CASINO MAGIC: INITIAL LEASE ONLY BEGINNING

The lease agreement Casino Magic has signed with the Southeast Missouri Regional Port Authority calls for the construction of a gaming facility and related infrastructure on a 20-25 acre site, located on a 600 foot extension of the slackwater harbor the company will pay for.

But Doug Whitehead, senior Missouri project coordinator, says that is only the beginning of what his company has planned for its north Scott County location if voters of the county approve riverboat gaming Tuesday.

The first phase of Casino Magic's plans call for an extension of the harbor; raising its leased acreage above the flood elevation; extending water, electric and sewers to the site; building roads, lighted parking lots and other infrastrcuture it needs; and construction of a boat and a land based restaurant.

Whitehead points out that the company plans a phased-in development, but will invest $30 million the first year and will quickly move toward establishing itself as a total destination resort that provides far more for visitors than simply gaming.

Within the first two years, Casino Magic also plans to purchase additional land nearby for the construction of a golf course and R.V. park, and in a second phase will construct a 750 room hotel, and eventually, a major events facility that will draw top talent and high class events.

"We have made a lot of promises and will commit to our promises," said Whitehead. "We are planning a first class facility."

Whitehead said Casino Magic's development will not even be comparable to the riverboat gaming operation developed by Merv Griffin at Metropolis, which many in this area are familiar with. He describes the Metropolis operation as: "just a boat and a parking lot.

"We will have the same concept for Scott County that we have in Bay St. Louis, Miss. - we will put in a gaming resort."

To demonstrate its commitment to building a major events facility that will draw quality entertainment, Casino Magic officials announced Friday that former heavyweight boxing champion Larry Holmes will be in Sikeston Monday morning at a public meeting.

Holmes will hold appear at the Sikeston Inn, just off I-55, at 11 a.m. Monday. The event is open to the public and is being promoted as an opportunity for the company to show its commitment to the area for the construction of a total destination resort environment, and that the company is involved with more than just gaming.

Several major fights have been held at the facility in Bay St. Louis, including some involving Holmes. The fights have been televised nationally on HBO, ESPN, and USA cable networks.

Whitehead said the isolated, rural setting offered at the port authority is just what his company likes, and that there is plenty of land available in the area for their planned resort expansion. He adds that the company is also skilled in marketing rural locations.

The planned extension of Nash Road into the port will also provide direct access to the site and not disrupt existing neighborhoods, he noted.

Besides Scott County, voters in Cape Girardeau will also be decided whether to allow riverboat gaming on Tuesday. Before a boat can operate on the Mississippi or Missouri Rivers, a license must be granted by the Missouri Gaming Commission.

There has been some speculation about whether the gaming commission would grant licenses two boats in the adjacent counties, and if it did, whether two boats could survive.

Whitehead contends that it makes Casino Magic no difference what happens in Cape Girardeau, and that they are firmly committed to a major Scott County development.

"We will come regardless of what Cape does. We love our site," declared Whitehead. "We believe competition is healthy."

Because of Casino Magic's marketing skills, Whitehead contends they are not concerned about market saturation. They are projecting 1 million visitors the first year, but Whitehead quickly adds: "we will far exceed that."

Whitehead anticipates less than 10 percent of its visitors will come from this area. Casino Magic owns two travel companies: Experts in Travel, a Chicago-based firm, and Casino Magic Vacations. The Bay St. Louis facility owned by Casino Magic has an annual advertising budget of $13 million.

Casino Magic plans to bring many of its guests to the area by airplanes - they project 150,000 additional passengers will pass through the Cape airport their first year - and through buses.

Casino Magic will seek approval from the gaming commission to have its boat permanently docked. Missouri's law requires most boats to cruise during certain times of the year, however, there is a provision in the law for the commission to grant exceptions.

Whitehead believes that within five years, all boats in the state will be permanently moored.

"We plan to apply for permanent mooring; we won't make as much money if we have to cruise," explained Whitehead. "There is no question we want to be dockside, but we are at the mercy of the gaming commission on this issue."

If the gaming commission requires Casino magic to have a cruising boat, Whitehead says it will not deter the company's plans.

Missouri's law also has a $500 loss limit per cruise, and is established in such a way to restrict the likelihood of around the clock gaming that is available in Mississippi and other places.

"We will only miss the high, high roller," said Whitehead. "The moderate player we are aiming at won't lose $500 anyway. We don't see it as an obstacle."

Bill Bess of Sikeston, a member of the port authority's board of commissioners and a member of the committee that helped negotiate the lease, said the port was impressed with Casino Magic's desire to take a longterm lease.

"They are asking for a 20 year lease, which is highly unusual for a venture like this. Normally it is for 3-5 years," said Bess. The lease agreement also gives the company several additional 5-year options.

"We feel these folks are coming for the long haul. Having them here will be a big help to both Cape Girardeau and Scott Counties."

The SEMO Regional Port Authority has been developed over the last 20 years as a joint venture of Cape and Scott counties. The port is located in both counties, however, Casino Magic's initial development will be in Scott County.