Danville Casino July 2, 2019 121 W Wacker Drive, Suite 400, Chicago, Illinois | 312.488.1918
Introduction PROPOSED STEERING COMMITTEE • Rickey Williams, Jr. – Mayor • Vicki Haugen – President & CEO, Vermilion Advantage, NFP • Tinisha Shade-Spain – Director of Business Development, Vermilion Advantage, NFP • Chris Yates – Acting Police Chief • Dave Wesner – City Corporation Counsel • Gardner Peck – Danville Metal Stamping Co. • Jerry Connolly – Venture Mechanical • Mike Puhr – Alderman; Chairman of Public Works Committee 2
Table of Contents Table of Contents PAGE 4 – Team Overview PAGE 12 – Bill Requirements PAGE 14 – Process PAGE 17 – Precedents PAGE 19 – Potential Sites PAGE 24 – Preliminary Conceptual Approach 3
Team Overview VERMILION DEVELOPMENT 4
Team Overview PUBLIC-PRIVATE PARTNERSHIP PROJECT EXAMPLES • CIF - University of Illinois Engineering Building – Urbana, IL • $70M project cost • 125,000 SF instructional space • 901 W. University – Urbana, IL • $6.3M project cost • 32,000 SF of office and retail space • Harper Court – Chicago, IL • $106M project cost • 195,000 SF of office and retail space, and a 131-room hotel • Carle Medical Building – Danville, IL • $6M project cost • 46,000 SF of medical office space • University Hall (IUPUI) – Indianapolis, IN • $20M project cost • 100,000 SF of office space 22 N. 5 th Street (ISU) – Terre Haute, IN • • $5M project cost • 32,000 SF of office and retail space 5
Team Overview MARKET-RATE DEVELOPMENT PROJECT EXAMPLES • Viridian on Sheridan – Chicago, IL • $38M project cost • 10-story, 100-unit apartment building • Alcove M.D.P. – Chicago, IL • $43M project cost • 7-story, 43-unit condo building • 12 townhomes • The Wallis – Minneapolis, MN • Pre-development • 13-story, 256-unit apartment building 6
Team Overview AFFORDABLE ASSISTED LIVING SILVER BIRCH ASSISTED LIVING • 8 facilities open • 1 facility under construction • 1 facility in pre-development • $203.5M+ total investment • 958 assisted living apartments operating • In excess of 320 employees 7
Team Overview THE CHICAGO CONSULTANTS STUDIO, INC. OVERVIEW • Master development group with over 25 years of gaming development experience • Serves developers and municipalities by assisting with: • Planning • Programming • Site Assessment • Gaming Operator Solicitation and Evaluation • Construction Oversight 8
Team Overview THE CHICAGO CONSULTANTS STUDIO, INC. PROJECT EXAMPLES • South End Redevelopment – Springfield, MA • Assisted with RFP process and selection of gaming and development partner • Led initial planning effort • Refined final plan with MGM Resorts • Bally’s Tunica – Tunica, MS • Provided master planning expertise for relocation and redevelopment of riverboat complex • Created unique program opportunities drawing on history of the area 9
Team Overview TAFT LAW OVERVIEW • Areas Covered • PAUL T. JENSON Regulatory & Compliance • Partner-in-charge / Industry Chair Mergers & Acquisitions • Finance • Paul is a leading gaming lawyer who has extensive Governmental Representation experience counseling casino owners, operators, • Litigation suppliers, lenders and institutional investors in all aspects of gaming regulatory law. • Clients • Casino Developers, operators, and managers • Gaming equipment distributors and suppliers • Investors in, and lenders to, casino projects • Route-based terminal operators and establishments • States & municipalities • Gaming commissions and boards 1 0
Team Overview TAFT LAW PROJECT EXAMPLES • City of Chicago, IL • Since 2003, assisted officials with its attempt to pass a gaming expansion bill • Drafted legislation and reviewed proposed legislation • Advised the city on all aspects of the casino industry • South End Redevelopment – Springfield, MA • Assisted with RFP process and evaluated and negotiated proposals and agreements • Worked in conjunction with consultants and advisors to determine financial feasibility and adverse impacts of development • Represented the city at public meetings, hearings, and committees. 11
Bill Requirements SENATE BILL 690 Danville Application Requirements: • Application to be submitted no later than 120 days after the effective date of the Act. • Nonrefundable application fee of $250,000 and background investigation fee. • City Requirements: 1. Public hearing to discuss certification requirements (see following slide). 2. Resolution approving the details of the proposed casino following the public hearing. 3. Submittal of a certification of the requirements to the Gaming Board. 12
Bill Requirements SENATE BILL 690 Danville Application Requirements - Certification to the Gaming Board: I. That the applicant has negotiated with the corporate authority or county board in good faith; II. That the applicant and the corporate authority or county board have mutually agreed on the permanent location of the riverboat or casino; III. That the applicant and the corporate authority or county board have mutually agreed on the temporary location of the riverboat or casino; IV. That the applicant and the corporate authority or the county board have mutually agreed on the percentage of revenues that will be shared with the municipality or county, if any; V. That the applicant and the corporate authority or county board have mutually agreed on any zoning, licensing, a public health, or other issues that are within the jurisdiction of the municipality or county; and VI. That the corporate authority or county board has passed a resolution or ordinance in support of the riverboat or casino in the municipality or county. 13
Process TIMELINE 10/14/2019 10/21/2019 10/28/2019 6/24/2019 7/15/2019 7/22/2019 7/29/2019 8/12/2019 8/19/2019 8/26/2019 9/16/2019 9/23/2019 9/30/2019 10/7/2019 7/1/2019 7/8/2019 8/5/2019 9/2/2019 9/9/2019 Task (Due Dates in White Text) Governor Signed Bill 6/28 7/8 Prepare Solicitation of Interest 7/3 Responses to Solicitation of Interest 7/31 Selection of Operating Partner 8/14 Solidify Community Benefits/Determine Land Use Approval Process 9/2 Community Presentation Preparation of Application / Market Study Entitlement Process / Zoning Approval Process Approval of Zoning Submit Application 10/21 Deadline for Application 10/28 14
Process SOLICITATION OF INTEREST DELIVERABLES 1. Partner’s interest, approach, and related experience 2. Analysis of the market 3. Preliminary program of the casino 4. Detail the number of jobs that will be created 5. Provide a record of compliance 6. Estimated balance sheet for the project 7. Approach to capitalization and source of equity capital 8. Preliminary operating pro forma 9. Suggested approach for paying predevelopment costs and application fee 10. Approach to operating a temporary casino 11. Regulatory and compliance history 12. Safety & Security 13. Approach to community benefits 14. Willingness to forego local enterprise zone benefits 15. Experience working with building trades and project labor agreements 16. Approach to incorporating local investors and community input 17. Approach to including MBE/WBE/VBE investors 15
Process SOLICITATION OF INTEREST EVALUATION CRITERIA • Financial • Analysis of the market • Estimated balance sheet for the project • Approach to capitalization and source of equity capital • Preliminary operating pro forma • Willingness to forego local enterprise zone benefits • Suggested approach for paying predevelopment costs and application fee • Community • Approach to community benefits • Approach to incorporating local investors and community input • Approach to including MBE/WBE/VBE investors • Number of Jobs Created • Design & Operation • Partner’s interest, approach, and related experience • Preliminary program of the casino • Approach to operating a temporary casino • Experience working with building trades and project labor agreements • Security & Regulation • Regulatory and compliance history • Record of Compliance • Safety & Security 16
Precedents EXAMPLE – TUNICA, MS Bally Tunica Resort and Hotel (now operated by Penn National) • Leveraged strong contextual approach • Mississippi Bayou blues • Agrarian architecture/vernacular of the area • Small in population and primarily agricultural area • Sought to attract from Memphis and Jackson, Mississippi markets • Unique appeal and attraction as compared to existing riverboats and hotels • Created a destination live performance venue in signature “silo stage” • Cross promotional ties to Memphis 17
Precedents EXAMPLE – BETHLEHEM, PA Sands Bethlehem • Post industrial city with population of 75,000 • Had to create its own market and distinct destination appeal • Embraced history and steel mill past • Industrial theme and aesthetic, including signature gateway “crane” sign • Has grown through expanded area development • Adjacent outlet mall and events center • Adjacent “ SteelStacks ” – a ten-acre campus dedicated to the arts, culture, community events and education • Founder/host to special events including Lehigh Valley Food & Wine Festival 18
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