2015 LGFRB Camptown Casino Proposal
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Transcript of 2015 LGFRB Camptown Casino Proposal
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Phil Ruffin
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750 Slot Machines
20 Table Games
13 Black Jack / Card Games
2 Craps
1 Roulette
4 Live Poker Tables
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World-famous Gilley’s Saloon, Dance Hall, BBQ & Entertainment Venue
62-unit Select Service Property Hotel
Buffet
Snack Bar/Deli
Casino Center Bar
3rd Casino Bar
Dedicated paved parking forat least 1,000 vehicles
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(000’s Omitted)
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(000’s Omitted)
Camptown Casino will prepay the State of Kansas $5M in prospective
revenue immediately upon the contract being awarded to Manager.
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648,000Missouri Visitors
209,000Kansas
92,000Other
92,000 Other209,000 Kansas648,000 Missouri
949,000 TOTAL
2,600 Visitors per Day*
*KlasRobinson Q.E.D. Economic Impact Study, October, 2014, Page 2813
Visitation total estimated at 949K/year, or 2,600 visitor / day
2/3 are projected from Missouri
Market Population: 50 mile radius = 270K 100 mile radius = 1.6M Springfield, MO Metro = Approx. 450K within 90 mi. drive
Projection of aggregate spend within the facility $50 / Visitor / Electronic Gaming Devices & Table Games $ 8 / Visitor / Food & Beverage Cover $53 / Visitor / Hotel Guest
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PHIL RUFFIN has lived in Wichita for most of the last 60 years. His Kansas lodging, manufacturing, energy, real estate and retail businesses have, for decades, provided jobs and economic stimulus to Kansas. His companies already employee 300 Kansans.
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Mr. Ruffin has been involved in the gaming industry since 1994 when he bought the Crystal Palace in the Bahamas. He subsequently owned and sold the New Frontier Casino in Las Vegas, and currently owns Treasure Island in Las Vegas. Phil Ruffin is an accomplished casino operator who knows how to build a strong organization.
The extremely experienced Treasure Island management team stands available to serve in a consulting capacity as needed by Camptown Casino.
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PHIL RUFFIN, JR. entered the Kansas Gaming industry in 1997 at the Wichita Greyhound Park. His tenure there included work in several departments and ultimately resulted in his promotion to Director of Operations. He is currently involved at the executive level in many other Ruffin Companies businesses, including the hotel and manufacturing divisions.
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With over 30 years of experience, SCOTT COOPER has considerable expertise in the Gaming Industry. Most of his experience has been in regional/local gaming facilities similar to Camptown Casino.
He was the 1st employee of the Kansas Star Casino, leading the project from day one, including the licensing process and all 3 building phases. He operated the facility as General Manager for 3 years.
Scott has opened 9 other Casino projects, which included 4 properties larger than Camptown. He is very familiar with the development/operating process related to coordination with the KRGC & Lottery.
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SCOTT COOPER has spent 20 years developing start-up casino projects. He subscribes to a development and operating philosophy that focuses on building outstanding management teams. His projects, including the Kansas Star Casino, have consistently exceeded performance and market share projections.
The Kansas Star Casino was the 10th Casino project Scott has developed across the U.S. He has developed 4 properties larger than Camptown Casino, with up to 2,000 employees. Six of the facilities have employed between 250 – 500 employees.
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Property and Building Contribution $ 25MCompletion costs, including:
Property Build OutGaming Equipment FF&EPre-Opening Expenses
Subtotal $ 78.5MLicense Fee $ 5.5M
TOTAL INVESTMENT $ 84M
$ 53.5M
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The total number of employees to be hired is approximately 300. This includes 250 full-time, plus 50 part-time and flex-team members.
Dealers School
Unemployment rate in Crawford County will improve by approximately 20%
Goal is 90% of team members will be from Kansas
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Mr. Ruffin will personally provide all financing to fund the
Camptown Casino project and any necessary financing to maintain
the Lottery Gaming Facility.
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Scope of project is sized to support a sustainable business model
After opening and as business needs dictate, Camptownmay consider the following additions:
Up to an additional 250 slots
Up to an additional 10 table games
Multi-stakes Bingo
6,000 SF Multipurpose Convention & Entertainment Complex
50 pad full-service RV Park23
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CAMPTOWN’S POINTS OF DIFFERENCE FROM OTHER PROJECTS
Camptown’s immediate point of difference is an already existing opted-in regional database of Treasure Island Casino guests exceeding 60,000 names and growing
Gilley’s Saloon, Dance Hall,BBQ & Entertainment Venue
Camptown Casino has the ability to open soonerthan the other proposed projects
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MARKETING STRATEGIES (GILLEY’S)Gilley’s has long been an entertainment destination on the Las Vegas Strip and will place Camptown in an entertainment league of its own. The name has immediate recognition for generations of people from the popular movie “Urban Cowboy.”
A food, drink, dance and entertainment venue that has won awards both for the quality of food and the quality of the entertainment experience.30
MARKETING STRATEGIES (GILLEY’S) - continued
Gilley’s entertainment programs include mechanical bull riding, live music, line dancing, karaoke, rodeo and other sporting event viewing.
Its community inclusion regularly opens up alliances and sponsorships with local vendors such as western wear, beverage distributors, and media outlets.
In Kansas, the rights are exclusive to Phil Ruffin, who has access to major performing acts through the entertainment team at his Las Vegas property, Treasure Island.
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CUSTOMER ACQUISITION – LOCAL VS. TOURIST
Because of geographical logistics, local and tourist marketing efforts will overlap.
Camptown and Las Vegas slot points will be available for use in either property, offering greater value to each customer’s experience.
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CUSTOMER ACQUISITION – LOCAL VS. TOURIST - continued
Multiple trips can earn customer established program opportunities including:
Cash back program
Free room, food and beverage
Both locals and tourists will be reached via: Already identified billboard locations Already identified radio opportunitiesDirect response advertising Social media platforms
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EXCLUSIVE MARKETING EFFORTS TO TOURISTS
Tourists will be reached by the following vehicles:
Bus programs with experienced, out of state, casino bus operators
Website (www.camptownks.com) will immediately have a sign-up page when license is awarded
Social media sites are already established
Targeted text messaging programs
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EXCLUSIVE MARKETING EFFORTS TO TOURISTS - continued
Develop strategic alliances with local hotels. Existing capacity of 400+ hotel rooms near Camptown will:
Provide lodging for the regional traveler during peak, overflow scenarios
Assist the local hotels in maximizing their occupancy
Leverage existing partnerships with national beverage companies to help provide regional exposure
Unique, location-based email offers35
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Architectural Plans
Mobilization and Erosion Control 1 month Mobilization and Erosion ControlNew Addition Building Pad Complete 1 month New Addition Building Pad Complete
CompleteSite Concrete, Sidewalks & Parking Lots Site Concrete, Sidewalks & Parking Lots
Landscaping & Irrigation 1 month Landscaping & Irrigation
CompleteStructural Steel Procurement Structural Steel Procurement
Complete1 month
Foundations at Facade 1 month Foundations at FacadeComplete
Prep and Pour Slab-on-Grade 1 month Prep and Pour Slab-on-GradeSteel Delivery and Erection 1 month Steel Delivery and Erection
Construction of New Facade 1 month Construction of New FaçadeExterior Finishes at New Addition Exterior Finishes at New Addition
Interior Wall Framing & Overhead Rough-In 1 month Interior Wall Framing and Overhead Rough-InHang Drywall/Insulate/Finish Hang Drywall/Insulate/Finish
Finishes for New Addition Finishes for New AdditionFlooring-Ceramic Tile/Hard Flooring 1 month Flooring-Ceramic Tile/Hard Flooring
1 monthCeiling Grid/Border Tile 1 month Ceiling Grid/Border Tile
Install Millwork & Wood Trim Install Millwork & Wood TrimMEP Ceiling Finishes
1 month Install Acoustical Tile
Plumbing, Mech, Electrical Fixtures Plumbing, Mech, Electrical FixturesInstall Kitchen Equipment Install Kitchen Equipment
Flooring-Carpet & Vinyl Base Flooring-Carpet & Vinyl BaseInstall Division 10 Items/Speciality Fin. 1 month Install Division 10 Items/Speciality Fin.
1 month Punch List1 month Final Cleaning
SUBSTANTIAL COMPLETION
Hotel ConstructionSUBSTANTIAL COMPLETION
3 months3 months
2 monthsPainting/VWC
Prime Walls
Install Acoustical Tile
3 months
2 months
3 months
Rebar Delivery
12 months
2 months2 months
3 months
3 months
MEP Underslab
HOTEL
Punch ListFinal Cleaning
Demolition
Rebar Delivery
Prime Walls
Painting/VWC
Building Dry-In
MEP Ceiling Finishes
2 months
MONTHACTIVITY DESCRIPTION
SITE ACTIVITES
BUILDING SHELL
Site Utilities
2 months
Complete
DESIGN ACTIVITIESArchitectural Plans
Trad
ona
,
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The Ruffin Companies
Spangenberg Phillips Tice Architecture
Dondlinger Construction
Professional Engineering Consultants (PEC)
Kansas Sub-Contractors for 90% of Jobs
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Create a culture that ensures all employees understand that adhering to the internal controls are part of their job description
Training
Self-Reporting
Communication between Operations and Regulators
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HOW DOES THE PROGRAM WORK?
Voluntary Exclusion Program – Customer has the option to exclude themselves for 2 years or lifetime.
Once a customer elects to self-exclude, no marketing efforts are continued. Customer is added to “do not mail” database. Customers often try to re-enter the casino.
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IMPORTANT COMPONENTS OF PROGRAM:
All employees receive ongoing training on recognizing problem patrons and how to assist them
Particular emphasis on intoxicated patrons
Designated places in casino to obtain brochures and post signage
Prevent persons under age 21 from entering casino
Frequent and consistent communication to front-of-house staff
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Camptown Casino will donate $50K per year for 10 years to the Frontenac School District (USD 249) for educational purposes. Camptown Casino has agreed to a descending compensation
schedule in which the Manager receives less compensation and the State retains more on higher tiers of the Lottery Gaming Facility revenues, as follows:
Manager StateUp to $55M = 73% 27%
> $55M and < $65M = 72.75% 27.25%
> $65M and < $75M = 72.50% 27.50%
> $75M = 71.50% 28.50%43
Camptown is an existing facility that can be readied to generate revenue to Kansas sooner than our proposed competitors
Most experienced Kansas gaming management team, and has the most Kansas regulatory experience
100% owner financed – resources to sustain facility
Gilley’s – a regional entertainment attraction
Existing regional 60K known gamers database
A traffic study concluded that Camptown can accommodate traffic without a negative impact to area residents
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