Final hollywood presentation 09.14.09

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Kansas Racing & Gaming CommissionCasino Proposalhttp://krgc.ks.gov/

Transcript of Final hollywood presentation 09.14.09

  • KansasLotteryGamingFacilityReviewBoardMeetingTuesday,September15,2009

  • InternationalSpeedwayCorporationLesaKennedy,ChiefExecutiveOfficer,ISCJeffBoerger,President,KansasSpeedway

    PatrickWarren,VicePresident,KansasSpeedwayLatoruaChinn,ManagerofCompliance,KansasSpeedway

    BrianWilson,VicePresident,CorporateDevelopmentBrettScharback,ManagingDirector,DeputyGeneralCounsel

    ANewPartnership

    PennNationalGamingTimWilmott,President&ChiefOperatingOfficerSteveSnyder,SeniorVicePresidentforCorp.DevelopmentTomBurke,SeniorVicePresidentforRegionalOperationsEricSchippers,SeniorVicePresidentforPublicAffairsJamesBaum,SeniorVicePresidentforProjectDevelopmentNormNelms,VicePresidentofDesign&ConstructionTomAuriemma,VicePresidentandChiefComplianceOfficerKarenBailey,DirectorofPublicAffairs

  • KansasEntertainment,LLC OrganizationalStructure

    KansasEntertainment,LLCKansasEntertainment,LLC

    PennHollywoodKansasPennHollywoodKansas(PennNationalGaming)(PennNationalGaming)

    50%Ownership50%Ownership(ManagingMember)(ManagingMember)

    KansasSpeedwayDevelopmentKansasSpeedwayDevelopmentCorporationCorporation

    (InternationalSpeedwayCorporation)(InternationalSpeedwayCorporation)

    50%Ownership50%Ownership

  • StrengthinPartnership

    PennsexperienceintheKansasCitymarketplace& nationallyrecognizedleaderinthecasinoindustry

    Cashonhandtobuild

    Immediatepopulationofcustomerdatabase

    StrengthofISCdatabasetodriveincremental revenue

    KansasSpeedway&Pennbothrootedinthe community,excellentcorporatecitizens

    Crossmarketingopportunitywithexistingand futureretail,sports,foodandbeverage

    developments

    SecondNASCARSprintCupSeriesRace

  • JoelSimkins,MacquarieResearch

    WethinkPenncandrivemeaningfuloperatingandmarketing

    synergiesfromhavingtwoassetsintheKansasCitymarket,andwe likethecompanyshighlyaccessiblelocationrightoffthehighway.

    FinancialStrength

    Pennhasthefinancialflexibilitytoweather

    thecurrenteconomicstormandsimultaneously

    pursueavenuesofgrowth

    ISCisnamedtoForbeslistof200Best

    SmallCompaniesinAmerica

    PennNational,whichisconsideredoneof

    thehealthiestcasinocompanies

    ISCExecutivesreceivenumerousawards

    includingInternationalEntrepreneurof

    theYear

    TheexpectationhasbeenthatPenn

    wouldinvestitsamplecashingrowth

  • PhaseOne

    $386millioninitialinvestment

    2,300slotmachines,86tablegames

    1,500newconstructionjobs,1,100newjobs

    Structuredparking

    28,000SFofupscalefoodandentertainment amenities(foodcourt,coffeeshop,retail)

    SecondNASCARrace

    DeveloproadcourseforGrandAmrace

  • FuturePhases

    Upto300roomhotelwithmeetingfacilities

    Additionalfoodandbeverageoutlets

    Expandedcasinofloorforatotal:3,000slots, 100tablegames

    157,000SFentertainmentdistrict

    90,000SFmeeting&conventionfacility

    Spa&poolfacilities

    Additionalstructuredparking

  • ConstructionTimeline

    CasinoConstructionBegins Summer2009(Casino,Dining,StructuredParking)

    HotelConstructionBegins January2014(Builtinpenaltyschedule)

    CasinoExpansion

    Basedonmarketdemand

    Casino&DiningAreasOpening January2012(estimated)

    LicenseAward

    December2009

    EntertainmentDistrict

    Basedonmarketdemand

    ConventionFacilities,Spa/Pool Basedonmarketdemand&AdditionalStructuredParking

    Design&PermittingBegins

    September2009

  • FacilityLocation

  • RepresentativeInteriorFinishes HollywoodCasinoat

    PennNationalRaceCourse

  • RepresentativeInteriorFinishes HollywoodCasinoat

    PennNationalRaceCourse

  • RepresentativeInteriorFinishes HollywoodCasinoat

    PennNationalRaceCourse

  • RepresentativeInteriorFinishes atArgosyRiversideHotel

  • RepresentativeInteriorFinishes atHollywoodCasinoLawrenceburg

  • TheKansasCityMarketplace

    4.3million total

    anticipated annual

    visitorship

    $225million anticipated

    annualgaming revenue

    Argosy

    Isle

    HarrahsAmeristar

  • TheKansasCityMarketplace KansasSpeedwayCustomerCasinoDemographic

    57.5%

    offansvisitedacasinointhepast12months

    Ourfansare27%

    morelikelythantheaveragepersonin

    KansasCitytovisitacasino

    FansoftheIndyRacingLeagueare85%

    morelikelytovisita

    casino

    Fortune500

    visitorstoKansasSpeedway

    CorporatedecisionmakersvisitKansasSpeedway

    Therewereover550

    companiesinvolvedassponsorsin

    NASCARlastyear

    Weareuniquelypositionedtoleverageourracingeventsto

    bringconventionbusinesstoKCK

    NationalmediaexposureofKCK,Kansas&HollywoodCasino

    fromKansasSpeedwayevents

  • CommitmenttoCommunity

    1%ofgamingrevenuestoUGforciviccauses

    $500,000annuallytononhostschooldistricts

    $500,000annuallytocommunity&charitable causes

    $100,000toUGParks&Recreation

    $25,000toConventions&VisitorsBureau

    $10,000annuallytolocalChamberofCommerce

    2freebillboardstoStateofKansas@Kansas

    Speedwayfortourismpromotion($1.5million value)

    MBE/WBE/LBECommitments

  • EconomicImpact

    $225millioningamingrevenuestotheState

    $4.5milliontoUGofWyandotteCounty

    Additional$2milliontoUGofWyandotte Countyforciviccharitableorganizations

    $1.5milliontocities

    $37millionpayrollinfirstphase

    Additional$100millioninimpacttotheState fromsecondrace&roadcourse

  • KELARequirements

    9 Localplanning&zoneapproval9 Specialusepermitapproved9 Localgovernmentendorsement,localdevelopmentagreement

    finalized

    9 $386millionfacilityinitialinvestment9 SignedandapprovedmanagementcontractwithKansasLottery

    Commission

    9 ConsentofnewpartnershipbyUnifiedGovernment&KansasLotteryCommission

  • Endorsements&SupportHotel&LodgingAssociationof

    GreaterKansasCity

    CityofEdwardsville

    CityofBonnerSprings

    MinorityContractors

    AssociationHeavyConstructorsAssociation

    oftheGreaterKansasCityAreaOperatingEngineersLocalNo.

    101

    ShawneeChamberof

    Commerce

    BonnerSprings/Edwardsville

    ChamberofCommerce

    KCKChamberofCommerce

    KCKCommunityCollege

    KansasBlackChamberof

    Commerce

    LaborersLocal1290

    KCMinorityCouncil

    VictoryJunctionCampKC

    OlatheChamberofCommerce

    NortheastJohnsonCounty

    ChamberofCommerce

    KVCBehavioralHealthCare

  • StrengthinPartnership

    Certaintytobuild

    Builtinpenaltyscheduleforhotelconstruction

    Financialabilitytobeginconstructionimmediately

    Instantpopulationofcustomerdatabase

    StrengthofNASCARdatabasetodriveincrementalrevenue

    SecondNASCARSprintCupSeriesRace&roadcourse

    ($100millioninadditionaleconomicimpact)

    $6millioninnewrevenuesforlocalcommunity

    Over$3.1millioninadditional,voluntarycontributionsto

    localcommunity

    $1.5millioninadvertisingvaluetotheState

    Slide Number 1A New PartnershipKansas Entertainment, LLCOrganizational StructureStrength in PartnershipSlide Number 5Phase OneFuture PhasesConstruction TimelineFacility LocationRepresentative Interior FinishesHollywood Casino atPenn National Race CourseRepresentative Interior FinishesHollywood Casino atPenn National Race CourseRepresentative Interior FinishesHollywood Casino atPenn National Race CourseRepresentative Interior Finishesat Argosy Riverside HotelRepresentative Interior Finishesat Hollywood Casino LawrenceburgThe Kansas City MarketplaceThe Kansas City MarketplaceKansas Speedway Customer Casino DemographicCommitment to CommunityEconomic ImpactKELA RequirementsEndorsements & SupportStrength in Partnership