Penn National Gaming’s proposal for a casino calls for a
contribution of at least $2 million a year to Philadelphia schools and
pensions, it told state regulators on Tuesday.
The Wyomissing, Pa.-based casino operator has one of five
bids for one casino license in the city. It was the first of the five proposals
to face Gaming Control Board questions in the first of three days of hearings
at the Pennsylvania Convention Center.
Its proposed Hollywood Casino (700 Packer Ave.) would cost
$480 million in its first phase and be near Citizens Bank Park and Lincoln
Financial Field in South Philadelphia.
The casino would have an unusual ownership structure. Since
Penn National Gaming already has a Pennsylvania casino, its ownership would be
limited by law. So Penn National Gaming would own one third, while a nonprofit,
Philadelphia Casino Benefit Corp., would be created to own the other two
thirds.
Only Iowa’s casino halls have a similar charitable set up,
Penn National officials said, though the nonprofit beneficiary in the Hawkeye
State receives a portion of the gross proceeds.
“This is clearly different,” said Penn National CEO Timothy
Wilmott. “Cash flow would not be tied to gross revenue.”
Instead, the nonprofit set up to benefit Philadelphia
schools and pensions would receive a yearly flat payment. The payment would be
about $2 million in the first five years and escalate to $23 million by the
15th year of operation.
Source: Philadelphia
Business Journal
No comments:
Post a Comment