Winnebago, NE. ---Ho-Chunk, Inc. and its partners are announcing that they will be making a formal proposal for a land-based Sioux City casino to the Iowa Racing and Gaming Commission (IRGC) this November. Ho-Chunk, Inc. and Winnebago Gaming Development Corporation have formed Ho-Chunk Development LLC. Ho-Chunk Development will be partnering with other local business investors to develop a land-based casino that will be locally owned and locally operated. Ho-Chunk Development will be actively seeking investors from the Siouxland area to ensure that local community members will have a voice in the operation and a share in the profits.
In preparation for their application to the IRGC, Ho-Chunk Development has had discussions with Missouri River Historical Development, the non-profit QSO and the recent license holder for Woodbury County. In the last week, it became clear that MRHD favored an out of town developer. Ho-Chunk Development also had serious concerns about the potential for complications and delay from pending litigation from Penn National and MRHD.
As a result, Ho-Chunk Development has decided to form a new non-profit QSO for Siouxland and submit a joint application to the IRGC without MHRD. Ho-Chunk officials have also met with City officials regarding their casino proposal. The group notified the City of their intention to form a new non-profit and their intent to move forward with the application.
The new QSO non-profit will be comprised of several well-respected business and community leaders who have already agreed to serve. The organization mission will be to help facilitate job training and education and economic development in Woodbury County. No further information on the organization was made available due to concerns on further litigation brought by Penn National for anyone involved in the Sioux City casino license application process.
MRHD in a press conference held on October 10th did announce their intention to partner with Warner Gaming of Las Vegas, Nevada.
"While we are disappointed that MRHD chose to go down the same path that they've just been on with an out-of-market, distant corporation, we're confident that the proposals we put forward to the IRGC will be the absolute best option for Siouxland. The difference between our proposals is crystal clear. Our ownership group will be local and the Warner Group's is not. Our proposal will keep all the profits in Siouxland, not ship our citizen's money off to Las Vegas. " stated Annette Hamilton, Ho-Chunk Chief Operating Officer.
Ho-Chunk Development actually made a proposal locally with two site options for a land-based casino, both options located in downtown Sioux City. The group's reason for the move was to provide Siouxland with two concepts that the group believes have equal strengths but very different appeal. Both concepts are custom-designed to target and attract customers from the Midwestern market. Ho-Chunk Development believes that they have greater knowledge of the region, its residents and lifestyles. As a result, they believe their proposals will be a much better fit for Siouxland to generate the kind of traffic necessary to provide new revenue for the City, the County, State and provide a solid return on investment to the local ownership group.
"It is absolutely our commitment to do everything we can to make this economic development engine for downtown Sioux City a reality. In everything we do, we identify and recruit the absolutely best people to ensure success. It is no different here. We have retained top architectural firms; financial consultants; casino consultants and financing partners. Ho-Chunk Development is making this investment to truly help revitalize downtown Sioux City and create an economic boost for the region. We will continue to make other investments in Siouxland because we live here, work here and spend money here" stated Lance Morgan, Ho-Chunk CEO and President.
The first site The Warrior Casino and Hotel is collaboration with Lew Weinberg of Weinberg Investments, owner of the Davidson Building and the former Warrior Hotel. The Warrior Hotel is an art-deco building constructed in 1929 and for years was a premiere hotel property and landmark in downtown Sioux City. Ho-Chunk Development has selected Thalden-Boyd-Emery Architects (TBEA) for the Warrior Project. TBEA is a nationally respected architectural firm specializing in the casino and hospitality industries. Among projects designed worldwide, they were responsible for interior and exterior design work including the Canals of Venice for the Venetian Resort in Las Vegas.
Ho-Chunk Development plans to renovate both the Warrior and the Davidson building to create a major entertainment complex. Renovation will be similar to the work done at the Orpheum Theatre in Sioux City, restoring the art-deco architectural detail and elegance of the original building, as well as updating the facility to feature modern technology and amenities.
According to Ho-Chunk Development, the second site The Pearl Casino is a totally different concept to provide the community and the IRGC the "best of both worlds". The Pearl entertainment complex will be new construction also built in downtown Sioux City. The casino complex will feature modern design elements with a contemporary flair. The Pearl will feature very similar amenities to the Warrior project, giving Sioux City the choice of two strong entertainment concepts.
The Pearl complex has been designed by KGA Architects who are also nationally known for their design work in the casino and hospitality industries. Among other projects, KGA Architects was responsible for the design of the Forum Shops at Caesar's Palace in Las Vegas.
At this point, the group is working on finalizing the actual proposal and site that they will be presenting to the IRGC on November 1st.
The original intent of the riverboat gaming initiative in Iowa was to establish locally owned and operated facilities that would re-invest revenue and provide economic development in their local communities to benefit both the local area and the State of Iowa. Ho-Chunk officials believe that they are the only applicant for the Sioux City casino who fulfills the original intent of the initiative. Ho-Chunk business operations are headquartered just 20 miles from Sioux City and they also have investments and other businesses in the Sioux City metro.
Ho-Chunk was launched in 1994 to develop a new and sustainable economy for the Winnebago people. The company received a start-up investment of $9 million in gaming revenue provided by the Winnebago Tribe. That money was re-invested in the young company and today the company has grown to a projected $250 million in revenue for 2012.
"We are all about economic development. We used the original seed money from the Tribe and created a new economy and new opportunity on the reservation. With the help of other Siouxland investors, we see the same possibilities here for gaming revenue from our land-based casino to be re-invested in Siouxland to grow economic opportunity and jobs for local residents. With any other option, the majority of the gaming revenue winds up in Pennsylvania or Las Vegas, far away from Sioux City. With Ho-Chunk and our local investors, that revenue stays right here in Siouxland. We believe that strengthening the Siouxland economy strengthens all of us because we are a big part of that economy. " stated Lance Morgan.
According to Ho-Chunk Development, both the Pearl and the Warrior Casino proposals contain extensive marketing strategies to create an entire entertainment district for downtown Sioux City. Either proposal will tie the existing amenities of downtown Sioux City from Pearl Street to Historic Fourth Street and everything in between. The entire downtown district and all its retail businesses – restaurants, shopping, entertainment and more will be promoted along with the Casino and entertainment complex.
"It is the goal of our partners to not just build a casino and hotel, but to create an entire entertainment district for downtown Sioux City. Part of our mission to make this successful will be to actually market other downtown businesses; cross promote with other Siouxland entertainment events; and build a tourist destination encompassing all of downtown through web, print, electronic media and point of purchase marketing throughout the Midwest. That effort in addition to everything else can truly create an economic engine for Woodbury County" stated Annette Hamilton.
