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2 MISSOURI GAMING COMMISSION
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PUBLIC MEETING
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9 Wednesday, November 28, 2001
10 City Council Room
11 525 Spring Street
12 Boonville, Missouri
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IN RE: ISLE OF CAPRI-BOONVILLE, INC.
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Reported by:
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Stacy Brandes
22 BALLEW REPORTING SERVICES
2213 State Route W * 7430 Highway
40 West
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Fayette, MO 65248 * Columbia, MO 65203
660-248-3014 * 573-446-6455
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1 A P P E A R A N C E S
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Missouri Gaming Commission:
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Commissioners:
4 ROBERT SMITH,
Vice Chairman
DR. MURIEL W. BATTLE
5 LYNNE R.
NIKOLAISEN, via telephone
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KEVIN MULLALLY, Executive Director
ANGIE FRANKS, Secretary
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SERGEANT RICH MASON, Highway Patrol Team
STEVE JOHNSON, Deputy Director
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PATRICIA CHURCHILL, Deputy Director for Legal and
Legislative
Affairs
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ISLE OF CAPRI-BOONVILLE, INC.:
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TOM CAMPBELL, MO Regulatory Counsel for Isle of Capri
TOM CARR, Regional Vice
President for Operations
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JEFF KING, Vice President/General Manager
JACK GALLAWAY, President and
Chief Operating Officer
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CITY OF BOONVILLE:
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BUD KEMPF, Mayor
TRACY WALKUP, City Manager
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1 I N D E X
2 Page
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Public Hearing called to order . . . . . . . . 4
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Roll Call of Commissioners . . . . . . . . . . 4
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Consideration of Suitability for Licensure . . 5
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Presentation from Isle of Capri-Boonville, Inc. 6
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Presentation from City of Boonville. . . . . . 21
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Presentation of Highway Patrol
Background
Investigation. . . . . . . . . .
. . . . . . . 36
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Presentation of Operational
Issues . . . . . . 44
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Presentation from Legal
Representative . . . . 53
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Taking up Resolution No. 01-073.
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Motion to adopt Resolution No.
01-073,
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made by Commissioner Nikolaisen, seconded by
Commissioner Battle. . . . . . .
. . . . . . . 54
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Roll call of Commissioners on
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Resolution No. 01-073. . . . . . . . . . . . . 54
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Taking up Resolution No. 01-074. . . . . . . . 55
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Motion to adopt Resolution No. 01-074,
made by Commissioner Battle,
seconded by
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Commissioner Nikolaisen. . . . . . . . . . . . 55
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Roll call of Commissioners on
Resolution No. 01-074. . . . . .
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Public meeting adjourned . . . .
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1 P R O C E E D I N G S
2 COMMISSIONER SMITH:
I guess we need to
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call the meeting to order, so if everybody would have a
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seat. If you want to join us,
there are some extra seats
5 over here.
6 I'm Bob Smith and I'm the vice chairman of
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the commission. I'm acting
because the chairman has
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retired and the Governor hasn't appointed a new one yet.
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So I'm here and Muriel Battle is here with us and on the
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telephone is Lynne Nikolaisen, three members of the
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Commission. The fourth member of
the Commission is
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somewhere in the Himalayan Mountains, so we can't reach
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him, but we do have a quorum and are prepared to go ahead.
14 I apologize, first, for having the meeting
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start late, but we did take an extensive tour of the
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facility and went through it in detail this morning before
17 we came here. I apologize for keeping you all
waiting.
18 I do want to say, first, that I'm happy to
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be here in Boonville, and it's the first time I've been in
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your new City Hall, which I understand Mr. Kempf was
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responsible for and always -- since I live in Columbia, we
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get over here quite a bit, but we are very pleased to be
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here and glad you made this available to us. With that
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opening, I guess we need to call the roll.
25 ANGIE FRANKS:
Commissioner Smith.
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1 COMMISSIONER SMITH:
Present.
2 ANGIE FRANKS:
Commissioner Nikolaisen.
3 COMMISSIONER NIKOLAISEN: Present.
4 ANGIE FRANKS:
Commissioner Battle.
5 COMMISSIONER BATTLE: Present.
6 ANGIE FRANKS:
Commissioner Adorjan.
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COMMISSIONER SMITH: All right.
The roll
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has been called. I guess we'll
reconvene this open
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session at this time, and I guess the primary
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consideration is the suitability for the issuance of a
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license to Isle of Capri.
12 I'll first call on our executive director,
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Mr. Mullally, to give us the preliminary report.
14 KEVIN MULLALLY:
Thank you, Mr. Chairman.
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I'd also like to thank the City of Boonville, Mayor Kempf,
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Tracy, for hosting us today, and I appreciate the
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accommodations.
18 As we mentioned, the only item on the
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agenda today is the consideration of suitability for
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licensure for the Class A Licensee the Isle of Capri-
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Boonville. I want to clarify
that this is not the actual
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licensing. This is the
culmination of a lengthy
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background investigation into the parent company's
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activities in developing this site, all the principals
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involved, and their financial suitability. And this will
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simply be a finding that the company is suitable to hold
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license. There are still some
operational hurdles that we
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need to get through before making a final determination on
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licensure.
5 The order of the presentation this
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morning: First, we will hear
from the company, and then
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we will hear from the City of Boonville. We will then
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have the opportunity for any member of the public that
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would like to offer any comments on this project or the
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applicant. Then, finally, we
will have a presentation
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from the background investigation team regarding the
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results of the background investigation.
13 So without objection, Mr. Chairman, I'll
14 call on Tom
Campbell, representative for Isle of Capri-
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Boonville, to make his company's presentation.
16 COMMISSIONER SMITH:
Lynne, first, can you
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hear us all right so far?
18 COMMISSIONER NIKOLAISEN: Yeah. I heard
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Kevin just fine, so if Mr. Campbell gets in the same place
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as Kevin, I should be able to hear him.
21 COMMISSIONER SMITH:
Why don't you try
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speaking there first and see if she can hear you, if not,
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then you can move.
24 TOM CAMPBELL:
Okay. Thank you,
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Commissioners. Good morning,
Director Mullally. My name
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is Tom Campbell. I'm a partner
with the St. Louis law
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firm of Gallop, Johnson & Neuman, which serves as Missouri
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regulatory counsel for the Isle of Capri Casinos, Inc. and
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it's subsidiaries in Missouri, specifically,
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IOC-Boonville.
6 COMMISSIONER SMITH:
Before you go further,
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Lynne, can you hear him all right?
8 COMMISSIONER NIKOLAISEN: I can hear him
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just fine, thank you.
10 TOM CAMPBELL:
Jack Gallaway, who is the
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president and chief operating officer over the Isle of
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Capri, flew in for the meeting and he's en route, so he
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will be arriving later, and he will probably like to say a
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few words. Along with him are a
number of key executive
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management officers of the corporation who wanted to be in
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Boonville because of the interest they have in making sure
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that this project, as they have with their other projects,
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opens efficiently and without a problem and continues over
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the years to be a good operation.
20 On my right is Tom Carr, who is regional
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vice president for operations, and on my left is Jeff
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King, who is vice president/general manager for the
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IOC-Boonville development. They
will each respectively
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make a presentation. Tom will
make his first on the
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project as it is now evolving.
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1 TOM CARR: I
think I'm going to go over to
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the podium. It would be
easier. Good morning, again.
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You have my welcome to Boonville.
I'll suspect you'll
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get welcomed to Boonville several times today because we
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really are --
6 COMMISSIONER SMITH:
I should mention that
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Mr. Carr was our guide in going through the casino
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facilities, so we appreciate you taking us through there.
9 TOM CARR:
It's always a pleasure to show
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off your new baby, so we were very pleased to be able to
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do that this morning. Can she
hear me all right?
12 COMMISSIONER NIKOLAISEN: Yes.
13 TOM CARR:
Okay. Good. Thank you.
We
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have a relatively brief slide presentation that Jeff and I
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are going to go through, but we wanted to reacquaint you
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with a couple of things and talk about a few facts that I
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hope will be useful to you this morning. Jeff, go ahead.
18 As an overview of the property, and clearly
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you just walked it so you've seen most of this, but there
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is a 28,000-square foot casino there contained on the
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barge with 900 slot machines and 28 tables. Are we
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actually opening with exactly 28, Jeff?
23 JEFF KING:
Yes.
24 TOM CARR:
Exactly 28, because at one time
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I think we talked in the low thirties, but we are going to
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have 28 tables, which you saw this morning.
2 Off the barge, there's 25,000 square feet
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of public space. We have our
Calypsos Buffet. These are
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signature restaurants within the Isle of Capri, so if you
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go to an Isle of Capri, you will see similarly named
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restaurants. The buffet has 275
seats. We have a
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Farraddays' Restaurant, which has 75 seats, which is our
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fine dining restaurant that is used by our best customers.
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We have a Tradewinds Marketplace, which is a fast food.
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It's certainly more than a snack bar, but it offers a
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variety on the menu. It offers
people a quick and
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relatively inexpensive place to get a meal. Then we have
13 a retail area, a gift shop, if you will. And we have an
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upstairs area that is kind of a multipurpose room that we
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will be able to have parties and break-out rooms. The
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kind of thing that has a lot of flexibility to offer
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events for the property as well as for the community.
18 And there will be a historic display area
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on the property. I don't know
whether it was pointed out
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when you walked in the front door as to where it's going
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to be, but as you enter the property, there's going to be
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an area that will display historical items from the
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Boonville community. That is
being put together by a lady
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named Judy Shields, if I've got her name right, who is
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involved with the local historical society. She's putting
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together a collage, montage if you will, of artifacts for
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the area that will be displayed there.
In addition to
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that display, there is going to be a mural that is going
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to be hung in the entrance to the left as you go in. That
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is being done and it is done specifically for Boonville
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and is about Boonville. And I
think we're going to have a
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lot of fun in showing it off in the area.
8 The other thing that is historic on the
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property is the Katy Trail.
We've had our issues in
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getting the Katy Trail accomplished here, and I'll show
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you how it moves through the property, but running on the
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east side of the property, south and kind of east of the
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property, is the Katy Trail. And
I'll show you in a
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minute where that goes.
15 The other thing I wanted to mention is we
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have designed this project to put a hotel in, and I'm
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looking forward to -- when it opens as successfully as I
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know it will, I'm looking forward to going into our board
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and getting the money to put a hotel here. And if Jack
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was here, and he is here.
21 JACK GALLAWAY:
I think I came in a few
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minutes early.
23 TOM CARR: I
will put the arm on Jack
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fairly soon. We've designed it
in the project so we can
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do it in a way that really doesn't disrupt the business,
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but we think it will be a good addition.
2 Go ahead, Jeff.
That's the site plan.
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You've obviously just walked it.
That site plan is early
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in April of -- March of 2001, I believe. You'll see the
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Katy Trail, if you look at that site plan, in the upper
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right-hand corner. You can see
how the Katy Trail enters
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near Main Street and proceeds through the site. That is
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an old -- that was where it was initially going to be
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placed, and I'll show you on the next slide where it is
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today. But other than that, the
placement of the Katy
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Trail, everything on there is as we had contemplated, and
12 you will see marked as
-- is it "C" Jeff?
13 JEFF KING:
Yes, "C."
14 TOM CARR:
That's the site of the future
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hotel. It's back -- it will
actually be out where the
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loading dock area is, and we've planned it in such a way
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that we can build that as soon as it makes sense for us to
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do that.
19 Go ahead to the next one, Jeff. This shows
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where the Katy Trail is actually located today. On the
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far right of that it enters near Main Street, comes along
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the south side of the project, and then moves east back
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towards -- ultimately ends up, I guess, at Water Street.
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So the Katy Trail moves through that site, and we expect
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that that will have quite a bit of use.
So that's the
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site as it lays out.
2 Go ahead, Jeff.
Now, we wanted to give you
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a little bit of a historical perspective in the sense of
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showing you kind of what was there.
Most of you saw that,
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I didn't. I didn't join the
project until late 2000. Go
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ahead, Jeff, and kind of flip through that. It's a little
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bit dark and a little bit hard to see, but that's the site
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as it was as development was contemplated. That was a
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road that was there. Go ahead,
Jeff. This is the
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railroad track looking back towards the bridge, and this
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is looking up Second Street, all of which has been
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substantially improved today.
13 Go ahead, Jeff.
Then, as you can see, the
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superstructure begins to come out of the ground. Mother
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Nature was not completely our friend last year as we went
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through a tough winter here, but in spite of all of that,
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we really have all been pretty well on time. There is the
18 superstructure, more of
the superstructure.
19 Go ahead, Jeff.
Obviously, it begins to
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take shape. And then the first
look at kind of the
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interior, which you saw in a pretty well-finished way
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today, use of the neon color, the openness. Go ahead,
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Jeff. The exterior shot. That's now -- we were pleased
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to see today that we got the logo up on the side of the
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paddle wheel. At night, I
haven't been here yet to see it
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at night, looking forward to doing that this weekend, but