00001

1 PUBLIC HEARING

2 BEFORE THE GAMING COMMISSION

3 OF THE STATE OF MISSOURI

8 IN THE MATTER OF:

9 RELICENSURE OF CLASS A LICENSES

22 JULY 8, 2004

00002

1 PUBLIC HEARING

2 BEFORE THE GAMING COMMISSION

3 OF THE STATE OF MISSOURI

5 IN THE MATTER OF:

6 CONSIDERATION OF RELICENSURE OF CLASS A LICENSEES

11 BE IT REMEMBERED THAT ON THE 8TH DAY OF JULY,

12 A.D, 2004, AT THE HILTON ST. LOUIS FRONTENAC, 1335 SOUTH

13 LINDBERGH BOULEVARD, IN THE COUNTY OF ST. LOUIS, BEFORE

14 PENNY J. MULLEN, A CERTIFIED COURT REPORTER AND NOTARY

15 PUBLIC WITHIN AND FOR THE COUNTY OF ST. LOUIS, STATE OF

16 MISSOURI, AND NOTARY PUBLIC WITHIN AND FOR THE STATE OF

17 MISSOURI, THE ABOVE-STYLED CERTAIN CAUSE CAME ON FOR A

18 PUBLIC HEARING COMMENCING AT THE HOUR OF 9:00 A.M., SAID

19 HEARING HAVING BEEN CALLED BY THE CHAIRMAN OF THE GAMING

20 COMMISSION PURSUANT TO THE ISSUANCE OF DUE NOTICE TO ALL

21 PARTIES IN INTEREST, AND THE FOLLOWING IS THE TRANSCRIPT

22 OF THE RECORD MADE OF ALL PROCEEDINGS HAD DURING THE

23 COURSE OF THAT HEARING.

00003

1 A P P E A R A N C E S

2 FLOYD BARTCH - CHAIRMAN

3 RALPH BIELE - COMMISSIONER

4 JUDITH SUTTER-HINRICHS - COMMISSIONER

5 JACK GANT - COMMISSIONER

6 GEORGE HARTSFIELD - COMMISSIONER

7 KEVIN MULLALLY - EXECUTIVE DIRECTOR

8 ANGIE FRANKS – ADMINISTRATIVE ASSISTANT

9 REX SCISM - MISSOURI STATE HIGHWAY PATROL

10 STEVE AKRIDGE - MISSOURI STATE HIGHWAY PATROL

11 GARY BAKER - MISSOURI STATE HIGHWAY PATROL

12 PHILIP MORRISON - MISSOURI STATE HIGHWAY PATROL

13 KEITH JOHNSON - MISSOURI STATE HIGHWAY PATROL

14 MICHAEL BUSHMANN - GENERAL COUNSEL, GAMING

15 COMMISSION

16 JANE RACKERS - ASSISTANT ATTORNEY GENERAL

17 JIM OBERKIRSCH – CHIEF FINANCIAL ANALYST

00004

1 MISSOURI GAMING COMMISSION MEETING

2 MR. KEVIN MULLALLY: GOOD MORNING MR. CHAIRMAN. IF

3 WE'RE READY TO GO, PLEASE CALL THE ROLL.

4 MS. ANGIE FRANKS: CHAIRMAN BARTCH?

5 MR. CHAIRMAN: PRESENT.

6 MS. FRANKS: COMMISSIONER HINRICHS?

7 COMMISSIONER HINRICHS: PRESENT.

8 MS. FRANKS: COMMISSIONER GANT?

9 COMMISSIONER GANT: PRESENT.

10 MS. FRANKS: COMMISSIONER HARTSFIELD?

11 COMMISSIONER HARTSFIELD: PRESENT.

12 MS. FRANKS: COMMISSIONER BIELE?

13 COMMISSIONER BIELE: PRESENT.

14 MR. MULLALLY: MR. CHAIRMAN, THE FIRST ITEM

15 ON THE AGENDA INVOLVES A SERIES OF MINUTES UNDER TABS

16 A,B,C, AND D.

17 MR. CHAIRMAN: OKAY. I DO HAVE ONE COMMENT

18 BEFORE WE BEGIN. I WANT TO MAKE CLEAR TO EVERYBODY IN

19 THE ROOM THAT THERE WILL BE NO DISCUSSION TODAY ON THE

20 EXPANSION PROJECTS. WE HAVE A LOT OF STUDIES TO DO YET.

21 WE'RE GOING TO LOOK AT IT VERY CLOSELY, OF COURSE. THERE

22 WILL BE NOTHING ON THE AGENDA EVEN THOUGH IT APPEARED ON

23 THE AGENDA EARLIER IN THE PROCESS. AND THERE ALSO IS NO

24 TIME LINE AS TO WHEN WE'RE GOING TO MEET ON THAT

25 PARTICULAR SUBJECT LATER. SO I JUST WANT TO MAKE THAT

00005

1 CLEAR FOR EVERYBODY THAT'S IN THE ROOM.

2 MR. MULLALLY: THANK YOU, MR. CHAIRMAN.

3 UNDER TABS A,B,C AND D ARE A SERIES OF MINUTES FROM

4 MEETINGS.

5 COMMISSIONER HINRICHS: I'LL MOVE TO APPROVE

6 THE MARCH 31, 2004 MINUTES.

7 COMMISSIONER HARTSFIELD: SECOND.

8 MR. CHAIRMAN: WITH NO DISCUSSION, WILL YOU

9 CALL ROLL?

10 MS. FRANKS: CHAIRMAN BARTCH?

11 MR. CHAIRMAN: APPROVED.

12 MS. FRANKS: COMMISSIONER HINRICHS?

13 COMMISSIONER HINRICHS: APPROVED.

14 MS. FRANKS: COMMISSIONER GANT?

15 COMMISSIONER GANT: APPROVED.

16 MS. FRANKS: COMMISSIONER HARTSFIELD?

17 COMMISSIONER HARTSFIELD: APPROVED.

18 MS. FRANKS: COMMISSIONER BIELE?

19 COMMISSIONER BIELE: APPROVED.

20 MS. FRANKS: BY YOUR VOTES YOU HAVE ADOPTED

21 THE MINUTES OF THE MARCH 31, 2004 MEETING.

22 COMMISSIONER HINRICHS: I'LL MOVE TO APPROVE

23 THE APRIL 1, 2004 MINUTES.

24 COMMISSIONER HARTSFIELD: SECOND.

25 MR. CHAIRMAN: CALL THE ROLL, PLEASE.

00006

1 MS. FRANKS: CHAIRMAN BARTCH?

2 MR. CHAIRMAN: APPROVED.

3 MS. FRANKS: COMMISSIONER HINRICHS?

4 COMMISSIONER HINRICHS: APPROVED.

5 MS. FRANKS: COMMISSIONER GANT?

6 COMMISSIONER GANT: APPROVED.

7 MS. FRANKS: COMMISSIONER HARTSFIELD?

8 COMMISSIONER HARTSFIELD: APPROVED.

9 MS. FRANKS: COMMISSIONER BIELE?

10 COMMISSIONER BIELE: APPROVED.

11 MS. FRANKS: BY YOUR VOTES YOU HAVE ADOPTED

12 THE MINUTES OF THE APRIL 1, 2004 MEETING.

13 COMMISSIONER HINRICHS: I SEEM TO BE ON A

14 ROLL HERE. I MOVE TO APPROVE THE APRIL 19-21, 2004

15 MINUTES.

16 COMMISSIONER GANT: I SECOND.

17 MR. CHAIRMAN: CALL ROLL, PLEASE?

18 MS. FRANKS: MR. CHAIRMAN?

19 MR. CHAIRMAN: APPROVED.

20 MS. FRANKS: COMMISSIONER HINRICHS?

21 COMMISSIONER HINRICHS: APPROVED.

22 MS. FRANKS: COMMISSIONER GANT?

23 COMMISSIONER GANT: APPROVED.

24 MS. FRANKS: COMMISSIONER HARTSFIELD?

25 COMMISSIONER HARTSFIELD: APPROVED.

00007

1 MS. FRANKS: COMMISSIONER BIELE?

2 COMMISSIONER BIELE: APPROVED.

3 MS. FRANKS: BY YOUR VOTES YOU HAVE ADOPTED

4 THE MINUTES OF THE APRIL 19-21, 2004 MEETING.

5 COMMISSIONER HINRICHS: I MOVE TO APPROVE THE

6 APRIL 27, 2004 MINUTES.

7 COMMISSIONER HARTSFIELD: SECOND.

8 MR. CHAIRMAN: CALL ROLL, PLEASE?

9 MS. FRANKS: CHAIRMAN BARTCH?

10 MR. CHAIRMAN: APPROVE.

11 MS. FRANKS: COMMISSIONER HINRICHS?

12 COMMISSIONER HINRICHS: APPROVE.

13 MS. FRANKS: COMMISSIONER GANT?

14 COMMISSIONER GANT: APPROVE.

15 MS. FRANKS: COMMISSIONER HARTSFIELD?

16 COMMISSIONER HARTSFIELD: APPROVE.

17 MS. FRANKS: COMMISSIONER BIELE?

18 COMMISSIONER BIELE: APPROVED.

19 MS. FRANKS: BY YOUR VOTE YOU HAVE ADOPTED

20 THE MINUTES OF THE APRIL 27, 2004 MEETING.

21 MR. MULLALLY: MR. CHAIRMAN, WE HAVE FIVE

22 CASINO LICENSINGS TO CONSIDER TODAY. TO GO OVER THE

23 OUTLINE FOR OUR RENEWAL PROCESS, THE FIRST PRESENTATION

24 IN EACH RENEWAL WILL BE FROM THE APPLICANT. WE THEN LIKE

25 TO HEAR FROM THE HOMEDOCK CITY IN EACH COMMUNITY. THERE

00008

1 HAS BEEN THE OPPORTUNITY FOR ANYONE FROM THE PUBLIC WHO

2 WISHES TO COMMENT ON EACH OF THESE RENEWAL APPLICATIONS.

3 THAT WILL BE FOLLOWED BY THE STAFF INVESTIGATIVE SUMMARY

4 AND THE STAFF RECOMMENDATION.

5 THE FIRST LICENSURE FOR YOUR CONSIDERATION IS THE

6 HARRAH'S NORTH KANSAS CITY AND GENERAL MANAGER BILL

7 KEENA, THE PRESENTATION FOR THE COMPANY.

8 MR. CHAIRMAN: THANK YOU.

9 MR. BILL KEENA: GOOD MORNING, MR. CHAIRMAN,

10 FELLOW COMMISSIONERS, MEMBERS OF THE GAMING COMMISSION.

11 THANK YOU FOR LISTENING TO OUR PRESENTATION ON OUR NORTH

12 KANSAS CITY LICENSE RENEWAL. IN FRONT OF YOU YOU SHOULD

13 HAVE A PRESENTATION THAT WE PUT OUT EARLIER. I WOULD

14 LIKE TO REFER TO THAT IN MY PRESENTATION THIS MORNING.

15 I'D LIKE TO START OFF ON PAGE 4 AND GO OVER THE REVENUE AND

16 ADMISSION PERFORMANCE FOR THE NORTH KANSAS CITY PROPERTY.

17 AS YOU LOOK AT PAGE 4, WE DID MISS OUR PLANNED

18 REVENUES FOR THE YEARS 2002/2003. WE ATTRIBUTE A BIG

19 PIECE OF THAT FOR 2002 BEING AN OVER-AGGRESSIVE PLAN.

20 THEN, OF COURSE, IN 2003 WE HAD THE OPENING OF THE

21 AMERISTAR AND THE ARGOSY WHERE THEY MADE CONSIDERABLE

22 IMPROVEMENTS TO THEIR PROPERTY. SOME ADMISSIONS ARE DOWN,

23 TOO, AND IT'S BASED ON THE SAME IMPRESSION OF IT AS I

24 JUST EXPLAINED FOR THE TOTAL REVENUE.

25 I'D LIKE TO GO TO PAGE 5 AND TALK ABOUT SOME

00009

1 CAPITAL INVESTMENTS THAT WE MADE IN NORTH KANSAS CITY AND

2 THEN SOME OF THE PLANNED INVESTMENTS THAT WE PLAN TO GO

3 FORWARD WITH. I CAN TELL YOU WE FEEL VERY STRONGLY ON

4 THE NORTH KANSAS CITY; THAT IT'S A VERY STRONG MARKET,

5 AND WE PLAN ON MAKING CONSIDERABLE INVESTMENTS IN THAT

6 PROPERTY.

7 THE TOTAL PRIOR YEARS’ INVESTMENTS WAS $210 MILLION,

8 AND SINCE JANUARY 2002, WE'VE ADDED IN ADDITIONAL

9 REVENUES: A $12 MILLION CONVENTION CENTER, OUR DINING

10 LOUNGE WHICH SERVES OUR TOP CUSTOMERS AT $3.2 MILLION, OUR

11 FRESH MARKET SQUARE BUFFET WE'VE PUT IN ANOTHER $3.1

12 MILLION, FOR A TOTAL PROPERTY INVESTMENT OF $228 MILLION

13 ON THE NORTH KANSAS CITY PROPERTY.

14 GOING FORWARD, WE ALREADY HAVE APPROVAL FROM OUR

15 CORPORATE OFFICE TO INVEST $106 MILLION. IN THAT

16 NEW $106 MILLION, WE ARE CURRENTLY RIGHT NOW IN

17 THE PROCESS OF UNDER CONSTRUCTION OF A HOTEL TOWER THAT

18 WILL HAVE 206 ROOMS AND 20 SUITES. WE ARE GOING TO BE

19 ADDING AND/OR IMPROVING ON SIX RESTAURANTS. WE'LL BE

20 ADDING A NEW RESTAURANT. WE'RE GOING TO BE ADDING IN A

21 STARBUCK'S COFFEE SHOP, A NEW SEAFOOD RESTAURANT, A

22 CALIFORNIA PIZZA KITCHEN, REMODELING OF THE RANGE

23 RESTAURANT, ADDITIONAL REMODELING OF OUR BUFFET, AND

24 WE'RE ADDING IN ANOTHER ASIAN RESTAURANT.

25 WE'RE CURRENTLY UNDER CONSTRUCTION OF 795

00010

1 ADDITIONAL PARKING GARAGE SPOTS. WHEN I SAY 795, THERE

2 ARE ACTUALLY GOING TO BE MORE, BUT WE'RE GOING TO GIVE UP

3 A FEW SPOTS, TOO. TWO NEW CASINO BARS: ONE ON THE LOWER

4 LEVEL AND ONE ON THE TOP OF OUR BOAT; A NEW DELI THAT

5 WILL BE ON THE TURNSTILE IN THE BOAT AREA; A BRAND NEW

6 POKER TABLE. WE WILL HAVE 12 TABLES. WE HOPE TO GET

7 THAT OPENED BY THE END OF JULY. AND A BRAND NEW HIGH

8 LIMIT SLOT AREA.

9 ONCE AGAIN WE'RE MAKING SUBSTANTIAL CAPITAL

10 INVESTMENTS IN THE NORTH KANSAS CITY PROPERTY BECAUSE WE

11 THINK, ONCE AGAIN, IT'S A VERY STRONG MARKET AND

12 ACTUALLY WE'VE BEEN BEHIND THE 8-BALL AND NOT INVESTED

13 FAST ENOUGH IN THAT PROPERTY. SO WE'RE MAKING UP FOR IT

14 AS FAST AS WE CAN.

15 THE FOLLOWING PAGES TAKE YOU THROUGH SOME OF THE

16 THINGS THAT WE SAID WE WERE GOING TO DO AND SHOW YOU SOME

17 OF THE IMPROVEMENTS WE MADE TO THAT PROPERTY. ON

18 PAGE 6 IT SHOWS ONE OF OUR SUITE ROOMS THAT WE CURRENTLY

19 HAVE RIGHT NOW; OUR NEW HOTEL FRONT DESK LOBBY THAT WE

20 DID WHEN WE DID THE REMODELING. THAT FRONT DESK LOBBY

21 WILL GO AWAY WHEN WE OPEN UP THE NEW HOTEL TOWER.

22 THERE'S A PICTURE OF OUR CONVENTION CENTER, OUR

23 DINING LOUNGE THAT I TOLD YOU ABOUT THAT WE SPENT $3.2

24 MILLION ON; THE BUFFET ROOM THAT WE SPENT $3.4

25 MILLION THAT WE INVESTED IN. THOSE ARE SOME OF THE

00011

1 CAPITAL IMPROVEMENTS THAT WE MADE. WE'RE LOOKING FORWARD

2 TO SPENDING THE $106 MILLION AND DOING ADDITIONAL WORK

3 THAT WE CAN FIND ROOM TO GROW OUR FACILITY THERE.

4 PAGE 10 ON EMPLOYEE DEMOGRAPHICS: 89 PERCENT OF

5 OUR EMPLOYEES ARE FROM THE MISSOURI AREA, 11 PERCENT

6 BEING FROM KANSAS. WE HAVE 51 PERCENT FEMALE, 49 PERCENT

7 MALE. 1571 EMPLOYEES THERE OF WHICH 1257 ARE FULL TIME

8 AND 189 PART-TIME WITH 125 OTHERS. THAT INCLUDES PEOPLE

9 ON FMLA AND ON-CALL EMPLOYEES. OUR AVERAGE SALARY

10 COMPENSATION IS $68,333; AN AVERAGE HOURLY COMPENSATION

11 OF $27,356. BOTH OF THOSE ARE 2003 NUMBERS AND THEY'RE UP

12 FROM 2002.

13 FROM A DIVERSITY STANDPOINT, WE THINK WE DO A VERY

14 GOOD JOB IN A DIVERSITY STANDPOINT WHEN WE COMPARE TO THE

15 KANSAS CITY METRO AREA DEMOGRAPHICS. CURRENTLY RIGHT NOW

16 WE HAVE 70 PERCENT CAUCASIAN EMPLOYEES VERSUS THE KANSAS

17 CITY METRO AREA OF 75 PERCENT. AFRICAN-AMERICAN IS 15

18 PERCENT VERSUS A MARKET AREA OF 14 PERCENT. HISPANIC IS

19 8 PERCENT VERSUS 5 PERCENT FOR THE MARKET AREA. SO WE'RE

20 ACTUALLY DOING A VERY GOOD JOB OF MAKING SURE MINORITIES

21 HAVE OPPORTUNITIES IN OUR PROPERTIES.

22 THE UTILIZATION OF MINORITY CONTRACTORS, FOR

23 REGULAR NON-GAMING PURCHASES WE UTILIZE THE COMPETITIVE

24 BIDDING PROCESS. WE TRY TO USE MINORITY CONTRACTORS WHEN

25 WE CAN, AND WE ALSO UTILIZE THE MINORITY SUPPLY COUNCIL

00012

1 TO HELP US FIND AND AWARD BIDS TO MINORITIES. CURRENTLY

2 RIGHT NOW WE HAVE 100 NATIONAL CONTRACTORS THAT OUR

3 COMPANY USES NATIONWIDE FROM THE 26 PROPERTIES TO GET

4 FAVORABLE PRICES ON OUR GOODS AND SERVICES WHICH AMOUNTS

5 TO $4 MILLION.

6 WE UTILIZE 33 MINORITY CONTRACTORS WHICH WE SPENT

7 $1.6 BILLION ON IN AWARDING THEM TO THE LOCAL

8 VENDORS THERE IN NORTH KANSAS CITY. I CAN ALSO TELL YOU

9 WHAT WE SPEND FOR OUR GENERAL CONTRACTORS THAT ARE LOCAL

10 IN KANSAS CITY; A LOCAL CONTRACTOR THERE IS GOING TO BE

11 DOING THE $100 MILLION JOB FOR US.

12 THAT'S THE SHORT SUMMARY VERSION OF THE

13 PRESENTATION TODAY. I WOULD ASK IF THERE ARE ANY

14 QUESTIONS BEFORE I ASK THE MAYOR OF KANSAS CITY TO COME

15 UP.

16 COMMISSIONER HINRICHS: YOU SAID YOU WERE 61

17 PERCENT FEMALE; IN YOUR MANAGEMENT TEAM, WHAT PERCENTAGE

18 ARE FEMALE?

19 MR. KEENA: AROUND 30 PERCENT. ANY OTHER

20 QUESTIONS? I'D LIKE TO ASK THE MAYOR OF NORTH KANSAS

21 CITY TO COME UP.

22 MAYOR GENE BRUNS: MEMBERS OF THE COMMISSION, I'M

23 GLAD TO BE HERE TO SPEAK ON BEHALF OF THE CITY TODAY.

24 YOU HAVE COPIES AND SOME REFERENCE MATERIAL TO ALL THE

25 QUESTIONS THAT FALL UNDER THE PRESENTATION OF THE HOME
00013

1 DOCK COMMUNITY. I WOULD LIKE TO COMMENT THAT FROM THE

2 START TO THE PRESENT DAY THE HARRAH'S MANAGEMENT HAS BEEN

3 GREAT CORPORATE CITIZENS.

4 THE ONE THING THAT WE HAVE BEEN VERY PLEASED WITH

5 IS THEIR WILLINGNESS TO GO ABOVE AND BEYOND WHAT IS

6 EXPECTED. THEY CONTRIBUTE $100,000 TO A CHARITABLE 501(C)(3)

7 ORGANIZATION IN THE NORTHLAND AREA. WE SUBMIT PAPERWORK

8 IN LETTING THEM KNOW HOW THOSE PEOPLE ARE PICKED, AND

9 THEY HAVE APPLICATIONS THEY PICK UP EVERY NOVEMBER AND

10 TURN THEM IN BY THE END OF DECEMBER. THEN WE GO THROUGH

11 THEM AND DISTRIBUTE THAT $100,000. IT'S BEEN A VERY

12 WONDERFUL PROGRAM FOR A LOT OF 501(C)(3)'S IN THE AREA.

13 YOU HAVE ONE QUESTION AND THE SECOND YEAR I WAS

14 MAYOR I ASKED THE CITY CLERK TO ASK FOR A COPY OF THE

15 RELICENSURE AGREEMENT. THE COMMITTEE HAD TRIED TO

16 STREAMLINE IT A LITTLE BIT AND LEFT ONE QUESTION OFF

17 WHICH I WOULD PLEAD WITH THE COMMISSION NOT TO LEAVE OFF,

18 AND THAT'S QUESTION 8. IT SAYS, "WHAT ARE YOU DOING WITH

19 YOUR SPECIAL REVENUES FOR ADJACENT COMMUNITIES AND WHAT

20 IS YOUR RATIONAL FOR NOT." WE HAVE PARTICIPATED A GREAT

21 DEAL WITH THE PARTNERSHIPS IN THE ADJACENT COMMUNITY. WE

22 HAVE WORKED WITH THE CITY OF KANSAS CITY IN THE BRIDGE

23 RELIGHTING IN THE NORTHLAND FOYER; THAT'S THE MAIN

24 ENTRANCE TO THE KANSAS CITY AREA FROM THE AIRPORT.

25 WE HAVE GIVEN SEED MONEY OF $300,000 TO THE CLAY

00014

1 AND PLATTE COUNTY HAZMAT GROUP THAT HAS BEEN FORMED BY

2 THE FIRE CHIEFS IN THE NORTHLAND, AND WE CONTINUE TO HAVE

3 THAT PARTNERSHIP OPEN SO IF THEY NEED ANYTHING THAT WE

4 MIGHT BE ABLE TO ASSIST THEM. AS A CITY COUNCIL WE

5 PARTNER WITH THE SCHOOL DISTRICT IN NORTH KANSAS CITY,

6 AND THE OLDEST HIGH SCHOOL IN THE AREA WHICH WAS BUILT IN

7 1925. WE HAVE THREE BUILDINGS AND HAVE CONTRIBUTED TWO

8 AND A HALF MILLION DOLLARS IN AIR CONDITIONING ALL THOSE

9 BUILDINGS. WE RENOVATED THE 1938 FOOTBALL STADIUM, WPA

10 PROJECT WITH THE SCHOOL DISTRICT. WE HAVE CONTRIBUTED

11 MONEY TO GLADSTONE, MISSOURI WHEN THEY LOST THEIR

12 AMPHITHEATER TO AN ARSONIST. THAT WAS $60,000 THERE.

13 WE WERE APPROACHED A FEW YEARS AGO ABOUT

14 SUPPORTING A RAPE CRISIS CENTER IN THE NORTH METRO AREA,

15 AND THE PLANNING COMMISSION AND THE CITY COUNCIL WELCOMED

16 IT. THEY NEEDED SOME SOPHISTICATED EQUIPMENT FOR WHAT

17 THEY HAVE TO TAKE CARE OF IN THOSE CASES, AND WE HAVE

18 PURCHASED THAT THROUGH THE POLICE DEPARTMENT SO WE COULD

19 GIVE THEM THE BEST THAT MONEY COULD BUY. AND THAT HAS

20 ALL BEEN DONE BY THE TAX MONIES FROM HARRAH'S CASINO.

21 THE CITY IS GOING THROUGH A RENOVATION OF SEWERS,

22 REALIGNING, REBUILDING MANHOLES, AND WE ARE CLOSE TO A

23 HUNDRED MILLION DOLLAR REDEVELOPMENT PROJECT BY A

24 QUARTER OF THE POPULATION OF OUR CITY WHERE THE RESIDENTS

25 WILL BE ABLE TO RESIDE. IF YOU HAVE ANY OTHER QUESTIONS

00015

1 I'D BE GLAD TO RESPOND.

2 COMMISSIONER GANT: HOW IS IT THAT YOU'RE

3 STARTING TO SET UP REDEVELOPMENT HOUSING? HOW IS THAT

4 DOING?

5 MAYOR BRUNS: WHEN WE BUILT THE $15 MILLION

6 COMMUNITY CENTER AND THE $5 MILLION ADDITION

7 TO THE LIBRARY, WE SET ASIDE ENDOWMENTS EACH YEAR SO THAT

8 FUTURE CITY COUNCILS, IF MAJOR RENOVATIONS ARE NEEDED OR

9 REPAIRS AND THINGS LIKE THAT, THESE ENDOWMENTS WILL

10 ENABLE FUTURE CITY COUNCILS TO GO GET A FAIR PRICE AND

11 THE MONEY IS THERE. SO WE ARE PUTTING MONEY ASIDE FROM

12 THE TAX MONEY TO TAKE CARE OF THE BUILDINGS THAT WE HAVE

13 BUILT.

14 COMMISSIONER GANT: THAT'S A GREAT IDEA.

15 MAYOR BRUNS: WELL, I THINK THAT IT'S A

16 RESPONSIBLE IDEA, BUT WE HAVE USED NONE OF THOSE MONIES

17 FOR DAY-TO-DAY OPERATIONS IN THE CITY. IT'S ALL BEEN

18 CAPITAL IMPROVEMENTS.

19 COMMISSIONER GANT: THAT IS INTERESTING.

20 MAYOR BRUNS: ANY OTHER QUESTIONS?

21 MR. CHAIRMAN: I ONLY WANT TO COMMENT AND

22 CONGRATULATE YOU. I LIVE IN CLAY COUNTY AND SEE WHAT

23 YOU'VE DONE WITH THE REVENUE. IT'S EXTRAORDINARY.

24 YOU'RE DOING A LOT OF VERY GOOD THINGS AND THE REACHING

25 OUT TO OTHER PARTS OF THE COUNTY AS YOU HAVE DONE IN

00016

1 DIFFERENT PROJECTS IS A VERY GOOD THING. OTHERS COULD

2 LEARN FROM YOUR WISDOM. I THINK YOU HAVE DONE A GOOD

3 JOB, SIR.

4 MAYOR BRUNS: THANK YOU SO MUCH. WE HAVE

5 EXPANDED ALSO INTO PLATTE COUNTY NOW. THE CITY OF

6 DEARBORN ASKED FOR $5,000 FOR THEIR CHILDREN'S PARK AND

7 THE CITY COUNCIL WAS VERY GENEROUS IN GIVING IT. I

8 CHASTISED THE MAYOR AT THAT TIME FOR NOT ASKING FOR MORE.

9 THANK YOU.

10 MR. MULLALLY: MR. CHAIRMAN, THIS IS THE

11 POINT IN THE PRESENTATION WHERE WE WOULD NORMALLY HEAR

12 FROM THE PUBLIC, AND THE STAFF HAS NOT BEEN CONTACTED BY

13 ANYONE WISHING TO TESTIFY REGARDING THE HARRAH'S NORTH

14 KANSAS CITY RENEWAL. IF ANYONE IS HERE, NOW WOULD BE THE

15 APPROPRIATE TIME TO STEP FORWARD. IF THERE IS NO ONE,

16 SERGEANT REX SCISM IS HERE TO PRESENT THE INVESTIGATIVE

17 REPORT ON BEHALF OF THE STAFF.

18 SGT. REX SCISM: MR. CHAIRMAN, COMMISSIONERS, GOOD

19 MORNING. AN INVESTIGATION WAS CONDUCTED BY THE JEFFERSON

20 CITY BACKGROUND TEAM TO DETERMINE THE SUITABILITY OF

21 HARRAH'S NORTH KANSAS CITY, LLC FOR THE LICENSE RENEWAL

22 OF THEIR CLASS A RIVERBOAT GAMING LICENSE. ON APRIL 24,

23 2002, HARRAH'S NORTH KANSAS CITY WAS GRANTED A CLASS A

24 GAMING LICENSE BY THE MISSOURI GAMING COMMISSION FOR THE

25 PURPOSE OF OPERATING A RIVERBOAT GAMBLING OPERATION IN

00017

1 THE CITY OF NORTH KANSAS CITY, MISSOURI.

2 CREDIT AND CRIMINAL BACKGROUND CHECKS WERE

3 CONDUCTED ON HARRAH'S NORTH KANSAS CITY KEY AND LEVEL ONE

4 PERSONNEL. THE BACKGROUND CHECKS INCLUDE BUT WERE NOT

5 LIMITED TO: CHECKS WITH FEDERAL, STATE, COUNTY AND

6 MUNICIPAL LAW ENFORCEMENT AGENCIES WHERE THE INDIVIDUALS

7 LIVED, HAVE LIVED, WORKED OR FREQUENTED. NO

8 DISCREPANCIES OR CONCERNS WERE NOTED.

9 THE CITY OF NORTH KANSAS CITY AND CLAY COUNTY

10 OFFICIALS WERE CONTACTED REGARDING THE CONCERNS WITH THE

11 OPERATION OF HARRAH'S NORTH KANSAS CITY. THERE WERE NO

12 ISSUES, CONCERNS OR NEGATIVE INFORMATION DISCOVERED. THE

13 MISSOURI DEPARTMENT OF NATURAL RESOURCES, MISSOURI

14 DEPARTMENT OF HEALTH, CLAY COUNTY DEPARTMENT OF HEALTH

15 AND ABS CONSULTING INCORPORATED, WERE CONTACTED REGARDING

16 ANY CONCERNS WITH HARRAH'S NORTH KANSAS CITY'S OPERATION.

17 AGAIN, NO ISSUES WERE NOTED.

18 AN INVESTIGATION CONDUCTED DID NOT PRODUCE ANY

19 OTHER INFORMATION WHICH WOULD PRECLUDE HARRAH'S NORTH

20 KANSAS CITY, OR ITS PRINCIPALS REFERRED TO HEREIN, FROM

21 BEING CONSIDERED FOR RELICENSURE. THANK YOU.