Penn In Possible Negotiations For Bailout Of Concord Site
A year after developer Louis Cappelli halted construction on the $1 billion racino resort project at the famed Concord site he told government sources that he is negotiating with Penn National Gaming (PENN: 24.91 0.00%) to join him as a full partner.
According to public records at least 19 contractors have filed liens against Concord Associates and Cappelli’s construction firm for $18.3 million owed for materials and demolition work.
Back in 2008 he proposed to build a luxury high rise hotel, a harness track, slot parlor, retail space and conference center within two years.
However over the past year design plans were scaled back and the project split into phases. He has received large tax breaks and incentives but has failed to move forward with construction or paying suppliers.
The developer has yet to obtain a license to operate the track which is needed to qualify to build a racino next to the hotel.
In the fall he lobbied the state to grant or guarantee him a license. However the Racing and Waging Board refused to grant the request while the development was under construction. They stated they would grant priority to the application and “act favorably” after conditions were met.
While Cappelli wouldn’t comment further about the proposed deal with Penn he said he expected to be able to make an announcement regarding what was to be Sullivan County’s biggest project in the coming weeks.
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