Site expected to maximize State revenue, revitalize entire region

CHICAGO, Jan. 19 /PRNewswire/ -- The City of Waukegan and Harrah's Entertainment, Inc. today submitted their proposal to build the state's 10th casino in Waukegan, a location that will maximize new revenue for the State and revitalize one of Illinois' most economically depressed regions - the two main goals of the Illinois Riverboat Gambling Act.


"This isn't just about building a casino, this is about re-building a city and transforming a region," said Richard Hyde, mayor of Waukegan. "Waukegan is the only site that offers both substantial returns for the state and substantial returns for one of the state's most economically depressed areas."


The proposed Harrah's Waukegan would help reverse three decades of economic decline for Waukegan and its neighbors. Waukegan's once-vibrant economy has lost 30,000 jobs over the last 30 years as industry has deserted the city and the lakefront, with few job and economic opportunities remaining across the region.


Minorities have been especially hard hit by this decline, with nearly 100,000 minority residents in Waukegan and its four partner communities - North Chicago, Zion, Beach Park, Park City. Waukegan will also share gaming tax revenue with the Round Lake school district, one of the state's poorest and one being kept afloat by state funds.


Waukegan's unemployment rate of 8.4 percent is 25 percent higher than the greater Chicago region, according to the Illinois Department of Employment Security. Ten percent of Waukegan's African American residents are out of work. The 2000 Census reported that 12,000 people were living at or below the poverty line in Waukegan, 19,000 across the combined partner communities.


"No one can seriously claim that Rosemont is economically depressed, with the world's largest airport nearby and all of its hotels and convention centers. Waukegan's population is more than 20 times the size of Rosemont's, but they've got almost as many jobs as we do," said Hyde. "Our proposal creates economic opportunity where there is now very little."


The infusion of gaming dollars not only will bring sorely needed career jobs and economic activity to the area, it also will enable the City finally to realize its vision of redeveloping Waukegan's downtown and lakefront. The planned $1.2 billion redevelopment would magnify the impact of the casino project and bring even greater benefits to the broader region.


In addition to boosting the regional economy, a Waukegan casino has the potential of generating substantial new dollars for the state because of its location in the northeast corner of Illinois, close to Milwaukee and its suburbs and 45 miles from the nearest Illinois casino in Elgin.


"Country Club Hills will be in the backyard of both the Joliet and Indiana casinos, whereas our casino's closest competition is 45 miles away and we've got no casinos across the state line in Wisconsin," said Hyde.


It is projected that more than 30 percent of a Waukegan casino's business would come from out-of-state visitors, mostly from southern Wisconsin.


The casino and hotel complex would be located on the site of the shuttered Lakehurst shopping mall, just off I-94 with easy access from Kenosha and Milwaukee.


"A Waukegan casino will generate new gaming tax revenues by reaching untapped opportunities in northern Illinois and Wisconsin outside of the cluster of Chicagoland casinos that already compete for metropolitan Chicago customers," said Fred Keeton, Regional Vice President for Harrah's. "We expect to be attractive to customers from both states who are not currently served by a casino, and to provide additional choice to some of the metropolitan Chicago customers.


"The strong partnership we have formed with Mayor Hyde and the Waukegan City Council also fits the Harrah's corporate vision of bringing economic empowerment to struggling local communities," Keeton said.


The gaming and entertainment complex, which will feature a 300-room hotel, is expected to create up to 1,500 construction jobs and up to 2,000 permanent jobs, most of them career jobs providing upward mobility in the gaming and hospitality industries. The average salary of these jobs is expected to be about $40,000, in a region where employment opportunities are scarce.


"This is not about handouts, it is about giving us the means to fulfill our vision for our communities and our children," said Hyde. "The tax revenue we will receive is just a fraction of the total economic impact we will realize by re-building our infrastructure and once again making ourselves attractive as a place in which to live, work and do business."


Harrah's brings to the proposal resources and experience that help ensure the feasibility and viability of the project. Harrah's Entertainment, Inc. owns or manages through various subsidiaries 25 casinos and employs 42,000 people across the U.S. Harrah's has a strong track record of bringing opportunity to economically depressed communities, such as Joliet and Metropolis in Illinois; Tunica, Mississippi; Shreveport and Lake Charles, Louisiana; and North Kansas City, Missouri.


Nearly 15 percent of Harrah's employees went off unemployment and 10 percent came off welfare with the development of Harrah's Joliet.


"As the only investment-grade casino company, Harrah's can immediately meet all financial requirements needed to make the 10th license a reality, and do so quickly and successfully," said Keeton. "In Waukegan, we see a real opportunity to build one of the best gaming and entertainment complexes in the country, which is expected to translate into unmatched economic returns for the region and the State."


The actual amount of the bids submitted by Harrah's and others vying for the 10th casino license are expected to be announced next week by the Illinois Gaming Board. Final numbers will be determined by an auction held among the three finalists, scheduled for March 10. The Illinois Gaming Board is scheduled to announce the winner on March 15.


"Waukegan is literally one of the last forgotten corners of the Illinois economy," said Hyde. "This is a unique opportunity to redevelop Waukegan's once vibrant lakefront and bring it back as the economic engine for the entire northeastern corner of our state."


Source: Harrah's Entertainment, Inc.

CONTACT: Chris Adams of Jasculca-Terman and Associates, +1-312-337-7400,
or cell, +1-312-961-4557