Venture Backs Off From $705M Casino Plan

KANSAS CITY, KS-The $705 million plan for a Hard Rock Hotel and Casino here has been scrapped, at least for now. Citing the current financial climate, the joint venture of Baltimore-based Cordish Co. and the International Speedway Corp., which just won the bid to develop the project in September, has said it has to add more facilities to the project to make it profitable. Since that was not in the agreement with the Kansas Lottery, the venture has pulled it’s proposal, and hopes to reapply with a new plan. The project had included 1.5 million square feet of development, including a 300-room hotel, 3,000 slot machines, 175 gaming tables and 275,000 square feet of retail at the intersection of Interstates 70 and 435.

“There has been an unprecedented crisis and disruption in the global financial and economic markets,” said ISC president Lesa France Kennedy in a statement. “We are prepared to immediately move forward with the development of a $400 million, Hard Rock- branded casino as presented to the Review Board, which will include a state- of-the-art casino and multiple dining and entertainment venues. However, in the current financing environment we require the flexibility, if needed, to phase in the hotel, convention facilities, and additional entertainment components. As this was technically not permitted within our existing agreement, and this agreement could not be modified, we were forced reluctantly to withdraw our application. Upon the State re-opening bidding, we absolutely plan to re-apply with our phased development plan, as well as seek the realignment of a second NASCAR Sprint Cup date and building a road course at Kansas Speedway as part of the re-submitted application.”

The venture had beat out two other proposals, a $500 million bid by Las Vegas-based Golden Gaming Inc. and a 275-acre project by Legends Sun. Now, because the Cordish-ISC venture dropped its plan right before the state was to approve the plan, it has applied and will likely receive back a $25 million deposit, according to a Lottery statement.

“Hard Rock’s withdrawal is another unfortunate result of the worldwide crisis that has plagued the financial markets and hit the gaming industry especially hard,” said Lottery executive director Ed Van Petten in the statement. “We will reopen the application process in the Northeast zone and invite applicants to apply with proposals they feel fit the current economic climate. We are confident that we can and will find a manager to develop a destination casino in Wyandotte County.”

The state has four casino projects that it’s trying to facilitate, though only one remains viable. Citing the “unprecedented disruption in world financial markets,” Sumner Gaming Joint Venture (Harrah’s) on November 17 withdrew its application for a proposed destination casino in Sumner County. Penn National Gaming, Inc. withdrew its application in the Southeast Gaming Zone on Sept. 11. Bids have been reopened in the Southeast zone, with a deadline of Jan. 21 for applications to be received. The Lottery discuss reopening bids in the South Central and Northeast zones when it meets Dec. 11.

Butler National Service Corp. is still planning to build a destination casino in Dodge City in the Southwest Gaming Zone. The Kansas Racing & Gaming Commission has been conducting background investigations of the developer.