LAS VEGAS, March 13, 2000 - Station Casinos,
Inc. (NYSE: STN - news) today announced that it has secured three additional
gaming sites in the Las Vegas metropolitan area. �These strategic transactions
solidify and enhance our Company�s growth potential and the long-term value
of our Las Vegas franchise,� said Frank Fertitta III, Chairman and Chief
Executive Officer. �Between master-planned expansions of our existing assets,
and a portfolio of new development opportunities we can pursue at any time,
we are well positioned to continue our leadership of this market for the
foreseeable future.
�We are not dependent upon acquisitions for our future growth, nor are
we dependent upon new opportunities arising in emerging jurisdictions.
With limited new opportunities across the entire industry, we have secured
several platforms to continue our balanced approach to growth, as business
conditions dictate. As thousands of people move to Las Vegas each month,
we continue in our quest to be the preeminent provider of entertainment
and the brand of choice for Las Vegas residents.�
The sites include:
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The �Green Valley Ranch� site is a 40-acre parcel located in the southern
part of the Las Vegas valley, near the intersection of the Southern Beltway/I-215
and Green Valley Parkway in Henderson, Nevada. The Company has signed a
definitive agreement with GCR Gaming, LLC (a Nevada limited-liability company
owned by the Greenspun family of Las Vegas) to jointly develop a hotel-casino
on 40 acres of a 170-acre mixed-use commercial and retail development.
The Company expects to contribute approximately $40 million in cash equity
for a 50 percent equity ownership. The joint venture will pursue
�stand-alone� project financing for the deal. Station will be the
manager of the facility and receive a management fee for its services.
Construction on the project is expected to commence during the third quarter
of 2000, with completion in the fourth quarter of 2001. The project
is expected to be similar to the Company�s newer product offerings with
a preliminary budget of $270-$280 million.
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The �Rhodes Ranch� site consists of two parcels totaling 83 acres, located
at the intersection of Durango Road and the Southern Beltway/I-215 located
in the southwest quadrant of Las Vegas. The Company has purchased
a 51-acre parcel for cash and has entered into an option to purchase an
adjacent 32-acre parcel. The Company intends to hold the site for
future development. Development is not expected for several years,
at which time the Company intends to expand and complement its existing
brand with a facility that is consistent with market conditions at the
time.
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The �Boulder/Tropicana� site is a 68-acre site consisting of two parcels
at the intersection of Boulder Highway and Tropicana Avenue in eastern
Las Vegas. The Company is leasing (with an option to purchase) 34
acres of the site and has entered into an option to purchase the adjacent
34-acre parcel. The Company has no immediate plans to develop the
site.
Excluding the Green Valley Ranch joint venture, the cash paid to complete
all of the above transactions was approximately $30.2 million. In addition,
the Company will make combined lease and option payments of $1.6 million
per year.
In addition to the above sites, the Company holds several other parcels
in the Las Vegas metropolitan area that may be used for future casino development
at any time. These sites include the following:
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The �Wild Wild West� site is a 19-acre parcel located at the intersection
of Interstate 15 and Tropicana Avenue, just west of the Las Vegas Strip.
The operating income of the existing small casino more than offsets the
carrying costs of the long-term ground lease. Though the Company has no
immediate plans to develop the site, it holds potential for a large-scale
casino development.
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The �Boulder/Nellis� site is a 27-acre parcel at Boulder Highway and Nellis
Boulevard, in eastern Las Vegas, across from Sam�s Town Gambling Hall &
Hotel. Though the Company has no immediate plans to develop the site,
it holds potential for a more moderate-sized version of the Company�s existing
product offerings in Las Vegas.
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The �Santa Fe Galleria� site is 40-acre parcel near the intersection of
Sunset Road and Interstate 515 in Henderson, Nevada. The Company
recently announced that it intends to sell this parcel to a retail developer
and limit future development of the property to non-gaming uses.
The transaction is expected to close in the second quarter. The Company
will effectively re-deploy the proceeds from this transaction to the new
gaming parcels it has acquired.
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As part of the original purchase of the Santa Fe Galleria site in November
1999, the Company received a covenant from the principals of Santa Fe Gaming
limiting their ability to compete with the Company and a right of first
refusal with respect to the Santa Fe Hotel assets and securities. The Santa
Fe Hotel & Casino is located on a 38-acre site at the intersection
of I-95 and Rancho Drive in northwest Las Vegas.
The Company now owns or leases 448
acres of property zoned for casino development in the Las Vegas metropolitan
area at 10 different sites, and options to expand these sites by an additional
66 acres. The Company believes it now owns or leases more gaming property
in the Las Vegas metropolitan area than any other gaming company (or proposed
combination of gaming companies).
Station Casinos, Inc. is a multi-jurisdictional gaming company that
owns and operates the Palace Station Hotel & Casino, the Boulder Station
Hotel & Casino, the Texas Station Gambling Hall & Hotel, and the
Wild Wild West Gambling Hall & Hotel in Las |
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Vegas, Nevada, Sunset Station Hotel & Casino in Henderson, Nevada,
as well as slot machine route management services in Clark County, Nevada.
Station Casinos, Inc. also owns and operates Station Casino St. Charles,
a gaming and entertainment facility in St. Charles, Missouri, and Station
Casino Kansas City, a gaming and entertainment facility in Kansas City,
Missouri.
This press release may be deemed to contain certain forward-looking
statements with respect to the financial condition, results of operations
and expansion projects of the Company and its subsidiaries which involve
risks and uncertainties including, but not limited to, competition from
other gaming operations, construction risks, and licensing and other regulatory
risks. |