- One major project that's proceeding despite the ongoing credit crisis is developer Louis Cappelli's $1.1 billion Entertainment City on the former Concord grounds; a project which includes a new Monticello Raceway and its accompanying racino. However, and as one might expect, Cappelli has endured some twists and turns in order to keep his baby on track. For one thing, the Bank of Scotland, one of his main backers, is being taken over; that necessitated a restructuring of the financing
"Incredibly, with the markets as volatile as I have personally experienced in my 35 years of developing, the game plan remains intact and on schedule," Cappelli said in an e-mail on Thursday.$400 million is to be raised via a bond issue on or around November 10. Similarly, as mentioned the other day, the state is scheduled to raise $250 million via bond issue for the construction of the Aqueduct racino. Which led one reader to ask: "Do you think the $250M state bond is feasible in this market?....Might be another monkey wrench."
"While Bank of Scotland has temporarily reduced their construction lending, I have every confidence that at the end of the day, they will participate with ULLICO and CIBC prior to mid-November." [Record Online]
Funny he/she should mention that, because Business Week reported late last week that the municipal bond market is nearly frozen.
Those that are getting done—like New York City's Sept. 29 deal—are high-priced.So any bond deal that might get done at this point will likely cost the state a bit more than the $6 million in debt service provided for in the budget.