ALBANY – Governor David Paterson Tuesday signed the Concord development bill paving the way for the $1 billion project to move forward.

Louis Cappelli’s Concord Associates and Empire Resorts are going to build a new gaming resort with a hotel, conference center, racino and Monticello Raceway.

The racetrack and video slot machine operation will be relocated from their current location in Monticello to the site of the former Concord Hotel in Kiamesha Lake.

Under terms of the legislation, the developers will be able to retain 75 percent of the profits from the VLTs, up from the current 50 percent.

The project is expected to bring with it 2,000 permanent jobs and an increase in the current contribution to state education from the new VLT operation.

Assemblywoman Aileen Gunther, who sponsored the bill in the Assembly, said the project will stimulate the economy of the greater Hudson Valley-Catskills region. “The project will have impact on Orange, Sullivan and Ulster counties,” she said. “We are going to put a lot of people to work on the project.”

Senator John Bonacic, who sponsored the legislation in the Senate, said with 14 percent of Sullivan County’s population at or below the poverty level, this project will serve as a major economic boost for the region. “The people of the county need permanent jobs, a substantial increase in education funding, and dollars invested into the regional economy.”

Construction is expected to begin in the weeks ahead with the first phase to be completed in two years.

Demolition has been underway for weeks to remove the old Concord building.