Orange County executive Edward A. Diana told committee members that the county's chief concerns are the impacts five casinos will have on traffic, particularly Route 17 (soon to be designated Interstate 86) and on its school districts. "Orange County is essentially the gateway to Sullivan County. The most sensible route that most people will take to reach Sullivan County from the metropolitan area has been, and will continue to be, Route 17, soon to be I-86."

He noted that a study by the Orange County Planning Department estimated that one casino would add 12,000 daily trips to its local roads. "Five casinos will only compound this issue. We feel that our current existing highway infrastructure cannot handle the additional demand," he said.

Currently, Route 17 is a two-lane roadway (in each direction) that runs through Orange and Sullivan counties. Diana believes the roadway must be widened to deal with the expected casino traffic. Diana said that preliminary estimates are that the third HOV lane will cost $10 million per mile to build. Route 17 runs more than 25 miles through Orange County, therefore the project cost could exceed $250 million.

While there were several representatives of Native American tribes that have proposed casino projects, along with building trades and tourism officials that testified to the economic benefits gaming will bring to the area, other Sullivan County government officials called for amendments to Pataki's bill to ensure financial guarantees are forthcoming to Sullivan County to offset the impacts casinos will bring. Current agreements have each Indian Tribe paying a $15 million impact fee to Sullivan County.

In other Sullivan County gaming news, Empire Resorts Inc. and Concord Associates LP have entered into an amended merger agreement that will accelerate Empire's acquisition of the Concord and Grossinger's resorts in Sullivan County. The new agreement supersedes a previous written deal reached last November between Empire and Concord Associates LP, which consists of Valhalla-based developer Louis Cappelli and Reckson Strategic Ventures.

The pair agreed to close the merger transaction after the approval of Empire's shareholders rather than after land designated for gaming at Monticello Raceway or the Concord Resort is transferred to the US to be held in trust for either the Cayuga Nation of New York or Seneca-Cayuga Tribe of Oklahoma.

The acquisition of the Concord will allow Empire to pursue two of what could be five Native American casino projects in Sullivan County. The firm already owns Monticello Raceway, the site for a proposed gaming facility for the Cayuga Nation of New York. Empire also has a contract to develop a casino for the Seneca-Cayuga Tribe of Oklahoma. That project would be built at the Concord Resort property. Empire Resorts will also redevelop the Grossinger's Resort once it takes ownership of the complex.

Instant Insights /

GlobeSt.com UPDATE: Senate Committee Hears Testimony on Casinos' Impact

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