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WPCNR WHITE PLAINS LAW JOURNAL. From Cappelli Enterprises.(Edited) June 18, 2010: Louis Cappelli and Entertainment Properties Trust, Mr. Cappelli’s partner in the City Center (White Plains) and New Roc (in New Rochelle) and at his Concord property in the Catskills where he is attempting to raise financing have settled their legal dispute of some two years standing. Pending an official statement from Mr. Cappelli, WPCNR in reviewing the following release from Cappelli Enterprises it appears, in the settlement announced today, Mr. Cappelli assumes exclusive control of City Center in White Plains and Entertainment Properties (of Kansas City) takes over total control over New Roc. Geoff Thompson, spokesman for Mr. Cappelli notes late Friday evening that “he (Mr. Cappelli) still owns the Marriott Hotel and the Lofts At New Roc and manages the parking garage. His residential properties are not affected by the settlement. EPT is not involved in those.” Mr. Cappelli has also made a settlement with Entertainment Properties in settlement of a loan he owed Entertainment Properties on the vast Catskill casino-to-be site, ceding a portion of the property to them with an option to purchase it back in a specified period of time, not revealed in the news release. WPCNR observes the affect of this settlement on the Conoord property allows Mr. Cappelli to seek new financing for the project without the Entertainment Properties debt being an obstacle. The terms effectively end the ongoing disputes. The settlements are:
· Mr. Cappelli’s affiliate, LC New Roc LP, exchanged all of its interest in the entertainment retail center in New Rochelle, New York, for all of EPR’s debt and equity interests in the entertainment retail center in White Plains, New York.
· Mr. Cappelli’s affiliate, Concord Resort LLC, transferred the Concord Resort property (pending the payoff of EPR’s $56.25 million dollar loan with a bank), consisting of approximately 1,500 acres adjacent to the Concord Casino property which a Cappelli affiliate owns or controls, in exchange for the release from its obligations under a Promissory Note, dated August 20, 2008, in the original principal amount of $225.0 million payable to EPR, as amended, with an outstanding balance of $133.1 million.
Additionally, EPR granted an option to an affiliate of Concord Resort LLC to re-acquire the property for a two-year period at a purchase price of $143.0 million, plus accrued interest going forward.
· EPR assigned to Mr. Cappelli’s affiliate, KBC Concord LLC, three additional Cappelli promissory notes with aggregate principal amounts of $30.0 million in exchange for an agreement by KBC to pay EPR up to $15.0 million from 50% of the available cash distributed to KBC from its minority interest in the Concord Casino project. EPR previously recorded a loan loss reserve of $28.0 million for the above-described promissory notes.
· EPR provided a binding commitment to The Union Labor Life Insurance Company to acquire a $30.0 million participation from The Union Labor Life Insurance Company in the first mortgage construction loan for the Concord Casino project, under the proposed Amended and Restated Master Credit Agreement, subject to certain closing conditions, including, but not limited to, a requirement that a major gaming company contribute not less than $100.0 million of equity into the project prior to any disbursements under the loan. EPR’s commitment expires on December 31, 2010.
· EPR and Mr. Cappelli, together with their affiliates, mutually released and settled all claims, obligations and liabilities, including all pending litigation.

