Kansas Lottery Gaming Facility Review Board MeetingTuesday, September 15, 2009
International Speedway CorporationLesa Kennedy, Chief Executive Officer, ISCJeff Boerger, President, Kansas Speedway
Patrick Warren, Vice President, Kansas SpeedwayLatorua Chinn, Manager of Compliance, Kansas Speedway
Brian Wilson, Vice President, Corporate DevelopmentBrett Scharback, Managing Director, Deputy General Counsel
A New Partnership
Penn National GamingTim Wilmott, President & Chief Operating OfficerSteve Snyder, Senior Vice President for Corp. DevelopmentTom Burke, Senior Vice President for Regional OperationsEric Schippers, Senior Vice President for Public AffairsJames Baum, Senior Vice President for Project DevelopmentNorm Nelms, Vice President of Design & ConstructionTom Auriemma, Vice President and Chief Compliance OfficerKaren Bailey, Director of Public Affairs
Kansas Entertainment, LLC Organizational Structure
Kansas Entertainment, LLCKansas Entertainment, LLC
Penn Hollywood KansasPenn Hollywood Kansas(Penn National Gaming)(Penn National Gaming)
50% Ownership50% Ownership(Managing Member)(Managing Member)
Kansas Speedway DevelopmentKansas Speedway DevelopmentCorporationCorporation
(International Speedway Corporation)(International Speedway Corporation)
50% Ownership50% Ownership
Strength in Partnership
•
Penn’s experience in the Kansas City marketplace & nationally recognized leader in the casino industry
•
Cash on hand to build•
Immediate population of customer database
•
Strength of ISC database to drive incremental revenue
•
Kansas Speedway & Penn both rooted in the community, excellent corporate citizens
•
Cross‐marketing opportunity with existing and future retail, sports, food and beverage
developments•
Second NASCAR Sprint Cup Series Race
Joel Simkins, Macquarie Research
“We think Penn can drive meaningful operating and marketing
synergies from having two assets in the Kansas City market, and we
like the company’s highly accessible location right off the highway.”
Financial Strength
“Penn has the financial flexibility to weather
the current economic storm and simultaneously
pursue avenues of growth”
ISC is named to Forbes list of “200 Best
Small Companies in America”
“Penn National, which is considered one of
the healthiest casino companies”
ISC Executives receive numerous awards
including “International Entrepreneur of
the Year”
“The expectation has been that Penn
would invest its ample cash in growth”
Phase One
•
$386 million initial investment
•
2,300 slot machines, 86 table games
•
1,500 new construction jobs, 1,100 new jobs
•
Structured parking
•
28,000 SF of upscale food and entertainment amenities (food court, coffee shop, retail)
•
Second NASCAR race
•
Develop road course for Grand‐Am race
Future Phases
•
Up to 300 room hotel with meeting facilities•
Additional food and beverage outlets
•
Expanded casino floor for a total: 3,000 slots, 100 table games
•
157,000 SF entertainment district•
90,000 SF meeting & convention facility
•
Spa & pool facilities•
Additional structured parking
Construction Timeline
Casino Construction Begins Summer 2009(Casino, Dining, Structured Parking)
Hotel Construction Begins January 2014(Built in penalty schedule)
Casino Expansion
Based on market demand
Casino & Dining Areas Opening January 2012(estimated)
License Award
December 2009
Entertainment District
Based on market demand
Convention Facilities, Spa/Pool Based on market demand& Additional Structured Parking
Design & Permitting Begins
September 2009
Facility Location
Representative Interior Finishes Hollywood Casino at
Penn National Race Course
Representative Interior Finishes Hollywood Casino at
Penn National Race Course
Representative Interior Finishes Hollywood Casino at
Penn National Race Course
Representative Interior Finishes at Argosy Riverside Hotel
Representative Interior Finishes at Hollywood Casino Lawrenceburg
The Kansas City Marketplace
•
4.3 million total
anticipated annual
visitorship
•
$225 million anticipated
annual gaming revenue
Argosy
Isle
Harrah’sAmeristar
The Kansas City Marketplace Kansas Speedway Customer Casino Demographic
•
57.5%
of fans visited a casino in the past 12 months
•
Our fans are 27%
more likely than the average person in
Kansas City to visit a casino
•
Fans of the Indy Racing League are 85%
more likely to visit a
casino
•
Fortune 500
visitors to Kansas Speedway
•
Corporate decision makers visit Kansas Speedway
•
There were over 550
companies involved as sponsors in
NASCAR last year
•
We are uniquely positioned to leverage our racing events to
bring convention business to KCK
•
National media exposure of KCK, Kansas & Hollywood Casino
from Kansas Speedway events
Commitment to Community
•
1% of gaming revenues to UG for civic causes•
$500,000 annually to non‐host school districts
•
$500,000 annually to community & charitable causes
•
$100,000 to UG Parks & Recreation•
$25,000 to Conventions & Visitors Bureau
•
$10,000 annually to local Chamber of Commerce•
2 free billboards to State of Kansas @ Kansas
Speedway for tourism promotion ($1.5 million value)
•
MBE/WBE/LBE Commitments
Economic Impact
•
$225 million in gaming revenues to the State
•
$4.5 million to UG of Wyandotte County
•
Additional $2 million to UG of Wyandotte County for civic charitable organizations
•
$1.5 million to cities
•
$37 million payroll in first phase
•
Additional $100 million in impact to the State from second race & road course
KELA Requirements
Local planning & zone approval
Special use permit approved
Local government endorsement, local development agreement finalized
$386 million facility initial investment
Signed and approved management contract with Kansas Lottery Commission
Consent of new partnership by Unified Government & Kansas Lottery Commission
Endorsements & SupportHotel & Lodging Association of
Greater Kansas City
City of Edwardsville
City of Bonner Springs
Minority Contractors
Association
Heavy Constructors Association
of the Greater Kansas City Area
Operating Engineers Local No.
101
Shawnee Chamber of
Commerce
Bonner Springs/Edwardsville
Chamber of Commerce
KCK Chamber of Commerce
KCK Community College
Kansas Black Chamber of
Commerce
Laborers Local 1290
KC Minority Council
Victory Junction Camp KC
Olathe Chamber of Commerce
Northeast Johnson County
Chamber of Commerce
KVC Behavioral Health Care
Strength in Partnership
•
Certainty to build
•
Built‐in penalty schedule for hotel construction
•
Financial ability to begin construction immediately
•
Instant population of customer database
•
Strength of NASCAR database to drive incremental revenue
•
Second NASCAR Sprint Cup Series Race & road course
($100 million in additional economic impact)•
$6 million in new revenues for local community
•
Over $3.1 million in additional, voluntary contributions to
local community•
$1.5 million in advertising value to the State
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