Relates to qualified capital investments at relocated vendor tracks in Sullivan County

1 Co-sponsor

• J. Gary Pretlow

BILL NUMBER:A8767A

Title of bill

An act to amend the tax law, in relation to a qualified capital investment at no more than one vendor track in Sullivan county

Purpose

This bill will facilitate the investment of over six hundred million dollars for capital improvements at and adjacent to the Monti- cello Race Track.

Summary of provisions

Section 1 of the bill amends clause (G) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law as amended by section 1 of part 0-1 of chapter 57 of the laws of 2009. The number of permanent employees to be hired is reduced from 2,000 to no fewer than 1,000. The "Qualified Capital Investment" is reduced from one billion to six hundred million dollars. The construction of the Convention Center has been removed from the project leaving "at least one eighteen hole golf course, and the construction and issuance of certificates of occupancy for hotels, lodging, spas, dining, retail and entertainment venues, parking garages and other capi- tal improvements at or adjacent to the licensed video gaming facility or licensed vendor track."

The "recapture amount" has been increased:

(i) One hundred percent (up from sixty-six percent) if the employment shortfall is greater than sixty-six and 2/3rds percent (up from fifty percent) of the employment goal.

(ii) Seventy-five percent (up from sixty percent) if the employment shortfall is greater than thirty-three and 1/3rd percent (down from forty percent) of the employment goal.

(iii) Forty-nine and 1/2 percent (up from forty-five percent) if the employment shortfall is greater than thirty percent (no change) of the employment goal.

(iv) Twenty-two percent (up from twenty percent) if the employment shortfall is greater than twenty percent (no change) of the employment goal.

(v) Eleven percent (up from ten percent) if the employment shortfall is greater than ten percent (no change) of the employment goal.

Section 2 of the bill provides for an immediate effective date.

Justification

Due to the economic crisis which severely impacted the banking industry last fall and which continues to today, the ability of the developer to secure financing for the project at the previous thres- hold was impacted. The developer has firm commitments for financing at six hundred million dollars. Approval of this legislation will allow the developer to begin construction on the project at this lower level of financing.

Statement in support

This bill will facilitate the investment of over 600 million dollars for capital improvements at and adjacent to the Monticello Race Track. In particular, this bill will support the devel- opment of a hotel and golf course at the former site of the Concord Hotel. This bill therefore will help to revitalize the Catskill region by providing at least 1,000 full-time permanent jobs, as well as thou- sands of construction-related jobs during the construction period. More- over, this bill will guarantee a stream of funding to education that will double the current VLT revenues at Monticello Race Track.

Budget implications

There is no State Fiscal Plan impact.

Effective date

This act shall take effect immediately.