Penn National Gaming Enters into Management & Development Agreements with Jamul Indian Village for New $360 Million Hollywood...
April 05 2013 - 2:00PM
Business Wire
Penn National Gaming, Inc. (NASDAQ: PENN) announced today that
one of its wholly-owned subsidiaries and the Jamul Indian Village
(“the Tribe”) have entered into definitive agreements to jointly
develop a Hollywood-branded casino and resort on the Tribe’s trust
land in San Diego County, California. The proposed facility is
located approximately 20 miles east of downtown San Diego, right
off Route 94.
The proposed $360 million development will include a three-story
gaming and entertainment facility of approximately 200,000 square
feet featuring at least 1,700 slot machines, 50 live table games
including poker, multiple restaurants, bars and lounges and a
partially enclosed parking structure with over 1,900 spaces. The
proposed project will create an estimated 1,200 construction jobs
and up to 1,500 permanent jobs in the area. It is anticipated that
construction could commence late this year with an expected
construction period of approximately 24 months. Penn National may,
under certain circumstances, provide backstop financing to the
Tribe in connection with the project and, upon opening, Penn
National will manage the casino and resort.
The agreements with Penn National will allow the Tribe to
realize its vision for revitalizing its six-acre reservation, while
creating and supporting employment opportunities. Ultimately, the
newly-designed project will create jobs for the local community in
the Jamul and Dulzura areas, allow the Tribe to become
self-sufficient and enable it to share gaming revenue with local
governments and charities.
“The development and management of a Hollywood-branded casino
and resort with Executive Council Chairman Hunter and the Jamul
Indian Village will deliver a balance of economic benefits,
environmental stewardship and social responsibility,” said Timothy
Wilmott, President and Chief Operating Officer of Penn National
Gaming. “We look forward to a productive collaboration with the
Tribe that will benefit the community, the Tribe and Penn
National.”
“We are pleased to work closely with Penn National Gaming, a
respected industry leader that brings significant experience,
energy and integrity to this important project,” said Tribal
Executive Council Chairman Raymond Hunter. “Penn National has a
proven track record of development and operation of first-class
gaming facilities and its strong balance sheet is an asset to the
project. Penn National also shares the Tribe’s focus on a
development that is consistent with the character of the Jamul
area. In addition, the Company shares our commitment to be
respectful of environmental requirements and local processes
inherent to this project.”
Earlier this year, after an extensive and comprehensive Tribal
environmental review process consistent with both the National
Environmental Protection Act (NEPA) and the California
Environmental Quality Act (CEQA), the Tribe approved and certified
the project’s Tribal Environmental Evaluation and Mitigation Plan
and is now working with State and County agencies to address
potential environmental impacts.
Lakes Entertainment, Inc., which until last year was working
with the Tribe on this project, remains a subordinated lender but
has no further rights or obligations with respect to the
development process or facility management. The agreements between
Penn National and the Tribe have been filed with and are subject to
the National Indian Gaming Commission’s review and approval.
About Jamul Indian Village
The Jamul Tribe has been recognized by federal officials since
the 19th century. The tribal government of the Jamul Indian Village
has the responsibility to conserve tribal property, develop
community resources, administer justice and build a legacy of
economic self-reliance for our Tribal members and future
generations. For more information visit www.jamulindianvillage.com.
Jamul Indian Village entered into a Tribal-State compact in October
1999 with then Governor Davis.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests
in gaming and racing facilities with a focus on slot machine
entertainment. The Company presently operates twenty-nine
facilities in nineteen jurisdictions, including Colorado, Florida,
Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland,
Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio,
Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn
National's operated facilities currently feature approximately
34,800 gaming machines, approximately 850 table games, 2,900 hotel
rooms and approximately 1.6 million square feet of gaming floor
space.
Forward-looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Actual results may vary materially from expectations.
Although Penn National Gaming, Inc. and its subsidiaries
(collectively, the “Company” or “PENN”) believe that our
expectations are based on reasonable assumptions within the bounds
of our knowledge of our business and operations, there can be no
assurance that actual results will not differ materially from our
expectations. Meaningful factors that could cause actual results to
differ from expectations include, but are not limited to, risks
related to the following: our ability to secure financing for this
project; our ability to secure state and local permits and
regulatory approvals necessary for the proposed Jamul project;
construction factors, including delays, unexpected remediation
costs, challenges associated with building a complex project on a
relatively small parcel, local opposition and increased cost of
labor and materials; the passage of state, federal or local
legislation (including referenda) that would expand, restrict,
further tax, prevent or negatively impact operations in or adjacent
to the jurisdictions in which we do or seek to do business (such as
a smoking ban at any of our facilities); the effects of local and
national economic, credit, capital market, housing, and energy
conditions on the economy in general and on the gaming and lodging
industries in particular; the activities of our competitors and the
emergence of new competitors (traditional and internet based); and
other factors as discussed in the Company’s Annual Report on Form
10-K for the year ended December 31, 2012, subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K as filed with
the SEC. The Company does not intend to update publicly any
forward-looking statements except as required by law.
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