DC Resort & Gaming In Wichita Eagle Today

[Bubba]

Also, in these times of high fuel prices you are seeing less and less RV's on the road all the time. Many RV dealers are seeing tough times and laying people off or closing up shop.

[old timer]

I received no pay for 7-years of lobbying, paid much of my own expenses

When I'm wrong, etc. -- truly sorry. That I did not know, given that thousands of dollars has been paid someone for lobbying, even I understand a 'loan' from local chamber related group. I'm clearly wrong about that being you. Mea Culpa.

2nd: if my 'crap' includes deep concerns about conflicts of interest involving our tax money and our events center and the decisions affecting both (and misuse of official city appointed positions), then that 'crap' will continue. If my 'crap' includes being against sprawl and high uses of water and unnessary expansions of tax payer paid infrastructure, then that 'carp' will continue, too. I might be confused, but I've never considered ethical concerns to be crap. Maybe I expect to much ?

[Clueless]

Originally Posted by Arkansaspm

I understand that Butler have their own design company. The question that I was asking “Will Butler, construct the casino, plus operate the same”? I do not understand how this will work. I though that a group of Local Investor were to build the Casino, and income from gaming would pay for the Casino after a certain number of years, then it would be turned over to the State, and Butler would run the show. Am I wrong on this?

Good question - and I can see why this is confusing - especially with the 'State owned and operated' part that went to the Supreme Court. I'll try to make it clear -

Butler has two architects on the project. One (KKE, Minneapolis, MN) is the lead - they have designed many casinos around the world. The Boot Hill Casino is a close-twin of one they designed - Riverside Casino, Iowa City, IA. The other firm is BCS Design, Olathe, a subsidiary of Butler Natl Corp.

Butler will build the casino, using their funds to do so. Because the project is so large, they will use an out-of-area general contractor, but much of it will be sub'd locally. Butler will own the casino - the building itself, the brick and mortar.

The Kansas Lottery approved Butler to manage the casino by virtue of their qualified experience in managing another casino in OK for about 8-9 years. However, Butler has contracted with another company, Navegante, from Nevada, to manage the Casino for the first 3 years or so. Navegante is a very substantial company that own and operates many properties. Their founder and CEO is retired President of MGM. That guarantees about the best management we could have locally.

The 'State owned and operated' means that the State owns the business of gaming and then contracts with a Butler to manage the business. If the manager should lose their contract with the State for some reason, they would still own the building, but no ability to run it as a casino. The best example is a fast-food franchise. If you lose your franchise, you're left with a building, but it no longer can be operated under the previous name.

I hope this is more clear. The casino (as a building) is never turned over to the State, and the manager is under a very strict contract and supervision by the Kansas Racing & Gaming Commission who will have 4,000 sq ft of offices at the casino and supervise 24/7 its operation.

While it's expected to be profitable, the gaming business is under a lot of pressure from high fuel costs and individuals have less discretionary income. Lately, we've seen large gaming companies pull out of Kansas (MGM-Mirage in Sumner, Sands in Wyandotte) because profits are too thin. Dodge City will be a bit better because of it's much lower minimum investment ($50 Million v/s $225 Million in Sumner and Wyandotte), but because they must pay the State 27% of gaming revenues (that's before any bills are paid) it means every casino has to be managed very well.

[Made in the USA]

Thanks for the explanation, Clueless! I think a lot of the "complaining" is because not everyone knows all the facts!! Thanks again!

[Arkansaspm]

Clueless;

Sorry for all of the trouble. You do understand WHY people are all worked up with out the facts.

If the Casino will have to watch thing close, how about Dodge City. Our taxes are going to have a lot of people pinching pennies. Some day soon, we must sort out what is important and what is not. I have not known anyone or anything that will spend yourself out of debt. You being a banker must understand that.

Thanks again.

[Clueless]

Originally Posted by Arkansaspm

Clueless;

Sorry for all of the trouble. You do understand WHY people are all worked up with out the facts.

If the Casino will have to watch thing close, how about Dodge City. Our taxes are going to have a lot of people pinching pennies. Some day soon, we must sort out what is important and what is not. I have not known anyone or anything that will spend yourself out of debt. You being a banker must understand that.

Thanks again.

Your welcome. We want people to know the facts, but they're complicated sometimes and hard to explain or understand. There has been a lot of confusion - but everything can be explained. I'll answer any question the best I can - so if you have another, let me know.

[old timer]

Serious concerns regarding one of the applicants, Butler National and their actual financial ability to back a $50-80 million dollar casino.

Please listen to the conference call following their 2008 annual meeting, dated 04/16/08.

Mr. Clark Stewart, the President and CEO of Butler National can be overheard saying that they plan to consider a reverse stock split to raise their share price to finance their casino project, should they receive a license. Another option referenced is giving up a portion of the casino project to an equity partner. (Not stated whom??)

You can listen to this call at their website: www.butlernational.com

It appears to me that this company is lacking the financial wherewithal to properly finance their casino proposal, which from the Kansas Lottery website is stated to be in excess of $90 million. They certainly don’t have the money now. Isn’t that required of them to make an application? Anyone seeking a casino license should have the ability to finance the project before getting a license from the state, not after, don't you think?

[Clueless]

Originally Posted by old timer

It appears to me that this company is lacking the financial wherewithal to properly finance their casino proposal, which from the Kansas Lottery website is stated to be in excess of $90 million. They certainly don’t have the money now. Isn’t that required of them to make an application? Anyone seeking a casino license should have the ability to finance the project before getting a license from the state, not after, don't you think?

OT - This is probably the only question I won't answer and that's because it is confidential.

BUT - think about this. Butler's application to lottery was over 2,000 pages long and contained a detailed response to every section. Part of that was clear evidence of financing or capitalization to fund a $92 Million project. All applications to Lottery were kept confidential. Lottery, and it's consultants, approved Butler's application and also approved a subsequent contract.

You know from Lottery's actions that there must have been compelling evidence of financing, capital injection, or both. Lottery would never have approved any application without that element.

July 31, Butler will announce the details of that financing plan in their presentation. I am prohibited from providing that now. I hope you can accept Lottery's action and opinion as being ample evidence that your assertion that Butler "is lacking financial wherewithal" to be apparently incorrect. Believe me, Lottery and KRGC are not taking any chances - they have looked at everything with a microscope and we should accept their opinions as being researched and sound. In addition, you heard Steve Martino speak of the ethic policy the boards are operating under. You have to trust the process.

[gadwall]

old timer so what if they lose their a$$. its theirs not yours. do yuo care if my business goes under.

[old timer]

do yuo care if my business goes under.

As long as you don't require the city/county to spend millions of dollars to put water, sewer and roads to it, no.

But if you do, Yes.