MTGA Gaming, Olympia Gaming, and RED Development Announce Partnership to Develop and Operate a Destination Gaming Resort in Wyandotte County, Kansas
MTGA Gaming, LLC (or “MTGA”), a wholly owned subsidiary of the Mohegan Tribal Gaming Authority (or “the Authority”), the owner and operator of one of the most spectacular and successful casinos in the Northeast – Mohegan Sun in Uncasville, Connecticut – and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pennsylvania, Olympia Gaming-KC, LLC (or “Olympia”), a wholly owned subsidiary of Olympia Gaming, LLC, one of Southern Nevada’s top real estate and casino developers, and RED Leg Sun, LLC (or “RED”), a wholly owned subsidiary of RED Development, LLC, a premier developer of retail lifestyle centers and destination developments, today announced that they have agreed upon terms, subject to customary conditions, for the development of a gaming facility and destination resort named Legends Sun to be located in Wyandotte County, Kansas. MTGA, Olympia and RED have joined in the Legends Sun application in response to a request for proposal from the Unified Government of Wyandotte County/Kansas City, Kansas. If approved by the Unified Government, the project would also be subject to approval by the Kansas Lottery Commission in accordance with the Kansas Expanded Lottery Act.
The proposed Legends Sun would feature a wide array of attractions and amenities that include a Mohegan Sun-style casino, a luxury hotel, a convention and conference facility and lifestyle retail center. Upon completion of the project, RED will manage the retail operations and MTGA will manage the casino and other casino related operations.
“We are delighted to participate in the Unified Government’s selection process to bring a world class gaming facility to the residents of metropolitan Kansas City, Kansas,” said Jeff Hartmann, Chief Operating Officer of the Authority. “Our project anticipates creating over 3,000 construction and permanent jobs and the generation of significant tax revenues for the State and region. We are committed to building a strong and lasting relationship with the local community and the State of Kansas.”
“We view this as a tremendous opportunity to bring a top quality casino, resort, and retail destination to Kansas City for the entire region to enjoy,” said Garry Goett, Chairman and CEO of Olympia Gaming. “We look forward to working hand-in-hand with city and state officials and our partners from the Mohegan Sun and RED Development to design a casino, resort, retail destination that raises the bar significantly for tourism to this region. We are extremely excited to be participating in the RFP process and look forward to one day constructing a spectacular project that Kansas residents will be proud to call their own and will feel is an integral part of their community.”
“We are thrilled to partner with two world-class casino developers on such an exciting project,” said Dan Lowe, managing partner at RED Development. “We have an exciting proposal and believe our project will be a significant tourist draw for the entire Kansas City metropolitan area. We will take all that we have learned through developing the Legends at Village West and will create retail that can complement—not compete—with that vibrant shopping district.”
The Authority operates two of the most successful casinos in the United States. The Mohegan Sun in Connecticut is the most profitable casino on the east coast. With over 6,000 slot machines and 300 table games, Mohegan Sun is a complete entertainment destination comprised of over 3 million square feet, a 10,000 seat arena, meeting and convention space, over 40 retail outlets, and an approximately 1,200 room luxury hotel.
Mohegan Sun at Pocono Downs became the first commercial casino in the Commonwealth of Pennsylvania when it opened on November 14, 2006. Since the opening, both Mohegan Sun at Pocono Downs and Mohegan Sun in Connecticut have operated with the highest slot win per unit in the Northeast gaming market. Upon completion of a Phase II expansion anticipated in the summer of 2008, Mohegan Sun at Pocono Downs is expected to include three fine dining restaurants, a 300 seat buffet, an expanded food court, retail shopping, nightlife venues, additional parking, bus amenities and approximately 2,500 slot machines.
The Authority’s overwhelming success at Mohegan Sun and Mohegan Sun at Pocono Downs is testament to a highly efficient and effective management style that will complement the partnership’s already considerable development and operational capabilities and enhance the potential for a successful gaming facility and destination resort in Wyandotte County, Kansas.
About the Authority and Mohegan Sun
The Authority is the owner and operator of Mohegan Sun in Connecticut and Mohegan Sun at Pocono Downs, also a gaming and entertainment facility offering slot machines and harness racing in Wilkes-Barre, Pennsylvania and several off-track wagering facilities located elsewhere in Pennsylvania. The gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.0 million square foot facility, which includes the Casino of the Earth, Casino of the Sky, The Shops at Mohegan Sun, 10,000-seat Mohegan Sun Arena, 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the approximately 1,200-room luxury Sky Tower hotel. Mohegan Sun is currently in the midst of Project Horizon – an expansion project that calls for a new hotel, additional retail and restaurant space, and a new 65,000-square-foot “Casino of the Wind.” In addition, Project Horizon expands Mohegan Sun’s Asian gaming experience in the Casino of the Earth with the recent opening of Sunrise Square in August 2007. More information about the Authority and its properties can be obtained by visiting www.mtga.com.
About Olympia Gaming
Olympia Gaming is the gaming development division of the Olympia Group, whose subsidiaries and related entities include the successful 2,700-acre Southern Highlands master-planned community, as well as some of the most desirable and high-profile real estate and mixed-use projects in the Las Vegas area. Spearheaded by prominent real estate developer Garry Goett, the formation of a gaming arm reflects the natural evolution of the company that opened the successful Casino Fandango in Carson City in 2003. In 2006, Olympia Gaming received approval from the Clark County Board of Commissioners to develop the Southern Highlands Casino Resort Spa, a $1 billion, 70-acre mixed-use resort project. Additionally, Olympia Gaming is in the planning stages of several large-scale developments throughout the state including a 2,700 acre master planned community in North Las Vegas called Park Highlands, a 5,300 acre master planned community in Mesquite/Lincoln County, and a 250 acre mixed-use development located on the South Strip in Las Vegas. Olympia Gaming’s extensive development expertise positions the Olympia Group as one of the few multi-faceted development corporations capable of overseeing all aspects of a mixed-use real estate and master-planned gaming project. For more information on Olympia Gaming visit www.olympiagaming.com.
About RED Development, LLC
RED Development, LLC, formed in 1995, develops, leases, manages and owns shopping centers throughout the nation. The company primarily focuses on open-air, regional shopping centers, known as lifestyle centers and retail and entertainment developments. The company currently is developing retail and entertainment centers, urban city centers, mixed-use projects and sports facilities throughout the country. RED Asset Management was formed in early 2004 to provide property management services for the company’s growing portfolio. RED Development, LLC has more than 30 centers open, in development, or under construction, totaling more than 18 million square feet. Within the industry, RED Development, LLC has earned a reputation for delivering as promised and creating strong relationships with its tenants, communities and business partners. The company has more than 160 employees and is co-headquartered in Scottsdale, Arizona, and Kansas City, Missouri. More information about RED Development, LLC can be obtained by visiting www.reddevelopment.com.
Some information included in this press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include information relating to business development activities, as well as capital spending and financing sources. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend” and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority. These risks and uncertainties include, but are not limited to, those relating to increased competition (including the legalization or expansion of gaming in New England, New York, New Jersey, Pennsylvania and Kansas), the financial performance of Mohegan Sun, Mohegan Sun at Pocono Downs and the OTW facilities, dependence on existing management, potential adverse changes in local, regional, national or global economic climates, the Authority’s leverage and ability to meet its debt service obligations, changes in federal or state tax laws or the administration of such laws, changes in gaming laws or regulations (including the limitation, denial or suspension of licenses required under gaming laws and regulations), and the continued availability of financing. Additional information concerning potential factors that could affect the Authority’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2006, as well as its other reports and filings with the SEC. The forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure you that projected results or events will be achieved or will occur.
Press Release Mohegan Tribal Gaming Authority Uncasville, Connecticut September 24, 2007
Chief Operating Officer
Mohegan Tribal Gaming Authority
Leo M. Chupaska
Chief Financial Officer
Mohegan Tribal Gaming Authority