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Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
Oct chisholm creek presentation final
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Oct chisholm creek presentation final

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Kansas Racing & Gaming Commission …

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

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Transcript

  • 1. Lottery Gaming Facility Manager presentation to the Lottery Gaming Facility Review Board October 26, 2009 Presented by: Lakes Entertainment, Inc.
  • 2. REPRESENTATIVES PRESENT Lakes Entertainment, Inc: Parent company of proposed manager and equity partner Lyle Berman Tim Cope Richard Bienapfl Mike Montross Och-Ziff Real Estate: Parent company of proposed equity partner Nicholas Hecker Mark Schwartz Clairvest Group, Inc: Parent company of proposed equity partner Aly Champsi Hnedak Bobo Group: Architect Rick Gardner MKEC Engineering Consultants, Inc (MKEC): Civil Engineer Kurt Yowell Mark Buckingham 2
  • 3. OWNERSHIP STRUCTURE Lakes Clairvest Group Och-Ziff Real Estate Entertainment 33% 50% 17% • Lakes, Clairvest & Och-Ziff are the only equity owners of Chisholm Creek Casino Resort. • Lakes Entertainment will manage Chisholm Creek Casino Resort. • Three other groups that were involved in bringing the project together (Foxwoods, Double Down, Rick Worner) are being paid fixed fees, but have no ownership in the casino project & no casino management role role. • Double Down will also develop and operate a hotel. 3
  • 4. AGENDA I. Key Review Board considerations II. Wh II Why Chisholm Creek Casino Resort is a win for the citizens of Kansas: » Project certainty » First class destination casino First-class » Experienced management team III. Answers to consultants’ questions The images, renderings, drawings, written and oral statements contained in this presentation are for illustrative purposes only, since final engineering and architectural plans are in the process of being developed and may vary from this presentation. In the event that any portion of this presentation, including but not limited to the oral and written statements herein, conflict with Exhibit C of Chisholm Creek Casino Resort LLC’s Lottery Gaming Facility Management Contract, Exhibit C shall control. 4
  • 5. Key Review Board y Considerations 5
  • 6. KEY CONSIDERATIONS Does this contract maximize revenues for the State of Kansas? Yes. • Despite today’s economic conditions, the Review Board’s consultants project revenues from Phase I to range from $144 to $163 million. Does this contract encourage tourism? Yes. • We will develop a true destination casino with a state-of-the-art gaming experience and first-class non-gaming amenities that include a bar with a live entertainment venue, three restaurants and a hotel with conference and meeting space. • Exceptional design will create a must-see attraction. Unparalleled customer service will generate repeat visitation. g p • The Review Board’s consultants estimate over two million annual visitors to Chisholm Creek. This will make the destination one of the most visited tourist attractions in the area. Does this contract serve the interest of the people of Kansas? Yes. • The all-cash proposal gives certainty. • The property will be a first-class destination casino first class casino. • The property will be managed by an experienced operator. 6
  • 7. Project Certainty j y 7
  • 8. PROJECT CERTAINTY • We are proposing a 100% equity-funded project in order to provide maximum certainty and speed of opening to the State f K St t of Kansas. • The Th project would be phased, with an initial i j t ld b h d ith i iti l investment t t (including privilege fee) of approximately $150 million - all cash. • The Review Board’s consultants have verified our partnership s partnership’s ability to fund this investment (if Lakes is unable to meet its funding obligations, our partners have agreed to cover any shortfalls). 8
  • 9. PROJECT CERTAINTY Why choosing a responsible, all-equity project matters: numerous overly- ambitious and undercapitalized casino projects sit unfinished across the country today. Echelon Seneca Casino Buffalo, Buffalo NY Las Vegas, NV Revel Atlantic City, NJ Fontainebleau Las Vegas, NV Margaritaville 9 Biloxi, MS
  • 10. A First-Class Destination Casino 10
  • 11. FIRST-CLASS DESTINATION •Chisholm Creek will be one of the top attractions in the region because of location, size 11 of the investment, first-class gaming experience and its quality service.
  • 12. FIRST-CLASS DESTINATION Phase I • Estimated $125 million initial investment excluding $25 million privilege fee • Direct access to I-35 • 1,500 guest parking spaces; 400 employee spaces and at least 25 oversized spaces i d • 1,300 slot machines with room to quickly expand to 1,500 if demand dictates • 30 t bl games i l di bl kj k craps, roulette, & b table including blackjack, l tt baccarat t • 250-seat or larger buffet • 30-seat or larger café offering around-the-clock service • 125-seat multi-function entertainment restaurant composed of a steakhouse, elevated sports bar on the casino floor, and seating that converts to a live music venue/nightclub • Emergency services building to benefit all of Sumner County 12
  • 13. FIRST-CLASS DESTINATION Potential interior styles for Phase I. 13
  • 14. FIRST-CLASS DESTINATION Phase I (continued) • Commitment from third-party developer to open hotel as p y p p part of Phase I • Hotel to be operational no later than six months after the casino opening • Minimum of 100 hotel rooms • Minimum of seven luxury suites • Pool • Exercise room • 5,000 5 000 square f feet of multi-function meeting and f lif i i d conference facilities 14
  • 15. FIRST-CLASS DESTINATION Total build-out will include, at a minimum: • $ $225 million total investment ( (excluding $ million g $25 privilege fee) • 2,000 slot machines • 50 table games • 12,000 square feet of convention space • 150 hotel rooms 50 ote oo s • Five restaurants • 30,000 square feet of entertainment space 15
  • 16. FIRST-CLASS DESTINATION A first-class development team. • We have commenced an aggressive Harrah’s Prairie Band Hotel & pre-development schedule to be able Convention Center to start construction as soon as Hnedak Bobo Group possible should we be awarded the license. Wind Creek Atmore • Key members of the team include: Casino & Hotel Hnedak Bobo Group – Civil Engineer: MKEC g – Architect: Hnedak Bobo Group – Interior Design: Cagley and Tanner Design – Structural: Uzun & Case Westin Memphis Beale Street Hotel – MEP/FP: FEA Consulting Engineers Hnedak Bobo Group – Specialty Lighting: John Levy Lighting – Landscape Architecture: TBG Partners 16
  • 17. FIRST-CLASS DESTINATION The contemporary prairie-style theme is appropriate for the market. 17
  • 18. FIRST-CLASS DESTINATION The contemporary prairie-style theme is appropriate for the market.
  • 19. FIRST-CLASS DESTINATION Phase I Plan Commitment from third-party developer to build Phase I hotel which may not be physically connected to casino building as depicted in this rendering. 19
  • 20. FIRST-CLASS DESTINATION Phase I will be a first-class destination. Phase I Program Commitment from third-party developer to build Phase I hotel which may not be physically connected to casino building as depicted in this rendering. 20
  • 21. FIRST-CLASS DESTINATION Site plan focused on ease of access, I-35 visibility and future build-out. Master Plan 21
  • 22. FIRST-CLASS DESTINATION Site plan focused on ease of access, I-35 visibility and future build-out. Floor Plan 22
  • 23. FIRST-CLASS DESTINATION MKEC Engineering Consultants, Inc. (MKEC) is a Wichita-based, 160-member, full-service engineering and land planning firm founded in 1982. So f S far on this project, MKEC h completed: thi j t has l t d • ALTA and topographic surveys • Phase I environmental assessment • USACE jurisdictional determination • Assessment of utility corridors (right-of-way) • Assessment of utility providers A t f tilit id • Assessment of potential roadway improvements 23
  • 24. FIRST-CLASS DESTINATION Project schedule will benefit from cooperation: • Area municipalities • Utility providers • KDOT • KTA • SSumner County C t MKEC is actively addressing: • Detailed drainage analysis • Utility supplier agreements (water, sewer, gas, electric) • Traffic study • Platting • Permitting and regulatory requirements • Geotechnical investigation 24
  • 25. FIRST-CLASS DESTINATION Local issues of water, sewer, gas, electric service & traffic are being addressed by MKEC 25
  • 26. FIRST-CLASS DESTINATION The I-35 location will be convenient for travelers and mitigate local traffic impact. 26
  • 27. FIRST-CLASS DESTINATION Preliminary site drainage plan. 27
  • 28. Experienced Management Team 28
  • 29. EXPERIENCED MANAGMENT • Lakes Entertainment, Inc. is a publically traded company on NASDAQ: LACO. • Lakes began as Grand Casinos, Inc. in 1991 and has developed and managed 11 g p g gaming destinations across g the United States. • In total Lakes has overseen the operation and total, development of more than 6,000 hotel rooms; 60 restaurants; 50 retail outlets; 17,000 gaming devices and multiple golf courses courses. • Lakes currently manages a total of 5,500 slot machines, y g , , 150 table games, 13 restaurants and 3,300 employees at three separate locations. 29
  • 30. EXPERIENCED MANAGMENT • Lakes has a full in-house staff to oversee development and operation. • More details on Lakes can be found in the supplemental hand-out. Lakes Entertainment Organizational Chart 30
  • 31. EXPERIENCED MANAGMENT • Lakes is a dedicated corporate citizen – Last year Lakes managed properties & staff gave over $6 million to charities and local organizations – All L k senior l Lakes i level property personal are encouraged t b l t l d to become active ti members in the local community and join charitable, civic and tourism organizations – All Lakes managed p p g properties have a responsible g p gaming p g g program – All Lakes managed properties offer career development programs and continuing education opportunities for employees • Lakes L k properties are fi t class with over 40 awards i th past year ti first l ith d in the t alone including: – 20 first place awards – Midwest Gaming & Travel Magazine – Best Customer Satisfaction in N. California – JD Powers & Associates N – Best Gaming – Casino Player Magazine – Award of Excellence - Wine Spectator – S e ddy Silver Addy - American Advertising Federation e ca d e t s g ede at o 31
  • 32. EXPERIENCED MANAGMENT • Grand Casino Mille Lacs opened in 1991 with no hotel, 690 restaurant seats and limited meeting space. In future phases the project was expanded to 284 hotel rooms, over 800 restaurant seats and 18,000 sq. ft. of meeting space. 32
  • 33. EXPERIENCED MANAGMENT • Grand Casino Hinckley opened in 1992 with no hotel and 2,000 sq. feet of entertainment space. In future phases the project was expanded to over 450 rooms and 20,000 sq. feet of entertainment space. 33
  • 34. EXPERIENCED MANAGMENT • Grand Casino Gulfport opened in 1993 with no hotel rooms or entertainment space. It quickly grew to 1,000 rooms and 21,000 square feet of meeting and entertainment space. 34
  • 35. EXPERIENCED MANAGMENT • Grand Casino Biloxi opened in 1994 with no hotel and no meeting space. It quickly grew to 1,492 rooms and 79,000 sq. feet of meeting and event space. 35
  • 36. EXPERIENCED MANAGMENT • Grand Casino Coushatta opened in 1995 with no hotel and limited entertainment space. It quickly grew to 380 rooms and 22,000 sq. feet of meeting and 36 entertainment space.
  • 37. EXPERIENCED MANAGMENT • Grand Casino Tunica opened in 1996 with 756 rooms and modest entertainment space. It grew to over 1,300 rooms and over 100,000 sq. feet of meeting and 37 entertainment space.
  • 38. EXPERIENCED MANAGMENT • Four Winds Casino Resort opened in 2007. It consistently has over 95% occupancy in its 165-room hotel. Phase II expansion plans are being reviewed now by Lakes’ 38 tribal partner.
  • 39. EXPERIENCED MANAGMENT • Red Hawk Casino held its grand opening earlier this year. The master plan for this project include hotel rooms and an event center. 39
  • 40. EXPERIENCED MANAGMENT • In addition to gaming product, we have developed and managed over 2,000 hotel rooms; over 10,000 restaurant seats; 47 retail outlets and over 55,000 sq. feet of entertainment space in phase one of past projects. 40
  • 41. EXPERIENCED MANAGMENT Note: Cimarron has only been open for three years Development efforts for a second property are currently in process Four Winds has been years. process. open two years and expansion plans and plans for secondary locations are under review. Red Hawk has been open less than one year. • After phase I, our projects have added over 4,000 hotel rooms, 12 restaurants, 4 golf courses and over 300,000 sq. ft. of meeting and entertainment space. space • Lakes has a proven history of continually increasing the offerings at its 41 properties.
  • 42. Answers to Consultants’ Questions 42
  • 43. CONSULTANTS’ QUESTIONS Is funding for the project certain? • Yes, this is an all-cash proposal. • The Review Board’s consultants have verified our group’s ability to perform. • If Lakes is unable to meet its funding obligations, our partners have agreed to cover any shortfalls. 43
  • 44. CONSULTANTS’ QUESTIONS Is this a destination casino? • We will develop a true destination casino with a state-of-the-art gaming experience and first-class non-gaming amenities that include a bar with a live entertainment venue, three restaurants and a hotel with conference and meeting space. • Exceptional design will create a must-see attraction. Unparalleled p g p customer service will generate repeat visitation. • The Review Board’s consultants estimate over two million annual Board s visitors to Chisholm Creek. This will make the destination one of the most visited tourist attractions in the area. 44
  • 45. CONSULTANTS’ QUESTIONS When will you add a hotel? • We recently signed a binding agreement with a third party that obligates them to open a hotel on our site within six months after the casino opens. • We are subsidizing development and operation of this hotel. • We ill W will continue t add additional hotel rooms over time. ti to dd dditi lh t l ti 45
  • 46. CONSULTANTS’ QUESTIONS Why are your projections so much lower than the consultants for Phase I and so much higher than the consultants for Phase II? • Given the uncertainty surrounding any new development, our Phase I projections reflect a conservative estimate that we would hope t exceed. h to d • Our Phase II projections were based on calendar year 2022 and assumed an annual inflation rate of 3%. Cummings and Wells Gaming Research b th used 2015 in their assumption. H d all G i R h both d i th i ti Had ll three groups used the same assumptions for the year 2022 we would have projected $230 million, Cummings $237 million and Wells $253 million. million 46
  • 47. CONSULTANTS’ QUESTIONS What assurances are there that the project will be developed to its full potential? • We are committed to build out the full project. • Rather than guess what the market wants we will add amenities wants, based on customer feedback, which will allow for a more successful overall project for the State. • Lakes has L k h a proven t k record of adding amenities t existing track d f ddi iti to i ti projects. 47
  • 48. CONSULTANTS’ QUESTIONS Is this the best contract for Kansas? • Absolutely. The proposal has certainty. It is a first-class destination casino and will have an experienced management team. 48
  • 49. CONSULTANTS’ QUESTIONS Does this contract maximize revenues for the State of Kansas? Yes. • Despite today’s economic conditions, the Review Board’s consultants project revenues from Phase I to range from $144 to $163 million. Does this contract encourage tourism? Yes. • We will develop a true destination casino with a state-of-the-art gaming experience p g g p and first-class non-gaming amenities that include a bar with a live entertainment venue, three restaurants and a hotel with conference and meeting space. • Exceptional design will create a must-see attraction. Unparalleled customer service will generate repeat visitation. visitation • The Review Board’s consultants estimate over two million annual visitors to Chisholm Creek. This will make the destination one of the most visited tourist attractions in the area. Does this contract serve the interest of the people of Kansas? Yes. • The all-cash proposal gives certainty. • The property will be a first-class destination casino. • The property will be managed by an experienced operator. 49
  • 50. Thank You You. Questions? 50

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