Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

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

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

	12/31/2016			12/31/2015
	(in thousands)
Land	$	770		$	770
Land improvements	1,758			1,732
Buildings	4,727			4,727
Building improvements	28,088			27,284
Vehicles	307			280
Furniture, fixtures and equipment	4,278			3,894
Construction in Progress	919			197
	40,847			38,884
Less—Accumulated depreciation	(14,432		)	(13,095		)
	$	26,415		$	25,789

Depreciation expense was approximately $1.3 million, $1.4 million and $1.3 million for years ended December 31, 2016, 2015 and 2014, 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 Project Development Costs

Once it was awarded the Gaming Facility License on December 21, 2015, the Company began capitalizing certain Project Development expenditures during the fourth quarter of 2015. At December 31, 2016 and 2015, total Capitalized Project Development costs incurred were approximately $202.4 million and $10.4 million, respectively. Total Capitalized Project Development costs at December 31, 2016 consisted of $198.9 million of construction costs, site development, contractor insurance, general conditions, architectural fees, construction manager fees, and approximately $3.5 million of professional service fees such legal and accounting fees and is reflected on the balance sheet as Capitalized Development Project costs. Total Capitalized Development Project costs at December 31, 2015 consisted of $10.3 million in architectural, engineering fees, construction manager and subcontractor costs, site development costs and approximately $127,000 in legal fees, accounting fees, consultants and other costs.

Cash Collateral for Deposit Bond

In February 2016, the Company deposited $15 million in performance bonds to guarantee the completion of the Development Projects. These funds will be returned to the Company upon the satisfactory completion of the Development Projects.

Cash for Development Projects

At December 31, 2016, the $26.4 million in Cash for 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 of Cash for Development Projects on the Consolidated Balance Sheet represents the remaining funds from the January 2015 Rights Offering to be utilized for the Casino Project.