Exhibit 10.1
EMPIRE
RESORTS, INC.
204 STATE ROUTE 17B
MONTICELLO, NY 12701
PHONE: (845) 807-0001
FAX: (845) 807-0000
July 22.2005
Cayuga Nation of New York
Cayuga Catskill Gaming
Post Office Box 250
Authority
Hamburg, New York 14075-0250
c/o Cayuga Nation of New York
Post Office Box 11
Versailles, New York 14168
For several years now, the Cayuga Nation of New York,
the Cayuga
Catskill
Gaming
Authority and Empire Resorts,
Inc. have been working to obtain approval
to develop
construct and operate a casino and related resort
facilities at the
Monticello
Raceway.
As you are aware,
Empire has also worked to develop other
locations in the area, including,
more recently, the site of the former Concord
Hotel and Resort. While the approvals for the Raceway location have
not included
a hotel, we have agreed to partner in the construction of one or
more hotels and
other commercial
facilities in the area near the Raceway.
The Concord site has
been approved for a hotel and is a suitable
location for a combined
Casino and
Resort on property that could be taken into trust for the Cayuga
Nation.
Working
together,
the Nation,
the Authority and Empire have been able to
secure a two part
determination
concerning the suitability of the Raceway site
from the BIA Regional Office.
However,
due to a change in policy,
we have not
been able to obtain
the
further
central
office
approval
necessary
to move
forward with the land to trust process. This final approval was
obtained for the
Raceway site in
connection
with a proposal for a Mohawk
casino
several years
ago, but the Mohawks have been pursuing a location that would
include a hotel at
the site of the former Kutcher's resort.
Like the Cayuga Nation,
the St. Regis
Mohawks Tribe has been able to achieve Regional Approval for the
Kutcher's site,
but have not received central office approval.
Both you and the
Mohawks have been working on an alternative
strategy to
secure
the
ability
to move
forward
on your
projects
through
land
claims
settlements. Governor Pataki has been supportive of these efforts,
but they have
been
frustrated
by
opposition
in the
State
Legislature,
recent
decisions
affecting the land claims by the U.S. Supreme Court and the 2nd
Circuit Court of
Appeals and internal
governance
issues within the Cayuga
Nation.
Although we
were hopeful that the BIA would assist in resolving these issues,
they have not
indicated a willingness to take action that would enable us to move
forward with
the necessary
state and federal
legislation to accomplish our goals within the
time frame of our existing agreements.
The Governor's Office has indicated to us that they may not be able
to move
forward
with
legislation
in a special
session and that action on land claims
settlements
may be delayed until next year.
They have also indicated that they
would like to be able to mov
