Ford Co. Dodge City casino plans advance

[Note that the promised donations to Western tourism venues isn't part of either presentation. Both of these Kansas companies, with local supporters, have made oral statements of a percent or so of their revenues going to help SW Kansas Western heritage tourism. Time will tell.]

Two Ford Co. casino plans advance

Developers' proposals will now move on to second round of the competition,

By Chris Green, Hutchinson News, May 28, 2008

Two developers cleared an initial hurdle Tuesday in their battle for the right to build and manage a state-owned resort casino in Ford County.

The Kansas Lottery Commission voted to endorse contracts with both Olathe's Butler National Service Corp. and Wichita's Dodge City Resort and Gaming Co. to develop a Dodge City casino with a Wild West theme. ...

Wichita attorney Steve Joseph, who leads a bid by Dodge City Resort and Gaming Co., said his group's task is to now persuade the seven-member review board to the merits of its plans.

Joseph's venture includes former Wichita Mayor Bob Knight, state media magnate Larry Steckline and his wide, former Kansas Attorney General Carla Stovall Steckline among its investors.

It plans to spend $20 million to build a temporary casino by spring 2009. It would later develop a $92.3 million permanent gaming site, complete with hotel, restaurants, shops and three rodeo arenas near the northeast corner of Dodge City.

Joseph said his group has the biggest "concept" for southwest Kansas and hopes to make Dodge City an entertainment capital in the model of Branson, Mo.

"If Branson, Missouri, can do it, Dodge City can do it, too," Joseph said.

But Clark Stewart, president and chief executive officer of Butler National, said it's his firm's plans that would be in the best interest of the state and the southwest region.

The project's manager emphasized the company's support from local officials and how the project will help Dodge City's economy and its effort to retain its young people during a presentation to the commission last week.

Butler National, hired by Dodge City's Boot Hill Gaming Inc., plans to build a $92.9 million casino in two phases near U.S. 50 on the city's western edge.

Initially, the company would open a $22.3 million interim gaming site by September 2009. It plans to complete the project, along with a 124-room hotel, restaurants and a spa, by September 2011. ...

FORD COUNTY

Butler National Service Corp.

(Boot Hill Casino and Resort)

State: 22 percent of annual casino revenues plus an additional percentage based on revenues above projections, up to 38 percent.

Ford County: 1.5 percent.

Dodge City: 1.5 percent.

Problem Gambling-Addictions Fund: 2 percent.

Dodge City Resort and Gaming Co.

(Dodge City Casino Resort)

State: 22 percent of annual casino revenues, plus 10 percent of net cash flow when revenues exceed $95 million.

Ford County: 1.5 percent.

Dodge City: 1.5 percent.

Problem Gambling-Addictions Fund: 2 percent.

Dodge City casino: some new plans & visitor numbers

The Hutchinson News, May 21, has two different views of the tourism impact of the two different casino proposals for Ford County/Dodge City -- neither set of figures seems to match any research done on the Dodge City location -- research that clearly states most gamblers would be coming from within 50-100 miles from Dodge City.

With gas heading for $4.00 a gallon and higher, seems unlikely that either set of figures will be accurate. And, of course, with casinos going up all over Kansas and Oklahoma, I wouldn't want to be planning much on any of these projections. Only the State of Kansas will win in this casino building orgy, and of course, those selling the land, and constructing the buildings.

Developers present plans for new casino, Hutchinson News:

"...Butler National, hired by Dodge City's Boot Hill Gaming Inc., plans to build a $92.9 million casino, called the Boot Hill Casino and Resort...

The developers said the project would employ 654 full-time workers and could, by 2013, draw up to 418,000 annual visitors traveling from more than two hours away...

...The competing project, the Dodge City Casino Resort, ...said the casino would likely draw 1 million people per year [nee', 1 million visits], 250,000 to 300,000 of whom would come from outside the state or from more than 100 miles away. It would employ at least 377 full-time workers...."

[Compare these numbers with the 2007 research quoted often in public by one of the applicants -- before $4.00 gas -- which states:]

"In order to maintain the quality of life of the area, the additional fiscal and economic costs incurred due to a casino would need to be covered by additional governmental revenues...

"Conversely, benefit-cost ratios of 0.75 shows public benefits are only 75 percent of public costs – costs exceed benefits...

"Since gambling has been legalized and made accessible in several states, the range of pathological gamblers has increased to 1.5 to 5 percent in those states..."

"Distance from Casino in miles and
Annual Spending per Person*


0-10 $ 527.64
10-25 $ 234.23
25-50 $ 114.76
50-75 $ 66.97
75-100 $ 32.22
100-125 $ 13.37
125-150 $ 14.36
150-175 $ 8.99
175-200 $ 3.29

*Estimates by Christiansen Capital Advisors, LLC in current dollar value (2007$)

WSU_Impact_Study_on_Expansion

Best, Uncle George

Untangling the Kansas casino legal mess: Dodge City Events Center issue

Questions that the various Dodge City Daily Globe articles by Mark Vierthaler on the $34 million casino infrastructure costs, forgot to ask, re: public funds paying for casino infrastructure --

From:
Untangling the Kansas casino legal mess, By Rick Alm, The Kansas City Star, April 07, 2008

The question of public financing for state-owned casinos in Kansas is a sticky one. It’s also an odd one considering that state dollars and state manpower will be expended in coming years in the state’s role as casino owner.

That dilemma hasn’t come up yet.

For now, both sides in the battle are lawyered up, and the legal briefs are flying.

A lawsuit financed in part by Topeka-based taxpayer watchdog Americans for Prosperity-Kansas has alleged that all three casino projects proposed for Kansas City, Kan., violate the state casino law’s ban on public financing of casinos.

And from same article:

Kansas’ casino law is clear: “No state or local tax abatement … no revenue bonds, tax increment financing or similar financing shall be used to finance any part of any lottery gaming enterprise or any racetrack gaming facility.

Seems that with the location of our Events Center being decided, without vote, by a member of the private casino applicant Boot Hill Gaming Inc./Butler National -- ie., CFAB Chair Greg Starks -- that the Americans for Prosperity-Kansas will have a field day when public tax money is used to pay for $34 million dollars of infrastructure NOT NEEDED by our Events Center, except that the location was suddenly moved to help the CFAB Chair's private interests. Remember that Mr. Starks, for 10-years, pushed and pulled the Events Center to the center core of the city -- where the costs would be only a fraction of the 2-miles from downtown location that he wants now -- on land he brokered, from a fellow Boot Hill Gaming Inc. board member.

That Starks had to quit the gaming board was at least finally a statement of ethical problems, but of course, after the fact of his profit.

Time for the City/County Commissions to review the location of the public Events Center or state that the cost of at least half or more of the infrastructure must be paid by one of the two casino applicants, when awarded the exclusive multi-year contract by the State of Kansas.

Lawyers are going to love this otherwise.

Signed: Uncle George

Dodge City Commission Candidates & Casino $34 million infrastructure

Dodge City Commission Candidate Forum, High Plain Journal conference room, Sat., March 15, 10 a.m.

Suggested by many that this public candidate forum on Saturday will be a great opportunity to ask serious questions about the possible tax payer costs and underwriting of the casino infrastructure through the Special Events Center forced location next to the for-profit privately managed state-owned casino.

It has been noted often that the major forces for this Events Center location were people directly involved (ie., CFAB Chair Greg Starks, although at the time not to the public) with the private casino related Boot Hill Gaming Inc. and thus would gain financially by the tax payers' money. It is illegal under Kansas State laws to have ANY tax money used for the casinos.

Time for potential and current city commissioners to be asked how they plan on paying for the huge increased infrastructure costs for the Events Center by the far out-of-town locations. And how that cost will be passed on to the two possible casinos.

Since the Events Center is budgeted at $30 million dollars and the casinos at over $60 million dollars or more each -- looks like at least 2/3s of the cost should be carried by the casinos, or more, since their needs for sewers (hotels, etc.) are massively different than the Events Center's.

Be sure to go to this forum and be sure to ask very pointed questions. It may be the only time that these candidates have to publicly answer.

Signed: Uncle George

Special Dodge City Commission meeting -- Monday, March 3, 5:30 p.m. -- Casinos, event center

Looks like anybody wanting to hold on to their tax money better be at this one. Wonder how the casinos will pay for their infrastructure? Wonder where the water will come from? But, hey, with that $34 million infrastructure, we'll have the most expensive $30 million dollar events center in the country. Bonus?


CITY COMMISSION AGENDA
SPECIAL MEETING
City Commission Chambers
Monday, March 3, 2008 5:30 p.m.
MEETING #4701

CALL TO ORDER
ROLL CALL
BUSINESS


1. Review and Action on Butler National Memorandum of Understanding
Re: Butler National Casino/Event Center Proposal

2. Review and Action on Global Entertainment Consulting Agreement
Re: Special Event Center

3. Review and Action on Joint Communication Board Agreement Amendments

4. Review and Action on Dodge City Resort & Gaming Casino Endorsement Resolution





ADJOURNMENT

$34 million for casino/event center infrastructure -- a record ? -- money certainly not a problem for an actual county museum

FORD COUNTY CASINO: Dodge City Could Pay an Estimated $33,340,000, Dodge City Daily Globe, Feb. 19, 2008

First, glad that money is just not an issue for CFAB/Dodge City Commission/Ford County Commission. That is obvious, since it is a fact that they didn't like this number being added up and put in a headline.

This may be a record, right up there with the "Big Dig" -- of potentially $34 million city tax dollars spending on infrastructure for a $30 million events center. How will they divide up the cost so that no tax money goes illegally to the casino? How does that work? Or is it not of interest to CFAB to stay within that law? How does a city file for bankrupt status? Should look that up.


Of interest is the failure by CFAB or the Dodge City Commission to plan ahead on the massive cost of putting the public event center by the casino -- in either location. Somehow, this planning was avoided until this week -- and the figures, as would be expected due to locations, are very, very high. $34 million dollars is the current estimate of the cost for water, sewer, roads for the far west location. And this figure doesn't seem to include a no-doubt necessary EMT/fire station for the west location. Costs would be similar for the east location, it was said.

What is sad is that the $10 million or so needed for an actual Ford County Museum with archive has been ignored as being to expensive by the same CFAB/City/County boards. It is just history -- not the 'fun' of gambling.

That makes it clear where the priorities are -- non-productive gaming wins over protecting history for the future. Perhaps the voters will keep this in mind in questions asked of the candidates for Dodge City Commission this spring.

As one that will not go into the casino (although, due to conventions, I have been in casinos in other states more than a few times -- I don't care if people want to throw their money away -- I just don't like to watch it happening, and don't consider it "entertainment"), the massive cost to Dodge City/Ford County of the casino's need for water, et al, negates the value of having the casino here -- except for those few companies and persons building it, servicing it, et al.

Seems that the cost of the infrastructure needs to carried by the for-profit casinos, not the event center. The location of the event center should be, again, reconsidered. And since the court order makes it necessary to build it before any other use of the Why Not Dodge! money, that location will mean the difference between a few million dollars and $34 million dollars for the tax payers.

Sorry to say, property taxes will be affected no matter what is being said now -- there is not enough sales tax money on-going to cover that huge cost, and build the events center -- and certainly not to get it done for an events center before the agri expo center (when did we vote on that ?) or a water park (again, was that in the vote?), as the judge requires.

Signed: Uncle George

Ford County Casino Proposal from Dodge City Gaming Inc.

Dodge City Gaming Inc. proposal includes free land for county/city, horse barns, rodeo area, and 3 percent for non-profit tourism venues.

Endorsement Postponed: Commissioners to decide on casino endorsement at later joint city, county meeting, Dodge City Daily Globe, Jan. 23, 2008

Proposal from the Wichita-based Dodge City Gaming Inc. includes free land for the city to build our events center, something not in the current Butler Services proposal. Dodge City Gaming Inc. also welcomes horses, rodeo, the Old West. This means that a second expo center currently under discussion by CFAB would not be necessary, saving millions.

The location suggested by Dodge City Gaming Inc. is on the north east side of Dodge City, north of the highway, near Ave. P, a location that will not require a new fire/emergency building, again saving a lot of dollars for the tax payers of Ford County.

The state of Kansas will have two solid proposals for consideration, and both include money for non-profit venues, Boot Hill, et al. Guess it is a good bet, so to speak, that Ford County and Dodge City can save a lot of money by having the free land for the Events Center -- no doubt Butler can match this offer in the future.

Dodge City Resort and Gaming Co -- Where does Dodge City Events Center go now ?

[Given the very public position taken by Ford County Commission and Dodge City Commission members that the Events Center 'should' go by the Casino -- not agreed to by many others, but -- guess nothing can be built until the State of Kansas decide which Casino applicant gets their approval.]



Coalition to submit casino application
By Jon Ruhlen - The Hutchinson News, Dec. 19, 2007

DODGE CITY - The deadline for casino applications in Ford County is fast approaching, but at least one company has announced that it will throw its hat in the ring.

A coalition of Kansas businessmen known as the Dodge City Resort and Gaming Co., headed by Wichita attorney Steve Joseph, has its staffers working overtime through the holidays to prepare a 1,500-page document for submission to the Kansas Lottery Commission.

The deadline for applications is Dec. 26. So far, the only company that has submitted an application to build and operate the casino has been the Olathe-based Butler National Corp., which submitted an application in September.

Joseph said the Dodge City Resort proposal, much like the Butler proposal, will be centered around a Wild West theme. It will likely include a 100-room hotel and ample space for commercial and retail partnerships.

Joseph said the proposal will also be aimed at drawing Western-themed attractions to the region - especially rodeos.

"We don't see why Dodge City shouldn't be the rodeo capital of the world," Joseph said. "Talk about a ready-made brand. It's the West - Dodge City."

Joseph said the company has an option on 280 acres of land on the northeast corner of Dodge City. The property, owned by retired local banker John Harding, is bordered by 112 Road on the west and 113 Road on the east. It extends north from U.S. 50 for one-half mile."