Capelli Unveils Another Concord Plan
Louis Capelli, the owner of the old Concord Hotel, has announced a deal with Empire Resorts to move the Racino and Raceway to the site of the Concord as the centerpiece of a 160 acre, $700 million entertainment complex. The latest plan calls for 500 to 750 hotel rooms, a convention center and retail. Capelli does have a track record with multi-use entertainment complexes, having developed New Roc City in New Rochelle. The announcement indicates that demolition of the existing Concord tower to start in 45 days, construction will start this year and be complete in 2010.
Pardon us if many of us here are a little skeptical. Capelli has floated a number of development plans for the Concord. (He's owned the Concord since 2001). In February 2007 he flew up to the county in his helicopter to announce that the Concord redevelopment project would absolutely break ground by May 2007. (He indicated that his credibility was on the line because none of the previous starts, well, started.) If the project does come to pass, it could be a great addition for the county. But right now I'm not holding my breath.
You are right, except, I believe that if Donald Trump does jump into the deal, it will get done and on schedule. I don't think The Donald would attach his name to this project unless he was confident it could be completed --so he can make bundles of money sooner rather than later. Stay tuned..but the best part of this is the hotel and conference center which will be more valuable to our region's economy over the long term.
Posted by: Rich Klein | February 12, 2008 at 02:14 PM
Well...hope springs enternal.
Capelli (aka Catskill Resort, Concord Assoc. and Convention Hotels) purchased shares of NYNY (Empire Resorts) back in December 28 2006 for $7.50 per share.
The 52 week hi / low for NYNY stock has been:
$0.86 / $12.70
The total purchase price of the stock was about:
$56,250,000.00
NYNY now trades on NYSE at:
$2.49 a share after today's 4:00pm close.
That would represent a loss to Mr. Capelli's interests in the past thirteen months of:
$5.01 a share or a loss of 66.8% or -
$37,575,000.00 - thirty seven million dollars and change.
{sources: http://finance.yahoo.com}
Much of this was due to the decision of the Secretary of the DOI to turn down off reservation Indian gaming at Monticello Raceway.
So know they're packing their bags from the trotter track and moving up NYS Route 42 (five miles) to Kiamesha Lake (The Concord) to have the racino there (Note: Not Casino) built along with a convention center / hotel / golf course.
Oh...and the Indians are suing them - NYNY - too for breach of contract.
TR
Posted by: TR | February 12, 2008 at 04:28 PM
Depression Risks:
Beleaguered housing, non-government fixed-income securities and even the now overvalued Treasury market have little hope of generating substantial returns for investors over the next few years.
"Avoiding a depression is, unfortunately, going to have to involve either a large, quasi-permanent increase in the budget deficit -- preferably tax cuts -- or restoring overvaluation of equity prices"
"If we don't avoid depression, the only thing worth holding is cash"
http://www.reuters.com/article/ousiv/idUSGOR27660220080212?pageNumber=1&virtualBrandChannel=0
Posted by: JM | February 13, 2008 at 12:39 PM
"...construction will start this year and be complete in 2010."
Are there really that many gullible people out there?
Posted by: Tom Fry's Ghost | February 13, 2008 at 05:56 PM
While none of us really know his motivations and what he'll really do, you have to believe that Capelli, maybe with Trump's help and investment, will be much more influential lobbyists, and, wield much more political influence than either Empire Resorts, or, the Indians. My guess is that Trump will go in, only if he truly believes there will be a gambling casino (not just Racino). I imagine they are willing to wait out the current administration (less than another year), as, they've waited this long already. The next Secretary of the Interior will consider approving the deal, and, especially if the Democrats get in, but, maybe even with Republicans, there will be a higher likelihood of approval. Even if it's not approved, this project will make shares of Empire Resorts shoot up again, and, Capelli will recover his losses on NYNY, and, be able to put that into the project. By taking this approach, you can also by-pass all the Casino nay-sayers, since the Racino and Raceway are already in operation. Then, once the new facility is built, they can get their final Casino approval, and, it will be nearly impossible for the nay-sayers to block the momentum already built up a few years from now. Capelli has worked wonders in New Rochelle and White Plains. Why not Sullivan County next ?
Posted by: Arthur Sinensky | February 17, 2008 at 02:54 PM
The casino has been coming since 1970
Posted by: JM | February 17, 2008 at 08:11 PM
I would hold off for now and continue to observe how the institutional investors treat NYNY for the next few quarters.
Empire Resort's stock price has been slashed by 90% from its' highs.
It would stand that Capelli would like to recoup his original investment of $7.50 per share.
But, NYNY's got a long way to go to get back to his original cost basis at their current price of $2.39
TR
======================================
Balance sheet for Empire Resorts (NYNY):
http://finance.yahoo.com/q/bs?s=NYNY&annual
Posted by: TR | February 18, 2008 at 02:29 PM
Related article...
http://www.recordonline.com/apps/pbcs.dll/article?AID=/20080217/NEWS/80217001/0/COMM11
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Barry: Truth is, Cappelli’s sticking by his story
February 17, 2008
by Barry Lewis - Times Herlad Record
{line credit below}
“The makers of Geritol present America’s favorite game show, To Tell the Truth.” Now your host, Garry Moore.”
“Thank you and welcome, panelists. Let’s meet our team of challengers. What is your name, please?”
“My name is Louis R. Cappelli.”
“My name is Louis R. Cappelli.”
“My name is Louis R. Cappelli.”
“Only one of these gentlemen is the real Louis R. Cappelli. Here is his story:”
“I, Louis R. Cappelli, am a very successful Westchester County developer who is responsible for the resurgence of downtown White Plains by building City Center, a $325 million retail, residential and entertainment complex, and teaming with Donald Trump to build high-end condos.
“Now I’ve joined with Empire Resorts to build ‘Entertainment City,’ a $700 million complex on my Concord hotel property. It’ll have a racino, harness track, hotel, convention center, shops, restaurants, the works. I’ll do for Sullivan County what I did for White Plains. Bring it back to life. Signed, Louis R. Cappelli.”
“Now only one of these men is the real Louis R. Cappelli. We’ll start the questioning with Kitty Carlisle.”
“Number 1, how long have you owned the Concord?”
“I bought it with my associates in 1999.”
“What were your plans?”
“To build a world-class resort with golf, a convention center, stores, restaurants ...”
“Number 2, why didn’t you build it then?”
“Well, the attacks on the World Trade Center threw things into confusion ...”
“What year was your big groundbreaking ceremony?”
“It was October 2000.”
“That’s a year before the attacks, so why didn’t you ...”
“Sorry, Kitty, but we move to panelist Orson Bean.”
“Thanks, Garry. Number 3, in 2001 you said your plans for the Concord had nothing to do with gambling.”
“That’s true, they didn’t.”
“But in 2002 you decided to put your plans on hold until you knew the fate of casinos?”
“That’s true, I did.”
“Number 1, for years you met with Indian tribes. Why?”
“So I could build a casino at the Concord.”
“So it was always about casinos. Number 2, all that time you let the Concord rot and become nothing but a training ground for firemen?”
“Yes, but I did tear down old buildings on the property.”
“Years later – and only after pressure by town officials ...”
“Thanks, Orson, two down and now we go to Peggy Cass.”
“Number 1, in 2004 you came back to the Thompson board, for what reason?”
“To rezone 1,700 acres to develop a casino, hotel, convention center, stores ... with plans to build 500 homes even if a casino doesn’t come.”
“More plans. Number 3, did you ever build anything on the Concord site? A single home?”
“No.”
“No, of course not. And Number 2, what were you doing all that time in White Plains?”
“I built City Center. It has a shopping center, 15-screen movie theater ...”
“Thanks, Peggy, and we’ll end with Nipsey Russell.”
“Number 3, the only thing you’ve done at the Concord is tear down the clubhouse and close two golf courses?”
“Only until we rebuild.”
“Right. Number 2, you own a lot of stock in Empire, which is losing millions every month?”
“Only until we move the racino to the Concord and build a destination resort.”
“Number 1, why should anyone believe you’ll build now?”
“The only way I can get my credibility back is to build.”
“Number 2, same question.”
“The only way I can get my credibility back is to build.”
“And Number 3.”
“The only way I can get my credibility back is to build.”
“Right, and you’ve all said that for the last 10 years.”
“Time’s up. Will the real Louis R. Cappelli please stand up? Ahem. I said, will the real Louis R. Cappelli please stand up? Somebody stand! Isn’t there one of you Louis R. Cappellis telling the truth?”
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Barry Lewis is the Sullivan County editor for the Times Herald-Record. He can be reached at 794-3712 or at blewis@th-record.com.
Posted by: TR | February 18, 2008 at 05:15 PM
can't wait to see the rebuilding the sullivan county. we should moved nyc to catskill mountain. we are waiting for so long to see the casino atlantic style, mohegan and foxwood.why are we giving all the gambling money to our neighbors. now the pennsylvania are also joined the atlantic city, pocono and pa are not have casinos and new yorkers are traveling to this three states. its about time to have our own.
Posted by: NENA CARVER | June 10, 2008 at 01:28 PM