Recommandé
Contenu connexe
En vedette
Similaire à Kansas entertainment llc__8.13.08_
Similaire à Kansas entertainment llc__8.13.08_ (15)
Plus de krgc
Plus de krgc (20)
Dernier
Dernier (20)
Kansas entertainment llc__8.13.08_
- 2. 2
- 3. Overview • Best Team • Best Project • Best Brands • Best Financial Return for Kansas 3
- 4. Ownership Structure Kansas Entertainment, LLC 50% 50% Cordish Company EnDty: ISC EnDty: Kansas Entertainment Kansas Speedway Investors, LLC Development Corp. Joe Weinberg, President Jeff Boerger, President Development , Retail & Gaming / Hotel Event / Race Entertainment Opera?ons: Opera?ons: Opera?ons: Dennis Gomes Jeff Boerger Joe Weinberg 4
- 5. Best Partner for State & Local Government Long history of working producDvely with both the Unified Government & the State 5
- 6. Best Partner for State & Local Government Partnership with the Kansas LoRery has shown outstanding returns for Kansas 6
- 8. Power of ISC Video 8
- 14. Cordish + ISC + Hard Rock 14
- 15. The Cordish Company DesDnaDon Gaming Development The image above and those used on subsequent pages are of Hard Rock Hotel and Casinos 15 that were developed by a Cordish Company affiliate for the Seminole Tribe of Florida
- 16. The Cordish Company Upscale Hotels 16
- 21. The Cordish Company Non‐gaming desDnaDon entertainment significantly increases gaming revenues 21
- 22. The Cordish Company 12 10 (years to payback) 8 6 4 2 0 Florida Mirage Mohegan Borgota Paris Bellagio Taj Mahal Beau Mandalay Hard Rock Sun Rivage Hotel & Casinos Shortest Payback of Any Major Casinos Source: Seminole Tribe of Florida 22
- 23. The Cordish Company 2007 Opera?ng Income $800 $700 $600 $500 $400 $300 $200 $100 $0 Florida Hard Penn Natl(3) Wynn (2) Boyd (2) Las Vegas Ameristar (2) Mohegan Pinnacle Rocks (1) Sands(2) Gaming(4) Enter.(2) Superior Financial Results 1 Source: Seminole Tribe of Florida 2 Source: Thomas Weisel Partners LLC Research Report 3 Source: Goldman Sachs Global Investment Research (4) Source: Mohegan Tribal Gaming Authority, SEC Filing, 10‐K Filing, NOTE: OperaDng Income shown for FY 2007 ended Sept. 30, 2007 23
- 25. The Cordish Company 25
- 26. The Cordish Company 26
- 30. The Cordish Company REPRESENTATIVE PROJECTS Developer: Seminole Hard Rock Hotel & Casino The Cordish Company Hollywood & Tampa; Indiana Live! Lead Architect: Mandalay Bay; “W” Las Vegas; Klai Juba Architects Hard Rock Las Vegas; Four Season Las Vegas Interior Designers: Cleo Design MGM Casino Las Vegas; MGM Casino Detroit; Beau Rivage Biloxi; Hilton Las Vegas Borgata AtlanDc City; Hard Rock Hollywood & Laurence Lee Tampa; Kapalua Bay Hawaii Associates Engineer: Sprint Center Kansas City; Truman Sports Complex Burns & McDonnell Kansas City World Class Design Team 30
- 31. Management • Dennis Gomes – 34 Years Gaming Experience – Licensed in Nevada & New Jersey – Background Includes: • President & CEO, Resort OperaDons ‐ Tropicana Hotels & Casinos, Las Vegas, NV & AtlanGc City, NJ (Aztar Corp.) • President & COO – Trump Taj Majal • President & COO – Golden Nugget Hotel & Casino • Sr. Vice President, Casino OperaDons – Hilton Hotels & Casinos, Las Vegas, NV 31
- 32. Management Dennis Gomes CEO Gaming / Hotel Opera?ons Robert ZiRo Sherry Amos Robert Ambrose Don Kneisel David GenDle Fred Burford EVP EVP EVP EVP EVP EVP Food & Beverage Marke?ng Slot Opera?ons I.T. Administra?on Finance Aaron Gomes Peter Ing Jean Price Shawn McCloud VP VP Director VP Marke?ng Slot Opera?ons Administra?on Finance Latorua Chinn Manager Diversity Compliance 32
- 33. Management YEARS OF GAMING EXPERIENCE Sherry Amos ExecuDve V.P. ‐ MarkeDng 24 Robert Ambrose V.P. ‐ Slot OperaDons 20 Fred Burford ExecuDve V.P. ‐ Finance 25 David A. GenDle V.P. ‐ AdministraDon 24 years with FBI Peter Ing V.P. – Slot OperaDons 12 Donald W. Kneisel, II V.P. ‐ Info. Technology 24 Aaron Gomes V.P. ‐ OperaDons 3 Shawn K. McCloud V.P. ‐ Strategic Planning 15 Jean Price PreikszaiDs Director of Corp. Admin. 28 Robert ZiRo ExecuDve V.P. ‐ Food & Bev. 28 33
- 35. Gaming Compliance Exper?se • MulDple members of the team have had significant experience in gaming regulaDon and law enforcement • Nevada Gaming Control Board • New Jersey Division of Gaming Enforcement • FBI 35
- 36. Gaming Compliance Exper?se Security & Surveillance, Internal Controls & InformaDon Technology Plans are fully developed and have been submiRed 36
- 37. Commitment to Diversity Kansas Speedway ‐ Materials / Supplies Kansas Speedway ‐ Construc?on Services Kansas Speedway ‐ Professional Services Power Plant Kansas City Live! Construc?on Services Kansas City Live! Professional Services Pier 4 Office Building Capital Center ‐ Phase II Capital Center ‐ Phase I 4th Street Live! 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Goal Performance Kansas Speedway and Cordish meet or exceed MBE / WBE / LBE Goals 37
- 38. Community Video 38
- 39. Overview • Best Team • Best Project • Best Brands • Best Financial Return for Kansas 39
- 40. 40
- 43. Integrated Design • Intelligent Master planning • IntegraDon with Kansas Speedway • Unmatched Ability to Expand 43
- 46. Integrated Design • 275,000 Square Feet DesDnaDon Retail, Dining & Entertainment • Live Music Venue 46
- 47. Integrated Design • 1.5 million square feet • Underground structured parking • Cross‐Current of Pedestrian Traffic 47
- 49. High Energy Casino 49
- 50. High Energy Casino 50
- 51. Modern Luxury Design 51
- 54. Community Shugle System 54
- 55. Temporary Casino 55
- 56. Temporary Casino • Open In Eight Months • $209 Million Annual Revenue • 2000 slots • 75 table games 56
- 57. Expansion Capabili?es Hotel / Casino Casino Expansion Expansion 57
- 58. Schedule 58
- 59. World‐Class Des?na?on 59
- 60. Overview • Best Team • Best Project • Best Brands • Best Financial Return for Kansas 60
- 61. Global Brand Presence 61
- 62. Unparalleled Brand Recogni?on 85% NaDonal familiarity with Hard Rock Brand Source: Zogby InternaGonal Research 62
- 63. Hard Rock Drives Tourism 76% NaDonal Visitors to Hard Rock ProperDes From Out of State Source: Zogby InternaGonal Research 63
- 64. Familiarity With Hard Rock Brand 51 50 Hard Rock Is Exponentially Stronger Than Other Options: 40 36 33 • 2.5 – 50 Times Better Nationally • 8 – 12 Times Better Statewide (percent) 30 22 • 5.5 – 11 Times Better in KC 20 10 6 4 4 3 3 3 3 0 0 Hard Rock Mohegan Sun Pinnacle Golden National Kansas Statewide KC DMA Source: Zogby InternaGonal Research 64
- 65. Regional Target Markets 65
- 66. Brand Strength = Visits 47 Statewide interest in 50 visi?ng a Hard Rock is at 42 least double that of any 45 other possible casino. 40 35 30 27 21 20 22 25 20 15 10 3 3 5 0 Hard Rock Legends Sun Pinnacle Golden Kansas Statewide KC DMA Source: Zogby InternaGonal Research 66
- 67. Hard Rock Preference Is Clear Among those who say they 80 are “Very Interested” in 71 visi?ng a casino in the future, more say they are 70 very interested in visi?ng Hard Rock over other 60 possible casino brands. 46 50 43 40 40 35 (percent) 30 20 11 8 8 10 0 Hard Rock Legends Sun Pinnacle Golden Source: Zogby InternaGonal Research Kansas Statewide KC DMA 67
- 68. Affluent Customers Love Hard Rock 58 Those making more 60 than $75,000 a year say 54 they are more likely to visit the Hard Rock than 50 any other brands. Hard Rock scores much better as a regional destination than other 40 brands. (percent) 30 28 29 30 20 10 9 8 10 0 Hard Rock Legends Sun Pinnacle Golden Source: Zogby InternaGonal Research 68 Kansas Statewide KC DMA
- 70. Each Trackside Billboard Gets $880,000 in TV Exposure Annually Source: Joyce Julius and Associates Sponsors Report 70
- 74. Corporate Decisions Makers Visit Kansas Speedway • There were over 550 companies involved as sponsors in NASCAR last year • Our team is uniquely posiDoned to leverage events at the Speedway to bring convenDon business to KCK • Decision‐making execuDves spend their enDre day on Speedway property 74
- 75. Racing Fans Like Casinos • 57.5% of Kansas Speedway 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 Source: Scarborough Research 2007 75
- 76. General Marke?ng Strategy • Cross‐market with Speedway & tenants • Create unique VIP experiences for best customers • Use Rewards Program and CRM to maximize customer value • Leverage Hard Rock brand strength and racing events in markeDng that targets tourists 76
- 77. Overview • Best Team • Best Project • Best Brands • Best Financial Return for Kansas 77
- 78. Best Overall Return 27% 30% 33% Fee Percentage to Public Sector 0 100 200 300 400 500 600 Gross Gaming Revenues (millions) AddiDonal 1% Voluntary Fee to Unified Government 78
- 79. Best Total Financial Package $113M $115,000,000 $111M $108M $108M $110,000,000 $105,000,000 $100,000,000 $95,000,000 $90,000,000 $85,000,000 $80,000,000 $75,000,000 Hard Rock Golden Pinnacle Legends Sun Fees to Kansas Fees to Problem Gaming Fees to Local Government 79 (Assumes $400 million gross gaming revenue)
- 80. Best Total Financial Package $147M $150,000,000 $142.5M $145,000,000 $140,000,000 $137M $135.75M $135,000,000 $130,000,000 $125,000,000 $120,000,000 $115,000,000 $110,000,000 $105,000,000 Hard Rock Golden Pinnacle Legends Sun Fees to Kansas Fees to Problem Gaming Fees to Local Government 80 (Assumes $500 million gross gaming revenue)
- 81. Gaming Revenue Forecast $385.6M $390 $376.2M $380 $367M $370 $358M $360 $349.3M $350 (Millions) $340 $330 $320 $310 $300 Year 1 Year 2 Year 3 Year 4 Year 5 Slot machines Pit Revenue Poker & card games (Assumes 3,000 slot machines and 140 table games) 81
- 82. Non‐Gaming Revenue Forecast $80 $67.7M $69.9M $72M $74.2M $65.4M $70 $60 $50 (millions) $40 $30 $20 $10 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Hotel Food Beverage Conven?on Entertainmnent Retail Other 82
- 83. Resident Visita?on 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 ‐ Year 1 Year 2 Year 3 Year 4 Year 5 Total Gaming Visits Per Year Total Non‐Gaming Visits Per Year 83
- 84. Resident Economic Impact $365 $355 $345 $335 (millions) $325 $315 $305 $295 $285 $275 Year 1 Year 2 Year 3 Year 4 Year 5 Gaming Spend Per Year Non‐Gaming Spend Per Yr. 84
- 85. Tourist Visita?on 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 ‐ Year 1 Year 2 Year 3 Year 4 Year 5 Total Gaming Visits Per Year Total Non‐Gaming Visits Per Yr. 85
- 86. Tourist Economic Impact $100 $90 $80 $70 $60 (millions) $50 $40 $30 $20 $10 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Gaming Spend Per Year Non‐Gaming Spend Per Yr. 86
- 87. Public Sector Summary $140 $120 $100 (millions) $80 $60 $40 $20 $0 Year 1 Year 2 Year 3 Year 4 Year 5 State Revenue Property Taxes Sales & Use Tax 87
- 88. Keynotes of Financing Plan • Owners of Kansas Entertainment have significant liquidity and financing capabiliDes in‐house • Owners have impeccable track records with financing community over several decades • MulDple third‐party sources indicated high confidence in debt financing for our project 88
- 89. Financing Plan: Sources $90 $141 $141 $333 (millions) Delayed Draw Term Loan Term Loan(s) Cordish Equity / Cash ISC Equity / Cash 89
- 90. Financing Plan: Uses $80 $15 $9 $25 $25 $32 $415 $105 (millions) Hard Costs Sop Costs Con?ngency Financing Costs & Fees Pre‐Opening Opera?ons Licensing Fee Cage Cash & Working Capital Pre‐Funded Interest Reserve 90
- 92. Final Video 92
- 93. 93
- 94. If We Build It, They Will Come . . . Twice Each Year And Bring Another $111 Million in Annual Economic Impact With Them Source: The Washington Economics Group, Inc. 94
- 95. 95
- 96. Appendix A Summary • Fee Percentage Proposal to State: – 27% total tax on first $350mm of Annual Gross Gaming Revenue – 30% total tax on GGR between $350mm and $400mm – 33% total tax on GGR above $400mm • Highest Charitable ContribuDons: – AddiDonal 1% of GGR to Unified Government beyond statutory minimum 96
- 98. Appendix C Gaming Revenue ProjecDon All figures in $000’s • Gaming revenue forecasts based on detailed market assessment by Innovation Group, the market leader in gaming market analyses. • Based on 3,000 slot machines and 140 table games. • Kansas Entertainment, LLC believes 3,000 machines is correct and realistic initial number. This is also consistent with finding of Christiansen Capital Advisors, advisors to State. • Slot machine capacity would be increased if validated by market demand. 98
- 99. Appendix D Non‐Gaming Revenue ProjecDon All figures in $000’s 99
- 103. Appendix H Returns to Public Sector 103