Sterling Forest Resort Presentation

1. 1
Best-in-Class Consulting Team
Experience with Large New York Projects
Architecture Environmental Traffic
Civil Engineer Land Use
Legal
Domestic
Gaming Market
International
Gaming Market

2. 2
Presentation Outline
1 Economic Activity and Business Development
● Town of Tuxedo – Orange County
● Master Plan and Architecture
● Environmental Opportunities
2 Highest Contribution to Local Community
3 Best Workforce Development
4 U.S. Gaming Industry

3. 3
Region One – Hudson/Catskill Region
Orange County is Closest to $4 Billion Unsatisfied NYC Market
Delaware
Greene
Columbia
Ulster Dutchess
Sullivan
Orange
New York City NJ
PA
CT
NY
MA
Casino Zone

4. Sterling Forest Resort Builds State-Approved Exit 15B
Proposed Exit 15B – Privately Funded
4
Does Not Burden Existing Exit 15A and Exit 16
Exit 16 – Currently 17 Million
New York City
NJ
PA
CT
NY
Casino Zone
Exit 15A – Currently 12 Million

5. 5

6. 6

7. 7
Culture of Environmental Stewardship
Norwegian Cruise Line
Environmentally Sensitive Alaska

8. 8
Significant Environmental Improvements
Class C
Not Potable
Unmanaged
Discharge
Potable Water
Managed
Treatment
Host Community
Traffic Congestion
Vast Improvement
Interchange 15B
Unmanaged Restored
0% 10% from Solar
Waste Water
Storm Water
Traffic
Wetlands
Energy
Before After

9. Sterling Forest Resort Builds New Interchange 15B
9
Extensive Regional Benefits
● $30 Million
● Privately
Funded
● Direct Highway
Access
● No Parkland
Required
● No Wetlands
Impacted

10. 10
Local Impact and Siting Factors
Greatest Regional Benefits
● Included in 2011 Town of
Tuxedo Comprehensive
Plan Update
● Full Mitigation of
Environmental and
Municipal Impacts
● Public Support from Host
Community and Other
Municipalities
● Economic Development

11. 11
Community Benefits
Local and Regional
● Host Community Agreements
– One-time Impact Fees – $60 Million
– Acquisition of Parkland – $10 Million
● Regional
– Interchange 15B – Reducing Commutes
– Education Support
● Recurring Tax Revenue
– County – $24 Million
– Town – $25 Million
– Schools – $37 Million

12. Sterling Forest Resort Will Create More than 4,000 Careers
Source: Bureau of Labor Statistics, 2013 LAUS
12
Highest Compensation Due to NY Labor Agreement
Average Annual Wages & Benefits
$39,000
$75,000
Sterling Forest
Resort
National Casino
Average

13. Orange County Has the Highest Number of Unemployed
Source: Bureau of Labor Statistics, 2013 LAUS
13
Employees Will Come From Across the Region
Unemployed
Number Rate
Orange County 12,503 7.2%
Ulster County 6,667 7.8%
Sullivan County 2,903 8.7%

14. 14
Locations of High Unemployment
Easily Accessible Within a 1-Hour Drive
Monticello
55 miles
Port Jervis
40 miles
Kingston
55 miles
Poughkeepsie
45 miles
Newburgh
25 miles
Orange
Ulster
Sterling Forest Resort, Tuxedo
Dutchess
Putnam
Sullivan
Pike
Sussex
Rockland
Westchester
Passaic

15. 15
Outpouring of Support
Municipal
Private

16. $40
$30
$20
$10
16
U.S. Commercial Casino Revenue
Regional Casinos Pre-2003 Declining
Jurisdictions Post-2003,
and Las Vegas Strip
Regional Casinos
Jurisdictions Pre-2003,
–
Billion
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: UNLV Research
Estimated

17. 17
Las Vegas Strip Casino Revenue Recovery
Increased Table Games Revenue
Tables
Slots
$7
$6
$5
$4
$3
$2
$1
–
Billion
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: UNLV Research
Estimated

18. Las Vegas Strip Table Games Revenues at All-Time High
Source: UNLV Research
18
Baccarat Revenues from Overseas Asian Players Driving Growth
Baccarat
Other Table Games
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Estimated
$4
$3
$2
$1
–
Billion

19. China to NYC Shorter Travel Time than China to LA/Las Vegas
Source: Kayak
19
26 Daily Non-Stop Flights from Asia to NYC
Beijing
LA
Las Vegas
NYC
15.5 hours

20. 20
26 Daily Commercial Flights from Asia
2 Commercial International Airports within an Hour
New York City
CT
NY
Sterling Forest Resort
Newark
JFK

21. 21
Stewart International Ideal within 30 Minutes Drive
2 International Airports for Private Jets and Charters
Stewart International Airport
New York City
CT
NY
Sterling Forest Resort
Teterboro

22. 22
Genting’s Global Fleet of Private Planes
10 Aircraft

23. Sterling Forest Resort Capitalizes on NYC Attractions
* Resorts World NYC & Yonkers Casino
23
New York City Has More Attractions
Manhattan Las Vegas Strip
Hotel Rooms 90,000 62,000
Food Beverage & Entertainment
Restaurants 18,258 3,877
Bars 2,719 469
Nightclubs 81 64
Shopping Ranking 1 34
Museums 200+ 21
Shows/Theaters 85 10
Professional Sports Franchises 8 0
Fortune 500 HQ 53 4
Casinos 2* 29

24. 24
NYC Will Attract More International Market Share
$100 Billion International Casino Market
Canada $6 B
USA $66 B*
Latin America $5 B
* $38B Commercial Casino, $28B Indian Gaming
SOURCE: PWC Consulting, with adjustments
Asia Pacific
$70 B
Europe, Middle East
& Africa $17 B
Las Vegas Strip
International Market $2 B
Sterling Forest Resort,
NY

25. Chinese Casino Spending Outside China (Macau)
* Singapore, Malaysia, Philippines, S Korea and others
25
Sterling Forest Resort (NYC) 5% to 10% Market Share
$ Billion
Las Vegas 2.0
Asia* 2.5
London 0.5
Total 5.0
Sterling Forest Resort $211 M – $488 M

26. 26
Leverage on Genting Global Loyalty Program
12 Million Player Database Worldwide In All Key Markets
New York City
Miami/Bimini
Las Vegas
(2017)
United Kingdom
Hong Kong
Malaysia
Manila
Singapore

27. Competition from Potential Northern New Jersey Casinos
27
Sustainable as Anchored Between 2 Global Attractions – Manhattan and Woodbury Common
NJ
PA
CT
Sterling Forest Resort NY
Mt. Airy Casino
Bethlehem
Sands Casino
Monticello Casino
Yonkers Empire Casino
Manhattan
Resorts World Casino NYC
Potential Meadowlands Casino
Potential Jersey City Casino
Woodbury Common

28. Stabilizing Casino Revenues
Source: Marquette Advisors, Union Gaming
28
Offset NJ Cannibalization by Further Penetration of International Market
45%
International
40%
Regional
15%
Domestic
($ Million)
2017 – 2018 Gaming Segments 2020
$659 Regional Market $427
$211 Global Premium VIP $488
$165 Domestic Tourism $165
$1,035 Total $1,080
20%
International
64%
Regional
16%
Domestic

29. 29
Certainty of Completion
Successful NY and Global Track Record
Expedited SEQRA Process ● Complete by 12/31/2014
● RWNYC
● Singapore
● Over $6 billion in Cash on hand
● Major U.S. Bank Commitments
Development Experience
Certainty of Financing

30. 30
Next Steps
Development Timeline
2014–2015 FY 2015–2016 FY 2016–2017 FY
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
RFA Decision –
Early Fall
Completion of
SEQRA Process
Complete Licensing
Payment of License Fee
Construction & Hiring
Casino Opening

31. 31
Application Summary
Closest to Largest Domestic Market
Sustainable – Convenient to Global Markets
$1.5 Billion Investment + $450 Million License Fee
$283 Million Annual Gaming Taxes
Over 4,000 New Careers Earning a Living Wage

32. Maximizing Economic Benefits • Positive Impact • Job Creation • Sustainability
We look forward to making
Sterling Forest Resort a Reality
THANK YOU!
Maximizing Economic Benefits • Positive Impact • Job Creation • Sustainability