Tewksbury, Massachusetts Town Selectmen Unanimously Approve Host Community Agreement with Penn Natio
Jul 18th 2013 9:50PM
Updated Jul 18th 2013 9:54PM
Tewksbury, Massachusetts Town Selectmen Unanimously Approve Host Community Agreement with Penn National Gaming for Slot Parlor Facility
TEWKSBURY, Mass.--(BUSINESS WIRE)-- Town Selectmen in Tewksbury voted unanimously today (5-0) to support a Host Community Agreement with Penn National Gaming, Inc. (NAS: PENN) for the Company's proposed Category 2 slots-only facility project, budgeted at more than $200 million, that would be located at 300 Ames Pond Drive, near the intersection of Interstate 495 and State Route 133.
Per the Host Community Agreement, Penn National Gaming's subsidiary has agreed to provide the following to the Town of Tewksbury:
- Annual estimated payments exceeding $4 million. This includes $3 million in estimated property taxes, $1 million in mitigation payments (which will increase by 2.5% annually beginning in year four of operations) and $120,000 contributions to fund Tewksbury's capital expenditures and other beneficial projects and initiatives.
- Work to maximize opportunities for local residents and area businesses during the construction and operation phases of the facility, including employment, purchasing goods and services from local businesses, utilizing local contractors, and using significant local union labor through the creation of a roster of local residents who are members of various construction and other applicable unions. The project is expected to create approximately 1,000 direct and indirect jobs during the construction period and 500 permanent jobs upon opening.
- Commissioning a Traffic Impact Study and Infrastructure Capacity Assessment and funding infrastructure improvements identified in each, including road and sewer improvements, among others.
- Fully reimbursing the Town of Tewksbury for planning and peer review costs to determine the impacts of the project, including consultants and temporary staff.
- Implementing a responsible gaming plan in Tewksbury, including active participation in the Massachusetts Partnership for Responsible Gambling, promoting responsible gaming in daily operations, and supporting public awareness of responsible gaming, among others.
- Donating annually to non-profit entities that serve Tewksbury citizens. Penn National Gaming provided over $12.7 million total in 2012 to non-profit organizations in jurisdictions where it operates.
- Reimbursing the Town of Tewksbury for expenses related to a town election in which the citizens will decide whether to host a slots only facility.
"We are very pleased to reach this agreement with local officials on a project that we expect will result in over 1,500 new jobs and more than $4.1 million in annual economic benefits for the citizens of Tewksbury," said Jeff Morris, Director of Public Affairs at Penn National Gaming. "We look forward to meeting directly with citizens and leaders of Tewksbury to review our proposal, answer questions, address concerns, and become partners with them in this significant economic development project."
Penn National Gaming's proposal includes its marquee Hollywood casino brand, 1,250 slot machines, multiple dining options, parking garage, and additional amenities are being considered.
Penn National is in the process of opening an office on Main Street in Tewksbury in the immediate future.
More information on the project and Penn National Gaming can be found at www.HollywoodCasinoTewksbury.com
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates twenty-eight facilities in eighteen jurisdictions, including Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn National's operated facilities currently feature approximately 34,500 gaming machines, approximately 850 table games, 2,900 hotel rooms and approximately 1.6 million square feet of gaming floor space.
Forward Looking Statements
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, the "Company" or "PENN") 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 actual results to differ from expectations include several other applicants for the lone Category 2 license, favorable resolution of any related litigation that often occurs in new gaming jurisdictions; our ability to secure state and local permits and approvals necessary for operation and construction; construction factors, including delays, unexpected remediation costs, local opposition and increased cost of labor and materials; our ability to reach a host agreement with Tewksbury or agreements with surrounding communities; the ultimate location of the various gaming facilities in Massachusetts and other factors as discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. The Company does not intend to update publicly any forward-looking statements except as required by law.
Keyser Public Strategies
Will Keyser, 617-529-5849
KEYWORDS: United States Massachusetts
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