Kansas Star dec 1_final

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Kansas Star dec 1_final

  1. 1. Why Kansas Star? Kansas Star contract is the one contract that achieves all of the legislative goals in SB 66
  2. 2. 1. Maximize revenue for the State of Kansas  The Kansas Star begins generating revenue in 2011  Stabilized revenue of $226 million  First five years of operation produces gaming tax revenue totaling $223 million to the State of Kansas  Significant investment in other revenue generators  Tax rates escalate during contract to 26%
  3. 3. 1. Maximize revenue for the State of Kansas Cummings: Better Location and More Revenue  “The Kansas Star Casino . . . would be substantially more convenient to Wichita [than a] casino at Exit 19.” An Exit 19 casino’s “share of Sedgwick County’s spending would be 80% versus 90% for the Kansas Star.” Wells: Peninsula’s Project Schedule Provides More Revenue and Faster  WinSpirit is expected to generate $45 million in gaming revenue in 2012 versus $133 million for the Kansas Star (six months of operations for WinSpirit versus 12 months for the Kansas Star). On an annualized, basis, $90 million versus Kansas Star’s $133 million.  The Kansas Star will complete full build out of its project by 2016, while full build out for the WinSpirit is not scheduled until 2024.  “[In 2016] WGR has forecasted a gaming revenue difference of $89 million between the two applicants, in favor of the Kansas Star.” Projections 2012 2014 2016 Kansas Star – Avg. Wells & Cummings $145,857,000 $185,391,866 $211,291,880 WinSpirit – Avg. Wells & Cummings $53,601,250 $124,942,580 $138,149,779 Variance (Benefit from Kansas Star) $92,255,750 $60,449,286 $73,142,101 Variance % (Benefit from Kansas Star) 172% 48% 53%
  4. 4. 1. Maximize revenue for the State of Kansas  53% more gaming revenue from Kansas Star Projections 2016 Kansas Star – Avg. Wells & Cummings $211,291,880 WinSpirit – Avg. Wells & Cummings $138,149,779 Difference (Benefit from Kansas Star) $73,142,101 Variance % (Benefit from Kansas Star) 53%
  5. 5. 1. Maximize Revenue for the stakeholders of Kansas EKay Economic Consultants: 49% more tax revenue to all stakeholders of Kansas Projections Seven Year Total Total Kansas Star $371,631,514 WinSpirit $248,797,966 Variance (Benefit from Kansas Star) $122,833,548 % Variance 49% Macomber Int.: Superior Investment in Amenities and Marketing Plan  “PGP appears to have made a stronger commitment to food, entertainment, and retail/merchandise as a marketing tool, typically a critical element of a successful Local’s/regional casino.”  “PGP proposes a larger hotel and commits to building it to the full 300 rooms during the four year development period versus the open ended nature of GGS’s proposal.”  “MI believes the triple use of the larger Event/Equine/Convention Center provides not only some unique opportunities to market the property to locals and regional target market segments but creates more numerical opportunities to keep this facility utilized.”
  6. 6. 1. Maximize revenue for the stakeholders of Kansas EKay Economic Consultants: Significantly more gaming tax and total tax in the first seven years Projections State Sumner Co. Sedgwick Co. Mulvane/ Wellington School District Kansas Star $289,293,635 $20,945,908 $11,013,577 $30,091,690* $20,286,704 WinSpirit $200,128,664 $15,634,227 $7,037,458 $16,834,528* $9,163,089 Variance (Benefit from Kansas Star $89,164,971 $5,311,681 $3,976,119 $13,257,162 $11,123,615 % Variance 45% 34% 57% 79% 121% *Reflects an add-back for Public Works expense to be reimbursed to cities of Mulvane or Wellington by the applicants as applicable.
  7. 7. 1. Maximize revenue for the State of Kansas Top Tax Rate: 22% 22% 24% 24% 24% $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2012 2013 2014 2015 2016 Kansas Star Gaming Revenue Average of Wells and Cummings
  8. 8. 1. Maximize revenue for the State of Kansas One Contract – Two Sites Gaming Revenue 2016 Site A Site B Kansas Star - Avg. Wells & Cummings $211,291,880 $196,500,797 WinSpirit – Avg. Wells & Cummings $138,149,779 $138,149,779 Difference (Benefit from Kansas Star) $73,142,101 $58,351,018 Variance % (Benefit from Kansas Star) 53% 42%
  9. 9. 2. Promote Tourism  Investment in tourist generator lifts total visitation over three million annually  300 hotel rooms  Concert/live entertainment center seating 4,200  Due to its amenities, projected to attract 291,000 visits per year from outside 100 miles  True destination development
  10. 10. 2. Promote Tourism Cummings  Tourist visits generating $15 million in gaming revenue Macomber Int.  “Moving quickly to a 300 room hotel will be proven right”  “The approach to a multi-use event, equine, and meeting/convention center is the right one to position the property to serve the Local, Regional, and Outer Market regions”  “PGP capital spent on a larger hotel and Event / Equine / Convention Center will be more productive to marketing to the Outer Market/tourists than the compilation of enhancing a public golf course, a travel/fuel plaza, and a speedway.”  “MI believes PGP could easily add a travel/fuel plaza . . . thus removing this competitive advantage.”
  11. 11. 3. Serves in the best interest of the Citizens of Kansas  Commitment to the local community with $1.5 million “Ad Astra” scholarship fund  Every school district in Sumner County and Mulvane  The total amenities will appeal to the widest range of customers  Committed to full build out in four years  Kansas Star has significant infrastructure development with large employee payroll dollars to yield substantial local economic impact
  12. 12. 3. Serves in the Best Interest of the Citizens of Kansas What Civic Economics says on Construction Economic Output Peninsula 246,207,174$ Global 158,787,335$ Increased Benefit from Peninsula 55% Construction Impacts Employment Peninsula 1,640 Global 1,081 Increased Benefit from Peninsula 52% Wages Peninsula 80,518,085$ Global 51,300,273$ Increased Benefit from Peninsula 57% Source: Applicant Submission, IMPLAN, Civic Economics
  13. 13. 3. Serves in the Best Interest of the Citizens of Kansas What Civic Economics says on Operations Economic Output Peninsula 188,994,697$ Global 136,237,230$ Increased Benefit from Peninsula 39% Operating Impacts Employment Peninsula 1,440 Global 939 Increased Benefit from Peninsula 53% Wages Peninsula 48,182,792$ Global 34,088,737$ Increased Benefit from Peninsula 41% Source: Applicant Submission, IMPLAN, Civic Economics
  14. 14.  The Most Capital Invested - $260 million  The Soonest - Within 4 Years  Not Contingent - Park City  The Highest Revenue  The Most Tourism - A True Destination Resort  Supports Education - “Ad Astra”  The Best Choice For Kansas Kansas Star

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