Danville CasinoJuly 2, 2019

121 W Wacker Drive, Suite 400, Chicago, Illinois | 312.488.1918

PROPOSED STEERING COMMITTEE

2

Introduction

• Rickey Williams, Jr. – Mayor

• Vicki Haugen – President & CEO, Vermilion Advantage, NFP

• Tinisha Shade-Spain – Director of Business Development, Vermilion Advantage, NFP

• Chris Yates – Acting Police Chief

• Dave Wesner – City Corporation Counsel

• Gardner Peck – Danville Metal Stamping Co.

• Jerry Connolly – Venture Mechanical

• Mike Puhr – Alderman; Chairman of Public Works Committee

Table of Contents

PAGE 4 – Team Overview

PAGE 12 – Bill Requirements

PAGE 14 – Process

PAGE 17 – Precedents

PAGE 19 – Potential Sites

PAGE 24 – Preliminary Conceptual Approach

3

Table of Contents

VERMILION DEVELOPMENT

4

Team Overview

PUBLIC-PRIVATE PARTNERSHIP

5

Team Overview

PROJECT EXAMPLES• CIF - University of Illinois Engineering Building – Urbana, IL

• $70M project cost• 125,000 SF instructional space

• 901 W. University – Urbana, IL• $6.3M project cost• 32,000 SF of office and retail space

• Harper Court – Chicago, IL• $106M project cost• 195,000 SF of office and retail space, and a 131-room hotel

• Carle Medical Building – Danville, IL• $6M project cost• 46,000 SF of medical office space

• University Hall (IUPUI) – Indianapolis, IN• $20M project cost• 100,000 SF of office space

• 22 N. 5th Street (ISU) – Terre Haute, IN• $5M project cost• 32,000 SF of office and retail space

MARKET-RATE DEVELOPMENT

6

Team Overview

PROJECT EXAMPLES• Viridian on Sheridan – Chicago, IL

• $38M project cost• 10-story, 100-unit apartment building

• Alcove M.D.P. – Chicago, IL• $43M project cost• 7-story, 43-unit condo building• 12 townhomes

• The Wallis – Minneapolis, MN• Pre-development• 13-story, 256-unit apartment building

AFFORDABLE ASSISTED LIVING

7

Team Overview

SILVER BIRCH ASSISTED LIVING• 8 facilities open

• 1 facility under construction

• 1 facility in pre-development

• $203.5M+ total investment

• 958 assisted living apartments operating

• In excess of 320 employees

THE CHICAGO CONSULTANTS STUDIO, INC.

8

Team Overview

OVERVIEW• Master development group with over 25

years of gaming development experience

• Serves developers and municipalities by assisting with:• Planning• Programming• Site Assessment• Gaming Operator Solicitation and

Evaluation• Construction Oversight

THE CHICAGO CONSULTANTS STUDIO, INC.

9

Team Overview

PROJECT EXAMPLES• South End Redevelopment – Springfield, MA

• Assisted with RFP process and selection of gaming and development partner

• Led initial planning effort• Refined final plan with MGM Resorts

• Bally’s Tunica – Tunica, MS• Provided master planning expertise for

relocation and redevelopment of riverboat complex

• Created unique program opportunities drawing on history of the area

TAFT LAW

1

0

Team Overview

PAUL T. JENSONPartner-in-charge / Industry Chair

Paul is a leading gaming lawyer who has extensive experience counseling casino owners, operators, suppliers, lenders and institutional investors in all aspects of gaming regulatory law.

OVERVIEW• Areas Covered

• Regulatory & Compliance• Mergers & Acquisitions• Finance• Governmental Representation• Litigation

• Clients• Casino Developers, operators, and managers• Gaming equipment distributors and suppliers• Investors in, and lenders to, casino projects• Route-based terminal operators and establishments• States & municipalities• Gaming commissions and boards

TAFT LAW

11

Team Overview

PROJECT EXAMPLES• City of Chicago, IL

• Since 2003, assisted officials with its attempt to pass a gaming expansion bill

• Drafted legislation and reviewed proposed legislation

• Advised the city on all aspects of the casino industry

• South End Redevelopment – Springfield, MA• Assisted with RFP process and evaluated and

negotiated proposals and agreements• Worked in conjunction with consultants and

advisors to determine financial feasibility and adverse impacts of development

• Represented the city at public meetings, hearings, and committees.

SENATE BILL 690

12

Bill Requirements

Danville Application Requirements:

• Application to be submitted no later than 120 days after the effective date of the Act.

• Nonrefundable application fee of $250,000 and background investigation fee.

• City Requirements:1. Public hearing to discuss certification requirements (see following slide).2. Resolution approving the details of the proposed casino following the public hearing.3. Submittal of a certification of the requirements to the Gaming Board.

SENATE BILL 690

13

Bill Requirements

Danville Application Requirements - Certification to the Gaming Board:

I. That the applicant has negotiated with the corporate authority or county board in good faith;

II. That the applicant and the corporate authority or county board have mutually agreed on the permanent location of the riverboat or casino;

III. That the applicant and the corporate authority or county board have mutually agreed on the temporary location of the riverboat or casino;

IV. That the applicant and the corporate authority or the county board have mutually agreed on the percentage of revenues that will be shared with the municipality or county, if any;

V. That the applicant and the corporate authority or county board have mutually agreed on any zoning, licensing, a public health, or other issues that are within the jurisdiction of the municipality or county; and

VI. That the corporate authority or county board has passed a resolution or ordinance in support of the riverboat or casino in the municipality or county.

TIMELINE

14

Process

6/24

/201

9

7/1/

2019

7/8/

2019

7/15

/201

9

7/22

/201

9

7/29

/201

9

8/5/

2019

8/12

/201

9

8/19

/201

9

8/26

/201

9

9/2/

2019

9/9/

2019

9/16

/201

9

9/23

/201

9

9/30

/201

9

10/7

/201

9

10/1

4/20

19

10/2

1/20

19

10/2

8/20

19

Task (Due Dates in White Text)

Governor Signed Bill 6/28 7/8

Prepare Solicitation of Interest 7/3

Responses to Solicitation of Interest 7/31

Selection of Operating Partner 8/14

Solidify Community Benefits/Determine Land Use Approval Process 9/2

Community Presentation

Preparation of Application / Market Study

Entitlement Process / Zoning Approval Process

Approval of Zoning

Submit Application 10/21

Deadline for Application 10/28

SOLICITATION OF INTEREST DELIVERABLES

15

Process

1. Partner’s interest, approach, and related experience

2. Analysis of the market

3. Preliminary program of the casino

4. Detail the number of jobs that will be created

5. Provide a record of compliance

6. Estimated balance sheet for the project

7. Approach to capitalization and source of equity capital

8. Preliminary operating pro forma

9. Suggested approach for paying predevelopment costs and application fee

10. Approach to operating a temporary casino

11. Regulatory and compliance history

12. Safety & Security

13. Approach to community benefits

14. Willingness to forego local enterprise zone benefits

15. Experience working with building trades and project labor agreements

16. Approach to incorporating local investors and community input

17. Approach to including MBE/WBE/VBE investors

SOLICITATION OF INTEREST EVALUATION CRITERIA

16

Process

• Financial • Analysis of the market

• Estimated balance sheet for the project

• Approach to capitalization and source of equity capital

• Preliminary operating pro forma

• Willingness to forego local enterprise zone benefits

• Suggested approach for paying predevelopment costs and application fee

• Community • Approach to community benefits

• Approach to incorporating local investors and community input

• Approach to including MBE/WBE/VBE investors

• Number of Jobs Created

• Design & Operation • Partner’s interest, approach, and related experience

• Preliminary program of the casino

• Approach to operating a temporary casino

• Experience working with building trades and project labor agreements

• Security & Regulation • Regulatory and compliance history

• Record of Compliance

• Safety & Security

EXAMPLE – TUNICA, MS

17

Precedents

Bally Tunica Resort and Hotel (now operated by Penn National)

• Leveraged strong contextual approach • Mississippi Bayou blues • Agrarian architecture/vernacular of the area

• Small in population and primarily agricultural area

• Sought to attract from Memphis and Jackson, Mississippi markets

• Unique appeal and attraction as compared to existing riverboats and hotels

• Created a destination live performance venue in signature “silo stage”• Cross promotional ties to Memphis

EXAMPLE – BETHLEHEM, PA

18

Precedents

Sands Bethlehem

• Post industrial city with population of 75,000

• Had to create its own market and distinct destination appeal

• Embraced history and steel mill past• Industrial theme and aesthetic, including

signature gateway “crane” sign

• Has grown through expanded area development• Adjacent outlet mall and events center• Adjacent “SteelStacks” – a ten-acre campus

dedicated to the arts, culture, community events and education

• Founder/host to special events including Lehigh Valley Food & Wine Festival

SITE CRITERIA

19

Potential Sites

• Requirements

• Minimum of 20-25 acres

• Immediate Access to I-74

• Visibility from I-74

• Utility Capacity and Availability

• Ease of Site Assembly / Site Control

• Compatibility with Context and Adjacent Uses

• Preferences

• Access to Hotel Rooms

• Access to Other amenities

• Adjacent Land Available for Ancillary

Development

POTENTIAL SITES – MARTIN LUTHER KING

20

Potential Sites

POTENTIAL SITES – GILBERT STREET

21

Potential Sites

POTENTIAL SITES – BOWMAN AVENUE

22

Potential Sites

POTENTIAL SITES – LYNCH ROAD

23

Potential Sites

SITE LOCATION

24

Preliminary Conceptual Approach

PRELIMINARY CONCEPT SKETCH

25

Preliminary Conceptual Approach

DANVILLE POTENTIALS / LINKAGES

26

Preliminary Conceptual Approach

From the ground up.

Build value. Enrich communities. That's the passion and purpose behind all Vermilion projects. We design for the future, in ways that make sense right now.