#1Presentation Last Updated: March 2021 0 of RUSH STREET Rush Street Development Agreement Informational Presentation PORTSMOUTHVA economic development#2Development Agreement Process • Virginia General Assembly passes casino bill for first time April 2019 November 2019 • Economic Development Authority (EDA) enters into a Memorandum of Understanding (MOU) with Rush Street Gaming • City Council approves Cooperation Agreement with EDA (R-19-38) • Virginia General Assembly passes casino bill for second time • Portsmouth commences negotiation of a Development Agreement with Rush Street Gaming April 2020 May 12-14 & 19, 2020 • Discussions with City Council & EDA regarding Development Agreement • Council designates Rush Street Gaming Preferred Casino Gaming Operator (2020-47) ⚫EDA and Rush Street execute Development Agreement May 26, 2020 PORTSMOUTHVA economic development#3Development Agreement Terms PORTSMOUTHVA economic development Rush Street Gaming (RSG) to submit proposal to City Council for approval Complete RSG to obtain City Council designation of "Preferred Casino Gaming Operator" Complete RSG to submit application for preliminary licensing approval to the Virginia Lottery Department Complete RSG to receive preliminary approval from the Lottery Complete City to hold referendum on whether voters want a casino gaming establishment at the Victory site Complete RSG to obtain City zoning approvals In Process RSG to submit application for final licensing approval to Lottery RSG to close on acquisition of property Pending Pending#4Development Agreement Terms • Purchase Price: $400,000 per acre PORTSMOUTHVA economic development • Required Investment by RSG: not less than $300 million Infrastructure RSG solely responsible for all road improvements, flood mitigation and other infrastructure costs directly necessary for Casino, Hotel, Convention Center, Structured Parking. Initial Phase . Casino gaming establishment including slot machines and table gaming, together with multiple restaurant venues. • Other Elements of Development: • Hotel Conference Center Structured Parking Outparcels#5Development Agreement Terms Developer authorized to commence hotel at any time after initial closing. Development must commence Hotel within one year of the following: PORTSMOUTHVA economic development Net Gaming Revenue exceeds $175 million over a 12-month period while a casino located within 15 miles is open to the public; OR Net Gaming Revenue exceeds $250 million over two consecutive 12-month periods. If Hotel has not been developed after casino open for four years: EDA has the right to ground lease property from RSG at a rent of $1.00 a year and bring in another developer to construct hotel.#6Development Agreement Terms Minority Participation Plan • PORTSMOUTHVA economic development Minority Participation Plan required as part of RSG's proposal to City Council and submitted to Lottery as part of RSG's preliminary application. • Closing on any portion of the property is conditioned on RSG demonstrating compliance with the Plan. • RSG required to provide regular updates on implementation of the Plan.#7Development Agreement Terms Minority Participation Plan • PORTSMOUTHVA economic development Minority Participation Plan required as part of RSG's proposal to City Council and submitted to Lottery as part of RSG's preliminary application. • Closing on any portion of the property is conditioned on RSG demonstrating compliance with the Plan. • RSG required to provide regular updates on implementation of the Plan.#8Development Agreement Terms Minority Participation Plan PORTSMOUTHVA economic development • Goal of 30% of Casino and Hotel costs of construction paid to either minority-owned or SWAM/DBE certified contractors Procedural requirements to attempt to meet minimum goal: • To be awarded project, General Contractor (GC) must: present strategy for achieving goal demonstrate historical MBE/WBE utilization • RSG and GC to hold informational forums working with diverse community-based business associations • GC to leverage professional affiliations for outreach • GC to emphasize contracting goal at pre-bid meeting of potential subcontractors and suppliers • Minority/SWAM/DBE participation to be a factor in GC award of bids • When insufficient capacity exists, RSG and GC to consider encouraging large subs to enter joint ventures#9Development Agreement Terms Minority Participation Plan PORTSMOUTHVA economic development • If a contract awarded by GC does not include minority/SWaM/DBE participation, GC must document why. GC to host one or more community outreach hiring conferences to build database of qualified skilled tradesmen from Portsmouth and the region who can be referred to contractors. GC to collect and track utilization, provide monthly reports, and provide summary report at end of project.#10Development Agreement Terms Minority Participation Plan PORTSMOUTHVA economic development RSG to solicit not less than $5 million in equity investment from minority-owned businesses and investors who are accredited. Primary emphasis for solicitation of investors is Portsmouth residents.#11Development Agreement Terms Wage & Other Construction Requirements • Davis-Bacon wages required. • • PORTSMOUTHVA economic development Participation in certified Department of Labor (DOL) apprenticeship programs. Preferences for hiring of residents of Portsmouth and adjacent localities, veterans, women, and minorities. Provide health insurance and retirement benefits for full-time employees. Provisions binding on GC and all subcontractors.#12Development Agreement Terms Casino & Hotel Operation - Hiring/Wages/Vendor • • • PORTSMOUTHVA economic development Full-time employees to be paid not less than 125% of federal minimum wage. Hiring preferences for residents of Portsmouth and adjacent localities, veterans, women, and minorities. All full-time employees to have access to health insurance and retirement savings benefit opportunities. Requirements also apply to employees of third-party providers of services on site where projected contractual fees exceed $500,000. RSG to adopt "Local First" policy for purchases from vendors.#13Development Agreement Terms Casino & Hotel Operation - Hiring/Wages/Vendor • PORTSMOUTHVA economic development Taxes and other revenues received by the City from the casino estimated to be approximately $15 million annually. In addition, RSG to provide City with annual payment equal to 1.5% of net gaming revenue generated the previous year between $150 million and $200 million and 2% of net gaming revenue generated the previous year over $200 million. Net gaming revenue includes revenues from the casino itself plus 20% of online sports betting revenues from RSG's Virginia sports betting license.#14Important Contact Information PORTSMOUTHVA economic development Rivers Casino Portsmouth Website General Information Email Email to inquire about becoming a Minority Investor Email to inquire about Casino Jobs Email to inquire about Vendor Opportunities Sign up to become a Construction Subcontractor with the local General Contractor, S.B. Ballard https://www.riverscasinoportsmouth.com/ [email protected] [email protected] [email protected] [email protected] https://www.sbballard.com/bid-with-us/