Post on 05-Aug-2015
This group of experienced regional casino developers and operators has created the right attraction
for Southeast Kansas
KS Crossing Rendering / Exterior
Film strip photos; mining company Logo, banquets, festivals, hotel
WHY KANSAS CROSSING?
• The Right Location, The Right Size
• Best Outcome for the Local Economy• Direct Jobs for Kansans• Commitment to Purchase Local Goods and Services• Product Mix and Partnerships Maximize Tourism
• Best Outcome for Kansas• Sustainable Casino Revenue with Proven Track Record
Marketing and Operating Successful Regional Casinos in Competitive Markets
• Viable, Sustainable Business Model
• Improve Quality of Life for Southeast Kansas Residents
• Experienced Regional Gaming Developer and Operator
Experienced gaming resort developer, operator and investor
Developed four ground-up casinos that attracted new visitors into region
Properties generated strong economic activity and benefits to regional market and government
PATIENT • DELIBERATE • SUCCESSFUL
1999
2003
2006
2008
2009
2011
EXECUTIVE TEAMJONATHAN SWAIN
Previously Chief Operating Officer of Peninsula Gaming, LLC
NATALIE SCHRAMM Previously Chief Financial Officer of Peninsula Gaming, LLC
BRENT STEVENS Previously Chairman and Chief Executive Officer of Peninsula Gaming, LLC
Developed, owned, and operated gaming properties in Iowa, Louisiana, and Kansas
Sold five properties to Boyd Gaming in November 2012 for $1.45 billion
MIDWEST MANAGEMENT TEAM
• Delivered among the best results in the industry to shareholders• Our team members were recognized for Best Customer Service and
as Friendliest Casino Employees 11 years in a row
PENINSULA GAMING HISTORIC PERFORMANCE
KANSAS CROSSINGSITE PLAN
• 625 Slot Machines
• 16 Table Games
• 120 Hotel Rooms
• 400 Seat Event Center
• 125 Seat Restaurant
• 3,000 Capacity Event Lawn
KANSAS CROSSINGACCESS + TRAFFIC FLOW
US400
US6
9
Past and present influence the architecture, cuisine and attractions.
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FUTURE EXPANSION OPPORTUNITIES
•1,300 Slot Machines
•30 Table Games
•220 Hotel Rooms
•400 Seat Event Center
•125 Seat Casual Restaurant
•120 Seat Fine Dining Restaurant
•200 Seat Buffet
•3,000 Capacity Event Lawn
CONSTRUCTION TIMELINE
Application Filed January 29, 2015
Selection by LGFRB June 23, 2015
KDHE Permit Issued June 29, 2015
Grading, Foundation, Building Pad Approval, City of Pittsburg
June 30, 2015
KRGC Background Review and Final Approval
July 2, 2015
Construction Commences July 3, 2015
Final KRGC/Lottery Testing June 2016
Grand Opening July 2016
KANSAS EXPANDED LOTTERY ACT
Maximizes Revenue to the State of Kansas
Encourages Tourism to the Region
Serves the Interest of the People of Kansas
REVENUEMaximizes Revenue to the State of Kansas
NEW SPEND IN KANSAS $69,139,000
- Union Gaming Financial Suitability
REVENUE: New Construction Spend
Land $1,100,000
Construction + Design $37,810,00
Financing, Regulatory + Misc Cost $5,675,000
Equipment + Pre-Opening $20,154,242
License Fee/Franchise Fee $5,500,000
$70,239,242
REVENUE: Construction
ECONOMIC IMPACT OF CONSTRUCTION
$62,000,000- Civic Economics
REVENUE: Ongoing Tax Revenue to the State & Local Governments
APPROXIMATELY $10,000,000 TO
STATE AND LOCAL GOVERNMENTS ANNUALLY.
$10.5 MILLION- Union Gaming
$9.9 MILLION- Cummings and Associates
TOURISMEncourages Tourism to the Region
TOURISM: Out of State Revenue
KANSAS CROSSING CAPTURES OUT OF STATE REVENUE
AND REPATRIATES REVENUE FOR KANSAS
59.2% REVENUE FROM OUT OF STATE- Union Gaming
23% REVENUE FROM OUTSIDE 100 MILES$21.1 MILLION NET GAMING EXPORT GAINED
- Cummings and Associates
TOURISM: Entertainment Center + Meeting Space + Festival Grounds
600 PERSON ENTERTAINMENT CENTERCAN ALSO BE USED AS A FLEXIBLE MEETING SPACE FOR UP TO 400 PEOPLE
3,000 PERSON FESTIVAL GROUNDSPERMANENT STAGE FOR FESTIVALS, CONCERTS AND COMMUNITY EVENTS
TOURISM: Hotel
120 ROOMS
TOURISM: Location and Traffic Counts
• 10,700 vehicles per day on Hwy 69 and 4,890 on Hwy 400
• 15,590 vehicles per day on 2 major highways
- Union Gaming
TOURISM: Partnerships
PITTSBURG STATE UNIVERSITY
$500,000 OVER 10 YEARS
SOUTHEAST KANSAS TOURISM REGION
$100,000 OVER 10 YEARS
CRAWFORD COUNTY CVB
100% OF CVB GROUP TRAVEL MARKETING COSTS
BEST INTERESTServes the Interest of the People of Kansas
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Financing
Extensive Experience in Casino Financing
Committed Financing From Kansas Banks:Alliance Bank & Capitol Federal
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Partnerships
C-Tech AT LEAST $400,000 PER YEARto provide scholarships, supplies and to build skilled trade classrooms
Pittsburg State University commitment of
$50,000 PER REAL ALSO BENEFITS LOCAL RESIDENTS
Southeast Kansas Works
WorkReady CERTIFICATE CHAMPIONS & MORE
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Jobs
411 CONSTRUCTION JOBS- Civic Economics247 JOBS- EKAY Consultants
Greenfield Developments
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Development
Greenfield Developments
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Development
“The difference probably comes down to the ownership and management of the properties more than the bricks and mortar.”
“The JNB Management Team arguably has more start-up, development, dial-in, ramp up, expansion and grow the
market time as well as successful track record in the locals’ and regional
Midwest market than the other two applicants.”
- Dean Macomber
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Experience
Experience with Kansas Regulators
• Written Comprehensive Internal Controls
• Excellent Compliance History
• Communication with State Regulators
CONTINUED COMMITMENT TO REGULATORY COMPLIANCE
We know that our license is a privilege and we’ll treat it that way every day
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Experience
• Training• Orientation• Included in Department Training, Meetings
• Responsible Gaming Education• On-Site Signage, Brochures• In All Marketing Collateral
• Outreach• SEKS Responsible Gaming Committee• Work with Local Treatment Providers
INDUSTRY LEADERS IN RESPONSIBLE GAMING
SERVES THE INTEREST OF THE PEOPLE OF KANSAS: Experience
KANSAS CROSSING CASINO AND HOTEL DELIVERS KELA’S PRIORITIES
Maximizes Revenue to the State• $69 Million New Construction Spend• $62 Million Economic Development Impact of Construction• Sustainable Casino Revenue with Proven Track Record, Marketing
and Operating Successful Regional Casinos in Competitive Markets• Commitment to Purchase Local Goods and Services
Encourages Tourism to the Region• Integrated Entertainment for up to 3,000 and Flexible Meeting
Space for 400• High Traffic Location• Tourism Partnerships to Market the Region
Best Serves the Interest of the People of Kansas• Provides Quality Jobs and Training for Kansans• Robust Community Partnerships Which Improve Quality of Life• Proven Business Model• JNB Has More Than 50 Years Combined Regional Casino Experience