Archive for Friday, September 19, 2008

Archive for Friday, September 19, 2008

Kansas Speedway casino proposal chosen

Edwardsville proposal edged out 4-3 in gaming board decision

Speedway Hard Rock

Speedway Hard Rock

September 19, 2008

The Kansas Gaming Facility and Review Board announced Friday morning its selection of the Hard Rock Hotel and Casino proposal for a state-owned, privately managed casino in Wyandotte County.

The proposal from Kansas Entertainment LLC - a joint venture of the Cordish Company and Kansas Speedway - was among the remaining three vying for the slot allowed under a state law passed last year. The casino proposal, planned for 821 Speedway Blvd. in Kansas City, Kan., edged out 4-3 the Golden Heartland casino resort proposal planned for Edwardsville, Springs, just south of Interstate 70 at 110th Street, with an adjacent retail and residential district in Bonner Springs.

"It couldn't have been anymore dramatic," said Edwardsville Mayor Heinz Rodgers of the announcement, speaking by phone on his way back from the board's meeting in Topeka.

"The first three votes to the chairman's right went to Kansas Entertainment," Rodgers said. "The next three to his left went to Golden Gaming."

The Legends Sun proposal received no votes.

Then, Matt All, the board chairman, "gave his reasoning behind his vote, long and detailed," Rodgers said. "He asked the board if it would entertain sending the issue back to the lottery commission to renegotiate contracts and they said they wouldn't."

Then All announced his vote for the Kansas Entertainment proposal. All said his decision was based on the promises made by the group after its official proposal was submitted to the state, including the carrots of petitioning NASCAR for another race series, the addition of an infield road course for use by car clubs, an annual RV rally, Rodgers said.

A statement Friday from Kansas Entertainment said the casino and hotel located near the Kansas Speedway, was scheduled to open in 2011.

The statement said the company plans to open an initial gaming facility on the site in 2009, with approximately 2,000 slot machines and 75 gaming tables. That casino would operate during construction of the overall hotel casino and entertainment development and is projected to generate more than $200 million in annual revenues.

During its meeting Thursday morning the board had asked Dan Biles, lawyer for the Kansas Lottery, whether Kansas Entertainment could be legally bound to these promises, Rodgers said. Biles' answer was, Rodgers said, "in his opinion it could not."

Ed Van Petten, executive director of the Kansas Lottery, said later that in order to make those promises part of Kansas Entertainment's contract, all the remaining casino proposal developers would have had to have a chance to renegotiate their contracts.

"It would have taken on an auction feel," Van Petten said. "We were wanting to get the process over with, get things moving."

Van Petten said because the additional incentives promised by the Hard Rock Casino developers were made so publicly, "it would be a major problem" if the group didn't keep its word.

Rodgers said he spoke to the president of Golden Gaming, Blake Sartini, after the announcement, and "we didn't leave anything to chance : We put our best foot forward, both the city and the applicant. We had all our cards on the table."

Rodgers was still able to see some good in the outcome.

"Bear in mind, thanks to the inter-local agreement, everyone in Wyandotte County are winners," he said.

Under the inter-local agreement between Edwardsville, Bonner Springs and Kansas City stipulates that the Hard Rock Casino would give the Unified Government of Wyandotte County/Kansas City, Kan. 2.25 percent and Bonner Springs and Edwardsville each .375 percent of all gambling revenues.

With estimated gambling revenues of $234 million for the casino, that would come to $1,103,930 for Bonner, $651,807 Edwardsville, and $5,265,000 for the Unified Government.

Also, Rodgers said, the announcement means the city can move forward in discussions on proposed developments in the same area as Golden Gaming's proposed casino.

"We look forward to future developments in the commercial district along I-70," Rodgers said in a statement. "There are many opportunities along the I-70 corridor and we are regularly contacted about development in the area and hope to have some key announcements soon."

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