Hollywood Casino to delay hotel project

News Release:

KANSAS CITY, KAN. ---- The owners of the Hollywood Casino at Kansas Speedway are postponing construction of a 248 room hotel.

Construction on the hotel was to be underway this week.

Executives with Kansas Entertainment and Penn National Gaming, owners of the Hollywood Casino, indicate proposals in the Kansas Legislature to change the way casinos are taxed and a bill to designed to help the

Woodlands Race Track reopen with as many as 2,800 slot machines played a role in their decision to delay construction of the hotel. That legislation would give the Woodlands a significant tax advantage over the Hollywood Casino.

Under the development agreement between the Unified Government of Wyandotte County/Kansas City and Hollywood Casino, the casino must now pay a financial penalty for not building the hotel. The penalty is 1% of the casino’s annual gaming revenues. The terms of the deal call for the casino to start paying the penalty dating back to February 2014.

“Hollywood Casino is a strong partner which provides major financial support to our community. While I’m disappointed the hotel project is not moving forward at this time, I’m pleased the Unified Government will receive significant new revenues from the casino operator for as long as the project is postponed. That is a benefit and positive news for our citizens and taxpayers, ” said Unified Government Mayor Mark Holland.

Hollywood Casino revenues from February 2014-February 2015 total more than $148-million, which means the 1% penalty which must be paid to the Unified Government will come to more than $1.4-million. The 1% penalty on annual gaming revenues must be paid every year until construction of the hotel actually begins.

Mayor Holland says the delay in the casino hotel project is not a negative reflection on the Village West area.

“The Village West area continues to be a major draw for tourists, business investment and is an economic leader in the Kansas City region. The Legends Outlets is adding a number of new restaurants, shops and a new Residence Inn Hotel. The new $64-million United States Soccer Training Complex, a multi-dealership auto plaza and the global headquarters for the Dairy Farmers of America will also call the area home. And Hollywood Casino continues to do well in the very competitive Kansas City gaming market. The future remains bright for Wyandotte County,” Holland said.

Penn National Gaming executives say they will continue to evaluate the viability of the hotel development and hope to move forward with the hotel project in the near future.

Hollywood Casino hotel gets OK from commissioners

By NICK SLOAN, nick@kansascitykansan.com

KANSAS CITY, KAN. ---- Western Wyandotte County's newest significant economic development project got the final go-ahead Thursday night from the Unified Government's Board of Commissioners.

Commissioners voted unanimously to approve of the resolution for the Hollywood Casino's hotel. Construction is expected to begin in April, with the hotel being wrapped up by the end of 2016.

Commissioners grant Hollywood Casino additional 90 days for hotel plans

By NICK SLOAN, nick@kansascitykansan.com

KANSAS CITY, KAN. ----- Unified Government commissioners unanimously approved a measure Thursday night that will allow the Hollywood Casino an addition 90 days before making a decision on building a hotel.

Facing a February 2 construction deadline, casino officials made the request this week to extend the deadline to May 2014.

Now, the Hollywood Casino would be required to make a decision on the hotel by May 1, 2014.

"We've had a lot of economic challenges in the past few years," said Bob Sheldon, Vice-President & General Manager of the Hollywood Casino at Kansas Speedway. "By May 1, we'll have a commitment to build the hotel or not to build it."

Sheldon said the company needs to determine its design plans and whether or not a significant financial commitment can be made for the hotel to be built.

If Penn Gaming does not begin construction of the hotel by the deadline, they will owe Wyandotte County over $1 million as a penalty fee.

And while the company was granted the extension Thursday night, May 1 is the final deadline, county officials say.

Wyandotte County Administrator Dennis Hays said this is just a "one-time" deal.

Penn Gaming requests 90-day deadline extension for hotel

By NICK SLOAN, nick@kansascitykansan.com

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.