Park Place Entertainment Announces Filing of Sullivan County Casino Application; Significant Milestone in Development of Resort and Casino 90 Minutes North of New York City.
LAS VEGAS--(BUSINESS WIRE)--March 26, 2001
Park Place Entertainment Corp. (NYSE:PPE) today announced that the Saint Regis Mohawk Tribe filed an application with the Bureau of Indian Affairs for approval of the acceptance of land into trust for the development of a $500 million Las Vegas-style resort and casino approximately 90 minutes north of New York City in Sullivan County.
The 750-room resort will include 165,000 square feet of gaming space, 15,000 square feet of meeting space, 8 restaurants and a spa.
Park Place worked closely with the Tribe in the preparation of the application and has entered into a letter of agreement to develop and manage the casino for an initial term of 7 years. Pursuant to this agreement, Park Place will receive 30% of the net cash flow from operations, commencing with the opening of the casino.
Park Place has also signed a consulting agreement to advise the Tribe in operating its existing Akwesasne Mohawk casino in Hogansburg, N.Y. The filing of the application with the BIA is the first step in the series of regulatory proceedings necessary to permit the development of the casino project.
Additional applications will be filed with the National Indian Gaming Commission for approval of the agreements between Park Place and the Tribe. Other required regulatory steps include the execution of a compact between the Tribe and the state of New York relating to the Sullivan County casino, as well as necessary approvals from the relevant local governmental bodies to permit commencement of construction.
Park Place and the Tribe believe the development will be one of the top casino resorts in the country serving the vast population base of New York and the surrounding areas.
"We are pleased to join the St. Regis Mohawk Tribe in developing a world-class gaming facility in Sullivan County," said Tom Gallagher, president and CEO of Park Place. "We believe this project will provide a much-needed benefit to the economic well-being of the members of the Tribe as well as being a major catalyst for future growth in the economy of Sullivan County and the state of New York. It will also contribute strongly to the future earnings growth of our company."
Both Park Place and the Tribe are working closely with the federal, state and local authorities in securing all the necessary regulatory approvals.
Park Place Entertainment is the world's largest gaming company and owns, manages or has an interest in 28 gaming properties operating under the Bally's, Caesars, Paris, Flamingo, Grand and Hilton brand names with a total of approximately 2 million square feet of gaming space, more than 28,000 hotel rooms and approximately 57,000 employees worldwide.
Additional information on Park Place Entertainment can be accessed through the company's 24-hour investor relations service. Individuals may call toll-free 877/PPE-NYSE (877/773-6973) or visit www.parkplace.com to obtain the latest company news and stock price information, or to request information by e-mail, fax or postal mail delivery.
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|Date:||Mar 26, 2001|
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