image)

His projections showed his resort would provide a $2.5 million tax revenue increase for Sullivan County during first phase construction, $3.1 million during operation and $28.7 million over ten years. Phase two might begin immediately if convention traffic warrants, Capelli said, which would bring county revenues of some $54.3 million over ten years.

The hotel would provide some 1,200 construction jobs and 600 permanent hotel jobs, with associated personal income boosts of $41.3 million during construction and $37.2 million during operation.

The Concord would make $150 million in in-county purchases during construction, and some $98 million annually thereafter.

To make all that work, he added, a convention center must be included. He asked that Sullivan County bond $22.5 million toward the cost. At an anticipated 5.5-to-six-percent bonding rate, the annual indebtedness would run about $1.6 million, which Capelli said would be “more than offset” by the amount of new revenues the hotel would create. Capelli also said he would pay all operating expenses and short-fall costs for the center.

The developer had requested that state Senator John Bonacic and Assemblyman Jacob Gunther attend the presentation. Both sent representatives, but neither of the elected officials attended. Bonacic said last week that he wanted to see unanimity on the part of the county Legislature before he entertained requests for new funds.

Capelli also outlined extensive revenue gains for New York State in his presentation, as well as funding requests, to include a $1 million HUD grant and $18 million in state loans based on the project’s creation of new jobs. In addition, a 50-percent cut on the $18 million loan’s interest rate is projected.

Aside from close to $50 million in his own funds, Capelli plans to fund the project with the sale of $125 million in serial bonds.

Legislators Chris Cunningham (DC-1) and Rodney Gaebel (RC-5) were outspoken skeptics prior to the presentation. Neither moved a great deal from earlier positions in post-presentation comments.

After Capelli finished, Cunningham called the presentation “impressive,” but said he still wants a comprehensive review of the tax incentives already offered Capelli by the county Industrial Development Agency. “We’ll have a better idea what he’s asking for after the staff evaluates it,” he said.

“We got a whole lot more information today,” Gaebel said, noting there had been no offer to fund and build the center a week earlier.

“I’ve still got more questions…I’m still skeptical,” Gaebel said following the session

Legislative chair Rusty Pomeroy (D-3) asked Planning and Community Development Commissioner Alan Sorensen to review and evaluate documentation Capelli presented to the Legislature.