By: Channel 9 Eyewitness News
news@kcautv.com
Presentations were made Thursday morning to the Iowa Racing an Gaming Commission by the organizations hoping to build a land-based casino in Woodbury County.
Warrior Hotel and Casino was the first to present. The $122.3 million plan would put a casino in the historic Warrior Hotel and Davidson Building in downtown Sioux City. They broke down their funding into segments.
$40 million dollars would come from committed cash, which would come from Ho Chunk, Inc., the Winnebago Tribe and Dougherty Funding, LLC.
They expect another $25 million in tax increment funding (TIF), $58.3 million in debt financing and another $30 million in contingency funding.
That would give Warrior Entertainment a $30 million overhead, depending on if they receive all the financing they are hoping for.
The Hard Rock Casino project carries a price tag of $118 million and would be built on the site of the Battery Building.
The group is being backed with $90 million loan from Summit Partners. They are also hoping to receive around $22 million dollars in TIF funds from the City of Sioux City.
The remaining funding will come from $5-10 million from Iowa Local Equity Offer, $10 million in gaming manufacturing and $6.5 million from Stoney Creek to fund the 60 room hotel.
The Hard Rock Casino's financial plan puts them about $20 million over what they need, assuming they receive all the funding they listed.
Penn National Gaming was the final group to present on their two proposed Hollywood Casinos. A downtown Sioux City facility would be built for $160 million. A Woodbury County casino located near Salix would cost $167 million.
Penn officials didn't go into great detail about the two projects, but instead focused on the companies financial well-being as a whole.
Carl Sottosanti, a lawyer for Penn, pointed out that the company has "$622 million under their revolver" He says they are not asking for any municipal funding or third party financing. In closing Sottosanti said "we can write the check."
The Iowa Racing and Gaming Commission will be given full presentations of each proposed casino in January. A final decision won't come until April of 2013.
By: Tim Seaman
tseaman@kcautv.com
Applicants of four Woodbury County land based casino proposals will talk dollars and cents with the Iowa Racing and Gaming Commission Thursday. Firm financial commitments from the applicants will be presented during the commissions 8:30 AM meeting in Johnston.
The Hard Rock Casino carries a $118 million price tag. Developers from Warner Gaming project first year gaming revenue to top $90 million and produce about five and a half million dollars of contributions in non-tax related support to the community. The Hard Rock proposal also lists approximately 500 staffers and includes a 60 room hotel.
The Warrior Casino lists a $122 million price tag and according to a projected $2.2 million in first year non–profit contributions, will produce just more than $75 million in first year gaming revenue. The Ho Chunk Incorporated project estimates 461 employees and a 93 room hotel.
The IRGC has 2 Hollywood Casino proposals to consider. Both were developed by Penn National Gaming. A downtown Sioux City facility would be built for $160 million. A Woodbury County casino located near Salix carries a price tag of about $7 million more. Both expect close to $90 million in revenue in the first year of operation. A rural facility is projected to cash in $4.4 million in first year community support. That's about a million more than it's downtown counterpart. In fact most projections for the rural site out number the downtown proposal including the number of employees. A 150 unit hotel is planned for both casino's but the Sioux City proposal lists it in phase II of the project.
You can watch Thursday's IRGC meeting in Johnston live at KCAUTV.COM beginning at 8:30AM.
