Penn’s Landing Corporation Authorizes Option Agreement for Riverwalk Casino Project

Today the Penn’s Landing Corporation Board of Directors authorized its negotiating team to finalize a contract with Riverwalk Casino LP for a gaming facility on the 11.5 acre Old Incinerator Site, located at Spring Garden Street and Columbus Boulevard. The decision follows a competitive process initiated in October 2005.

If Riverwalk obtains a state gaming license, the deal has a value to Penn’s Landing of between $1.3 billion and $1.8 billion over the life of the deal. In addition, Riverwalk would commit to making valuable offsite improvements, including traffic signalization and street improvements. It would also fund a new Fire Department EMS Unit to serve the facility, help offset increased police costs, and make a significant contribution to a neighborhood special services district.

According to the projections of the Philadelphia Gaming Advisory Task Force, the development will create approximately 500 construction jobs and approximately 700 permanent jobs once the facility opens. The development would also have substantial minority, women and disabled participation in development and operation of the site. A controlling stake in the developer is held by local minority and women investors.

“Penn’s Landing believes Riverwalk Casino presents a wonderful opportunity for Penn’s Landing and the City of Philadelphia. We’re excited about this potential redevelopment of a former incinerator site,” said Joe Brooks, Acting President of Penn’s Landing Corporation.

Two gaming facilities are expected to be licensed in Philadelphia by the Pennsylvania Gaming Control Board in late-2006 or early-2007. The Philadelphia Gaming Advisory Task Force estimates that host fees to the City from the two gaming facilities will be between $26 million to $30 million annually. Gaming revenues will allow for significant reductions in the City wage tax, and funding of the Pennsylvania Convention Center, among other things.

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