Ford County casino financials called into question

Two applicants vying to build a destination resort and casino in Dodge City made their final sales pitches Thursday morning to the Kansas Lottery Gaming Facility Review Board.
    The board is expected to chose between Dodge City Resort and Gaming LLC and Butler National Service Co., during a meeting scheduled for 9 a.m. today.
    Steve Joseph, president of Dodge City Resort and Gaming, emphasized during the project’s 15-minute presentation that their $70 million proposal has the money and experience to successfully complete the project.
    “We have the capital,” Joseph said. “It’s as simple as that.”
    The issue of the applicants’ ability to finance their proposals took center stage, as Dr. William Eadington, a review board consultant, made some general remarks regarding the state of the gaming industry in light of the recent global credit crunch.
    “A number of major gaming companies and gaming industry projects are suddenly in trouble,” Eadington told the board, adding that the credit crunch has left “a chill in the gaming industry.”
    Butler National Service Corp. CEO Clark Stewart said his company’s $88 million Boot Hill casino proposal also has the money lined up to successfully complete the project.
    “We believe we have the financing,” Stewart said.
    Despite Stewart's reassurances, review board member Bob Boaldin said he still didn’t feel comfortable with Butler’s financing.
    During his presentation, Stewart said the board should consider the quality of the project and the experience of the applicant as it makes its selection.
    “We believe we have a world-class management team that can make it work, regardless of what the obstacles are,” Stewart said.
    Both applicants were quizzed on their pre-development agreements with Dodge City. The agreements include stipulations on how much each proposal would commit to charitable causes and toward infrastructure improvements related to the casinos.
    Dodge City Manager Ken Strobel said that both applicants have committed to basically the same level of investment in infrastructure needed to connect the developments to Dodge City's planned special events center.
    “Most of the numbers are comparable,” Strobel said, adding that specific details would be ironed out with either applicant after the selection process.
    In a previous meeting, Dodge City’s proposal came under fire for its proximity to the area’s feedlots, with critics claiming that the oppressive smells would detract from tourism.
    On Thursday, Joseph said his team’s proposal will only be downwind from the feedlots a fraction of the time, and the smells wouldn’t be a deterrent.
    “I personally interviewed residents to see what they thought, and not a single person said it was a problem,” Joseph said. “There is no smell factor.”
    Review board member Dean Ferrell quizzed both applicants on their plans for a temporary casino.
    Stewart said Butler has dropped its plans for a temporary casino and instead will divide its permanent casino into two phases, the first of which would be open within 12 months of final approval by the Kansas Racing and Gaming Commission.
    “It is real critical that on the first day, this is a first-class place,” Stewart said.
    But Dodge City Resort and Gaming said it remained committed to opening up a temporary facility to help drive revenues more quickly to state and local governments. The temporary facility would transition to administrative offices once the permanent structure is completed, estimated to be within 38 months of approval.
    “We think it is prudent not to overbuild, but to build the facility to the lower revenue numbers and then expand,” Joseph said.
    Following Stewart’s presentation, review board Chairman Matt All said both applicants had quality proposals and thanked them for their applications.