Greyhound Park and Casino Facility UpgradeTHE CITY OF DUBUQUE
Masterpice on the Mississippi
Dubuque
All-American City
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Upgrade of Dubuque Greyhound Park & Casino Facility
DATE: October 28, 2008
Dubuque Racing Association CEO and General Manager Jesus Aviles is requesting
City approval of a $10 million renovation project at the Dubuque Greyhound Park and
Casino.
respectfully recommend Mayor and City Council approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Jesus Aviles, Dubuque Racing Association CEO & General Manager
Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
DRA
DUBUQUE RACING ASSOCIATION
DUBUQUE
GREYHOUND
PARK & Casino
DATE: October 27, 2008
MEMO TO: Honorable Mayor and City Council
FROM: Jesus Aviles - DRA CEO & General Ma er
RE: Upgrade of Dubuque Greyhound Park & Casino Facility
Dubuque Racing Association (DRA) request written approval to renovate the facility owned by
the City of Dubuque located at 1855 Greyhound Park Rd as required by paragraph 13 of the
Amended and Restated Lease Agreement between the City of Dubuque and Dubuque Racing
Association, LTD dated March 31, 2004.
Discussion:
DRA request City approval of this renovation project in order to be competitive on a regional
and local level, which will assist DRA in its mission to provide continued funding to the City of
Dubuque and Charitable Organizations.
The original structure of the facility has not been significantly upgraded since it was constructed
in 1984 with some exceptions such as banquet areas and offices. Pari-mutuel wagering has
steadily declined since the opening of Wisconsin racetracks in 1989 and then again with Iowa
riverboat casinos. The decline in pari-mutuel wagering, age of the original structure,
underutilization of existing square footage, and guest desires for more amenities require that the
present facility be upgraded. DRA previously received City approval in order to offer a new
casino with 1,000 slot machines in 2005; the introduction of table games occurred in 2006.
These projects brought about increased revenues to the City of Dubuque and provided needed
funding to charitable organizations, which DRA desires to continue.
DRA staff, in conjunction with DRA Board approval, has undertaken efforts towards presenting
a plan of action as follows:
Staff contacted several architectural firms and selected JCJ Architects of Hartford Connecticut to
design our vision and Durrant Group to assist in the construction management. The goal is to
complete the project not later than April 1, 2009. These two firms have been working closely
together to provide the needed amenities within the $lOM project budget.
The major components of the project include a renovated pari-mutuel area, the addition of a
steakhouse, a reconfigured buffet, an entertainment area, and a new kitchen. The project will be
carried out in phases in order to minimize impacts to revenue during this construction period.
1855 Greyhound Park Road, P0. Box 3190 Dubuque, IA 52004-3190 Phone: 800-373-3647 Fax: 563-582-9074 www.dgpc.com/dra
(The simulcast wagering and poker room are being moved to the main casino during
construction.)
Phase 1 -Level Grandstand and Clubhouse Floors
This phase includes demolition of the maintenance offices, table games training room, pari-mutuel
lines, and grandstand and restaurant seating. Once those areas are cleared, the floor will be leveled.
This phase is to be completed by November 28`"
Phase 2 -Casino and Pari-Mutuel
Construction for the addition of the casino into the original building starts on November 17`n. The
first part will be removal of Black Oak Grill, the Poker Room, Security offices, EMT/First Aid, and
some of the marketing offices including the VIP lounge. Once the demo is complete, reconstruction
starts on the new poker room, cage, VIP lounge, and the Slot areas. The new pari-mutuel area will
include restrooms, a concession area, and a new mutuel line. Additionally, the Pari-Mutuel seating
areas are being upgraded to better serve the pari-mutuel guest. This phase is scheduled to be
completed by February 27`"
Phase 3 and 4 -Steakhouse, Buffet and Kitchen
Equipment for these areas will be ordered within the next couple of weeks; some of the equipment
has 14 week lead times. Construction will start around the week of December 8`n. The Food and
Beverage Team Members are excited about the renovation to their area because the kitchen has not
been upgraded since 1985. We are trying to do our part to be green by including a pulper and
composter unit in the wash room to reduce waste going to the landfill and the sewage treatment plant.
These areas will be ready for customers at the end of March.
Phase 5 -Rotunda
The renovations to the Rotunda will be the most challenging in terms of affecting the guests. The
challenge will be creating pathways for our guests to maneuver around the construction to enter the
casino. The current ramp will be replaced with one that curves in front of a water wall. Rich
Rewards will be relocated and a gift shop will be added. Construction will start right after the first of
the year and conclude by the end of March.
Phase 6 -Casino Renovation and Entertainment
The existing casino undergoes reconstruction by the end of January. The major work will be the
construction of the 300 plus seat entertainment center. New carpet and wall treatments will brighten
up this area. A small stage will be located where the south cage is currently located; it will be used
during the week for small bands to perform. This is the last area to be started and will also be
completed by the end of March.
Project Financing
The improvements to the facility are projected to approximate $IOM, including furniture,
fixtures, and equipment. The financing plan of action is to obtain funding in the amount of
$ l OM through a financial institution with terms of the loan yet to be determined. However,
Dubuque Racing Association (DRA) plans to secure financing with terms of not less than a 15
year amortization schedule at competitive rates.
Certain steps are required and are proceeding relative to financing, which are as follows:
1. Interim financing to pay for the construction costs will be drawn from DRA's Reserve
Fund as well as cash flow generated from operations until end financing is secured.
2. Authority to incur additional debt
a. Requires approval by the financial institution, which is part of the present loan
agreement in which DRA secured $25M that was used to build the present
casino.
b. The terms and conditions of the $ l OM loan will require DRA Board approval
when staff presents its recommendation to the Board.
c. The DRA will formally request the City of Dubuque's consent as required by the
City of Dubuque / DRA Lease Agreement subsequent to DRA Board approval.
Jesus Aviles, DRA's CEO and General Manager, will continue to keep the City Manager
apprised of the progress relative to securing long term financing.
Color Map
STATEMENT OF PROBABLE COST
DURRANT Chvner : Dubuque Greyhound Park & Casino
GROUP Project :Renovation 2008-09
INC. Protect No.: 09(135.00
Destgn Phase: Schematic Desi};n - By Construction Phase
Date 1(1/27/(18
Estimator 1?)K c~ RG
DE:SCRIP"1'ION COST / SI~ '1'oTNS
Phase 1 Not InGuded in Total
Building Construction Costs:
I Phase 1 -Level Moor & Exterior Enclosure
- - 191,055
2 Phase 2 Casino I:~~ansion 1,19$111111
3 Phase 3 - S[eakhouce/Buffet[/SuP~ott 2,167,835
+ Phase 4 -Kitchen 411,)62
5 Phase 5 Pari-Mutuel 45u,G00
(. Phase 6 -Rotunda 330,UIx1
7 Phase 7 Casino Renovations
--- - l,ulxl,oou
8 Kitchen Equipment 1 IS 1,505,408
'~ I~1~&1:(1^ScB) 1 IS
_- - - - __ _ i5nn0u
w h1~&1? (Pari ~'\4utuel) I 1S
~~~ ~ 4u,u0u
1 IS
u h1~&E (I:ntcrtainmcnt)
__ - 40,000
13 I;xtcrtor Sign _ _ _ .. 1 IS 3511,111111
Sub't'otal 57,828,8!,1 I
Dcsi m 13iJ Conan rent ~ l l l"'.. $782,886
Phase Construction Costs SubTotal ;p8 611 746
Constmction Contin rent 5"5. $4311,587
Phase CONSTRUCTION COST TOTAL $9,u42,333
Soft Costs:
- ---- _ _
Profcssu>nal Des~m Fces _
1
IS
567,2011
Ivrnishtng llesi~m Pecs _ 1 _ I ti __ U
Special Consultants (rvd, I~ooJ Service, Information_Syuems, Acoustical 1 LS 11
ConstmctionMana~emcnthecs ______ ____ _______ - __ __ ______ _ 1 IS 3111,111111
_ Punting and Reimbursable Costs 1 IS _35,01111
Plan Review Pecs -Stale & Lcxal l LS II
l3uilJers Rtsk Insurance 1 IS (1
Legal Ices 1 IS u
~laterial'fus[ing & Qualih~ Control Allowance 1 IS Il
Llil•:D Ccmficanon Costs 1 L.S U
Systems (ommnsioning 1 1S II
Utility Company Cha~cs_- L?Iectnc Gas, 'telephone, Cable 1 l ti n
Cih~ Utility Dees Dunng Constmchon - Domestic \C'ahr Sanitary Seyv~r 1'ie-in 1 I S 11
Utility Rcbatcs -Life Cycle Coat Analysis 1 i ti I I
_ Utility Rcbatcs _Altematc Encr~y Sourecs _ _ 1 I ti U
I IazarJous Material Abatement 1 IS II
1 urm[urc. X. Equiemcn[ _ 1 IS II
Kitchen Equipmcn[ / Appliantts
_-- -- -- - 1 IS I I
Audio Visual Equipment
_ 1 IS _
_ II
Communications Equipment, Antennas anJ Satellite llishes 1 L,S I I
"I'clephone /Voice Conduchm llcy ices & Equipment _. _____ 1 IS II
Dam /'1'echnoloby Conducto[s, Devices & Equi t~ment 1 IS 11
Security Systems 1 LS 11
Itnmterruptible Power Supply System _ ._ -_,_, .- _.- _ 1 IS II
Silmagc 1 I S I I
\\'indow '1'rcntmunts 1 IS U
Interior D&or, Display Pisturex, Plants, Artwork, Decora[ne Glass _
~ ~ _. - 1 IS II
Mocmg
_-- 1 IS II
Soft Cos[ Conhn~cncy 1 IS 1111 l~ II III
Soft Cost Sub'I'otal 1,U12,2u0
Buildin ~ Constmction Cos[ 't'otal 'J; 142,333
PROJECT TOTAL COST x10,054,533
C:1Userslbrians.DGPC\Documents\Construction\City\Revised Costs Estimates.xlsx
DUBUQUE GREYHOUND PARK & CASINO
2008-09 Renovations