Penn National Gaming Enters into Management and Development Agreements with Jamul Indian Village for New $360 Million Hollywood-Branded Casino & Resort in San Diego County
SAN DIEGO & WYOMISSING, Pa.--(BUSINESS WIRE)-- Penn National Gaming, Inc. (NAS: 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.
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.
Penn National Gaming, Inc.
William J. Clifford
Chief Financial Officer
Jamul Indian Village
Joseph N. Jaffoni, Richard Land
212/835-8500 or email@example.com
KEYWORDS: United States North America California Pennsylvania
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