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Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
Legends sun presentation (final)   8-7-08
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Legends sun presentation (final) 8-7-08

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Kansas Racing & Gaming Commission …

Kansas Racing & Gaming Commission
Casino Proposal
http://krgc.ks.gov/

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  • 1. A Kansas Legend In The Making 1
  • 2. 2
  • 3. Agenda The Partnership Operating Philosophy & Keys to Success Operating & Development Expertise Project Overview Program Elements Marketing & Business Strategy Financial Projections Concluding Remarks 3 Questions
  • 4. The Legends Sun Partnership 4
  • 5. Introduction Video 5
  • 6. What we bring to Kansas Passion World Class Destination Respect for Employees Financial Ability Community Involvement 6
  • 7. Operating Philosophy 7
  • 8. Keys to Success – We are Built to Last Legends Sun Core Values - We operate with a set of essential and enduring values that will never be compromised: Blowing Away the Customer Developing Passionate and Dedicated Employees Continuously Striving for Perfection Bottom Line Performance Being part of the fabric of the Community 8
  • 9. Expertise Mohegan Sun Uncasville, CT Mohegan Sun at Pocono Downs Plains Township, PA Connecticut Sun WNBA Franchise 9
  • 10. 300,000 sq ft of Gaming Space 6,181 slot machines, 328 gaming tables Asian Gaming Pit – Sunrise Square 11,000 sq ft Race Book Simulcast 1,175 Room Luxury Hotel & Spa 10,000 seat Arena 350 seat Cabaret Theatre 400 seat Wolf Den Entertainment Lounge 100,000 sq ft Convention Center More than 60 retail, restaurant & nightlife venues Over $2 Billion in development over the last 10 years 10
  • 11. 11
  • 12. 12
  • 13. 13
  • 14. 14
  • 15. Purchased in January 2003, the Connecticut Sun became the first independently owned WNBA franchise. 15
  • 16. 16
  • 17. Mohegan Sun operates a 2,500 Slot Machine Casino and Harness Race Track as a commercial entity in the Commonwealth of Pennsylvania. The facility was the first casino in Pennsylvania to open. We take great pride in the fact that we worked tirelessly with the newly formed Pennsylvania Gaming Control Board (PGCB) to implement licensing and regulatory processes. 17
  • 18. 2007 Consolidated Operating Highlights $1.5 Billion in Gaming Revenues $283 Million in Non-Gaming Revenues $323 Million in Direct Gaming Taxes to CT & PA $423 Million in Direct Labor Costs $429 Million in Purchases of Goods and Services 18
  • 19. Competition - Connecticut Connecticut Slot Market Comparison Last Twelve Months Ended June 30th, 2008 60% 60% 130% Slot Units Slot Win Slot Efficiency 7,240 120% Units 55% 55% $ 884 M 110% 100% 50% 50% 6,083 90% Units $ 760 M 54.3% 45% 45% 80% 117.8% 53.8% 70% 45.7% 40% 40% 60% 46.2% 85.1% 50% 35% 35% 40% 30% 30% 30% Mohegan Sun Foxwoods 19
  • 20. Competition - Pennsylvania Northeastern PA Slot Market Comparison Last Eight Months Ended June 30th, 2008 100% 60% 170% Slot Units Slot Win Slot Efficiency 90% 150% 55% 80% $ 105 m $ 106 m 130% 50% 2,523 70% Units 110% 45% 60% 90% 154.2% 40% 49.8% 50.2% 50% 70% 67.7% 35% 74.2% 40% 1,203 50% Units 30% 30% 30% 32.3% MSPD Mt Airy 20
  • 21. Recent Development Expertise 21
  • 22. Project Horizon Casino of the Wind (August 2008) Jimmy Buffet’s Margaritaville Restaurant 40,000 square feet of additional gaming space 42 table Poker Room 919 Room Hotel Tower More than 200 House of Blues Themed Rooms House of Blues, Entertainment Venue & Restaurant Additional 144,000 sq ft of Retail and Restaurants 22 22
  • 23. 23 23
  • 24. When Project Horizon is Completed Mohegan Sun – December 31, 2010 Approximately 4.4 million sq ft 2,093 hotel rooms More than 75 retail and restaurant outlets More than 30 bars and lounges Four entertainment venues 380 table games, including poker 6,812 slot machines 24
  • 25. 25
  • 26. $203 Million Phase II facility, Project Sunburst opened July 17, 2008 2 weeks early and under budget. The permanent casino has 57,700 sq ft of gaming space containing 2,500 Class 3 Slot Machines An additional 67,800 sq ft of Retail and Restaurants complements the casino with a signature buffet and fine dining choices such as Ruth’s Chris Steakhouse 26
  • 27. 27
  • 28. July 14, 2008 28
  • 29. 29
  • 30. “We are woven into the fabric of our Community” 30
  • 31. “We are honored to be in a position to provide assistance to so many worthy causes that work to improve the lives of people in our community and throughout the world. Sharing our good fortune with others has always been a fundamental part of Mohegan culture.” Bruce “Two Dogs” Bozsum, Chairman of the Mohegan Tribal Council 31
  • 32. Charitable Events WineFest Share Our Strength (SOS) American Liver Foundation Juvenile Diabetes American Heart Walk “Walk in the Park” Hospice Southeastern Connecticut Boot Drive/Annual Telethon Muscular Dystrophy Association Mohegan Sun MS Bike Tour Multiple Sclerosis 32
  • 33. Over the last 9 Years, Mohegan Sun and its employees have contributed to the United Way and Community Heath Charities a total of: $ 3,426,646.00 33
  • 34. $ 4 Million Raised 34
  • 35. Dedication to Problem Gaming Awareness Current Involvement with National Council on Problem Gambling Strong Plans implemented in CT & PA Sincere Dedication to implement prevention measures Employee Awareness Policy Initiatives 35
  • 36. 36
  • 37. Over 30 projects around country that are completed, under construction or in development Totaling over 19 million square feet Currently RED has projects in 11 states 37
  • 38. Completed 2.7 Million sq ft of development projects valued at $434 Million in the greater Kansas City area. 2 Million sq ft under development valued at $262 Million in the greater Kansas City area. 38
  • 39. City Scape, Phoenix AZ Mixed-use development in the center of downtown Phoenix; a focal point for urban living and community activity. Project includes four towers with a mix of office, hospitality and residential, plus approximately 200,000 sq ft of retail, dining and entertainment. 39
  • 40. Community Giving 40
  • 41. Community Giving Title sponsor for the Kansas City Duck Derby to benefit the Children’s TLC Organization American Cancer Society Gala title sponsor RED Volunteers participated in A Day For Downtown in 2007 in Phoenix that helped to rebuild and revitalize the city. In addition, the event raised $169,072 for the downtown community Corporate Chair for the 2008 Walk to Cure Juvenile Diabetes Title sponsor of The Legends Reno Tahoe Open. The tournament has given over $1.7 million to local charities 41
  • 42. Kansas Community Outreach KCK Community College Held Open Community Meeting for interested residents 130 Letters to Community Groups and Leaders Met with all interested Community Groups Informational booths at local events staffed by the ‘Sun-Squad’ 42
  • 43. Project Overview 43
  • 44. Project Overview 44
  • 45. Project Overview Casino Resort & Golf: 1(A) Retail/Residential: 1(B) World Class Casino 200,000 sq. ft. Retail 4 Star, 350 Room Resort Hotel 200,000 sq. ft. Residential, 250 Units Spa / Pool Structured & Surface Parking Restaurants – Michael Jordan’s Convention Center Entertainment Showroom Legends National Golf Club by Robert Trent Jones II 45
  • 46. Job Creation Employees are the core of our success Legends Sun Jobs Estimated 2,650 Construction Jobs In excess of 2,250 Direct Full Time Employees 1,850 Casino and Resort Jobs 400 Retail and Residential Jobs Indirect Jobs Estimated 2,715 Jobs Supporting Legends Sun Diversity - EOE 46
  • 47. Location 47
  • 48. Project Site 48
  • 49. Project Site – Ability to Master Plan 49
  • 50. Infrastructure Improvements Roadway Improvements Transportation System Regional Transportation Employee Transportation Trolley System Initial $1 Million contribution to Unified Government for additional infrastructure improvements in WyCo 50
  • 51. Architects 51
  • 52. Focused exclusively on hospitality, leisure and entertainment industries Scripting experiences that are unique, memorable and successful Knowledge of consumer trends, preferences and the marketplace 52
  • 53. By the numbers 450-person firm Six decades of specialized experience 157 countries and territories 235 built projects 84,000 guestrooms 80 casinos 60 spas 34 languages 60 cultures 46% women 53
  • 54. 54
  • 55. Legends Sun Detailed Program Elements 55
  • 56. Casino 56
  • 57. Casino Circular, Themed Design and Flow 2,000 Slot Machines Best, Most Current Product Mix of Reel, Video 60 Table Games Best, Most Current Product Mix of Black Jack, Roulette, etc 25 Poker Tables Signature Poker Room Tournaments High Limit VIP Lounge 57
  • 58. 4-Star Hotel 58
  • 59. 4-Star Hotel 350 Elegant Hotel Rooms and Suites 4-Star Rating Criteria Fitness Center Exciting Indoor – Outdoor Pool Area with Bar Tennis Courts 59
  • 60. Convention Center Total 76,500 sq ft 40,500 sq ft dedicated meeting and convention space 36,000 sq ft event space in the Entertainment Showroom Full food and beverage catering Designed for hotel conventioneers and local meetings and events Opportunity for expansion based upon future demand 60
  • 61. Spa & Pool Complex Nationally Branded Spa Fully Equipped Fitness Room Pool Complex with Cabanas 61
  • 62. Entertainment & Nightlife 62
  • 63. Entertainment & Nightlife 1,200 Seat Showroom with Convertible Event Space 36,000 sq ft Concerts Theatre Shows Special Events Meeting Space Themed Bars and Lounges Center Action Bar Entertainment Lounge Lobby Bar Terrace & Pool Bar 63
  • 64. Dining 64
  • 65. Dining The Casino program elements will contain a full mix of restaurants and lounges that will be integrated with and complement the 200,000 sq ft of retail space. Commitment for Michael Jordan’s Steakhouse and 23 Sports Cafe 350 Seat Themed Buffet Fine Dining Casual Dining Quick Service 65
  • 66. Legends National Golf Club 66
  • 67. Legends National Golf Club Robert Trent Jones Jr. championship caliber golf course Serve as an additional attraction for out-of-market visitors. Provide local Wyandotte residents added recreational option 244 courses in 42 countries on 6 continents Hosted PGA, Senior PGA, LPGA, European and Asian tour events Will host the Ryder Cup in 2010 at its Celtic Manor (Wales) course. 67
  • 68. Legends National Golf Club Course Design Clubhouse Golf Operations Public Membership Casino VIPs 68
  • 69. 69
  • 70. Retail & Residential 70
  • 71. Marketing & Business Strategies 71
  • 72. Destination Marketing Legends Sun will be a unique entertainment destination with a wide variety of amenities appealing to everyone, from the avid gamer to the casual shopper. Our goal is simple, create and operate a facility that draws crowds and creates excitement. 72
  • 73. Demographics Legends Sun Median HH Distance Adult Population Income 0 - 20 Miles 1,110,042 73,598 21 - 40 Miles 399,955 68,365 31 - 60 Miles 300,394 52,018 61 - 80 Miles 168,227 51,283 81 - 100 Miles 193,500 43,286 100 - 120 Miles 258,464 43,830 121 - 140 Miles 508,620 48,443 141 - 160 Miles 826,424 54,810 161 - 180 Miles 1,516,345 59,852 73
  • 74. Tourist Statistics & Breakdown Tourists residing more than 100 miles from Legends Sun Leisure Business Total Missouri 231,611 40,873 272,484 Other 180,142 31,790 211,932 Iowa 154,408 27,248 181,656 Oklahoma 128,673 22,707 151,380 Nebraska 85,782 15,138 100,920 Kansas (Outside 100 Miles) 77,204 13,624 90,828 Total 857,820 151,380 1,009,200 74
  • 75. Tourist Statistics and Breakdown Tourists are divided in two categories: Gaming and Non-Gaming Visits % Gaming Visits 841,000 83.33% Non-Gaming Visits 168,200 16.67% Total Tourist Visits 1,009,200 100.00% 75
  • 76. Tourist Statistics and Breakdown Gaming and Non-Gaming estimated spend per trip Spend Per Visit Gaming Non-Gaming Total Tourist-Gamer $ 116.00 $ 50.00 $ 166.00 Tourist - Non-Gamer $ - $ 81.20 $ 81.20 76
  • 77. Legends Sun Marketing Plan We build a robust customer database and use the following tactics to drive business: Strong use of Technology and Customer Relationship Management (CRM) Systems Creative, Energizing Casino Marketing, Promotions and Special Event programs Steady Volume of Bus Marketing Activity Player Rewards programs coupled with the best Non- Gaming Amenities 77
  • 78. Customer Relationship Management (CRM) Implement casino rating system to collect Player’s Club information Utilize TeraData Warehouse to mine the data. The integrated database can be used to foster repeat business from these activities: Direct Marketing Internet Marketing 78
  • 79. Casino Marketing and Promotions Implement a Player’s Club Reward program Conduct effective special events and promotions Implement a VIP Service / Executive Host program to deliver tiered service levels 79
  • 80. Bus Marketing Mohegan Sun currently operates the largest casino bus marketing program in the country. Will build local operator relationships to capitalize on the areas of dense population. Establish both line and charter service. 80
  • 81. Non-Gaming Amenity Casino Marketing Connection There is marketing benefit to having the best Non-Gaming Amenities such as Retail and Golf. Legends Sun Rewards (Customer Loyalty Program) drives repeat visitation. Proven to generate higher gaming revenue. 81
  • 82. Projections 82
  • 83. Revenue Projections Legends Sun $320,000,000 Legends Sun Projected Gaming Revenue $86,000,000 Projected Gaming Tax $310,000,000 $84,000,000 $300,000,000 $82,000,000 $80,000,000 $290,000,000 $78,000,000 $280,000,000 $76,000,000 $74,000,000 $270,000,000 $72,000,000 $260,000,000 $70,000,000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Slot Revenue $ 229,950,000 $ 239,148,000 $ 251,105,400 $ 258,638,562 $ 266,397,719 Table Revenue 36,682,500 38,149,800 40,057,290 41,259,009 42,496,779 Poker Revenue 4,106,250 4,270,500 4,484,025 4,618,546 4,757,102 Total Gaming Revenue $ 270,738,750 $ 281,568,300 $ 295,646,715 $ 304,516,116 $ 313,651,600 Gaming Taxes to State $ 73,099,463 $ 76,023,441 $ 79,824,613 $ 82,219,351 $ 84,685,932 83
  • 84. Community Contributions We pledge an initial $5 Million contribution to local community, charitable organizations, and non-host school districts Pledge an additional $750,000 annual payment that grows in proportion to gaming revenues Projected over 15 years, these contributions total approximately $20 Million 84
  • 85. Project Costs Sources & Uses 85
  • 86. Project Costs Casino Resort Retail & & Golf Residential Construction Construction Total Project Period - 1(A) Period - 1(B) Costs Hard Costs $ 336,741,400 $ 97,625,000 $ 434,366,400 Soft Costs 159,994,071 13,596,523 173,590,594 Total Construction Costs 496,735,471 111,221,523 607,956,994 Capitalized Interest 26,977,081 6,040,301 33,017,382 Development Fees 15,153,363 4,393,125 19,546,488 Subtotal 538,865,915 121,654,949 660,520,865 Financing Fees & Costs 8,750,000 - 8,750,000 Interest Costs (Income) 7,297,578 1,633,964 8,931,542 Pre-Opening Costs & Expenses 20,000,000 419,273 20,419,273 Pre-Financing Costs & Expenses 2,500,000 - 2,500,000 Privilege Fee 25,000,000 - 25,000,000 Working Capital 35,000,000 - 35,000,000 Local Community / School Allocation 5,000,000 - 5,000,000 Local Community / Infrastructure Allocation 1,000,000 1,000,000 Total Project Costs $ 643,413,493 $ 123,708,186 $ 767,121,679 86
  • 87. Sources Casino Resort & Retail & Golf Residential Construction Construction Sources Period - 1(A) Period - 1(B) Total Project Cash Infusion by Mohegan Resorts-Kansas, LLC $ 168,226,761 $ 30,106,572 $ 198,333,333 Cash Infusion by RED Development 84,113,381 15,053,286 99,166,667 Proceeds From $200 Million Bank Credit Facility - Revolver 91,073,352 78,548,328 169,621,679 Proceeds From $100 Million Bank Credit Facility - Term Loan 100,000,000 - 100,000,000 Proceeds From $200 Million Senior Subordinated Notes 200,000,000 - 200,000,000 Total $ 643,413,493 $ 123,708,186 $ 767,121,679 87
  • 88. Uses Casino Resort & Retail & Golf Residential Construction Construction Uses Period - 1(A) Period - 1(B) Total Project Pre-Financing Costs & Expenses $ 2,500,000 $ - $ 2,500,000 Privilege Fee 25,000,000 - 25,000,000 Construction Costs (Hard & Soft Costs) 496,735,471 111,221,523 607,956,994 Financing Costs & Fees 8,750,000 - 8,750,000 Interest Costs (Income) 7,297,578 1,633,964 8,931,542 Capitalized Interest 26,977,081 6,040,301 33,017,382 Local Community/School Allocation 5,000,000 - 5,000,000 Local Community/Infrastructure Allocation 1,000,000 - 1,000,000 Development Fees 15,153,363 4,393,125 19,546,488 Working Capital - Casino Bank Roll 35,000,000 - 35,000,000 Pre-Opening Costs & Expenses 20,000,000 419,273 20,419,273 Total $ 643,413,493 $ 123,708,186 $ 767,121,679 88
  • 89. Project Timeline September 2008 Leg Sun, LLC Selected as Gaming Facility Manager Sep 2008 - Apr 2009 Dec 2010 Development, Variances April 2009 - December 2010 Legends Sun 1(A) OPENS Financing & Design Construction Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Apr 2008 Dec 2010 November 2012 Sep 2011 - Nov 2011 Nov 2011 - Dec 2012 Legends Sun 1(B) OPENS Planning & Design Construction Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Sep 2011 Dec 2012 89
  • 90. Feasibility of Project Financing 90
  • 91. Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, conducts investment banking and securities activities in the United States. As one of the largest financial institutions in the world, Deutsche Bank is a leader in providing financing and advisory services to premier gaming clients. 91
  • 92. Deutsche Bank plays a leading role in transactions that are shaping the future landscape of the gaming and lodging industries. Strong track record of financing clients in the gaming, lodging and leisure industries. 92
  • 93. What we bring to Kansas Passion World Class Destination Respect for Employees Financial Ability Community Involvement 93
  • 94. 94

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