te Mohegan Sen "= THE CONCORD November 24,2014 Gail P. Thorpe Supervisor of Contract Administration New York State Gaming Commission Contracts Office One Broadway Center Schenectady, New York 12301-7500 Update to Region One Gaming Facility Application of Mohegan Sun at the Concord Dear Ms. Thorpe: (On behalf of Concord Kiamesha, LLC d/o/a Mohegan Sun at the Concord, Lam writing again with a bret update to our Region One Gaming Facility Application, including financial results forthe most recent quarter reported on this week by the Mobegan Tribal Gaming Authority (°MTGA"), which, through subsidiaries, will be the majority owner and manager of ‘Mohegan Sun atthe Concord. Pursuant to Section $300.4 of the Emergency Rules adopted by the Gaming Corrmission (9 NYCRR Part 5300) and paragraph I of Article If ofthe "Request for Applications to Develop and Operate a Gaming Facility in New York State," we would respectfully request that this additional information be accepted as an update and further amendment to our application. ‘MIGA Succession Planning ‘As you are aware, the Mohegan Tribal Gaming Authority has been a filer of periodic reports with the U.S. Securities and Exchange Commission since we first went to Wall Street and issued publicly-held debt securities in 1995, as the frst Native American gaming enterprise to do so, Our most recent quarterly earings call with investors was held this past Thursday, November 20, ard a copy of the earnings release discussed on that call is attached. Since the {quarter ending September 30 coincides with MTGA's fiscal yar, the full fiscal year audited results will be reported in MTTGA’s annual report on form 10-K in approximately one month, On Thursday's conference call, Tanmiyunced the neat steps in MTGA'S strtegic succession planning which affect me in particular and potentially give me an opportunity to bring some additional excitement to Mohegan Sun at the Concord. I wanted to provide certainty that 1this does not impact MTGA’s or my personal commitment to Sullivan County or Mohegan Sun atthe Concord, As reported by some media outlets following the call, [announced that MTGA will name a new President by April 1, 2015, who will report to me, and that person will eventually succeed me as Chief Executive Officer of MTGA. The transition will last as long as is appropriate, nd I expect to remain with the company far beyond the end of my current ‘employment catract, which expires June 30, 2015 and well beyond that in an emeritus capacity In fact, the reason there is no set time forthe transition ofthe to-be-hired President is that Iwill be staying as CEO until such time as Ihave been able to see Mobegan Sus atthe Concord through its opening and therefore see all of Sullivan County reap the benefits of the gaming and tourism industy that is has longed since before there was legalized gambling anywhere inthe United States except Las Vegas ‘To paraphrase Mark Twain, reports of my retirement may have been greatly exaggerated \when it comes io our Mohegan Sun at the Concord project. As I testified 1 the Location Board in September, te future of Sullivan County's economy and the Catskills is personal for me, a it i also for many ofthe others on our team, from those on the ground with the Cappelli Organization it Sullivan County, to Cliff Ehrlich, whose family owned the Pines Hotel and is part of the Motegan Sun at the Concord management team tothe Chairman ofthe Management ‘Board of the MTGA and Mobegan Tribe, Lt. Col. (Ret.) Kevin Brown, himself a West Point {graduate who vas deployed twice to Iraq from Fort Drum in Watertown, New York. While itis {tue that I plan to spend a lot more time with my wife, Karen, and my golfclubs, Lam fortunate ‘that scaling back my day-to-day responsibilities with MTGA will afford me the opportunity to ‘oversee more closely this project which remains near-and-dear to my hear. Essentially, once the President comes on board I will be providing overall strategic guidance tothe MTGA and be solely focused on the Concord, should you be kind enough to award us the license forthe Catskill region have worked hard to build a reputation in this business, and by most counts have bad a very successful career. My sincerest hope is that Iam able to put one last exclamation point on it by shepherding this project to fruition and seeing the area of my upbringing return to prominence Lam truly delighted that this next phase of my life wil give me an opportunity for more time at “home” and in what willbe the most critical times in the development and launching of Mohegan Sun a the Concord. The launch and success of Mohegan Sun atthe Concord will be ‘extremely impcrtat to me as I wind down my long career in the gaming industry. MTGA Earnings believe it also worth noting, that as discussed in the eamings release and on the earings call, each of MTGA’s gaming properties is performing well. Of particular note, our net income increased 375% vs. the prior year. In addition, the alltime record hotel occupancy rate of 98.5% at Mobegan Sun in Connecticut and the successful Iaunch and ramp up ofthe new hotel at ‘Mohegan Sun st Pocono Downs in Pennsylvania, with its own 95% occupancy rate (with each ‘hotel commanding high average nightly room rates), bode very well forth ability of our brand 2to draw cvernight patrons, time and time again, to Mohegan Sun atthe Concord with diverse entertainment offerings. The Mohegan Tribal Gaming Authority's balance sheet continues to get stronger and our leverage is declining rapidly. The operating units’ superb performance in ‘combination with the expiration ofthe $50 million a year relinquishment payment speaks ‘volumes of our solid financial poston, Also of note in te latest earnings report isthe continued tumaround of Resorts Atlantic City under our management. We continue o grow marketshare at Resor despite a decline ia the New Jersey market and had a strong quarter with net revenues increasing 7% and EBITDAM ‘sing 595% or $4.2 million over the prior year quarter. Resorts has been cash flow positive for ‘the past two quarter, the first time this has happened in six years anda significant feat in a ‘market where four other gaming facilities have closed. This speaks not only o the management ‘eam and strong employee relations at Resorts but to all ofthe benefits that Mohegan Gaming ‘Advisors brings to that property and is poised to bring to Sullivan County, Catskills, including the power ofthe Mohegan Sun database which we have detailed in our application and presentalon before the Location Board in September. Sincerely yours, Mitchell Grossinger Etess Manager, Mohegan Gaming New York, LLC. for Mohegan Sun a the Concord cc: MTGA Fon 8-K and Press Release dated November 20, 2014