Labor's Own Financial and Risk Solutions Provider Participates in Phase I of Renaissance Project
WASHINGTON,D.C. (October 6,2008) -The Union Labor Life Insurance Company,through its investment vehicle,Separate Account J,"J for Jobs",has committed to provide a $250 million participation in the construction loan towards the funding of the $1 billion Phase 1 Concord Resort Redevelopment project. J for Jobs will participate during Phase 1 of the project,ULLICO announced today. When all phases are complete,the Concord Resort reconstruction is the largest project ever in New York State outside of Manhattan.
"This project is an historic one due to its size,the timing in the economic cycle,and its job creation potential. We expect to employ 2,000 union construction workers and over 2,000 permanent union hotel and restaurant workers," said Louis R. Cappelli,President of Cappelli Enterprises,Inc. and Managing Member of the Concord Associates.
The Concord-Empire Resorts Hotel and Casino will be built on a 150-acre site where the historic Concord hotel once proudly stood in Kiamesha Lake,Sullivan County,New York. In addition to the 750-room hotel and casino,Phase 1 of the 1.5 million square foot complex also includes the relocation and rebuilding on-site of the Monticello Harness Racing Facility,a convention center,and upscale retail space. The massive,multi-billion dollar project will eventually encompass several hotels,golf courses,spas,shops,and national retailers and reestablish the Concord as a true national destination resort.
"The Union Labor Life Insurance Company is excited about this project," said Mark Singleton,Chief Executive Officer of ULLICO Inc. "We are proud that our participation will help to revive the county and provide a significant economic boost to the region and to New York State."
"Projects such as this and developers of the caliber of Louis Cappelli allow us to meet our mission with the J For Jobs program which calls for us to deliver strong returns to J for Jobs investors,valuable financing solutions to union employers,and the creation of new union jobs," said Edward M. Smith,President of ULLICO Inc.
The project is expected to revitalize the local economy and jumpstart the job market in the Catskills area. "Through J for Jobs,we will be able to use this project as yet another vehicle to create union jobs for union workers," said Herb Kolben,Senior Vice President for The Union Labor Life Insurance Company and head of ULLICO's Real Estate Investment Group. "We have had a long and successful relationship with Louis Cappelli over the last decade financing numerous deals with total project value exceeding $500 million."
"The Labor Movement as a whole should be very proud of what The Union Labor Life Insurance Company and its J for Jobs program has and will accomplish here on this job," said Cappelli. "It will have a 'domino effect' on the entire region for decades to come. I am proud to step up in partnership with Labor in these tough economic times to lead this historic initiative."
About J for Jobs
The Union Labor Life Insurance Company's product,Separate Account J,also known as J for Jobs,was created in 1977 to generate favorable risk-adjusted returns for its investors,to create work for unionized workers,and to be an additional source of liquidity for real estate developers. Since then,J for Jobs has led the financing on projects with total value of over $30 billion generating more than 500 million hours of union construction labor.
J for Jobs is a commingled,open-end,real estate mortgage account sponsored by The Union Labor Life Insurance Company. It is designed to provide tax-exempt pension plans a sound means to invest in a portfolio of high-quality mortgages secured by income-producing properties. All mortgage investments in the portfolio are for new construction or extensive renovation projects and are required to be exclusively union built.