Wednesday, January 8, 2014

Penn Gaming requests 90-day deadline extension for hotel


KANSAS CITY, KAN. ----- The Unified Government Board of Commissioners will vote on a measure Thursday that would allow Penn Gaming 90 additional days for consideration of building a new hotel at the Hollywood Casino location.

The current deadline for the start of hotel construction under an agreement between the company and Wyandotte County is February 2, 2014.

However, in a letter to Unified Government County Administrator Dennis Hays, Penn Gaming VP and Deputy General Counsel Carl Sottosanti said the "economic climate of the past few years" has led to additional economic issues in relation to building a hotel.

Under the proposed extension, the gaming company would be required to make a decision on the hotel by May 1, 2014.

If Penn Gaming fails to commence the construction of the hotel, it owes Wyandotte County one percent of all lottery gaming revenues. As of January 2014, that number would be $1.3 million.

When plans for the casino were approved, a new 250-room hotel was included in the development agreement.

Commissioners will vote on the matter this Thursday. It's recommended for approval by county and city staff.