Philadelphia casino hearings
I covered several days of suitability hearings for the applicants bidding for Philadelphia’s second casino license, live-tweeting the proceedings and filing multiple stories. Below are links to the stories I wrote and my tweets from the hearings (tweets for each presentation are in chronological order).
Article: Market8 touts central location, revenue projections at casino suitability hearing
Live updates:
At the Pa. Convention Center for day 2 of casino suitability hearings.
— Emily Babay (@emilybabay) January 29, 2014
Market8 will present/answer ?s from Gaming Control Board this morning. Casino Revolution is up in the afternoon. — Emily Babay (@emilybabay) January 29, 2014
For a recap of yesterday’s hearings, @phila_lex‘s reports on Hollywood: http://t.co/63CtVpK666 and Provence: http://t.co/qaqkad8rFi
— Emily Babay (@emilybabay) January 29, 2014
Provence will be able to respond to intervening groups tomorrow morning. — Emily Babay (@emilybabay) January 29, 2014
Market8 is beginning presentation now. Fox Rothschild partner Bill Downey is speaking.
— Emily Babay (@emilybabay) January 29, 2014
Market8’s playing a video. Touting location as intersection of where people live, work, visit, stay, dine, go out. — Emily Babay (@emilybabay) January 29, 2014
Ken Goldenberg now beginning Market8 presentation. (For more background on Market8: http://t.co/bOzqPBzil9)
— Emily Babay (@emilybabay) January 29, 2014
Goldenberg: Casino would “transform Market St. east into one of the great avenues in America.” — Emily Babay (@emilybabay) January 29, 2014
Market8 projects $518m in gross gaming revenue, $260m taxes for Pa. and $405m in incremental gaming revenue.
— Emily Babay (@emilybabay) January 29, 2014
Goldenberg: Market8 near convention center, Reading Terminal Market, 4000 hotel rooms w/in half mile, Indep. Nat. Hist. Park — Emily Babay (@emilybabay) January 29, 2014
Goldenberg: Market8 site also near other attractions, Gallery, Chinatown, Washington Sq West, Midtown Village, 45000 workers w/in 1/4 mile
— Emily Babay (@emilybabay) January 29, 2014
Goldenberg: “Everything I just described is within walking distance.” Market8 also most accessible site by car/public transit, he says. — Emily Babay (@emilybabay) January 29, 2014
Goldenberg: Market East is busiest transit hub in Philly. More than 400 public transit options/day to Market8 site.
— Emily Babay (@emilybabay) January 29, 2014
Goldenberg touts “ease of access” to Market8 site. Says project would induce more new gamers and cannibalize existing casinos less. — Emily Babay (@emilybabay) January 29, 2014
Mohegan Sun chief executive Mitchell Etess is now speaking. Mohegan would be casino operator. (Tribe also operates Pocono Downs)
— Emily Babay (@emilybabay) January 29, 2014
Etess is stressing Mohegan Sun’s experience, success operating other casinos – Pocono Downs, Resorts in AC — Emily Babay (@emilybabay) January 29, 2014
Etess: Market8 “rises upward”. Has many windows, terraces. Not a Vegas resort nor a slot box.
— Emily Babay (@emilybabay) January 29, 2014
Mohegan’s Bobby Soper says 17-story Market8 is “designed to activate the street and respect the local architecture.” — Emily Babay (@emilybabay) January 29, 2014
Market8 studied 42 intersections that would be impacted by casino (betw Vine/Walnut and 2nd/10th).
— Emily Babay (@emilybabay) January 29, 2014
Market8 says most delays at intersections can be reduced by signal adjustments to less than 10 secs, most intersections won’t require change — Emily Babay (@emilybabay) January 29, 2014
Market8 traffic/parking consultant says parking will be “smooth and easy.” Underground lot to be built, existing lots/garages in area.
— Emily Babay (@emilybabay) January 29, 2014
Market8 principal: Group has “real commitment to & real track record of ensuring the proj. we are assoc w/ benefit the surrounding comms.” — Emily Babay (@emilybabay) January 29, 2014
Principal says “unprecedented” rewards program will let gamblers redeem rewards at local businesses.
— Emily Babay (@emilybabay) January 29, 2014
Market8 also says 10% of distributable profits will go to local charities. Estimated at at least $2M/year. — Emily Babay (@emilybabay) January 29, 2014
Market8 financial consult Peter Tyson says Market8 expected to have higher revenues than Provence, stadium casino proposoals.
— Emily Babay (@emilybabay) January 29, 2014
Tyson: “These differences are very significant, as they will occur year after year.” — Emily Babay (@emilybabay) January 29, 2014
Tyson: Market8 impact on suburban casinos will be “negligible” (can’t reach them by public transit). Less impact on SugarHouse than Provence
— Emily Babay (@emilybabay) January 29, 2014
Market8 says high number of commuters in area will provide after-work gamblers. — Emily Babay (@emilybabay) January 29, 2014
Market8 says saturation will not be an issue. Would still be $160m in untapped gaming revenues available in Philly area.
— Emily Babay (@emilybabay) January 29, 2014
Tyson says he’s not aware of any other casino so close to residential neighborhoods, visitor attractions and biz offices. — Emily Babay (@emilybabay) January 29, 2014
Market8 notes 4 million sq feet of undeveloped properties on blocks near casino. Casino could spur development.
— Emily Babay (@emilybabay) January 29, 2014
Market8 expects to open casino 2 years after construction begins. — Emily Babay (@emilybabay) January 29, 2014
Quick recap of @market8philly‘s casino suitability presentation this a.m.: http://t.co/zuoENaGEdc Gaming Control Board to ask ?s now.
— Emily Babay (@emilybabay) January 29, 2014
.@market8philly answering Gaming Control Board ?s now. First is about concerns from surrounding community, especially from Chinatown. — Emily Babay (@emilybabay) January 29, 2014
Market8 says team met w/ numerous Chinatown groups from beginning, consulted with them.
— Emily Babay (@emilybabay) January 29, 2014
Market8 says got good response from community due to rewards program, Market East Improvement Zone (1 charity to which profits would go) — Emily Babay (@emilybabay) January 29, 2014
Market8 projects 56% of gamblers to arrive by car, 20% by public transit, rest by taxi/pedestrians/private charter
— Emily Babay (@emilybabay) January 29, 2014
Several ?s about parking. Summary: Will have to pay. Mostly self-park but valet is option. No spots specifically for hotel guests. — Emily Babay (@emilybabay) January 29, 2014
Market8 says first floor amenities/hotel floors will be accessible to minors. Security on casino levels to prevent underage gambling.
— Emily Babay (@emilybabay) January 29, 2014
Market8 says if it gets casino license, nearby undeveloped sites will quickly become “some of the most valuable properties in Phila.” — Emily Babay (@emilybabay) January 29, 2014
Board asks what most similar urban entertainment center is in area. Mohegan Sun exec: ”I really don’t believe there is a comparable”
— Emily Babay (@emilybabay) January 29, 2014
Mohegan Sun’s Soper says density of people “doesn’t exist anywhere else.” 17,000 people/day walk by site now, without casino. — Emily Babay (@emilybabay) January 29, 2014
Market8 says location will draw from PHL visitors in way other casino proposals won’t. Convention-goers “dying for something to do” at night
— Emily Babay (@emilybabay) January 29, 2014
Many visitors to city don’t have car, unlikely to take taxi to SugarHouse or transit to stadium district and “schlep” from subway to casino. — Emily Babay (@emilybabay) January 29, 2014
Market8 projects 22 percent of wins would be cannibalized from other casino facilities, mainly from SugarHouse.
— Emily Babay (@emilybabay) January 29, 2014
Board asks about hotel cannibalization. Market8 says hotel also adds major attraction, would likely create more demand for area hotel rooms. — Emily Babay (@emilybabay) January 29, 2014
Market8 consultant contents parking won’t be issue: “There are literally thousands of vacant spaces” nearby during peak casino times.
— Emily Babay (@emilybabay) January 29, 2014
Photos from @colinkerrigan from Market8’s casino suitability hearing: http://t.co/8kgMbMrz8Z — Emily Babay (@emilybabay) January 29, 2014
?s about whether parking fee will be barrier to entry. Market8 says high-value gamers won’t pay. Restaurant-goers etc used to paying in CC
— Emily Babay (@emilybabay) January 29, 2014
Market8 consultant says many employees expected to take public transit. CC casino doesn’t have same parking demand ratio as other sites. — Emily Babay (@emilybabay) January 29, 2014
Goldenberg says he can “absolutely” confirm that Market8 construction would take place in one phase.
— Emily Babay (@emilybabay) January 29, 2014
Goldenberg said biggest difference betw Market8 & Provence is amid schools/churches/admin buildings in North Phila., not commercial zone. — Emily Babay (@emilybabay) January 29, 2014
Goldenberg: “If you know Philadelphia … you see the character of those two zones is completely different.”
— Emily Babay (@emilybabay) January 29, 2014
More details from this morning’s casino suitability hearing for @Market8: http://t.co/kJKMvXOodI — Emily Babay (@emilybabay) January 29, 2014
Article: Provence stands by traffic, parking projections
Live updates:
Back at the convention center for day 3 of Philly casino suitability hearings.
— Emily Babay (@emilybabay) January 30, 2014
Today, Provence will get to respond to interveners (2 local schools and a synagogue). Then Live! Hotel & Casino will present. — Emily Babay (@emilybabay) January 30, 2014
Background on Live!: http://t.co/ef8ymqg6nM And more on Provence/interveners, from @phila_lex: http://t.co/qaqkad8rFi
— Emily Babay (@emilybabay) January 30, 2014
Provence traffic expert: video shown Tues done immediately after record snow. Traffic studies generally not done in bad weather — Emily Babay (@emilybabay) January 30, 2014
Provence traffic expert essentially reiterates that parking is sufficient, road/traffic access is adequate.
— Emily Babay (@emilybabay) January 30, 2014
Even w/o disputed parking spaces (interveners claim Provence inflated #), there are enough spots, Provence traffic expert says. — Emily Babay (@emilybabay) January 30, 2014
Provence stands by estimates that 4/10 gamblers will drive, 3/10 will take public transit, remainder will walk/take cabs or shuttles
— Emily Babay (@emilybabay) January 30, 2014
Provence says Market8 (which had lower estimate for mass transit) used old data. Says public transpo use in CC is rising, car use declining — Emily Babay (@emilybabay) January 30, 2014
PennDOT engineer says mass transit use at SugarHouse has been much higher than expected.
— Emily Babay (@emilybabay) January 30, 2014
Quick update from casino hearing: Provence stands by parking and traffic projections: http://t.co/K2J5Z6f634 — Emily Babay (@emilybabay) January 30, 2014
Article: Casino Revolution stress commitment to South Philadelphia
Live updates:
Suitability hearing for @PHLCasinoRev will begin in a few minutes. Background on the proposal: http://t.co/nWZb1jENFE
— Emily Babay (@emilybabay) January 29, 2014
PHL Local Gaming exec John O’Riordan begins by highlighting S Phila location, ability to open at least 6 mo. before any other applicant.
— Emily Babay (@emilybabay) January 29, 2014
O’Riordan also highlights ability to expand to 5000 slots (more than any other bidder), local ownership, financial strength.
— Emily Babay (@emilybabay) January 29, 2014
PHL Local Gaming chairman/CEO Joseph Procacci stresses tomato biz background. Says biz built on pride, integrity. “My word is my bond.”
— Emily Babay (@emilybabay) January 29, 2014
“I love South Phila,” Procacci says. Has done biz there for 66 years.
— Emily Babay (@emilybabay) January 29, 2014
Procacci: “I will build a casino that I will be proud of and that you, my fellow Pennsylvanians, will be proud of.”
— Emily Babay (@emilybabay) January 29, 2014
PHL Local Gaming President Joseph Canfora says when he 1st saw site, he “gasped” at # of cars going by on 95 and 76. Says prime location.
— Emily Babay (@emilybabay) January 29, 2014
Canfora: Site would have least impact on residential neighborhoods, Procacci’s work in S Phila = already have good relationships
— Emily Babay (@emilybabay) January 29, 2014
Casino Revolution says it has equity funds + financial commitment from Jefferies, Wells Fargo (incl commitment even if market downturn)
— Emily Babay (@emilybabay) January 29, 2014
Casino Revolution says existing Procacci warehouse at site gives them a big head start on construction.
— Emily Babay (@emilybabay) January 29, 2014
An “expedited phase casino” would open early and operate during rest of construction, Casino Revolution says.
— Emily Babay (@emilybabay) January 29, 2014
Traffic consultant says site has direct access to highways/Columbus Blvd. Less traffic on local streets.
— Emily Babay (@emilybabay) January 29, 2014
Traffic consultant Dan Disario says other stadium district sites are farther from highways and closer to residential areas than Casino Rev
— Emily Babay (@emilybabay) January 29, 2014
Merit PHL president Pete Ferro describes Silver Reef Casino in Wash. state (another Merit project) as good example of phased development.
— Emily Babay (@emilybabay) January 29, 2014
Silver Reef is now in middle of 7th phase of development, adding luxury suites, Ferro says.
— Emily Babay (@emilybabay) January 29, 2014
Casino Rev plans to get info on hundreds of thousands known gamblers in area, market to them in advance.
— Emily Babay (@emilybabay) January 29, 2014
Just learned at this casino hearing: There is a county in Washington state called Whatcom.
— Emily Babay (@emilybabay) January 29, 2014
Casino Revolution estimating $358m annually in gaming revenue.
— Emily Babay (@emilybabay) January 29, 2014
Casino Rev analyst says there’s a “significant opportunity” to expand gaming market. S Phila casino = a casino closer to underserved adults.
— Emily Babay (@emilybabay) January 29, 2014
Cory Morowitz, analyst that did Casino Rev market assessment, stresses that casino has room to expand on 1 level.
— Emily Babay (@emilybabay) January 29, 2014
Multi-level casinos generally do poorly due to patron flow, Morowitz says.
— Emily Babay (@emilybabay) January 29, 2014
Econ consultant Eugene Christiansen: “At present, the Southeastern Pa. market is not fully supplied. It is not saturated.”
— Emily Babay (@emilybabay) January 29, 2014
Christiansen: 2nd casino will make Philly casino market more competitive. Competition is not a bad thing.
— Emily Babay (@emilybabay) January 29, 2014
Christiansen: Impact on other SE Pa. casinos will diminish over time.
— Emily Babay (@emilybabay) January 29, 2014
Casino Rev is planning an entertainment center that includes water park, zip line, driving range, pool, soccer fields.
— Emily Babay (@emilybabay) January 29, 2014
Leasing expert says national/international restaurant brands have already expressed interest.
— Emily Babay (@emilybabay) January 29, 2014
PHL Local Gaming exec O’Riordan: “We have tremendous community impact and community support.”
— Emily Babay (@emilybabay) January 29, 2014
O’Riordan: “We will generate more tax revenue more quickly.” Adds Casino Rev is only site that could expand to 5,000 slots (max permitted)
— Emily Babay (@emilybabay) January 29, 2014
It’s Q&A time now for @PHLCasinoRev at the @PAGamingControl suitability hearing.
— Emily Babay (@emilybabay) January 29, 2014
? if proposed ent. complex would draw same type of people as casino. Casino Rev says impt to get more freq visitors to S Phila overall.
— Emily Babay (@emilybabay) January 29, 2014
Casino Revolution estimating 2 percent of gamblers would get to site by public transit.
— Emily Babay (@emilybabay) January 29, 2014
Shuttle service would transport people from stadiums/subway area to Casino Revolution.
— Emily Babay (@emilybabay) January 29, 2014
Question comes up about casino saturation. Casino Rev says it’s possible that new facility could boost casino market.
— Emily Babay (@emilybabay) January 29, 2014
Board skeptical of phased opening. Casino Revolution stresses full plan will be done, but head start on construction=some can open earlier
— Emily Babay (@emilybabay) January 29, 2014
Casino Revolution says dip in Pa gaming revenue means market is maturing. Solution is more capital investment, not stopping it.
— Emily Babay (@emilybabay) January 29, 2014
At suitability hearing, @PHLCasinoRev says it’s committed to South Philly–and the best option of the S Phila sites: http://t.co/eyuWeCsEFV
— Emily Babay (@emilybabay) January 29, 2014
PennDOT traffic official says it’s good that Casino Rev is committed to adding westbound I-76 ramp (had previously only said would study it)
— Emily Babay (@emilybabay) January 29, 2014
More details on @PHLCasinoRev suitability hearing: http://t.co/ckNbKBTMnd
— Emily Babay (@emilybabay) January 29, 2014
Article: Live! Hotel & Casino backers focus on experience at suitability hearing
Live updates:
Live! testimony is starting momentarily.
— Emily Babay (@emilybabay) January 30, 2014
Greenwood Racing chair says board should pick applicant that will generate additional revenue, not just “slice the same pie up differently” — Emily Babay (@emilybabay) January 30, 2014
Robert Green (Greenwood chair) also stresses financial credibility, ability to deliver.
— Emily Babay (@emilybabay) January 30, 2014
Green says Live! is only applicant that understands/operates a casino (Parx) in this market. — Emily Babay (@emilybabay) January 30, 2014
Green bashes CC proposals. Says adding even a couple hundred extra cars would “pose absolute chaos,” calls projections “almost surreal”
— Emily Babay (@emilybabay) January 30, 2014
Green: “In my mind, there is absolutely no doubt that the S Phila site will substantially outperform either one of the downtown sites” — Emily Babay (@emilybabay) January 30, 2014
Cordish pres Joseph Weinberg: No company has our track record of developing casino/resort properties.
— Emily Babay (@emilybabay) January 30, 2014
(Live! is a joint venture between Cordish and Greenwood) — Emily Babay (@emilybabay) January 30, 2014
Weinberg: Md Live! is top-grossing casino in Mid-Atl. Parx (Greenwood project) is top in Pa.
— Emily Babay (@emilybabay) January 30, 2014
Weinberg: “We are owner-operators.” People putting up $ are invested in making project a success on day-to-day basis. — Emily Babay (@emilybabay) January 30, 2014
Greenwood CEO Tony Ricci: “we have hands-on, innovative ownership.” known for dependability, stability.
— Emily Babay (@emilybabay) January 30, 2014
Ricci: Company “has very little turnover.” Surveys consistently give Parx high marks for customer service. — Emily Babay (@emilybabay) January 30, 2014
Ricci stresses that it’s a competitive area, Live! has experience. “Anyone outside this market will be shell-shocked when they come into it’
— Emily Babay (@emilybabay) January 30, 2014
Ricci: “There is no doubt that we possess the necessary financial resources to complete this project.” — Emily Babay (@emilybabay) January 30, 2014
Live! showing video from community leaders saying Parx has benefitted the area.
— Emily Babay (@emilybabay) January 30, 2014
Cordish says it’s won “more awards than any other developer in the world” for real-estate developments. — Emily Babay (@emilybabay) January 30, 2014
2/5 largest casinos in country were built by Cordish.
— Emily Babay (@emilybabay) January 30, 2014
Live! says highway-accessible site will outperform Center City proposals. Easy access from 95, 76 and Broad ST. — Emily Babay (@emilybabay) January 30, 2014
More than 8 mil visitors/year to stadium district, Weinberg says. For sports, music, etc.
— Emily Babay (@emilybabay) January 30, 2014
Weinberg, referring to Xfinity Live!: “We are there. We know how to take advantage of those existing events.” — Emily Babay (@emilybabay) January 30, 2014
Live! says project is designed so no zoning variances would be required.
— Emily Babay (@emilybabay) January 30, 2014
There’s a hotel at Live! site now. would be completely renovated. — Emily Babay (@emilybabay) January 30, 2014
Weinberg: Would take 15 months to build after construction starts. Md Live! built in 13 months.
— Emily Babay (@emilybabay) January 30, 2014
Live! officials say they were approached by developers w/ CC properties. Say declined b/c CC casino + SugarHouse = 2 unprofitable facilities — Emily Babay (@emilybabay) January 30, 2014
Traffic engineer says there is “ample capacity” for additional traffic from casino in area near Live!
— Emily Babay (@emilybabay) January 30, 2014
Watching another Live! video touting the companies’ community involvement. — Emily Babay (@emilybabay) January 30, 2014
Live! again stressing it has funds for casino. Not dependent on outside money.
— Emily Babay (@emilybabay) January 30, 2014
Early recap of suitability hearing for Live! Hotel & Casino: http://t.co/RxYV53a3y8 — Emily Babay (@emilybabay) January 30, 2014
Q&A session for Live! is now beginning.
— Emily Babay (@emilybabay) January 30, 2014
Live! also planning 400k square foot expansion for Xfinity Live! Says will be complimentary to casino/hotel — Emily Babay (@emilybabay) January 30, 2014
Live! backers have database of 1.5 million customers in Pa/Mid-Atl market. Will cross market rewards cards among properties.
— Emily Babay (@emilybabay) January 30, 2014
Board ?s whether that means cannibalize across Mid-Atlantic (ie, not just SugarHouse). — Emily Babay (@emilybabay) January 30, 2014
Weinberg says it means greater variety to offer customers, experiences will be complimentary.
— Emily Babay (@emilybabay) January 30, 2014
Live! has talked with neighborhood groups et al. They want security camera system in area, priority on local hiring. — Emily Babay (@emilybabay) January 30, 2014
Some questions about what would happen if there’s a disagreement betw Greenword and Cordish.
— Emily Babay (@emilybabay) January 30, 2014
Live! says committed to building westbound I-76 ramp, subject to design/vetting. — Emily Babay (@emilybabay) January 30, 2014
Weinberg/Ricci say Cordish/Greenwood wouldn’t have entered joint arrangement unless they were comfortable working together. — Emily Babay (@emilybabay) January 30, 2014
Weinberg says majority of Md Live! employees live w/in 10 miles of facility. Would be committed to local hiring at philly Live! — Emily Babay (@emilybabay) January 30, 2014
“Lion’s share” of Live! patrons would be arriving by car. SEPTA perhaps used more intensely on game days.
— Emily Babay (@emilybabay) January 30, 2014
? whether Live! casino would cannibalize itself (Xfinity Live!) Weinberg says “not at all,” facilities would be “absolutely complimentary” — Emily Babay (@emilybabay) January 30, 2014
Weinberg cites Arundel Mills mall near Md. Live! casino. Says casino and mall boost each other.
— Emily Babay (@emilybabay) January 30, 2014
Financial expert agrees w/ Greenwood/Cordish that they have ability to self-finance casino operation. — Emily Babay (@emilybabay) January 30, 2014
Suitability hearing for Live! ending momentarily.
— Emily Babay (@emilybabay) January 30, 2014
Updated story on Live! Hotel & Casino suitability hearing: http://t.co/ruoO85f17q Was last of 5 bidders to present/answer ?s from board
— Emily Babay (@emilybabay) January 30, 2014
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