agenda item st. johns county board of county commissioners

15 AGENDA ITEM

ST. JOHNS COUNTY BOARD OF COUNTY COMMISSIONERS

Deadline for Submission - Wednesday 9 a.m. – Thirteen Days Prior to BCC Meeting

7/19/2016

BCC MEETING DATE

TO: Michael D. Wanchick, County Administrator DATE: June 27, 2016

FROM: Paolo S. Soria, Assistant County Attorney PHONE: 209-0805

SUBJECT OR TITLE: Discussion and First Reading - Proposed Ordinance for a County-wide referendum for Slot Machine Gaming at a Licensed Pari-Mutuel Facility in St. Johns County

AGENDA TYPE: Business Item, Report

BACKGROUND INFORMATION:

Discussion of proposed ordinance calling for a County-wide referendum for slot machine gaming at a licensed pari-mutuel facility within St. Johns County. This discussion is for the Board of County Commissioners to determine whether it will advertise and hear a proposed ordinance allowing for a County-wide referendum for Slot Machine Gaming in St. Johns County in a proposed location in the northeast corner of I-95 and 207. Additionally the proposal is for the County by a separate agreement to receive 1.5% of the gross slot machine revenues. The Board my hold the hearing on the proposed ordinance and referendum, modify the proposed ordinance and referendum, or not hold the hearing.

1. IS FUNDING REQUIRED? No 2. IF YES, INDICATE IF BUDGETED. No

IF FUNDING IS REQUIRED, MANDATORY OMB REVIEW IS REQUIRED:

INDICATE FUNDING SOURCE:

SUGGESTED MOTION/RECOMMENDATION/ACTION:

Discussion. No formal motion is required. Second hearing and enactment of the ordinance is scheduled for August 2, 2016. The Board of County Commissioners may choose to hold a second hearing to enact the terms of the ordinance for a county-wide referendum on the November 8, 2016 general election ballot.

For Administration Use Only: Legal: N/A OMB: N/A Admin: DML 7/5/2016

Date: July 5, 2016

To: Board of County Commissioners

Through: Patrick F. McCormack, County Attorney

From: Paolo Soria, Assistant County Attorney

Applicant: Bayard Raceways, Inc. d/b/a St. Johns Greyhound Park

Agent: Ellen Avery-Smith, Rogers Towers

Subject: Discussion and First Reading of Proposed Ordinance for a Referendum for

Slot Machine Gaming at a Licensed Pari-Mutuel Facility within St. Johns

County

Summary: Discussion of proposed ordinance calling for a County-wide referendum for slot machine gaming

at a licensed pari-mutuel facility within St. Johns County. This discussion is for the Board of

County Commissioners to determine whether it will advertise and hear a proposed ordinance

allowing for a County-wide referendum for Slot Machine Gaming in St. Johns County (See

Attachment 1). Please also see attachment 2 for a proposed 1.5% revenue share with the County.

The Board may hold the hearing on the proposed ordinance and referendum, modify the

proposed ordinance and referendum, or not hold the hearing.

Background: The proposal was brought to the attention of the County Attorney’s office. This Office has

authority to review proposed ordinances for legal sufficiently, however policy determinations on

whether to implement ordinances are in the sole jurisdiction of the Board of County

Commissioners. This item is presented by this Office to the Board for further direction or

implementation. If directed by this Board, the Office of the County Attorney will proceed with

implementation of the ordinance, referendum, and any other legislation or order required.

Slot Machine Gaming is a regulated activity through the State of Florida Department of Business

and Professional Regulation, Division of Pari-Mutuel Wagering. Slot Machines are permitted

only in “eligible facilities” which are defined by Florida Statute. (See Attachment 5).

(4) “Eligible facility” means … any licensed pari-mutuel facility in any other

county in which a majority of voters have approved slot machines at such

facilities in a countywide referendum held pursuant to a statutory or constitutional

authorization after the effective date of this section in the respective county,

provided such facility has conducted a full schedule of live racing for 2

consecutive calendar years immediately preceding its application for a slot

2

machine license, pays the required licensed fee, and meets the other requirements

of this chapter.

Section 551.102(4), Florida Statutes (2015).

The underlined section of the statute requires a county-wide referendum for a non-chartered

County like St. Johns County.

In January 2012, the County adopted a resolution, Resolution 2012-25, which placed the same

question on whether to allow slot machine gaming in St. Johns County on the November 2012

general election. However, in August 2012, the County rescinded the prior authorization in

order for the State to resolve an issue of whether further statutory or constitutional authorization

would be required in order to hold a referendum on slot machine gaming. (See Attachment 6).

There are six (6) Counties that have authorized referenda on whether to have slot machine

gaming in licensed pari-mutuel facilities: Brevard, Gadsden, Hamilton, Lee, Palm Beach, and

Washington County. A similar issue of whether to hold a referendum is before the City of

Jacksonville.

Current Situation: The Florida Supreme Court is set to render an opinion on whether other Counties, such as the six

counties above, may hold a referendum on slot machine gaming without additional statutory or

constitutional authorization. That case is Gretna Racing, LLC v. Department of Business and

Professional Regulation, Division of Pari-Mutuel Wagering, Case No.: SC15-1929. Oral

arguments were held June 7, 2016 and a decision is expected late summer.

Proposal: The following language is proposed for the November 8, 2016 general election ballot:

REFERENDUM TO AUTHORIZE SLOT MACHINE

GAMING IN LICENSED PARI-MUTUEL FACILITY

LOCATED IN ST. JOHNS COUNTY

Shall slot machines be authorized within a licensed pari-mutuel

facility located on a parcel of at least 30 acres, with frontage on

Interstate 95, near the northeast corner of State Road 207 and

Interstate 95 in St. Johns County, in accordance with applicable

provisions of the Florida Statutes, subject to the restrictions of state

law and limited to persons 21 years of age and older?

YES (TO AUTHORIZE)

NO (TO NOT AUTHORIZE)

Timeline: 1. Section 125.66, F.S., requires a ten (10) day notice for the Board to consider enacting the

proposed ordinance

2. Proposed enactment hearing is August 2, 2016.

3

3. Absolute deadline to provide materials to the Supervisor of Election is prior to September

1, 2016.

4. Section 125.66, F.S., requires a certified copy to the Secretary of State within 10 days of

adoption.

5. Provide certified copy of ordinance and ballot language to supervisor of elections.

6. Section 100.343, F.S., a referendum must be noticed at least 30 days prior to the election.

Advertisement must run at least twice, once in the fifth week and once in the third week

prior to the week in which the referendum is to be held.

7. November 8, 2016 – General election held.

Location:

Bayard Raceway Inc. d/b/a St. Johns Greyhound Park holds the pari-mutuel license in St. Johns

County. The license is currently assigned to the facility located at 6332 Race Track Road. The

referendum is for slot machine gaming in a specified location – a minimum 30 acre site with

frontage along Interstate 95, near the northeast corner of State Road 207 and Interstate 95. The

existing license is proposed to be transferred to the new location. The potential area is depicted

below, north of the Farmer’s Market.

Aerial: The property is currently used for timberland.

4

Future Land Use: The proposed area Future Land Use is designated Business Commerce. It is

surrounded by Mixed-Use Districts to the east and south, with Industrial to the west, and

Residential-B to the North.

Zoning: The proposed area zoning is Commercial Intensive and Commercial Warehouse. It is

surrounded by residential PUDs to the north and east, an industrial PUD across I-95 to the west

and with largely Commercial Highway Tourist to the south.

5

Revenue Share and Economic Impact: Please see attachment 2. The proposal includes by

separate agreement the payment of 1.5 percent of gross slot machine revenues, as defined by

Section 551.102(13), to St. Johns County.

(13) “Slot machine revenues” means the total of all cash and property, except nonredeemable credits, received by the slot machine licensee from the operation of slot machines less the amount of cash, cash equivalents, credits, and prizes paid to winners of slot machine gaming.

This revenue share provision is the same as the proposed slot machine gaming referendum

ordinance before the City of Jacksonville.

The Applicant has provided a feasibility and economic impact analysis of the effect of the

proposal. See attachment 3.

The St. Johns County Office of Management and Budget has reviewed the provided feasibility

and economic impact analysis. See attachment 4.

Board Action:

Discussion – this item is brought before the Board of County Commissioners for discussion

purposes. No formal action is required by this board, however a consensus is requested on

whether to proceed with further implementation of the ordinance and associated county-wide

referendum.

Options:

1 – Direct staff to implement proposed ordinance language as is, with timelines set for enactment

on the August 2, 2016 Board of County Commissioners hearing.

2 – Direct staff to amend proposed ordinance language, or amend hearing date for enactment of

ordinance.

3 – Take no action and do not place the ordinance for consideration.

Attachments: 1. Proposed Ordinance

2. Letter proposing revenue share

3. Gaming Feasibility and Economic Impact Analysis

4. Review of Feasibility and Economic Impact Analysis by OMB.

5. Section 551.102, Florida Statutes

6. Previous Authorization and Revocation

Attachment 1

Proposed Ordinance

County-Wide Referendum on Slot Machine Gaming in a Licensed Pari-

Mutuel Facility

ORDINANCE NO. 2016-_______

AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF ST.

JOHNS COUNTY, FLORIDA CALLING A REFERENDUM FOR THE

QUESTION OF WHETHER SLOT MACHINE GAMING SHALL BE

AUTHORIZED AT A LICENSED PARI-MUTUEL FACILITY LOCATED

WITHIN ST. JOHNS COUNTY AND LIMITED TO PERSONS 21 YEARS OF

AGE AND OLDER; DIRECTING THE SUPERVISOR OF ELECTIONS TO

HOLD A REFERENDUM ELECTION ON NOVEMBER 8, 2016; PROVIDING

FOR TITLE; PROVIDING FOR REFERENDUM AND BALLOT LANGUAGE;

PROVIDING FOR NOTICE TO THE STATE; DIRECTING THE CLERK OF

CIRCUIT COURT TO ADVERTISE THE SPECIAL REFERENDUM

ELECTION IN ACCORDANCE WITH LAW; PROVIDING FOR

SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.

PREAMBLE

WHEREAS, Section 551.102(4), Florida Statutes, authorizes slot machine gaming at any

licensed pari-mutuel facility in any county in which a majority of voters have approved slot

machines at such facility in a countywide referendum held pursuant to a statutory or constitutional

authorization in the respective county, provided such facility meets the requirements of Chapter

551, Florida Statutes; and

WHEREAS, the First District Court of Appeal in Gretna Racing, LLC v. Department of

Business and Professional Regulation, 178 So. 3d 15, entered an order declaring that section

551.102(4) does not, in and of itself, authorize counties other than Broward or Miami-Dade to

conduct a slot machine approval referendum; and

WHEREAS, the Florida Supreme Court has accepted jurisdiction on the question of

whether additional statutory or constitutional authorization is required; and

WHEREAS, St. Johns County is authorized by the Florida Constitution and Section

125.01 Florida Statutes, to hold a referendum as provided by law; and

WHEREAS, the St. Johns County Board of Commissioners (“Board”) desires to give the

citizens of St. Johns County (the “County”) the opportunity to decide whether slot machine gaming

shall be authorized at a licensed pari-mutuel facility located near the interchange of Interstate 95

and State Road 207 in the County and limited to persons 21 years of age and older; and

WHEREAS, the Board takes no position in favor of or in opposition to the matter to be

determined by the eligible voters of St. Johns County, but merely deems it appropriate for such

voters to be able to make such determination; and

WHEREAS, the Board deems it appropriate to direct the St. Johns County Supervisor of

Elections to conduct a countywide referendum on November 8, 2016 regarding authorization of

same.

JAX\2052171_2 -2-

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY

COMMISSIONERS OF ST. JOHNS COUNTY, FLORIDA:

Section 1. Authorization and Incorporation of Recitals

This Ordinance is authorized by Sections 125.01 and 551.102(4), Florida Statutes (2015),

and other applicable law. The recitals contained in the Preamble above are hereby adopted as

findings of fact and incorporated into the body of this Ordinance.

Section 2. Referendum Election.

(a) A referendum of the qualified electors residing in St. Johns County, Florida

is hereby called to be held on November 8, 2016, the 2016 General Election, and in accordance

with the requirements of the Constitution and the laws of Florida, to decide whether slot machine

gaming shall be authorized at a licensed pari-mutuel facility to be located on a minimum of 30

acres, with frontage on Interstate 95, near the northeast corner of State Road 207 and Interstate 95

in St. Johns County.

(b) The referendum shall be held and conducted in the manner prescribed by

law for holding elections under a referendum provision.

(c) All qualified electors in St. Johns County shall be entitled and permitted to

vote in the referendum. The places and times of voting shall be those polling places and times

established for voting by law. The inspectors and clerks for the referendum shall be designated by

the Supervisor of Elections in accordance with applicable state law.

(d) The Supervisor of Elections is authorized and directed, when printing the

mail-in ballots and ballot strips for use in the voting machines for the referendum called for in

Section 3(b) hereinafter, to print the referendum title and question set forth in Section 3 hereof on

said mail-in ballots and ballot strips at the appropriate place therefor. Immediately after said

question shall be provided a space for the voter to indicate whether the vote is “yes” or “no” on

the question.

Section 3. Referendum and Ballot Language.

(a) The St. Johns County Supervisor of Elections is hereby directed to hold

such referendum election on November 8, 2016, the 2016 General Election.

(b) The St. Johns County Supervisor of Elections shall cause the following

question to be placed on the ballot:

REFERENDUM TO AUTHORIZE SLOT MACHINE

GAMING IN LICENSED PARI-MUTUEL FACILITY

LOCATED IN ST. JOHNS COUNTY

JAX\2052171_2 -3-

Shall slot machines be authorized within a licensed pari-mutuel

facility located on a parcel of at least 30 acres, with frontage on

Interstate 95, near the northeast corner of State Road 207 and

Interstate 95 in St. Johns County, in accordance with applicable

provisions of the Florida Statutes, subject to the restrictions of state

law and limited to persons 21 years of age and older?

YES (TO AUTHORIZE)

NO (TO NOT AUTHORIZE)

Section 4. Advertisement. The St. Johns County Clerk of Court shall insure that

notice of this referendum shall be advertised in accordance with the provisions of Section 100.342,

Florida Statutes (2015). Proof of publication shall be provided to the Chair of the Board.

Section 5. Referendum Results.

The Supervisor of Elections shall certify the results of the referendum to the Florida

Department of State in accordance with law. If a majority of the votes cast in the referendum shall

be for the referendum, the referendum shall be approved and shall take effect as provided in this

Ordinance. If less than a majority of the votes cast shall be for the authorization of slot machines,

the authorization shall be defeated and shall not take effect.

Section 6. Severability. If any provision of this Ordinance or the application thereof

to any person or circumstance is held inoperative, invalid or unconstitutional, it is the intent of the

Board that such invalidity shall not affect other provisions or applications of the Ordinance which

can be given effect without the inoperative, invalid or unconstitutional provision or application

and, to this end, the provisions of the Ordinance are declared severable. If any provision of this

Ordinance is held inoperative, invalid or unconstitutional, the Board of County Commissioners

may rescind the authorization granted by this Ordinance.

Section 7. Effective Date.

Except as provided herein, this Ordinance shall take effect when the St. Johns County Clerk

of Court has received notification from the Secretary of State that this Ordinance has been filed

with the Secretary of State.

PASSED AND ENACTED by the Board of County Commissioners of St. Johns County,

State of Florida on this _____ day of _______________, 2016.

BOARD OF COUNTY COMMISSIONERS

OF ST. JOHNS COUNTY, FLORIDA

JAX\2052171_2 -4-

BY: _________________________________

JEB S. SMITH, Chair

ATTEST: HUNTER S. CONRAD, CLERK

BY: _________________________________

Deputy Clerk

EFFECTIVE DATE: ____________________

Form Approved:

_________________________

County Attorney’s Office

Attachment 2

Letter proposing Revenue Share of 1.5%

Attachment 3

Gaming Feasibility and Economic Impact Analysis

Gaming Feasibility and Economic Impact

Analysis, Executive Summary St. Johns County, Florida

Prepared for:

Right Coast Strategies

May 2016

Prepared by:

The Innovation Group 400 North Peters Street

Suite 206 New Orleans, LA 70130

504.523.0888 [email protected]

The Innovation Group Project #025-16 May 2016 Page i

Executive Summary, St. Johns County

Table of Contents

INTRODUCTION......................................................................................................................... 1 MARKET ASSESSMENT ........................................................................................................... 2

GAMING ....................................................................................................................................... 2

ECONOMIC IMPACT ANALYSIS ........................................................................................... 5

ONGOING GAMING ....................................................................................................................... 5

CONSTRUCTION............................................................................................................................ 6

DISCLAIMER............................................................................................................................... 8

The Innovation Group Project #025-16 May 2016 Page 1

INTRODUCTION The Innovation Group was retained to prepare a high level Feasibility and Economic Impact

Analysis for the construction of a pari-mutuel slot facility and adjoining hotel in St. Johns

County, Florida. The following contains a forecast of local and tourist market gamer visits and

top line revenue, high-level construction cost estimates, and economic impact analysis including

direct and indirect employment projections.

The projections and analysis are based on The Innovation Group’s vast experience in regional

gaming markets and incorporated operating data from current BestBet gaming facilities. Gaming

market revenue was estimated using The Innovation Group’s proprietary Gravity Model and the

economic impact analysis utilizes IMPLAN, a commonly used economic impact model.


MARKET ASSESSMENT

Gaming In developing this analysis a drive-time gravity model was employed. Gravity models are

commonly used in location studies for commercial developments, public facilities and residential

developments. First formulated in 1929 and later refined in the 1940s, the gravity model is an

analytical tool that defines the behavior of a population based on travel distance and the

availability of goods or services at various locations. The general form of the equation is that

attraction is directly related to a measure of availability such as square feet and inversely related

to the square of the travel distance. Thus, the gravity model quantifies the effect of distance on

the behavior of a potential patron, and considers the impact of competing venues.

The gravity model included the identification of 13 discrete market areas based on drive times

and other geographic features and the competitive environment. Using our GIS software and

CLARITAS database1, the adult population (21 and over), latitude and longitude, and average

household income is collected for each zip code. The following map and table show the market

areas and their respective adult population (21 and over) and average household income.

1The GIS software used was MapInfo. This software allows for custom data generally in a tabular format with a

geographic identification code (census tract, zip code, latitude and longitude, or similar identifier) to be mapped or

displayed and integrated with other geographic census based information such as location of specific population or

roadways. MapInfo is one of the most widely used programs in the geographic information systems industry.

Nielsen Claritas is a vendor of demographic information located in the United States. Nielsen Claritas provides

census demographic and psychographic data on a variety of geographic levels of detail ranging from census block

groups and counties to postal zip codes. Their information is updated every six months and includes a current year

estimate and provides a five year forecast for the future. The Innovation Group has utilized this data for inputs to its

models for the last six years and has purchased full access to their demographic database for the entire United States.


St. Johns Gaming Market Area


Market Carveout Adult (21+) Population

2016 2021 A.A.G. 2016-2021

2016 2021 A.A.G. 2016-2021

Jacksonville 787,766 831,050 1.08% $71,988 $78,809 1.83%

St. Augustine 175,597 195,904 2.21% $83,130 $90,905 1.80%

Secondary West 187,441 198,644 1.17% $67,734 $72,457 1.36%

Daytona 308,565 323,504 0.95% $54,601 $56,798 0.79%

Canaveral 318,785 333,198 0.89% $58,472 $59,159 0.23%

Orlando 1,383,520 1,510,886 1.78% $68,667 $72,774 1.17%

Lake County Area 331,176 359,728 1.67% $63,971 $69,998 1.82%

Ocala 271,555 283,149 0.84% $53,466 $58,272 1.74%

Gainesville 237,036 249,125 1.00% $59,487 $61,979 0.82%

Tertiary West 101,981 105,077 0.60% $52,036 $55,720 1.38%

GA Southeast 109,807 114,610 0.86% $61,872 $63,088 0.39%

GA Southern 88,914 90,237 0.30% $45,896 $47,787 0.81%

GA Central Coast 134,951 142,870 1.15% $63,279 $69,125 1.78%

Average 4,437,094 4,737,982 1.32% $65,137 $69,677 1.36%

Source: Claritas, MapInfo, The Innovation Group

The proposed St. Johns County pari-mutuel facility is expected to generate $329 million in slot

revenue during the first stabilized year of operation (2020) from nearly 4 million visits.

Five Year Revenue Projections

2018 2019 2020 2021 2022

Slot Revenues $288,886,897 $306,220,111 $315,406,715 $323,291,882 $329,757,720

Poker and Table Revenue $11,746,727 $12,451,530 $12,825,076 $13,145,703 $13,408,617

Gross Gaming Revenues $300,633,624 $318,671,641 $328,231,791 $336,437,585 $343,166,337

Visitation (MMs) 3.64 3.68 3.70 3.71 3.73

Source: The Innovation Group


ECONOMIC IMPACT ANALYSIS The economic impact analysis identifies the local and statewide economic impacts for the

construction and ongoing operation of the St. Johns County facility, utilizing IMPLAN software.

The analysis results in positive economic impacts for St. Johns County. Because a large portion

of the economic impact is driven by local revenue sharing and tax revenue to the state, tax

impacts were included for local government and the state of Florida. For ongoing operations, the

third year of operation, or the stabilized year (2020), was used for assessing impacts.

Direct impacts result from the economic activity that occurs on the property itself. The direct

impact accounts for the expenditures made by the facility in the form of employee compensation

and purchases of goods and services.

Induced impacts result from the direct impacts on labor income. As household incomes are

affected by direct employment and spending, this money is re-circulated through the household

spending patterns, causing further local economic activity.

Indirect impacts reflect the economic spin-off that is made possible by the direct purchases of the

facility. Local firms providing goods and services to the proposed facility would have incomes

partially attributable to these gaming operations and contribute to the vendors’ spending power.

These additional expenditures and revenues continue to flow throughout the economy in a

rippling effect.

Ongoing Gaming The Innovation Group estimates that the proposed St. Johns pari-mutuel facility would employ

nearly 1,400 employees, providing over $48 million per year in labor income.

St. Johns Staffing Estimates

FTEs Employees Payroll* Tips Total Labor Income

Gaming 683 835 $34,889,346 $104,258 $34,993,604

Hotel 63 69 $1,963,671 - $1,963,671

Food and Beverage 387 495 $11,301,709 $351,469 $11,653,177

Total 1,133 1,399 $48,154,726 $455,726 $48,610,452

Source: bestbet facilities; The Innovation Group* Includes Benefits

Combined with purchases of goods and services, on-going operations are projected to have a

direct economic impact of over $254 million per year in the local area. Including indirect and

induced spin-off within the local area, operations are project to support more than 2,100 jobs,

labor income of over $78 million per year and total output of nearly $356 million per year.


St. Johns County On-Going Impacts

Employment Labor Income Value Added Total Spending

Direct Effect 1,399 $48,610,453 $122,738,650 $254,207,621

Indirect Effect 511 $19,730,296 $40,132,885 $69,449,381

Induced Effect 235 $9,678,432 $18,880,583 $31,949,020

Total Effect 2,144 $78,019,181 $181,752,118 $355,606,022

Source: 2014 Minnesota IMPLAN Group, Inc.; The Innovation Group

St. Johns County will receive over $4.7 million per year in slot revenue share, in addition to the

$111.7 million in taxes the state of Florida will collect from gaming activities each year.

Local and State Government Revenue Figures

2020

Local Gaming Revenue Share (1.5%) $4,731,101

State Slot Tax Rate (35%) $110,392,350

State Table/Poker Tax Rate (10%) $1,282,508

Annual State Table Fees ($1,000 per table) $40,000

Total Revenue – State and Local Government $116,445,958


Gaming taxes paid to the state government will support approximately 900 direct jobs and over

$62 million per year in labor income. These funds will support over $128 million in total

spending throughout the state on an annual basis.

Statewide Impacts of Government Spending


Direct Effect 939 $62,028,293 $78,070,449 $91,452,100

Indirect Effect 52 $2,299,263 $3,805,410 $6,747,736

Induced Effect 221 $9,113,933 $17,780,261 $30,087,205

Total Effect 1,212 $73,441,489 $99,656,120 $128,287,041


Additionally, the apportioned impact of state impacts on a county basis has been calculated as

proportional to the population breakdown. St. Johns County accounts for 1.1% of the state’s

population, which is approximately $1 million in direct spending.

Construction High-level construction estimates assume a construction budget for the proposed pari-mutuel

facility and hotel exceeding $230 million. Of that, $144 million of activity is anticipated to take

place within St. Johns County. This includes construction activities, as well as the purchase of

other goods and services.


St. Johns Economic Impact Construction Budget

Estimated Budget* Implan Inputs

Hard Costs $130,181,060 $130,181,060

Soft Costs $25,576,624 $11,560,634

FFE $74,431,928 $2,613,264

Contingency $15,000,000 $0

Total $230,189,612 $144,354,957


*Excludes costs not subject to economic impact.

IMPLAN estimates that construction activities will directly support over 900 jobs and $48

million in labor income. In total, construction activities are estimated to support over 1,200 jobs,

$62 million in labor income, and $187 million in total spending throughout the county.

St. Johns County Construction Impacts


Direct Effect 969 $48,518,696 $72,575,441 $142,523,065

Indirect Effect 119 $6,168,290 $10,863,487 $18,628,466

Induced Effect 202 $7,743,585 $15,105,824 $25,392,693

Total Effect 1,290 $62,430,571 $98,544,752 $186,544,224



DISCLAIMER Certain information included in this report contains forward-looking estimates, projections

and/or statements. The Innovation Group has based these projections, estimates and/or

statements on our current expectations about future events. These forward-looking items include

statements that reflect our existing beliefs and knowledge regarding the operating environment,

existing trends, existing plans, objectives, goals, expectations, anticipations, results of

operations, future performance and business plans.

Further, statements that include the words "may," "could," "should," "would," "believe,"

"expect," "anticipate," "estimate," "intend," "plan," “project,” or other words or expressions of

similar meaning have been utilized. These statements reflect our judgment on the date they are

made and we undertake no duty to update such statements in the future.

Although we believe that the expectations in these reports are reasonable, any or all of the

estimates or projections in this report may prove to be incorrect. To the extent possible, we have

attempted to verify and confirm estimates and assumptions used in this analysis. However, some

assumptions inevitably will not materialize as a result of inaccurate assumptions or as a

consequence of known or unknown risks and uncertainties and unanticipated events and

circumstances, which may occur. Consequently, actual results achieved during the period

covered by our analysis will vary from our estimates and the variations may be material. As

such, The Innovation Group accepts no liability in relation to the estimates provided herein.

Attachment 4

Review by Office of Management and Budget of

Gaming Feasibility and Economic Impact Analysis

ST. JOHNS COUNTY

OFFICE OF MANAGEMENT & BUDGET 500 SAN SEBASTIAN VIEW St. Augustine, Florida 32084

I N T E R O F F I C E M E M O R A N D U M

TO: Michael D. Wanchick, County Administrator

FROM: Doug Timms, Director, Office of Management & Budget

SUBJECT: Review of Gaming Feasibility and Economic Impact Analysis

DATE: June 2, 2016

The following constitutes a brief financial review of the Gaming Feasibility and Economic Impact Analysis for St. Johns County as prepared by the Innovation Group. The main benefits to the County include an annual local gaming revenue share estimated at $4.7 million; “trickle down” annual revenue from the State of $1 million (estimated based upon relative County population); estimated total direct and indirect jobs of 2,144 or 2% of the projected total County workforce; 1,290 estimated temporary direct and indirect jobs related to the construction of the $133 million facility and adjoining hotel (net of “soft costs”); and, although not mentioned in the Impact Analysis, recurring County bed tax and property taxes estimated at about $300,000 annually. The projected financial benefits do appear feasible upon initial review and testing. The estimate of 3.7 million annual visits does appear feasible just using the estimated adult County population (195,904 in 2021). Annual slot revenues of $315 million also appear feasible assuming that the Innovation Group is utilizing internal experience data. The average slot revenue per visit calculates to $85.25. This revenue, on which the $4.7 million County revenue is entirely dependent, can be volatile and likely will decline as the facility ages. For example, average slot revenue per visit of $50 would reduce annual County revenue to $2.8 million. Presumably, restaurant and bar business will add to the revenue per visit average, but the County will not receive much financial benefit from this revenue and it does not appear included in the Impact Analysis. While the direct and indirect jobs created appear attractive, the overall average salary is likely to be about 80% of the average workforce salary for the County. The adjoining hotel size is not disclosed, but at just 69 employees, the hotel appears to be on the smaller size. The “trickle down” revenue from the State can probably be entirely discounted, since such revenue will be difficult to identify and may occur without any effect attributable to the facility, although revenue to the State attributable to the facility is estimated at over $112 million annually. Recent polling data shows that over 80% of Americans accept gambling, so overall social acceptance of such a facility is likely. More problematic is that the County does serve the social welfare and such facilities are generally supported by 15% of clientele who produce 40% of the visits. Approximately 5% of clientele are estimated to develop serious social problems related to gambling. Finally, the facility is also obviously prone to competing venues including internet gambling. However, if not located in the County, it is likely that another facility will be placed near enough to the County to tap the County market.

Attachment 5

Section 551.102, Florida Statutes

Slot Machines Definitions

551.102. Definitions, FL ST § 551.102

© 2016 Thomson Reuters. No claim to original U.S. Government Works. 1

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Proposed Legislation

West's Florida Statutes AnnotatedTitle XXXIII. Regulation of Trade, Commerce, Investments, and Solicitations (Chapters 494-560)

Chapter 551. Slot Machines (Refs & Annos)

West's F.S.A. § 551.102

551.102. Definitions

Effective: July 1, 2015Currentness

As used in this chapter, the term:

(1) “Distributor” means any person who sells, leases, or offers or otherwise provides, distributes, or services any slotmachine or associated equipment for use or play of slot machines in this state. A manufacturer may be a distributorwithin the state.

(2) “Designated slot machine gaming area” means the area or areas of a facility of a slot machine licensee in which slotmachine gaming may be conducted in accordance with the provisions of this chapter.

(3) “Division” means the Division of Pari-mutuel Wagering of the Department of Business and Professional Regulation.

(4) “Eligible facility” means any licensed pari-mutuel facility located in Miami-Dade County or Broward County existingat the time of adoption of s. 23, Art. X of the State Constitution that has conducted live racing or games during calendaryears 2002 and 2003 and has been approved by a majority of voters in a countywide referendum to have slot machinesat such facility in the respective county; any licensed pari-mutuel facility located within a county as defined in s. 125.011,provided such facility has conducted live racing for 2 consecutive calendar years immediately preceding its applicationfor a slot machine license, pays the required license fee, and meets the other requirements of this chapter; or any licensedpari-mutuel facility in any other county in which a majority of voters have approved slot machines at such facilities in acountywide referendum held pursuant to a statutory or constitutional authorization after the effective date of this sectionin the respective county, provided such facility has conducted a full schedule of live racing for 2 consecutive calendaryears immediately preceding its application for a slot machine license, pays the required licensed fee, and meets the otherrequirements of this chapter.

(5) “Manufacturer” means any person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs,designs, or otherwise makes modifications to any slot machine or associated equipment for use or play of slot machinesin this state for gaming purposes. A manufacturer may be a distributor within the state.

(6) “Nonredeemable credits” means slot machine operating credits that cannot be redeemed for cash or any other thingof value by a slot machine, kiosk, or the slot machine licensee and that are provided free of charge to patrons. Such



credits do not constitute “nonredeemable credits” until such time as they are metered as credit into a slot machine andrecorded in the facility-based monitoring system.

(7) “Progressive system” means a computerized system linking slot machines in one or more licensed facilities within thisstate or other jurisdictions and offering one or more common progressive payouts based on the amounts wagered.

(8) “Slot machine” means any mechanical or electrical contrivance, terminal that may or may not be capable ofdownloading slot games from a central server system, machine, or other device that, upon insertion of a coin, bill, ticket,token, or similar object or upon payment of any consideration whatsoever, including the use of any electronic paymentsystem except a credit card or debit card, is available to play or operate, the play or operation of which, whether byreason of skill or application of the element of chance or both, may deliver or entitle the person or persons playingor operating the contrivance, terminal, machine, or other device to receive cash, billets, tickets, tokens, or electroniccredits to be exchanged for cash or to receive merchandise or anything of value whatsoever, whether the payoff is madeautomatically from the machine or manually. The term includes associated equipment necessary to conduct the operationof the contrivance, terminal, machine, or other device. Slot machines may use spinning reels, video displays, or both. Aslot machine is not a “coin-operated amusement machine” as defined in s. 212.02(24) or an amusement game or machineas described in s. 546.10, and slot machines are not subject to the tax imposed by s. 212.05(1)(h).

(9) “Slot machine facility” means a facility at which slot machines as defined in this chapter are lawfully offered for play.

(10) “Slot machine license” means a license issued by the division authorizing a pari-mutuel permitholder to place andoperate slot machines as provided by s. 23, Art. X of the State Constitution, the provisions of this chapter, and divisionrules.

(11) “Slot machine licensee” means a pari-mutuel permitholder who holds a license issued by the division pursuant tothis chapter that authorizes such person to possess a slot machine within facilities specified in s. 23, Art. X of the StateConstitution and allows slot machine gaming.

(12) “Slot machine operator” means a person employed or contracted by the owner of a licensed facility to conduct slotmachine gaming at that licensed facility.

(13) “Slot machine revenues” means the total of all cash and property, except nonredeemable credits, received by theslot machine licensee from the operation of slot machines less the amount of cash, cash equivalents, credits, and prizespaid to winners of slot machine gaming.

CreditsAdded by Laws 2005, c. 2005-362, § 1, eff. Jan. 4, 2006. Amended by Laws 2007, c. 2007-252, § 1, eff. July 4, 2007; Laws2009, c. 2009-170, § 19, eff. July 1, 2010; Laws 2010, c. 2010-29, § 4, eff. April 28, 2010; Laws 2015, c. 2015-93, § 2, eff.July 1, 2015.

Notes of Decisions (2)



West's F. S. A. § 551.102, FL ST § 551.102Current with chapters from the 2016 2nd Regular Session of the 24th Legislature in effect through May 10, 2016

End of Document © 2016 Thomson Reuters. No claim to original U.S. Government Works.

Attachment 6

Resolution 2012-25

Resolution 2012-225

Previous authorization for referendum

agenda item st. johns county board of county commissioners

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