1 / 15

Seabrook Greyhound Park

Providing jobs, tax revenue, and charitable contributions to local businesses for over 35 years, Seabrook Greyhound Park is presenting a new business proposal to the New Hampshire Gaming Study Commission.

robertod
Download Presentation

Seabrook Greyhound Park

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Providing jobs, tax revenue, charitable contributions, and support to local businesses for over 35 years… Seabrook Greyhound Park July 7, 1973 Ribbon Cutting Ceremony … and now poised to do even more. Presentation to the New Hampshire Gaming Study Commission October 20, 2009 v.1.2. Today Tomorrow Tomorrow

  2. Presentation Outline • Introduction • Location … where and the importance of “where.” • Development Options … tax revenue vs. jobs vs. investment and the “sum of the parts.” • Seabrook Proposal … optimize the opportunity for all stakeholders. • Execution … Seabrook’s ability to develop, fund, open, and manage. • Summary Pg. 1, 10/20/09 v.1.2.

  3. Key Takeaways Seabrook Greyhound Park (“SGP”) is the logical business choice for a slot machine gaming license because: • SGP is one of two southern New Hampshire locations poised to maximize out-of-state revenue from Boston/Massachusetts and northbound tourists. • SGP has been contributing jobs, tax revenue, charitable contributions, and support to local businesses for 36 years. • SGP is experienced, capable, and ready to invest at least $100 million in a renovation of the existing 70,000 facility as well as the addition of a permanent gaming facility that will include: • 2000 video lottery terminals (VLTs). • Gourmet buffet, 200-seat casual dining restaurant, 100-seat fine dining restaurant, lounges, and entertainment center. • SGP will joint venture with an experienced casino company to: • complement SGP’s local, regional, and state pari-mutuel, poker, and charitable gaming experience and to … • bring casino machine-style gaming development, operating, and marketing expertise as well as capital to the expanded operation. Pg. 2, 10/20/09 v.1.2.

  4. Introduction to Seabrook • Seabrook Greyhound Park (“SGP”) opened July 2, 1973. • Since opening SGP has raised $130 million in State taxes. • Raised $3 million for charities since 2006. • SGP currently provides 75 jobs generating a 2008 payroll of $2 million. • SGP is a full, year round leisure/entertainment destination catering to adjacent out-of-state residents, northbound tourists, and local residents with: • Year-round simulcast – thoroughbred, harness, and greyhound racing of over 50 tracks nationwide. • Telephone wagering. • Charitable games of chance: blackjack, craps, roulette, and poker. • NH lottery and scratch tickets. • Dining room and buffet, concessions, and lounges. Pg. 3, 10/20/09 v.1.2.

  5. Location SEABROOK NH SGP RP Seabrook Rockingham Park Rockingham Park BOSTON MA Boston Boston Highway Routes Source: Google Maps Population Density Source: Wikipedia Gaming Competition – Current Source: Cummings Associates • SGP provides one of the two best locations to access residents of the Greater Manchester-Boston/Massachusetts Market Area and northbound tourists. • Distance matters – double the distance and demand decreases by three-quarters. Pg. 4, 10/20/09 v.1.2.

  6. Competitor Locations 11 Pg. 5, 10/20/09 v.1.2.

  7. Development Options Public Stakeholder Goals Private Enterprise Stakeholder Goals Ability to conceptualize, develop, and execute a “Product” that meets or exceeds the needs, wants, and expectations of the consumer ... at a price and cost that achieves equity and debtor target financial goals, and niches / beats the competition. • Jobs … construction / operating. • Tax / other revenue to local, regional, and State government. • Secondary benefits … • Affinity business support. • Incubation of new businesses. Tradeoffs … higher taxes/fees, development/operating constraints lead to … … Lower investment … Less capacity and/or quality of facilities … Less consumer attraction … Less ability to compete … Fewer jobs (construction and operating) … Lower taxes, revenue to government BUT, … the reverse is also true. Pg. 6, 10/20/09 v.1.2.

  8. Development Options … continued Development Potential Scenarios Implications • Opportunistic 1. Under build and under-pace the market. • Tax Rate Based 2. Investment and benefits are sized to the tax rate. The higher the tax rate the lower the initial and phased investment and vice versa. • Maximize the 3. Initial and phased expansion maximizes Opportunity the market opportunity with the ability to raise and service capital. External force: Whereas pre-financial crises there was capital for any project, today capital is not guaranteed. Thus, it is incumbent upon both government and private developers to strategize development in a manner that attracts the necessary capital under acceptable terms and conditions. Pg. 7, 10/20/09 v.1.2.

  9. Seabrook Proposal Current Proposal - up to $100M permanent racino addition 2000 video lottery terminals (VLTs). Large charitable gaming section including poker and table games. Renovate existing grandstands, simulcast facility, restaurants, and Poker Room. Gourmet buffet restaurant 200 seat casual dining restaurant and bar. 100 seat fine dining restaurant and lounge. Entertainment center. Meeting and event space. Valet parking. • 70,000 square foot facility. • Year-round simulcast of thoroughbred, harness, and greyhound racing of over 50 tracks nationwide. • Telephone wagering. • Charitable games of chance: blackjack, craps, roulette, and poker. • NH lottery and scratch tickets. • The Kennel Club dining room and buffet, concessions, and lounges. Pg. 8, 10/20/09 v.1.2.

  10. Proposed Rendering Pg. 9 10/20/09 v.1.2.

  11. Proposal Benefits **Based upon the Innovation Group report presented to NH Senate Ways & Means Committee, 3/09. • $20M to NH upon approval of VLT license plus … • $50,000 to Attorney General’s Office for investigation fee. • $100,0000 to Lottery Commission for initial license investigation. • Estimated $50M in new NH tax revenue upon full operation: • $ 41M State general fund. • $ 3M town of Seabrook. • $ 1M Rockingham County. • $ 2M to programs to help and prevent gambling abuse. • $ 1M NH Dept. of Resource & Economic Development. • $ 1M NH Dept. of Safety. • $ 1M NH Racing &Charitable Gaming Commission. • Immediate benefits from temporary facility (if allowed): 400 jobs and in excess of $8M payroll. • Significant games of chance revenue increase, much of it from Massachusetts residents and northbound tourists. • Additional food and beverage tax revenue. • Jobs • 150 estimated temporary construction jobs. • More than 400 direct full and part time jobs. • Annual payroll in excess of $10M. • Additional 500 indirect jobs developed in the region (multiplier effect). Pg. 10, 10/20/09 v.1.2.

  12. Proposal Execution • SGP has the current ownership vision, New Hampshire experience, and core base of management and employees to conceptualize, seek funding and secure a joint venture partner to finalize plans, construct, pre-open, and operate/market the property once open. • The Joint Venture Partner will: • Contribute needed project development and construction capital. • Raise additional debt financing with SGP, if necessary. • Operate and market the property once open. • SGP is confident that it will be able to attract an experienced, capable, and “right” JV Partner because … • The capital required is right-sized and do-able in today’s economy. • An oligopolistic license serving the Greater Manchester-Boston market area will be attractive. • Experientially, there are a number of gaming executives seeking good, stable employment. Pg. 11, 10/20/09 v.1.2.

  13. SGP Flexibility SGP understands that the initiative to introduce casino-style machine gaming to New Hampshire remains in the discussion stages. SGP looks forward to actively participating in these discussions. And, when the final enabling legislation has been enacted, SGP stands ready to conform to the will of the citizens and stewardship by the government of New Hampshire. Pg. 12, 10/20/09 v.1.2.

  14. Summary Seabrook Greyhound Park (“SGP”) is the logical business choice for a slot machine gaming license because: • SGP is one of two southern New Hampshire locations poised to maximize out-of-state revenue from Boston/Massachusetts and northbound tourists. • SGP has been contributing jobs, tax revenue, charitable contributions, and support to local businesses for 36 years. • SGP is experienced, capable, and ready to invest at least $100 million in a renovation of the existing 70,000 facility as well as the addition of a permanent gaming facility that will include: • 2000 video lottery terminals (VLTs). • Gourmet buffet, 200-seat casual dining restaurant, 100-seat fine dining restaurant, lounges, and entertainment center. • SGP will joint venture with an experienced casino company to: • complement SGP’s local, regional, and state pari-mutuel, poker, and charitable gaming experience and to … • bring casino machine-style gaming development, operating, and marketing expertise as well as capital to the expanded operation. Pg. 13, 10/20/09 v.1.2.

  15. Thank you. Seabrook Greyhound Park

More Related