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closeKansas track bumps up casino bid with promise of RV rally, revenue
CARL MANNING
The Associated Press
Wednesday, Aug. 27, 2008
TOPEKA, Kan. - Kansas Speedway added another incentive Wednesday in its bid to get the contract to manage the state-owned casino in Wyandotte County: a promise to bring in thousands of recreational vehicle users each year to a rally that would generate millions in revenue.
The speedway has a letter of commitment from Camping World, the world's largest retailer of RV equipment, to hold the annual "Heart of America RV and Outdoor Rally" there starting in 2010, Speedway President Jeff Boerger said. The rally would bring at least 6,000 people to the area, he said, and generate an annual economic impact of some $10 million.
Boerger said the rally, like the promises of a new track and a second NASCAR Sprint Cup race, is contingent on the state choosing Kansas Entertainment LLC partnership over three other bidders that want to build and manage the state-owned casino in Wyandotte County. The speedway is part of that partnership.
A 2007 state law provides for four casinos, including one in Wyandotte County. The law calls for the Lottery Gaming Facility Review Board to choose the winner based on which applicant would bring the most revenue to the state, increase tourism and be in the state's best interest.
Boerger's announcement came a day after he promised that the speedway would build a 2 1/4-mile road course in its infield, designed for the Grand-Am Rolex Sports Car Series and competition by various sports car clubs.
And two weeks ago, the speedway offered to seek a second NASCAR Sprint Cup race if Kansas Entertainment, of which it is a part, gets the 15-year casino management contract.
"This is not pie in the sky. This is not wishful thinking. This is something you can bank that's going to happen," Boerger said. "These are real economic opportunities for the state."
Kansas Entertainment's plan would put a $705-million Hard Rock Hotel and Casino at the No. 2 turn of the 1 1/2 mile D-shaped oval track.
The other bidders for a Wyandotte County casino are Golden Heartland Inc., Legends Sun and Pinnacle Entertainment Inc. Their facilities would be near the speedway.
All four applicants say it would take about two years to open their permanent facilities. Kansas Entertainment and Pinnacle also plan temporary facilities that would open next summer.
The Lottery Gaming Facility Review Board will hear from the applicants next week and decide Sept. 18-19 who gets the contracts.
The speedway's incentives aren't part of a contract that Kansas Entertainment signed with the state in May. But Boerger said the proposals will be part of its presentation to the review board.
"Everything we said we were going to do at the speedway, we have done," Boerger said. "My integrity and reputation is on the line and I'm going to make sure they are going to happen."
Boerger said the track has approval from its parent company, International Speedway Corp., to construct the road course. He also said he saw little problem in transferring a Sprint Cup race from one the other 11 ISC tracks to Kansas.
"We have moved races from one track to the other in the past so that's why I'm confident we can do it," he said.
He said last year's Sprint Cup race generated $111 million in overall economic impact, with an average of 100,000 visitors per day.
The speedway projects first-year gambling revenue of $349.3 million; Golden projects $239.3 million; Legends projects $271 million; and Pinnacle projects $361.3 million. The state would receive at least 22 percent of the gambling revenue.