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Similar to 2015 LGFRB Presentation Castle Rock Casino Resort
2015 LGFRB Presentation Castle Rock Casino Resort
- 2. WHO’S WHO DEVELOPERS CastleRock Casino Resort LLC, principal partners Rodney and Brandon Steven with a large group of Kansas business owners ARCHITECT Friedmutter Group of Las Vegas, premier designer of Las Vegas-style casinos CASINO MANAGEMENT American Casino and Entertainment Company, which owns and manages four casinos CONSULTING WhiteSand Gaming, one of the country’s largest gaming consulting firms CONSTRUCTION Crossland Construction of Cherokee County Kansas, the 94th largest U.S. construction company LEGAL Polsinelli Law Firm, which helped secure the Northeast Kansas gaming license for Hollywood Casino
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- 7. WHAT MAKES CASTLEROCK BIGGER & BETTER
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- 9. TOTAL PROJECT SIZE Casino FoodService Meeting Rooms Hotel Support Area Total 77,000 SQ FT 29,730 SQ FT 27,000 SQ FT 124,960 SQ FT 164,017 SQ FT 422,707 SQ FT
- 10. LOTTERY FACILITY GAMES 1,400MACHINES GAMING ELECTRONIC ALLCLASS 3, ALL THE LATEST RELEASES
- 11. LOTTERY FACILITY GAMES 35TABLE GAMES CRAPS • ROULETTE • BLACKJACK • & OTHERS
- 12. LOTTERY FACILITY GAMES 16POKER TABLES A SEPARATE POKER ROOM WITH
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- 15. SPORTS BAR BUFFET 24-HOUR RESTAURANT FINEDINING STEAKHOUSE
- 16. 27,000 SQUARE FEETOF MEETING SPACE ANOTHER TOURISM DRIVER
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- 18. 1ST -YEAR GAMING REVENUES CONSERVATIVEANALYSIS $129.61 Electronic gaming machines win/unit/day $82,689,527 Gaming revenues $884 Table games win/unit/day
- 19. YEAR-ONE GAMING REVENUES TARGETEDSCENARIO ANALYSIS $151.66 Electronic gaming machines win/unit/day $101,389,518 Gaming revenues $1,283 Table games win/unit/day
- 20. GAMING REVENUES Conservative Projections Year1 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 Year 2 Year 3 Year 4 Year 5 Targeted Projections
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- 22. 1ST -YEAR NON-GAMING REVENUES $7.8million Food and Beverage Revenues$6.7 million Annual Room Revenues $1.7 million Retail, Convention and Other 16.2MILLION $
- 23. NON-GAMING REVENUES $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Room FoodOther Year 1 Year 2 Year 3 Year 4 Year 5 $16.2MILLION $17MILLION $17.7MILLION $18.2MILLION $18.8MILLION
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- 25. 1ST -YEAR GAMING TAXDISTRIBUTION State of Kansas $18,181,696 Crawford County $826,985 Cherokee County $1,653,791 Problem Gaming Fund $1,653,791 22.3MILLION $
- 26. GAMING TAX REVENUES Year1 Year 2 Year 3 Year 4 $22,326,172 $23,219,219 $24,752,579 $25,495,434 $27,375,170 $28,470,177 $29,466,633 $30,350,632 Year 5 $26,260,297 $31,261,151 Conservative Projections Targeted
- 27. NON-GAMING TAXES Total OtherTaxesIncome Tax Sales Tax Property Tax $1,050,000 $1,225,044 $1,304,288 Year 4 $1,050,000 $1,435,669 $1,304,288 Year 5 $3,579,332 $3,789,957 $1,050,000 $1,208,781 $1,304,288 Year 3 $3,563,069 $1,050,000 $1,162,289 $1,304,288 Year 2 $3,516,577 $1,050,000 $1,106,912 $1,304,288 Year 1 $3,461,200
- 28. TOTAL TAXES GENERATED DURING15-YEAR CONTRACT $501,927,368BASED ON CONSERVATIVE PROJECTIONS BY WHITESAND GAMING
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- 34. PROJECTED 1ST -YEAR REVENUEAND LOCAL/TOURIST SPENDING Total Revenue Tourist* Local** Total Revenue Tourist* Local** Gaming Revenue $ 82,689,527 $15,526,239 $67,163,288 $ 101,389,518 $ 19,037,451 $82,352,067 Non-Gaming Revenue $ 18,793,449 $ 3,528,761 $15,264,688 $ 18,711,790 $ 3,513,429 $15,198,361 Total $101,482,976 $19,055,000 $82,427,976 $ 120,101,308 $ 22,550,880 $97,550,428 Conservative Projections Targeted Projections * Defined as visitors that live 100 miles or more away from the facility ** Defined as visitors that live within 100 miles of the facility
- 35. TOURISM AND VISITORS 25% InState 75% Out of State 1.25MILLIONVISITORS PER YEAR Visits generated by gaming, restaurants, meeting space and entertainment
- 36. A TRUE TOURISTDESTINATION IN PROJECTED TAX PAYMENTS IN THE FIRST YEAR $16.7 MILLION OUT-OF-STATE VISITORS GENERATE
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- 38. Stratosphere Casino Hotel andTower (Las Vegas Strip) Aquarius Casino Resort (Laughlin, NV) Arizona Charlie’s Decatur (Las Vegas Locals) Arizona Charlie’s Boulder (Las Vegas Locals)
- 39. SINCE 2008 GOLDMAN SACHSGROUP OWNED BY THE
- 40. STRATOSPHERE CASINO, HOTEL& TOWER ELEVATE YOUR EXPECTATIONS • 940 EGMs • 42 table games • 80,000 sq ft of gaming • Hotel rooms, retail center, • resort pool and • • • • recreation area
- 41. ARIZONA CHARLIE’S LAS VEGASLOCAL MARKET, NV • 1,138 EGMs • 12 table games • 55,200 sq ft of gaming • Hotel rooms, bars, steakhouse • 903 EGMs • 10 table games • 47,500 sq ft of gaming • Hotel rooms, bars, • restaurants, RV parks DECATURBOULDER
- 42. AQUARIUS CASINO RESORT •1,218 EGMs • 38 table games • 57,000 sq ft of gaming • Hotel rooms, restaurants, • pool and tennis courts
- 43. EXPERIENCED MANAGEMENT TEAM FRANKRIOLO - CEO & DIRECTOR 14 years of gaming industry experience NED MARTIN - CFO & DIRECTOR 19 years of industry experience PHYLLIS GILLAND - SVP & GENERAL COUNSEL 8 years of industry experience TOM MOORE - PROJECT MANAGEMENT 22 years of industry experience
- 44. SIMPLE MANAGEMENT PHILOSOPHY •Create clean, safe, friendly, fun environments • Provide great value for entertainment dollar • Reinvest in property improvements • Maximize yield on gaming customers by • consistently providing a quality experience
- 45. THE AQUARIUS EXAMPLEOF SUCCESS • Positioned in a highly competitive gaming • environment • Operates as a high-end gaming venue • Continues to capture market share from • existing casinos • Accomplishing growth by implementing • management philosophy
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- 47. SIGNIFICANT DEVELOPMENT EXPERIENCE NEDMARTIN - AMERICAN CASINO CFO Worked as VP of gaming development for Station Casinos during a period of significant growth for 6 years TOM MOORE - AMERICAN CASINO PROJECT MANAGER Project Manager worked as VP of Project Admin, Development and Construction for Station Casinos and Harrah’s Entertainment RICHARD FITZHUGH - AMERICAN CASINO VP Opened multiple casinos for Station Casinos
- 48. AMERICAN CASINO MORE DEVELOPMENTEXPERIENCE JOHN MORAN - AMERICAN CASINO VP With 30 years gaming industry experience was directly involved with the opening of Horseshoe Tunica PHYLLIS GILLAND - AMERICAN CASINO SVP Worked as CFO for Taylor Construction Group with direct experience in major construction projects
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- 52. TEMPORARY CONSTRUCTION JOBS 96 OutsideKansas 204 Kansas 300 JOBS
- 53. 1ST -YEAR FULL-TIME JOBS 55Administrative 390 Casino 119 Security 141 Hotel 188 Food & Beverage 893 JOBS
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- 55. COMMITMENT TO KANSASJOBS • Castle Rock will open several employment centers in different locations throughout Southeast Kansas to encourage people to apply for available jobs. • Castle Rock will work with unemployment agencies, local schools and colleges, and veterans associations to recruit employees. • Job Training Centers will be open in early Spring 2016 to prepare these recruited employees for Castle Rock employment.
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- 58. FINANCING THE PROJECT $95million Bank financing $50 million Equity provided by owners $144,513,741 TOTAL INCLUDING ALL COSTS
- 59. COMMITTED BANK AGREEMENTS •Credit Suisse: $95 million committed financing • Dougherty Funding LLC: $95 million total commitment • BC Ziegler and Company: $110 million commitment
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- 61. FUTURE GAMING INCREASES •Meeting space designed for easy conversion • to casino floor space • Project layout allows easy replacement of • meeting space • Castle Rock has contract on additional 280 • acres of land for easy expansion
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- 65. KANSAS MISSOURI CASTLE ROCK CASINO RESORT OKLAHOMA 80ACRES280 ACRES CONTRACTED PROPERTY
- 66. CONCEPT AND ARCHITECTURAL FEATURES Friedmutterdesign for the Cosmopolitan
- 67. FRIEDMUTTER GROUP • LeadingLas Vegas casino design firm • Experience in Las Vegas and 43 states • Exclusive designer for Stations Casino projects throughout the U.S. • Designed Las Vegas Signature Cosmopolitan Resort & Hotel
- 68. FRIEDMUTTER GROUP Friedmutter designfor the Cosmopolitan Friedmutter design for Red Rock Casino & Resort Friedmutter design for Horseshoe Casino
- 69. TAKE A CLOSERLOOK WITH OUR 3-D FLY-THROUGH
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- 73. WHITESAND GAMING • Full-serviceglobal gaming consulting firm • Supports operations, strategy and technology during development, expansion, acquisition, and casino pre-opening • Valley Forge, Wynn Las Vegas, Borgata, Mohegan Sun, Bellagio, Prairie Meadows Casino, Showboat and many others
- 74. THE CASTLE ROCKDIFFERENCE: EXPERIENCE Castle Rock is not just another casino – it is a new destination resort that will provide guests with an extraordinary and exhilarating experience. From the moment guests arrive and throughout their entire stay, Castle Rock will transport them to a new level of excitement.
- 75. THE CASTLE ROCKDIFFERENCE: PRE-OPENING MARKETING • WhiteSand and American Casino aggressive pre-opening marketing plan includes a robust database of prequalified customers • Will engage customers with live events, social media and traditional marketing channels from the day Castle Rock receives its license right through opening day
- 76. THE CASTLE ROCKDIFFERENCE: OUTREACH PROGRAMS • Daily bus programs and tour packages from Northwest Arkansas, Springfield, Tulsa and other major population areas • Aggressive marketing utilizing multiple media channels to identified markets • Over $750,000 annual salaried positions dedicated to outreach marketing
- 77. THE CASTLE ROCKDIFFERENCE: GAMING Castle Rock will feature true Las Vegas-style gaming not offered by existing area casinos: • Live craps - Live roulette - No-ante blackjack • Brand-new all Class III electronic gaming machines
- 78. THE CASTLE ROCKDIFFERENCE: ENTERTAINMENT • Exciting bars throughout the casino will present live entertainment regularly. • The large open meeting space can host business meetings, conventions, weddings and entertainment options not currently available in the market.
- 79. THE CASTLE ROCKDIFFERENCE: AMENITIES • First-class hotel with modern design and high-tech connectivity • Open and inviting design throughout the property • Convenient self-parking and valet parking • Stay & Play golf packages with nearby private country club
- 80. THE CASTLE ROCKDIFFERENCE: RESTAURANTS • Sports bar • Buffet • 24-hour restaurant • Shula’s Steak House: Don Shula and son Dave will bring their legendary steakhouse to Castle Rock – treating diners to the finest steak and seafood in an upscale environment.
- 82. THE CASTLE ROCKDIFFERENCE: CUSTOMER SERVICE • An acute attention to detail to provide the ultimate customer service experience for all guests • A combination of training, technology and best practices to create a unique guest experience for every aspect of the resort
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- 85. OPEN APPLICATION REVIEW EMPLOYEE TRAINING CONSTRUCTION SUB-CONTRACTBIDS SITE WORK FINAL DESIGN CASTLE ROCK RESORT TIMELINE MAR ’15- JUN ’15 JUL ’15 AUG ’15 AUG ’16SEP ’15 OCT ’15 - APR ’16 APR ’16 - JUL ’16
- 86. PROBLEM GAMING TRAINING ANDPROGRAMS
- 87. TRAINING PROGRAMS • Allemployees trained upon hire on Problem Gambling awareness and the importance of recognizing the signs • Refreshers held during Problem Gambling Awareness Month in March every year
- 88. SELF-EXCLUSION PROGRAMS • Guestsrequesting assistance helped to complete a self-limit form • Self limit includes a mandatory 6-month period • Restricts access to check cashing, promotions and marketing events, points and comps, marketing offers
- 89. MONITORING ACTIVITIES • AmericanCasino provides information in all gaming areas, the casino cage, at ATMs and on marketing materials. • Surveillance, cage and gaming department managers work together to monitor problem gambler activity.
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- 91. INTERNAL COMPLIANCE OPERATIONS •Compliance Operations headed by American Casino SVP and General Counsel Phyllis Gilland • Title 31, OFAC • Internal audit review of operation
- 92. BOARD-LEVEL COMPLIANCE COMMITTEE MEMBERS •American Casino Compliance Officer – Phyllis Gilland • CEO, CFO, Goldman Sachs Representatives • Outside Member – Steve DuCharme: Former Chairman of the Nevada Gambling Control Board
- 93. REGULATORY SUBMISSIONS &COMMUNICATION • Defined application processing for companies and key employees • Specific programs for notices, response and dissemination of information • Open, direct, cooperative communication with regulators • Understand we have common objective with regulators
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- 95. PITTSBURG STATE UNIVERSITY STUDENTSCHOLARSHIPS • Up to eight given each year, four each from Cherokee and Crawford counties • Given to graduating seniors from a high school in each county • Covers tuition and books for four years
- 96. LABETTE COMMUNITY COLLEGE STUDENTSCHOLARSHIPS • Six given each year, three each from Cherokee and Crawford counties • Given to graduating seniors from a high school in each county • Covers tuition and books for two years
- 97. $10,000TEACHER OF THEYEAR AWARDS ONE EACH IN CHEROKEE & CRAWFORD COUNTIES
- 98. TOTAL SCHOLARSHIPS ANDAWARDS GIVEN DURING CONTRACT $5.6 MILLION
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- 100. NOT CASTLE ROCK WILL HAVEANY TEMPORARY FACILITY
- 101. CASTLE ROCK: FORALL OF SOUTHEAST KANSAS
- 102. “OUR VIEW –CASTLE ROCK THE BEST PICK FOR CASINO” Pittsburg Editorial Board Published April 19, 2015
- 103. “WHEN IT CAMEDOWN TO CASTLE ROCK OR KANSAS CROSSING, BOARD MEMBERS SAID THEY WERE LOOKING AT THE BIGGER PICTURE IN UNANIMOUSLY CHOOSING CASTLE ROCK.” Pittsburg Editorial Board Published April 19, 2015 OUR VIEW – CASTLE ROCK THE BEST PICK FOR CASINO
- 104. “I’M BIASED FORPITTSBURG, BUT THE WHOLE STATE’S BETTER OFF WITH CASTLE ROCK.” Pittsburg Editorial Board Published April 19, 2015 OUR VIEW – CASTLE ROCK THE BEST PICK FOR CASINO
- 105. “IT’S BETTER FORTHE ENTIRE AREA BECAUSE OF THE DRAW FROM THE INTERSTATE.” Pittsburg Editorial Board Published April 19, 2015 OUR VIEW – CASTLE ROCK THE BEST PICK FOR CASINO
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- 107. THE CASTLE ROCK DIFFERENCE:LOCATION
- 108. STRATEGICALLY LOCATED KANSAS MISSOURI CASTLE ROCK CASINO RESORT OKLAHOMA 80ACRES JOPLIN, MO BENTONVILLE, AR SPRINGFIELD, MO 44 GALENA, KS PITTSBURG, KS BAXTER SPRINGS, KS PARSONS, KS COFFEYVILLE, KS 400
- 109. NEAR MAJOR INTERSTATEHIGHWAYS CASTLE ROCK CASINO RESORT
- 110. 400 NEAR MAJOR INTERSTATEHIGHWAYS CASTLE ROCK CASINO RESORT
- 111. 400 49 NEAR MAJOR INTERSTATEHIGHWAYS CASTLE ROCK CASINO RESORT
- 112. 400 44 49 NEAR MAJOR INTERSTATEHIGHWAYS CASTLE ROCK CASINO RESORT
- 113. KS MO AROK NEAR CONVERGENCEOF FOUR STATES CASTLE ROCK CASINO RESORT
- 114. KS MO AROK POPULATION 637,241 POPULATION 745,447 CASTLE ROCKCASINO RESORT Proposed Camptown Casino Proposed Kansas Crossing Casino Downstream Casino CASTLE ROCK WILL DRAW OUT-OF-STATE VISITORS POPULATION 1,065,653Jenks Tulsa Muskogee Fort Smith Fayetteville Springdale Bentonville Rogers Joplin Springfield Carthage Bartlesville Rogersville Ozark Bradleyville Forsyth Eagle Rock Goodman Eureka Springs Batavia Dogpatch Delmar Mountain Grove Prairie Grove Cedarville Mount Vernon Gore Marble City Boynton Warner Haskell Sapulpa Owasso Manford Miami Webb City Delaware Locust Grove Jay Stilwell Neosho Cedar Creek Diamond City Siloam Springs Tamaha Vinita Ramona Collinsville Fairfax Adair South West City Hominy Pawhuska Osage Fairland
- 115. Jenks Tulsa Muskogee Fort Smith Fayetteville Springdale Bentonville Rogers Joplin Springfield Carthage Bartlesville Rogersville Ozark Bradleyville Forsyth Eagle Rock Goodman EurekaSprings Batavia Dogpatch Delmar Mountain Grove Prairie Grove Cedarville Mount Vernon Gore Marble City Boynton Warner Haskell Sapulpa Owasso Manford Miami Webb City Delaware Locust Grove Jay Stilwell Neosho Cedar Creek Diamond City Siloam Springs Tamaha Vinita Ramona Collinsville Fairfax Adair South West City Hominy Pawhuska Osage Fairland KS MO AROK CASTLE ROCK CASINO RESORT Proposed Camptown Casino Proposed Kansas Crossing Casino CASTLE ROCK WILL DRAW OUT-OF-STATE VISITORS Bordertown Outpost Casino Indigo Sky Casino The Stables Casino Quapaw Casino Prairie Moon Casino Buffalo Run Casino High Winds Casino Prairie Sun Casino Lucky Turtle Casino Wyandotte Nation Casino Downstream Casino $310,000,000 CURRENTLY IN GAMING REVENUE
- 116. THE CASTLE ROCKDIFFERENCE: LOCATION The location is the only one that guarantees Dollars from other states True tourism Success
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- 124. $48,000,000 GAMING REVENUE $82,000,000 Castle RockCamptown $40,000,000 $149.00WPU $149.50WPU $129.61WPU KansasCrossing $101,389,518 $151.00WPU
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- 126. $12,960,000 GAMING TAXES $22,596,172 Castle RockCamptown $10,800,000 KansasCrossing $27,375,170
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- 132. INVESTING IN KANSAS A KANSASTEAM CASTLE ROCK CASINO RESORT
- 133. CASTLE ROCK PARTNERSARE KANSAS BUSINESS LEADERS RODNEY STEVEN II STEVEN ENTERPRISES BRANDON STEVEN STEVEN ENTERPRISES MARTY CORNEJO CORNEJO COMPANIES RON CORNEJO CORNEJO COMPANIES BENNIE CROSSLAND CROSSLAND CONSTRUCTION IVAN CROSSLAND CROSSLAND CONSTRUCTION MIKE CROSSLAND CROSSLAND CONSTRUCTION PATRICK CROSSLAND CROSSLAND CONSTRUCTION DAVID MURFIN MURFIN, INC. DAVID WELLS KEY CONSTRUCTION KEN WELLS KEY CONSTRUCTION RICHARD MCAFFERTY KEY CONSTRUCTION DAVE BURK MARKETPLACE PROPERTIES DAVE BECKER MIDWEST EXTERIORS GREG SCHMIDT MIDWEST EXTERIORS DR. PAT DO MID-AMERICA ORTHOPEDICS WG FARHA II FARHA AND SON ENTERPRISES MICHAEL OLANDER O2 FITNESS RICHARD & TERESA RUCKER & FAMILY RUCKER PROPERTIES ROBERT “STEVE” RUUD R.A. RUUD & SON, INC. MIKE STEVEN MIKE STEVEN MOTORS JOHNNY STEVEN EDDY’S INSURANCE GROUP ROB SNYDER CENTRAL PLAINS DEVELOPMENT MIKE VESS VESS OIL CORPORATION
- 134. A KANSAS CASINORESORT BY A KANSAS TEAM THEIR BUSINESSES EMPLOY 8,400 PEOPLE Castle Rock partners will keep profits in Kansas.
- 135. GIVING BACK TOTHEIR COMMUNITY Castle Rock partners not only create jobs but give back. LAST YEAR, CASTLE ROCK PARTNERS DONATED $3.7 MILLION TO CHARITIES
- 136. OUR PARTNERS ARE COMMITTEDTO SOUTHEAST KANSAS
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- 138. BIGGER CASINO MORE GAMINGMACHINES MORE TABLE GAMES
- 139. MORE RESTAURANTS MORE MEETINGSPACE BIGGER HOTEL
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- 142. BETTER LOCATION BETTER SCHOLARSHIPPROGRAM BETTER COMMUNITY SUPPORT
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- 144. BEST CHOICE CASTLE ROCKCASINO RESORT BIGGER & BETTERAND THE FOR SOUTHEAST KANSAS