The bill that was approved by the State Senate on Monday and wasexpected to pass the Assembly today reduces the tax rate on VideoLottery Terminals at the racino at Monticello Raceway from as highas 68% to 25%. In consideration of that reduction, the gamingfacility, now located at Monticello Gaming and Raceway, willcontribute at least $38 million a year for state education. InFiscal Year 2007/2008, which ended in March 2008, Monticello Gaming& Raceway contributed more than $31.5 million to stateeducation or 50% to 60% of its more than $62 million in netwinnings, according to a report filed with the New York StateLottery Commission. The racino at Monticello Raceway operates morethan 1,500 Video Lottery Terminals. The facility at Monticello hasbeen hurt by casinos in Pennsylvania and Connecticut as well as theracino that has opened at Yonkers Raceway. That facility, whichoperates more than 5,300 VLTs, posted net winnings of nearly $432million in Fiscal Year 2007/2008 and contributed $253 million tostate education--based on net winnings of $431.7 million--accordingto papers filed with the New York State Lottery Commission.

The revised plan for the Concord property calls for thedevelopment of 1.5-million sf of hotel/convention space, 600,000 sfof retail, a several hundred room hotel/spa and perhaps as many as3,000 housing units. The project will include resort type uses thatwill transform the site into a year-round resort. The project sitewill also include a racino, which is currently located at theMonticello Raceway site a few miles away that will be relocated tothe Concord property. The racetrack operations at MonticelloRaceway will also be moved to the Concord site and at least one18-hole golf course will be redeveloped. The legislation calls forthe project to be complete by Jan. 31, 2011. The Empire Resorts,Concord Associates LP partnership has already begun demolition workat the famed Concord Hotel site.

"There was a time when the Catskills were the pre-eminentvacation destination on the entire East Coast. The beauty andmajesty of the region has not changed, and this deal will helpreturn the Catskills to their former glory, a destination spot,"says Gov. Paterson. "This agreement is a big win for Monticello,Sullivan County, and all of New York State. Government and theprivate sector have worked together to structure a deal that willat least double the amount of money for education that the Stateexpected to generate from the Monticello Racetrack and to create2,000 permanent new jobs."