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- Initial Phase of Development Budget Increased 28% to $410 Million with Plans for a Total Facility Investment of $564 Million -
- Proposed Facility to Create 2,000 Permanent Jobs and Serve Greater Kansas City Area -
WYOMISSING, Pa.-- At a hearing this morning with the Kansas Lottery Commission, officials of Penn National Gaming, Inc. (Nasdaq: PENN) unveiled plans for a significantly expanded Hollywood-themed gaming and entertainment facility in Wyandotte County Kansas with a Phase 1 budget of $410 million (inclusive of the $25 million privilege fee and a $65 million post-opening expansion) and a $154 million Phase 2 expansion which would bring the Company’s total investment in the market to $564 million.
In April, Penn Hollywood Kansas, Inc. (a subsidiary of Penn National Gaming, Inc.) filed its initial license application to be considered as a Lottery Gaming Facility Manager in the North East Gaming Zone in Wyandotte County. On June 11, 2009 Penn National received an endorsement from the Unified Government of Wyandotte County, the host community, for the proposed development and the Company subsequently executed a development agreement with the County.
According to the updated proposal, Phase 1 construction would feature a 76,100 square foot (net) gaming floor, 2,000 slot machines, 58 table games, a 250-room hotel, meeting space, three food and beverage outlets, two lounges and 3,050 parking spaces (including a 1,500 space structured parking facility). Upon the achievement of certain financial performance metrics, Penn National will construct and open a $65 million expansion which will include 540 additional slot machines, 22 more table games, a 21,700 square foot (net) expansion of the casino floor, additional food and beverage offerings, expanded spa facilities at the hotel and 1,400 new parking spaces. Through Penn National’s new proposal, the Company also agreed to increase its charitable giving to the greater of two percent of the net income of the Hollywood Casino or the annual amount donated by Penn National Gaming, Inc.’s subsidiary located across the border in Riverside, Missouri.
Peter M. Carlino, Chief Executive Officer of Penn National commented, “The updated proposal presented today by Penn National reflects our deep commitment to bring an entertainment resort to Kansas City, Kansas. Our highly competitive proposal reflects our proven property development skills and our expertise as a multi-jurisdictional operator. Moreover, our proposal highlights our intention to use our strong balance sheet and readiness to use our available cash to develop a first- class destination resort – something that no other applicant can match. The unique aspects of our proposal provide for greater certainty and speed for the wide range of economic benefits we are prepared to bring to Wyandotte County and the state of Kansas. As a leading multi-jurisdictional owner of quality gaming and entertainment facilities, our proposal also reflects our heightened sensitivities to the economic returns sought by the state. We are confident that our proposal squarely addresses the needs of the county and the state both now and on a long-term basis.”
Penn National’s master plan calls for a total investment of $564 million (or $154 million additional Phase 2 budget) for the construction of a second hotel tower with 250 additional hotel rooms, an additional 90,000 square feet (net), including a 60,000 square foot entertainment venue, 500 additional slot machines and 1,000 additional parking spaces. Penn National anticipates that at full operation the facility will generate an estimated $330 million in annual revenue.
Penn National’s proposed 61-acre Wyandotte County site is located at the intersection of I-435 and Parallel Parkway in Kansas City, Kansas.
About Penn National Gaming
Penn National Gaming owns and operates gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates nineteen facilities in fifteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National’s operated facilities feature over 25,700 gaming machines, approximately 400 table games, over 2,000 hotel rooms and over 880,000 square feet of gaming floor space.