MGM National Harbor Request for Clarification of Opening Date Requirement
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MGM National Harbor
Request for Clarification of Opening Date Requirement
1
Conflict Between State Statutes
Md. Code Ann., State Gov’t, Section 9-1A-04(h)
“[t]he [State Lottery and Gaming Control] Commission may not permit the operation of
video lottery terminals in Prince George's County before the earlier of July 1, 2016, or 30
months after the video lottery facility in Baltimore City is open to the public.” (emphasis
added). *
Result: MGM cannot open before July 1, 2016
Md. Code Ann., State Gov't, Section 9-1A-11(b):
“(b) Commencement of operations; extension of time; reversion of license.—
(3) Notwithstanding paragraphs (1) and (2) of this subsection, the
Commission may allow an awardee of a video lottery operation license in Prince
George’s County to commence operation in a permanent facility more than 18
months, but not more than 30 months, after the license is awarded.” (emphasis
added). (MGM was awarded the Prince George’s County license on December 23,
2013)
Result: MGM must open between June 23, 2015 and June 23,
2016
Under section 04(h), the July 1, 2016 date is the earlier, and therefore applicable, date because the Horseshoe Casino opened in Baltimore on
August 26, 2014. 2
Conflict Between Statute and RFP
REQUEST FOR PROPOSALS
FOR A
VIDEO LOTTERY OPERATION LICENSE
IN PRINCE GEORGE’S COUNTY
#2013-0101
Applica tion package including, but not limited to, background inves tiga tions
From:
conducted by a contractor for the Lottery Commission, in-house costs for Lottery “VLT Facility in Prince George’s County may
Commission
State staff based on the hourly rates of Commission employees, and all
of Maryland
reasonable expenses such as travel, lodging, and meals.
Video Lottery Facility Location Commission
not commence operations before the earlier
1.1.7 An Operation License resulting from this RFP will be for an initia l term of of July 1, 2016 or thirty (30) months after the
fifteen (15) years. License a ward is tenta tively expected to occur in late 2013, with
Issue Date: February
the License term set6, 2013upon iss uance of the License. A full fifteen (15) years of
to begin VLT Facility located in Baltimore City opens to
operation will be
Pre-Proposal Conference: provided under
February 27,the2013
License.
Due Date: May shall
10, commence
2013 operation of VLTs in a perma nent Facility at the
the public.” (RFP Sec. 1.1.7, (emphasis added))
The Licensee
loca tion for which the Operation License has been a warded within eighteen (18)
months after the Operation License is awarded by the Location Commission, except
that a VLT Facility in Prince George’s County may not commence operations before
NOTICE: Prospective applicants who have received this document from
the earlier of July 1, 2016 or thirty (30) months after the VLT Facility located in
http://emaryland.buyspeed.com or from
Baltimore a source
City opens to theother
public. than the Video
Lottery Facility Location Commission (―Location Commission‖), and
who wish to assure receipt On ofa any amendments
determina tion by the or Lottery
other materials
and Gaming Control Commission tha t
related to this Request for Proposals
extenuating(RFP), should
circumsta immediately
nces exist contactthe control of the Awardee and
tha t are beyond
have prevented the Awardee from complying
the Location Commission (see Section 2.1.1) and provide their name and with the requirement to commence
operation within 18 months, the Lottery and Gaming Control Commiss ion may allow
e-mail or mailing address so that information relative to this RFP can be
the Awardee a n extension of 6 months to comply with the requirements. The
sent to them. Any prospective applicant
Lottery who fails
and Gaming to Commission
Control notify the Location
may not grant more than two six-month
Commission with this information
extensionsassumes complete responsibility in
to an Awardee.
the event that it does not receive further communications from the
Location Commission prior toThe
the closing
Lottery anddate.
Gaming Control Commission may a llow an Awardee of a Opera tion
License in Prince George’s County to commence operation in a permanent facility
more than 18 months, but not more tha n 30 months, after the license is awarded. If
Minority Business Enterprises Are Encouraged to Respond to This
the Awardee fa ils to comply with the requirements of this section, the license
Request for Proposals awarded to the Awardee s hall be revoked and sha ll a utomatica lly revert to the
State.
A Video Lottery Facility in Prince George’s County may not beg in VLT or Table Game 30 months from Horseshoe Baltimore’s August
operations in a temporary facility or in a structure, including a hotel or conference
center, that exists on August 15, 2012. 26, 2014 opening would be February 26, 2017
Within one (1) year of the end of the initial 15-year License term, a V ideo Lottery
Operation Licensee may reapply for a License that has a License term of ten (10)
years and a License fee to be established by statute.
All terms and requirements of this RFP sha ll be incorporated into a nd become a part
of the License.
1.1.8 An annua l fee of $425.00 sha ll be pa id by the O peration Licensee for each
Video Lottery Terminal operated by the Licensee during the year, based on
2
Conflict: An opening date of June 23, 2016 (30 months after the date of MGM’s
license award) as required by Md. Code Ann., State Gov't, Section 9-1A-11(b) would
conflict with Section 1.1.7 of the RFP. 3
Current Decision Statement Must Be Modified
“MGM proposed to construct a new facility at
National Harbor that would have amenities
including a hotel, restaurants, retail, and
entertainment venues. Construction on the
facility would be complete for a facility opening
in July 2016.” (Decision Statement for Prince George’s
County VLF, Page 2 (emphasis added))
Request:
MGM requests that the Location Commission amend the
Decision Statement to clarify the permissible opening
date of the Facility.
Conflict: As presently worded, the Decision Statement assumes an unspecified opening
date in July 2016, contrary to Md. Code Ann., State Gov't, Section 9-1A-11(b) and
4
Section 1.1.7 of the RFP.Potential Project Opening Date in MGM’s Proposal
E. SSCEDULE OF IMPLEMENTATION
“Barring circumstances that are outside of MGM
National Harbor’s control, and based on the
assumption of VLT license award and zoning approval
in December 2013, it is anticipated that VLT and
A. NUMBER OF VLTS
Table Games operations would commence by July 1,
MGM National Harbor proposes the following number of VLTs and table games: 2016.” (MGM Response to RFP #2013-0101, Section
• Number of VLTs – 3,600
• Number of Table Games – 140 3.1.6.2(emphasis added))
MGM National Harbor would operate more than the maximum number of VLTs
specified if additional VLTs should become available under the Gaming Law. While
the Applicant does not currently contemplate requesting additional VLTs beyond
3,600, it may, at some future date and depending on various market factors,
request to increase the number of VLTs if permitted by the Gaming Law. Request:
MGM National Harbor reserves the right to request to alter the number of Table
Games in the future as market conditions and seasonality warrant. MGM requests that the Location Commission amend
B. INITIAL LICENSE FEE PROPOSED the Decision Statement to accommodate for routine
MGM National Harbor has paid a license fee of $21,600,000. and customary contingencies that were required but
C. PROPOSED OPERATOR SHARE
beyond MGM’s control.
MGM National Harbor proposes 38% of the VLT Proceeds for the operator’s share
described in section 9-1A-27(b)(3) of the Gaming Law. By this Proposal, MGM
National Harbor does not exclude, aggregate, or waive the operation of section 9-
1A-27(a)(7)(i), which is separate and in addition to section 9-1A-27(b)(3) of the
Gaming Law.
MGM National Harbor reserves its rights with regard to any future changes in the
Gaming Law pertaining to operator’s share.
D. PROPOSED HOURS OF OPERATION
MGM National Harbor proposes to operate 24 hours per day/365 days per year .
E. SSCEDULE OF IMPLEMENTATION
Barring circumstances that are outside of MGM National Harbor’s control, and
based on the assumption of VLT license award and zoning approval in December
2013, it is anticipated that VLT and Table Games operations would commence by
July 1, 2016.
MGM Proposal Section 3.1.5 (A) Reads as follows: “Potential Project Opening Date: July
1, 2016 (subject to License Award, zoning, permitting, and barring unforeseen
circumstances.)” 5September 2, 2014: Completion of Routine Permitting Process
March 25, 2014 April 8, 2014 June 9, 2014
October 2, 2013 Dec 23, 2013
Community
MGM filed Pre- Decision PG County PG County Benefit
App For Detailed Statement Zoning Bill Business & Hiring Agreement
Site Plan (“DSP”) Issued Passed Bill Passed Executed
July 23, 2014
July 12, 2014 August 14, 2014 Sept. 2, 2014
County Council August 12, 2014
District Council Approves
Construction Period For
MNCPPC Permit Issued by
Approved DSP Community Benefit Appealing DSP
Approves DSP PG County
Agreement Expired
March 2, 2017 Awarded subject to five (5) contingent
events, including negotiations with
is 30 Months after MGM City of Baltimore
received confirmation that
the appeal period for
challenging the Amended
DSP expired without any Awarded, contingent upon zoning
appeal having been filed. approval by Anne Arundel County
Council
Amending MGM’s Decision Statement, to acknowledge required routine approvals,
agreements, and permits, would be consistent with the contingencies allowed for other
license awardees. 6You can also read
