SAN DIEGO & WYOMISSING, Pa.--(BUSINESS WIRE)--Apr. 5, 2013--
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.
Source: Penn National Gaming, Inc.
Penn National Gaming, Inc.
William J. Clifford
Chief Financial
Officer
610/373-2400
or
Robert Mesa
Jamul Indian
Village
619/402-3500
berts@aol.com
or
Joseph
N. Jaffoni, Richard Land
JCIR
212/835-8500 or penn@jcir.com
