Property and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment, Capitalized Project Development Costs and Cash for Development Projects

Property and Equipment

Property and equipment at June 30, 2016 and December 31, 2015 consists of:

	(in thousands)
	6/30/2016			12/31/2015
Land	$	770		$	770
Land improvements	1,736			1,732
Buildings	4,727			4,727
Building improvements	27,352			27,284
Vehicles	304			280
Furniture, fixtures and equipment	3,987			3,894
Construction in Progress	248			197
	39,124			38,884
Less—Accumulated depreciation	(13,766		)	(13,095		)
	$	25,358		$	25,789

Depreciation expense was approximately $335,000 and $341,000 for the three months ended June 30, 2016 and 2015, respectively, and approximately $671,000 and $674,000 for the six months ended June 30, 2016 and 2015, respectively.

The VGMs in the Company’s facility are owned by the NYSGC and, accordingly, the Company's consolidated financial statements include neither the cost nor the depreciation of those devices.

Capitalized Development Projects Costs

Once it was awarded the Gaming Facility License on December 21, 2015, the Company began capitalizing certain expenditures on the Casino Project during the fourth quarter of 2015. All expenditures that could be capitalized were related specifically to the Casino Project in fiscal 2015. Beginning in the first quarter of 2016, the Company also incurred expenditures relating to the Entertainment Village and the Golf Course that could be capitalized. Accordingly, the balance sheet item "capitalized project development costs" was renamed "Capitalized Development Projects costs" to collectively reflect the capitalized expenditures for the Casino Project, Entertainment Village and Golf Course.

At June 30, 2016 and December 31, 2015, total Capitalized Development Projects costs were approximately $104.9 million and $10.4 million, respectively. Total Capitalized Development Projects costs consist of construction costs, site development, contractor insurance, general conditions, construction manager fees, and professional fees such as architectural, legal and accounting fees, and is reflected on the balance sheet as Capitalized Development Projects costs.

Cash for Development Projects

Pursuant to the MDA, executed on December 28, 2015, the Company assumed responsibility for the development of the Entertainment Village and the Golf Course in addition to the Casino Project. Accordingly, the balance sheet item "Cash for development of the Casino Project" was renamed "Cash for Development Projects" to collectively reflect the cash available for the Development Projects.

At June 30, 2016, the $127.0 million Cash for the Development Projects on the consolidated balance sheet represents the remaining portion from the January 2016 Rights Offering to be utilized for the Casino Project, Golf Course, and Entertainment Village.

At December 31, 2015, the $15.5 million Cash for the Development Project on the consolidated balance sheet represents the remaining funds from the January 2015 Rights Offering to be utilized for the Casino Project.