ridgecrest town hall: indian casino discussion

Town Hall Meeting:Ridgecrest Entertainment & Gaming Facility

A PUBLIC PRESENTATION & DISCUSSION OF ALL BENEFITS & DEFICITS OF BUILDING A NATIVE AMERICAN GAMING FACILITY IN

RIDGECREST

Goals of Town Hall To thoroughly vet the issue of an Municipal Service Agreement

with the Timbisha Shoshone Tribe with the Ridgecrest public To present the full scope of the project from the perspectives of

the Developer & the City To respond to all concerns and gather information from the

public regarding the Indian Casino To educate the public on the steps the City can and is taking to

protect public interest To measure public support and opposition to the Indian Casino

Town Hall Rules

Be respectful of all input, from Developer, City Staff, and members of the public

Only ask questions that have not been answered No applause to points that are made Please respect the Timbisha Shoshone Tribe who are

looking to grow their community within their Aboriginal Territory

Timbisha Shoshone Tribe

George Gholson, Tribe Chairman

Developer’s PresentationNigel White, Developer for the Timbisha Shoshone Tribe

Index Pictures, Exterior and Interior-An Elegant Modern Facility

Phase I: Building Elevation, Entertainment Lounge, Cocktail Bar, Food Court, Restaurant, Casino

Phase II: Steakhouse Architecture & Interior Design by the Friedmutter Group Pictures are actual but will be close to final product

Scope of the Entertainment Project Economics of the Entertainment Project Employment (Jobs) Visitation

FOR ADDITIONAL GAMING INFORMATION:American Gaming Association (AGA) www.americangaming.org

National Indian Gaming Commission (NIGC) www.nigc.gov

Exterior View of Facility

Interior View of Entertainment Lounge

Interior View of Cocktail Bar

Interior View of the Two Restaurants

Interior View of the Two Restaurants

Interior View of the Steak House (Phase II)

Casino Floor View (Slots)

Casino Floor View (Tables)

Scope of the ProjectPhase I

Building20,000 sq ft

Casino: 349 Slots, 6 Tables10,000 sq ft

Entertainment Lounge & Bar3,000 sq ft

Meeting/Conference Rooms (2)2,000 sq ft

Restaurant & Buffet130 seats

Cocktail Bar20 seats

Players Club & Retail Shop500 sq ft

Total Project Cost = $29,000,000

Scope of the Project

Phase IIHotel & Pool

80 rooms Multi-Purpose Convention Center/Theatre 5,000 seatsSteak House

80 seatsTotal Project Cost = $16,800,000

Economics An Economic Engine for Ridgecrest New Revenue Source from the Facility & Ancillaries

Local Residents & Tourists Casino Gaming Benefits

New Jobs, Payrolls, & Local Purchases Economic Revitalization Adding Revenues & Benefits from Building the Facility

Food, Clothing, Health Care, Utilities, Housing, Recreation “8 Times Economic Multiplier Effect”

Ridgecrest Travel Times

Ridgecrest Travel Times

Population Density, Market Area

Employment Construction Jobs

100 Entertainment Casino New Jobs – Phase I 180

Will be 7th largest Employer in Ridgecrest Induced Jobs

70 Payroll, Benefits, & Taxes (excluding tips) $6.9

Million Average Cost per Employee

$38,044 Estimated Local Spending by Employees $2.2

Million 20% of the Jobs created will need housing 36

Out of town employees with an: Increase in value to existing homes Positive impact on property taxes

Over 50% of the Jobs created at an excellent wage = 90+

Visitation

The Market Demand Model has four distinct markets:

1.Resident Market2.Localized Tourist/Base Market3.Resort Overnight Market4.Highway Intercept Market

Visitation

Gravity models are used to calculate revenue models & three major components are:

1.Frequency of Attendance2.Spend per Visit3.Competitive Adjustment

Visitation

Competitive Adjustment differences are:

1.Facility Size2.Quality3.Visibility4.Advertising & Branding

Visitation SourcesWe have calculated that 66% of visitation to

the Project will be from the Resident Market, Localized Tourist/Base Market, & Resort Overnight Marketing (All “Local”)

34% of visitation to the Project will be from outside the 25 mile “Local” market. This segment comprises over 67,000 visitors annually either by bus, car, or truck

Visitation SourcesMain Area Sources are:

TehachapiCalifornia CityRosamondBarstowLancaster/PalmdaleBus Visitors to Death ValleyHighway 395 Intercepts

Visitation SourcesBenefits to Local Ridgecrest Businesses:

Increased traffic to/from the new Walmart and local businesses

Increase in visitation will increase hotel stay & the TOT tax

Increase in gasoline taxes from additional touristsIncrease in growth to RidgecrestDraw of out of town visitors will result in

sustained economic growth

Project Location

What does the Municipal Service Agreement do?

Establishes the terms of the relationship between the City of Ridgecrest and the Timbisha Shoshone Tribe for the purpose of building a gaming facility

Terms relate to what the Casino will exchange in return for City infrastructure and services

Project ProcessGary Parsons, Economic Development Director

• Establishes relationship• Creates terms of

exchange: cash for services

• Outlines project expectations

• Allows for public input through Council

Municipal Service

Agreement

• Negotiates prices for land• May attach covenants to

land• Council will approve

terms of land sale

Land Sale

Role of the Government

The development of a gaming facility by the Timbisha Shoshone is considered a private business venture City cannot pick winners through a biased process

City can protect the public interests through the terms of the MSA and the Land Sale (next step in the process)

Behooves all parties to develop a strong relationship

What’s in the MSA? CONSTRUCTION & CITY CODES

Project complies with all applicable City general, specific and community plans, zoning ordinances and design guidelines in effect at the time of development

The Tribe shall adopt the building standards set out in the City’s adopted building codes…

The Tribe agrees to contract with the City to provide, planning, building and safety, fire prevention, and public works personnel to review construction plans and inspect construction of improvements on the Trust Lands, to insure compliance with adopted codes

Said review and inspection services shall be provided at the City’s normal rates for such services

What’s in the MSA?MITIGATON FEES

2% of the Projects appraised value and annual payments for police and fire services and problem gambling. The Phase I fees for the City’s General Fund are anticipated to be over $400,000

The amount will increase over timeAll monies are payable directly to the CityNo Monies are shared by SacramentoThe amount payable is higher than any other city

business

What’s in the MSA?

PAYMENT FOR FUTURE DEVELOPMENTIf a hotel is built full TOT taxes will be payableAddition development…..Tribe agrees to

negotiate in good faith with the City to mitigate impacts…….. (will pay equivalent type existing fees)

What’s in the MSA?LAW ENFORCEMENT

The City has authority to enforce State and local criminal laws on the Trust Lands

The Tribe will donate a police car and equipment for $80,000

The Tribe and City law enforcement shall fully coordinate and cooperate…..

The Chief of Police will personally elaborate on Law Enforcement

What’s in the MSA?EMPLOYMENT OF CITY RESIDENTS

The Tribe shall work in good faith with the City, to employ qualified residents at the Gaming Facility……….

ALLOWED GAMBLING AGE IN CASINOThe Tribe will restrict the age for gambling to 21

years of age……The drinking age limit is 21 years of ageUnder 21 will be allowed in the food establishments

What’s in the MSA?OTHER DEVELOPMENT PROJECTS

The Tribe shall undertake no new development that would be inconsistent with the moral climate of the community……………

If the Tribe undertakes a new business development project(s), it will notify the City at least three months prior to the commencement of construction of the new project and will negotiate in good faith with the City concerning an agreement for the protection of the Parties’ interests and the well-being of the surrounding community

What’s in the MSA?

PROBLEM GAMBLINGWe contribute financially to this areaThe casino area will have mandated signage and

brochures on this subject Staff will be trained on identifying problem gamblersCasino with work with the Police Dept. to create a

Gamblers Anonymous presence in the community

Project Process

StateCompact

FederalLand in Trust

CityMSA

CASINONew Jobs & $

Project Process

Public Safety M.S.A.

The City has authority to enforce State and local criminal laws on the Trust Lands (Project)

The Tribe and City law enforcement shall fully coordinate and cooperate…..

The Tribe and many other Tribes as well as corporate casinos throughout the United States have private security and

surveillance to ensure the safety of their guests and to ensure that cheating and crime do not occur on their property and in

their facility. Casinos are also one of the most highly regulated businesses in the United States, dictating the need

for a professional security and surveillance team. Many surveillance cameras will cover the entire facility

Public Safety To ensure the regulatory environment is complied

with and to ensure the safety of our guests: The Facility has a Security team of 20 supervisors and

officers The Facility also has a Surveillance team of 7 supervisors

and officers This team covers the entire Facility on a 24 hour basis

Public SafetyChief Ronald Strand, Ridgecrest Police Dept.

Impact of casino on general public safety Other jurisdiction experiences Considerations for traffic impact General impression of potential for crime rate

changes

Discussion Council & Staff will address concerns that have

been brought to public attention through Council meeting, community discussion, and social media

Tribal Members & Developer are invited to participate in order to thoroughly investigate each concern

Public comment will follow the presentation of key issues by the moderator

DiscussionFAQ

How can the community guarantee the quality of design being presented today?What assurances will the Developer make

& where do they enter into the agreement?

Has the Developer investigated other locations? What would those locations be and why aren’t they being considered?

DiscussionFAQ

Can the Developer explain exactly how the casino depicted in the released pictures will be scaled to fit the descriptions of size and design?

DiscussionFAQ

What will happen if the Navy disapproves of the site location for mission reasons?Where in the process where the Navy

comment?What liabilities will the City have should

the proposal fall apart after the Land Sale?

DiscussionFAQ

How does the Tribe intend to participate as a new member of the Ridgecrest community?What contributions will be made?What committees with it join?

How does the Developer intend to mitigate water impact?

DiscussionFAQ

What opportunity with the public have to give input during the Land Sale?

Has Council and/or the Staff spoken with other communities that have been effected by a Tribal casino? What is the impression from those discussions?