Concord project may depend on money from state

Developer visits local government

By FRITZ MAYER

MONTICELLO, NY — Developer Louis Cappelli says he has a commitment for $350 million from a banking group to build his so-called entertainment city on the site of the famed but faded Concord Hotel. The problem is, to build the kind of enormous, dazzling, heart-stopping destination he envisions, he will need twice that much money. He’s hoping New York State officials will help with some of the rest of the funding.

That was part of the hour-long pitch Cappelli, a principal of Concord Associates, and his partner David Hanlon, the CEO of Empire Resorts, gave to lawmakers on February 14, in the aftermath of the announcement that the two companies had agreed to move the race track and video gaming machines (VGM) from Mighty M Gaming in Monticello to the Concord property.

Cappelli’s plan involves demolishing the many existing buildings at the Concord property and replacing them with new ones. If, however, the state doesn’t come through with any funding, Cappelli said his back-up plan is to renovate some of the existing buildings instead of demolishing them. He said, however, he much preferred all new buildings.

Cappelli said officials in Albany should be interested in supporting the project, because once the VGM operation is in it’s new location attracting a more upscale clientele, it will bring the state about $75 million in revenue up from $30 million now. He also predicts the project will pump up to $150 million per year into the local economy and create 3,000 jobs.

Most of the approvals for the projects, which will include a hotel, a theater, shops, condominiums, a golf course and more, have already been granted by the Town of Thompson Planning Board; however, a few new elements will require new permits. For instance, Cappelli plans to install a new harness racing track at the site of an abandoned gas station, which is currently a brown field site due to leaky gas tanks buried on the property. This would require a new permit.

In explaining why Empire Resorts decided to team up with Concord Associates in this undertaking, Hanlon said that the VGM operation was declining because of competition with VGMs in Pennsylvania and elsewhere. The number of customers peaked at about 1 million per year two years ago, to 700,000 now. He said in order to lure more customers, Empire had to provide a more “compelling product,” which in the new setting, the VGM operation and the racetrack would be.

Hanlon also said he was puzzled by the angry reaction of the St. Regis Mohawks, who ended their partnership with Empire to develop a class three casino at the Monticello Raceway after the deal with Concord Associates was announced.

Hanlon said Empire would still pursue a casino at the Monticello location, and would try to convince the tribe to reconsider their position. That, however, seems unlikely, as tribal chief Barbara Lazore has said the partnership with Empire is over for good.