Company to Simultaneously Plan for Development on Arena District Site Pending Legislative Action and May Statewide Vote
Penn National Gaming, Inc. (Nasdaq: PENN) announced today it has entered into an option to purchase the site of the former Delphi Automotive plant on Columbus'' West Side as an alternate location for its planned development of Hollywood Casino Columbus.
Penn National''s alternate 123-acre site is located on Georgesville Road near the intersection of West Broad Street. In November 2009, in connection with an amendment to the state constitution, Ohio voters approved the development of a casino in Columbus'' Arena District. The company agreed to consider alternate sites at the request of public officials and others in the Columbus community.
"We looked carefully at the various alternative sites proposed by Mayor Michael Coleman and others," said Tim Wilmott, President and Chief Operating Officer of Penn National, at a news conference with local and state officials and supporters of the West Side location. "While we continue to conduct due diligence on the Delphi site, we currently believe it will be suitable for the $250 million-plus casino development we plan for the Columbus area, and we made the decision to option it based on our dialog with the community and city leaders."
"We explored a number of potential sites, and we appreciate the feedback we received from the communities interested in hosting this significant economic development project," Wilmott said. "Ultimately, we chose the Delphi site because of its excellent highway access, its status as a brownfield site, which fits well with our original vision of urban revitalization, and because it received very strong support from local community and business leaders. In addition, with 123 acres, it provides us with the needed flexibility to develop a comprehensive master plan for the site."
In order for Penn National to be authorized to build on the Delphi site, the General Assembly must first approve a Constitutional amendment by a three-fifths majority, and the issue then must go before Ohio voters this May.
"Given the uncertainty of an outcome in the legislature and at the ballot box, we will pursue development of both sites in parallel," Wilmott said. "Our goal is to begin development as soon as possible so we begin generating new jobs, as well as gaming taxes earmarked for counties, cities and public schools across the state as well as for Ohio''s horse racing industry."
Last week, Penn National completed the purchase of approximately 24 acres at and in the vicinity of 560 Nationwide Boulevard in the Arena District – the site authorized in the Constitutional amendment approved by Ohio voters on November 3, 2009.
Penn National will invest a minimum of $250 million to build Hollywood Casino Columbus, with a targeted opening in the second half of 2012.
About Penn National Gaming
Penn National Gaming owns and operates gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates nineteen facilities in fifteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National''s operated facilities feature over 26,300 gaming machines, approximately 400 table games, over 2,000 hotel rooms and over 959,000 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 "Penn National") 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 Penn National''s actual results to differ from expectations include, but are not limited to, risks related to the following: our ability to maintain regulatory approvals for our existing businesses and to receive regulatory approvals for our new businesses; the passage of state, federal or local legislation that would expand, restrict, further tax, prevent or negatively impact operations (such as a smoking ban at any of our facilities) in the jurisdictions in which we do business; the activities of our competitors and the emergence of new competitors; construction factors, including delays, unexpected remediation costs, local opposition and increased cost of labor and materials; the costs and risks involved in the pursuit of those development opportunities; the availability and cost of financing; the effects of local and national economic, credit, capital market, housing, energy conditions on the economy in general and on the gaming and lodging industries in particular; and other factors as discussed in Penn National''s Annual Report on Form 10-K for the year ended December 31, 2008, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. Penn National does not intend to update publicly any forward-looking statements except as required by law.
Contacts:
Penn National Gaming, Inc.
Eric Schippers, 610-378-8321
Senior
Vice President, Public Affairs
eric.schippers@pngaming.com
or
Jaffoni
& Collins Incorporated
Joseph N. Jaffoni, Richard Land
212-835-8500
penn@jcir.com
