COUNTY OF SULLIVAN INDUSTRIAL DEVELOPMENT AGENCY
One Cablevision Center
Ferndale, New York 12734
845-295-2603
Contact: Jennifer C.S. Brylinski
County of Sullivan Industrial Development Agency
Executive Director
Phone: 845-295-2603
Email: scida@hvc.rr.com
Date: August 25, 2014
FOR IMMEDIATE RELEASE
IDA REACHES AGREEMENT WITH CASINOS ON VALUES
FOR PAYMENTS IN LIEU OF TAX PAYMENTS
Monticello, New York – After prolonged and thorough discussions with the Mohegan Sun at the Concord / Concord Associates project and the Montreign Resort Casino / EPR project, the County of Sullivan Industrial Development Agency (IDA) has reached an agreement with both casinos regarding agreed upon values for computing Payment in Lieu of Tax (PILOT) payments.
IDA and Mohegan Sun at the Concord have negotiated a base for determining PILOT payments in excess of the current assessed value of the parcels comprising the 140 acres which are subject to the IDA application. The current assessed value of these 10 parcels (based on the 2013 assessment roll) is $10,416,700. For purposes of the PILOT payments, the base value for determining PILOT payments for the Mohegan Sun at the Concord casino has been mutually agreed upon at $47,250,000. This value will be ratably decreased if a smaller project is constructed due to a gaming license being issued to an applicant in Southern Orange County.
Accordingly, for the first eight years of the PILOT period following the opening of the Mohegan Sun at the Concord, the taxing jurisdictions will receive PILOT revenue in an amount which is almost four times the amount of real estate taxes currently paid on the subject parcels. The PILOT payments will increase in year 9 to Year 16, the last year of IDA’s involvement in the project. Based on current County, Town, and School tax rates the project paid $372,103.00 in ad valorem taxes for 2013/2014. If tax rates and the equalization rates were to remain at current levels, the Project will make a PILOT payment of $1,451,650.10 for the first year after the casino opens.
The IDA and Empire Resorts, Inc. have negotiated a base for determining PILOT payments for the proposed Montreign Resort Casino.
Montreign has proposed three projects of differing project scopes dependent on whether another casino is awarded a license in the Hudson Valley Catskill Region. If Montreign is the only successful applicant in the region, PILOT payments would be made based on a value of $53,500,000.00. If a second license is issued in the region outside of Southern Orange County, the PILOT base would drop to $48,750,000.00. If a license is awarded for a casino in Southern Orange County, the PILOT base has been agreed at $37,250,000.00.
At the mid-range case of $48,750,000.00 (if tax rates and the equalization rates remain stable), the Montreign would make a PILOT payment of $1,506,442.00 in the year following the opening of the casino. The land upon which Montreign is planned is currently assessed at approximately $1,800,000.00 with 2013/14 ad valorem taxes aggregating to approximately $64,000.00. The future PILOT payments starting in the year following the casino opening will range from 21 times to 30 times the current level of property taxes.
Steve White, the IDA Board member that handled the negotiations said: “I am confident that these suggested base values for the projects are fair to the developers and will provide appropriate PILOT payments to the County, Town and Monticello Central School District.”
Ira Steingart, the IDA Chairman, said: “IDA found it necessary to discuss significant payments in lieu of tax given the unique opportunities associated with Class III gaming. The PILOT payments that will be made under the PILOT bases established with Sullivan County’s Casino License applicants will provide much needed revenue to the local taxing jurisdictions.”
For additional information regarding the IDA and these projects, please contact Jennifer CS Brylinski at the IDA at 845-295-2603.
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