Concord project inching slowly forward

State senate could be stumbling block

By FRITZ MAYER

MONTICELLO, NY - Despite the battered economy and tough lending environment, financing for the massive project at the former Concord Hotel site is now lined up. That word came from Henry Zabatta, general manager of the Concord Resort and Golf Club, who spoke to the Sullivan County Legislature on July 2 at the government center.

He said that the site plan is complete and that developer Louis Cappelli has been granted a building permit for final construction by the Town of Thompson.

Zabatta went to the meeting to ask lawmakers to pass a law that would allow video lottery terminals to operate at the new facility once it is open. All of the county legislators are in favor of the project, dubbed Entertainment City, and the law should pass without resistance. There will be a public hearing on the matter on August 6 at 11:50 a.m. in the legislative hearing room.

Zabatta said that if everything goes as planned, there could be a closing on the construction of the project by the end of July and construction, which has been stalled since last fall because of a lack of financing, could begin shortly thereafter.

But there is a roadblock that could hold things up. In order to close, the New York Senate must pass legislation that would change the deal that Cappelli struck with the state.

The original legislation granted that the owners of Entertainment City would retain 75 percent of the revenues from video lottery terminals (VLT) at the new venue, up from about 35 percent. But, in order to get that revenue stream, Cappelli and his partners were required to invest $1 billion in the project and create 2,000 new full-time jobs within three years of opening.

The amended legislation, which has already been passed by the assembly, adjusts those requirements downward in light of the suffering economy, and now requires an investment of $600,000,000 and the creation of 1,500 jobs.

At the moment, however, the senate is in the grips of a month-long power struggle with both the Democrats and the Republicans claiming to be the party in power with an even 32-vote split in the chamber. Neither side is willing to recognize the leader of the other side. With no end to the stand-off in sight, there is a real possibility that many pending bills, including the one that would allow the Cappelli project to close at the end of the month, will not be addressed in the current legislative session.