Mohegan Sun Joins with Catskills Group on New Casino Resort

Concord Associates announced today that it has agreed to terms with the Mohegan Tribal Gaming Authority to bring the world renowned Mohegan Sun brand and operational expertise to the development of the

The Mohegan Sun will join with the Concord Resort in the Town of Thompson, NY, in a partnership that, according to a press release, "will immediately catalyze the revitalization of the Catskills region."

The first phase of the development of the 116-acre site is budgeted at more than $600 million. It will include a 75,000-square-foot casino with 2,100 video lottery terminals and capacity for up to 450 electronic table game positions.

A 258-room resort hotel is planned, along with a harness racing facility with a grandstand, 5/8 mile track and related paddock facilities, a simulcast facility for pari-mutuel wagering, 10,000 square feet of meeting rooms and ballrooms, five restaurants, retail outlets and several entertainment spaces. It is expected that Phase 1 will open in the spring of 2013. 

More than  $100 million has already been spent on site preparation, foundations, curtain wall, demolition and remediation of environmental issues.

The investment in the revitalization of the Concord is expected to provide billions of dollars in economic benefits to New York State’s Catskill region over a 10-year period and provide a catalyst for the creation of over 1,000 new construction and permanent jobs with a majority of the employment benefiting New York’s Sullivan, Orange and Ulster counties, the press release says.

Concord is owned by Louis R. Cappelli and family. It will develop the project, the press release says, with Marnell Companies, whose portfolio includes the design and development of resorts such as the Borgata in Atlantic City, the Bellagio, the M Resort Spa Casino and Wynn Las Vegas.

Mohegan Tribal Gaming Authority will run the day to day operations of the new Concord Resort under the Mohegan Sun brand.  

Louis Cappelli is a Westchester County, NY-based developer responsible for retail and residential projects including New Roc City in New Rochelle, NY, and Renaissance Square in White Plains, NY.

Mitchell Grossinger Etess, CEO of Mohegan Tribal Gaming Authority , said in the press release that "This project, under the powerful Mohegan Sun brand, will become a catalyst for the Catskills to regain its status as a world-class resort destination.  

"The project is particularly meaningful to me as a member of the Grossinger family.  Grossinger’s and my family were proud parts of this community when it was a thriving regional tourism destination, and I am thrilled to be a part of its revitalization, as is the entire MTGA Management Board.  

"The planned investment in Sullivan County, NY, will deliver a wide range of tangible near- and long-term benefits to the region. "

Once a thriving resort area, the Catskills region has fallen on hard times. Many of the famous hotels have closed, and others have fallen into seedy disrepair. The unemployment in Sullivan County has climbed steadily as housing values have plummeted.

According to the Times Herald-Record, the newspaper that covers the region, Cappelli "razed the old hotel and did initial foundation work before abruptly stopping in late 2008 after he couldn't get financing. He lost most of the Concord lands in a court settlement with his former partner, Entertainment Properties Trust."

The Record says that liens against the former hotel site total more than $25 million.