Company Also Announces Committed Financing
Empire Resorts, Inc. (NASDAQ-GM:NYNY) (together with its
subsidiaries, “Empire”), through a wholly-owned subsidiary,
Montreign Operating Company, LLC, has submitted its application to
the New York State Gaming Facility Location Board (“NYSGFLB”) for a
casino to be located 90 miles from New York City in the Town of
Thompson, in Sullivan County, NY. The casino resort will be called
“Montreign Resort Casino” and will be located at the site of
Adelaar, which is owned by EPR Properties (NYSE:EPR) (“EPR”). A
complete branding initiative around the Montreign Resort Casino
will be unveiled in the coming weeks.
The total combined investment in the Montreign Resort Casino and
Adelaar is expected to be in excess of $1 billion, which includes
$630 million from Empire and additional EPR financing investments
for a waterpark hotel and adventure park, Rees Jones redesigned
“Monster” Golf Course and retail, restaurant, shopping and
entertainment properties. The size of the project, including the
amount of capital necessary to complete it, will vary based upon
the number and location of competitive licenses issued by New York
State in our region. The project has in place essentially all of
its approvals and permits to commence construction immediately upon
the awarding of a destination gaming facility license.
To support its application, Empire has obtained commitments to
provide financing from Credit Suisse AG and Kien Huat Realty III,
Limited (“Kien Huat”), Empire’s largest stockholder. Credit Suisse
AG has committed to provide a senior secured credit facility in an
amount of up to $478,000,000. The credit facility is subject to
various conditions precedent, including Montreign’s receipt of a
gaming facility license and evidence of an equity investment in
Empire of up to $150,000,000. Empire may launch a rights offering
to meet the equity investment requirement. If Empire launches a
rights offering in support of the Montreign Resort Casino, Kien
Huat has agreed to exercise its proportionate share of subscription
rights that would be issued and, additionally, to exercise all
subscription rights not otherwise exercised by other holders, upon
the same terms as the other holders. Empire expects that the
commitments demonstrate its ability to finance the costs and
expenses of constructing the proposed Montreign Resort Casino.
Nonetheless, Empire has reserved the flexibility to reassess its
financing alternatives if it is awarded a gaming facility
license.
“After years of planning and community engagement, we believe
our Montreign Resort Casino, and the non-gaming resort attractions
that encompass the overall Adelaar master plan, is exactly the type
of tourism driven development envisioned by the Upstate New York
Gaming Economic Development Act,” said Emanuel Pearlman, Chairman
of the Board of Empire. “Importantly, given a process that permits
either one or two casino licenses in our region, Empire has the
advantage of committed financing in place, no matter the
competitive environment. We are confident that if selected, our
best proposal can fully rejuvenate Sullivan County and the entire
Hudson Valley economy.”
“We are very excited to partner with Empire in taking this next
important step in realizing the vision we have held to and worked
towards for years,” commented David Brain, President and CEO of EPR
Properties. Brain continued, “Quite simply, there is no other
location which equals the breadth of offerings we deliver as a four
season destination resort. Our guests will come for world class
golf, a first-class waterpark lodge and a special gaming experience
along with dining and shopping close by, all set in the beautiful
Catskills. Adelaar is uniquely positioned to reinvigorate the
upstate New York economy and we are ready to get started.”
“We’ve been working with Empire for nearly three years, and
included in this filing is Sullivan County’s hopes and dreams of a
better economic future,” added Sullivan County Legislature Chairman
Scott Samuelson. “This casino project and the entire Adelaar resort
development will drive significant tourism, and is clearly the
economic boost that our County needs. We could not be more
supportive of Empire and EPR’s plans.”
“This project will be a source of pride and true economic
development for everyone in the Town of Thompson and Sullivan
County,” said Thompson Supervisor Bill Rieber. “The Town of
Thompson has granted this project full SEQRA approvals, making this
application a front runner that can rapidly deliver the jobs and
economic opportunity the Town of Thompson and Sullivan County so
richly deserve.”
Peter Ward, president of the New York Hotel Motel Trades
Council, which represents over 30,000 hotel, hospitality and gaming
workers in New York and New Jersey said, “This casino resort
project will bring new energy to a depressed region of New York
State by creating dependable local union employment, while
delivering significant economic benefits for local businesses, and
consequently will have an important and positive impact on tourism
in upstate New York. Empire is not only a current strong union
partner, but a strong community partner, committed to creating good
union jobs in a region that desperately needs them.”
“The entire brotherhood of the Hudson Valley Building &
Construction Trades Council is in complete support of this
project,” said Todd Diorio, President of the Trades Council.
“Empire has substantially completed construction drawings and its
Project Labor Agreement is complete. Our members are looking
forward to building this project.”
Cathy Paty, President and CEO of the Sullivan County Chamber of
Commerce added, “Adelaar is an amazing project which will provide
development for many years to come. It will bring financial gains
across the board for both Sullivan County residents and local
businesses. Adelaar is the spark that Sullivan County needs to
thrive once again.”
Sullivan County Partnership CEO Marc Baez stated, “This
application moves Sullivan County and the Catskills one step closer
to reviving our standing as a world class resort destination. We
have already seen what Empire can do for local businesses in this
region, and we know the benefits will be far greater if this
project is approved. Our community is 100% behind it.”
“The Sullivan County and Catskills tourism industry will benefit
greatly from the addition of Adelaar to our community,” said
Roberta Byron-Lockwood, President and CEO of the Sullivan County
Visitors Association. “Resort guests and employees alike will
undoubtedly explore the Sullivan County and Catskills area, and our
businesses are ready to welcome them with open arms. This resort
will afford us growth in room inventory as well positioning in the
domestic and international travel industry marketplace.”.
Empire has recently entered into a memorandum of understanding
(“MOU”) with the Upstate Theater Coalition for a FairGame LLC
(“Fairgame”), a coalition of upstate theatres and venues that
includes Bethel Woods Center for the Arts, Ulster Performing Arts
Center and Bardavon Opera House. Darlene Fedun, Bethel Woods CEO
stated, “I am happy to report that we have executed a MOU with
Empire Resorts which is part of the siting evaluation criteria for
a Gaming License in the Catskill Region. Bethel Woods already knows
Empire as a great local partner and Empire understood the concerns
of our potentially impacted venues, readily and openly discussed
options and solutions, and have committed to the support of the
mission of all venues within the region. Bethel Woods and the
Fairgame coalition both support Empire’s application for a casino
license.”
Mr. Pearlman concluded, “Led by our CEO Joseph D’Amato and
Empire’s Executive management team, a stellar team of 29
professional firms and a wide variety of other experts worked
tirelessly to submit this comprehensive response to the NYSGFLB’s
Request for Applications for a gaming facility license. A
remarkably voluminous submission, this comprehensive work product
represents over three years of dedication and hard work. After it
is reviewed by the NYSGFLB, we look forward to making our public
presentation as soon as possible.”
About Empire Resorts
Empire Resorts owns and operates, through its subsidiary
Monticello Raceway Management, Inc., the Monticello Casino &
Raceway, a harness racing track and casino located in Monticello,
New York, and is 90 miles from midtown Manhattan. Further
information is available at www.empireresorts.com.
Cautionary Statement Regarding Forward Looking
Information
This press release includes "forward-looking statements"
intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These
statements include statements about our plans, strategies,
financial performance, prospects or future events and involve known
and unknown risks that are difficult to predict. As a result, our
actual results, performance or achievements may differ materially
from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements by the use of words such as "may," "could," "expect,"
"intend," "plan," "seek," "anticipate," "believe," "estimate,"
"predict," "potential," "continue," "likely," "will," "would" and
variations of these terms and similar expressions, or the negative
of these terms or similar expressions. Such forward-looking
statements are necessarily based upon estimates and assumptions
that, while considered reasonable by Empire and its management
team, are inherently uncertain. Factors that may cause actual
results to differ materially from current expectations include,
among others, levels of spending in business and leisure segments
as well as consumer confidence; the parties' plans for signing and
closing on definitive transaction documents; the construction
commencement date for the development project; relationships with
associates and labor unions and changes in labor law; the financial
condition of, and our relationships with, third-party property
owners and hospitality venture partners; risk associated with the
introduction of new brand concepts; changes in the competitive
environment in our industry and the markets where we operate; the
timing of the receipt of regulatory and governmental approvals for
the development project, including the issuance of a gaming
facility license to us, changes in federal, state or local tax law;
general volatility of the capital markets. A more complete
description of these risks and uncertainties can be found in the
filings of Empire with the U.S. Securities and Exchange Commission.
We caution you not to place undue reliance on any forward-looking
statements, which are made as of the date of this press release. We
undertake no obligation to update publicly any of these
forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting forward-looking statements, except to the
extent required by applicable laws. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements.
Empire Resorts, Inc.Charles Degliomini,
845-807-0001cdegliomini@empireresorts.com
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