Lakes Entertainment, Inc. announced that Evitts
Resort, LLC, a wholly owned subsidiary of Lakes, closed on
the purchase of the Rocky Gap Lodge & Golf Resort near Cumberland
Maryland ("Rocky Gap") today. Rocky Gap is a AAA four-diamond resort
which includes a 215-room hotel, convention center, spa, two restaurants
and the only Jack Nicklaus signature golf course in Maryland. The
purchase price of approximately $6.8 million was paid at closing.
Contemporaneous with the closing, Evitts entered into a lease with the
Maryland Department of Natural Resources for approximately 260 acres of
real property on which Rocky Gap is situated ("Lease"). The initial term
of the lease is for 40 years.
Earlier this year, Evitts was awarded a video lottery operation license
for Rocky Gap by the State of Maryland Video Lottery Facility Location
Commission ("Commission"). The Commission recently approved Evitts'
revised development plans which include the renovation of the existing
facilities to convert the approximately 20,000 square feet of existing
convention and meeting space into a gaming facility that will feature a
minimum of 500 video lottery terminals, a bar and a food outlet. The
total cost of the Rocky Gap acquisition and development project is
expected to be between $25 million and $30 million.
Lakes Entertainment's Chairman and Chief Executive Officer, Lyle Berman
stated, "We are very pleased that the Commission approved our revised
gaming facility plans and that we now own Rocky Gap. We have the cash to
finance the current development plans and we intend to start
construction in November of this year, with an anticipated opening date
for gaming in the second quarter of 2013."
Tim Cope, President and Chief Financial Officer of Lakes, added, "We
look forward to entering this market with a gaming product in this
beautiful setting which already has such outstanding resort amenities.
We are excited to immediately take over the operation of the existing
hotel, golf course, restaurants and spa which will remain open during
development."
.jpg)
