NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that a public hearing pursuant to Article 18-A of the New York State General Municipal Law will be held by the County of Sullivan Industrial Development Agency (“Agency”) on September 14, 2015 at 10:30 a.m., local time, in the legislative Hearing Room at the Sullivan County Government Center, 100 North Street, Monticello, New York, in connection with the following matter:
MONTICELLO RACEWAY MANAGEMENT, INC., a New York corporation having its principal office at 204 State Route 17B, P.O. Box 5013 Monticello, New York 12701 (“MRMI”), MONTREIGN OPERATING COMPANY, LLC, a New York limited liability company having its principal office at 204 State Route 17B, P.O. Box 5013 Monticello, New York 12701 (“Montreign” and together with MRMI collectively, the “Company”) for itself or on behalf of an entity or entities to be formed submitted an application (“Application”) to the Agency on February 6, 2013, requesting that the Agency undertake a certain project, in one or more phases (the “Project”), for the benefit of the Company consisting of: (i) the acquisition by the Agency of a leasehold interest or other interest in certain property located at Joyland Road and Thompsonville Road in the Town of Thompson (“Town”), County of Sullivan (“County”), State and being more particularly identified as all or part of tax map numbers 23-1-11.3, 23-1-48, 23-1-52 (portion), 23-1-53 (portion), 23-1-54.1, 23-1-54.2 (portion), 23-1-54.3 (portion) and containing in the aggregate approximately 186 acres (“Land”), (ii) the construction and equipping on the Land a “Casino Resort”, which will consist of, among other things, a casino, hotel, banquet event center, restaurants, support buildings and structured and surface parking and related facilities and amenities (collectively, the “Improvements”), and (iii) the acquisition in and around the Land and the Improvements of certain items of equipment and other tangible personal property (“Equipment,” and collectively with the Land and the Improvements, the “Facility” or “Project).
On or about September 5, 2014, the Company and the Agency entered into an Agent Agreement, Environmental Compliance and Indemnification Agreement, Bill of Sale to Agency, Bill of Sale to Company, Lease to Agency, Leaseback to Company and Payment in Lieu of Tax Agreement (“Project Documents”). Pursuant to the Project Documents, the Agency contemplates acquiring a leasehold interest in the Project and leasing the Project back to the Company. The Agency contemplates that it will provide financial assistance to the Company in the form of sales and use tax exemption and a mortgage recording tax exemption, consistent with the policies of the Agency, and a partial real property tax abatement (“Financial Assistance”).
The Project Documents are currently being held in escrow pursuant to the terms of a letter outlining conditions precedent for the documents to be effective (“Closing Conditions Letter”). The conditions precedent include the issuance by the New York State Gaming Commission of a license to operate a casino at the Project, which license has not been issued as of the date hereof.
Subsequent to the Company and Agency entering into the Project Documents, the Company redesigned certain aspects of the Project and determined it to be in the best interest of the Project to significantly increase the Company’s investment in the Project. This request is necessary because, while the agreements pertaining to the Project anticipated some variability in the Project scope, the Project Documents do not anticipate the significantly increased capital expenditure now proposed by the Company. The Closing Conditions Letter accounted for possible changes in the scope of the Project by indicating that should a hybrid or modified Project other than the Projects then under consideration being undertaken, the Project Documents will be amended, as necessary, to accommodate the changed size and scope of the Project and to proportionally reduce or modify the Agency’s fees, rents, employment obligations and Total Value Subject to PILOT as set forth in the Project Documents.
The Company has revised its plans to increase its anticipated minimum total capital investment in the Project by approximately $150,000,000 for a total minimum capital investment of approximately $600,000,000 to create an enhanced Project (“Enhanced Project”). The Enhanced Project will provide a higher level of amenities to patrons of the Montreign Resort Casino by expanding the size of the gaming floor and hotel rooms, redesigning non-gaming portions and removing the harness horse racetrack and associated facilities.
A representative of the Agency will be at the above-stated time and place to present a copy of the Company’s project application and hear and accept written and oral comments from all persons with views in favor of, opposed or otherwise relevant to the proposed Financial Assistance.
Dated: September 4, 2015 By: COUNTY OF SULLIVAN INDUSTRIAL DEVELOPMENT AGENCY
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