Sullivan County’s Local Development Corporation (SCRFLDC) is making headlines by acquiring the non-gaming assets of Resorts World Catskills in a groundbreaking $525 million deal. This strategic move aims to safeguard local jobs, refinance debt, and strengthen the Catskills property against rising competition from casinos near New York City.
Understanding the Sullivan County LDC Deal
Scope of the Acquisition
The agreement includes a range of resort amenities crucial for boosting regional tourism and hospitality:
- Two hotels, including the 18-story main hotel and The Alder.
- The Monster Golf Course, known for its scenic views and challenging layout.
- Restaurants, event spaces, and entertainment facilities.
However, it’s important to note that casino gaming operations and the Kartrite Resort & Waterpark are excluded from this transaction.
Financial Details and Bond Issuance
The acquisition will be funded by tax-exempt revenue bonds totaling $561 million, set to mature by December 2040. While underwritten by KeyBanc Capital Markets, these bonds remain unrated. A significant portion of the proceeds will enable Resorts World’s parent company, Genting, to purchase 1,555 acres of previously leased land outright for $201.3 million. The move also allows Resorts World to clear $300 million worth of existing debt.
Management and Revenue Allocation
Resorts World Catskills will continue to operate the non-gaming assets under a 20-year management contract, ensuring seamless service for visitors. Revenue generated from hospitality services, golf, and events will go towards servicing SCRFLDC’s bond obligations.
Why This Deal Matters
Economic Impact on Sullivan County
With the local economy already feeling the impact of recent factory closures, such as the Liberty-based Frito-Lay plant laying off 300 workers, this acquisition is seen as essential for preserving jobs and stabilizing the region.
Experts estimate that new casinos in New York City could cut Catskills gaming revenue by up to 76%, making this strategic pivot towards non-gaming assets vital for ensuring the resort’s long-term viability.
Community and Stakeholder Support
Local leaders, including the Sullivan County government, have expressed unanimous backing for the deal. Community sentiment has largely been positive, highlighting the importance of maintaining vibrant hospitality and tourism offerings in the area.
Next Steps in the Transaction
The bond sale, initially slated for completion in late 2025, is currently facing delays as investors seek greater clarity on financial details. A confirmed closure date for the agreement has not yet been determined.
Once finalized, this acquisition will position Sullivan County and Resorts World Catskills to remain competitive in a rapidly evolving market while supporting regional economic growth.
