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Minutes 05/26/2020
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Minutes 05/26/2020
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May 26, 2020 <br /> <br />“RESOLUTION DESIGNATING RUSH STREET GAMING LLC AND ITS AFFILIATE <br />PORTSMOUTH GAMING HOLDINGS, LLC AS THE PREFERRED CASINO GAMING <br />OPERATOR FOR THE CITY OF PORTSMOUTH. <br /> <br />WHEREAS, <br /> the Economic Development Authority owns an approximately 50 acre <br /> <br />site with direct interstate access and highway visibility (the “Victory Site”); and <br /> <br /> WHEREAS, <br />by Resolution adopted on July 16, 2019, EDA authorized staff to <br />market the Victory Site for development of an entertainment district to include casino <br />gaming (the “EDA Resolution”); and <br /> <br /> WHEREAS, <br />by Resolution R-19-25 adopted by City Council on July 23, 2019, the <br />City endorsed the EDA Resolution; and <br /> <br />WHEREAS, <br /> the Victory Site was successfully marketed by EDA and on November <br />18, 2019 EDA entered into a Memorandum of Understanding with Rush Street Gaming <br />LLC for development of the Victory Site as an entertainment district to include casino <br />gaming, and City Council authorized execution of a Cooperation Agreement between the <br />City and EDA for the purpose of endorsing the MOU and supporting EDA’s obligations <br />thereunder; and <br /> <br /> WHEREAS, <br />during its 2020 session the Virginia General Assembly adopted final <br />legislation designating Portsmouth as one of five cities in the Commonwealth authorized <br />to host a casino (the “Act”); and <br /> <br />WHEREAS, <br /> a Development Agreement (the “Development Agreement”) has been <br />negotiated between EDA and Portsmouth Gaming Holdings, LLC (an affiliate of Rush <br />Street Gaming LLC); and <br /> <br />WHEREAS, <br /> Rush Street Gaming LLC and Portsmouth Gaming Holdings, LLC are <br />collectively referred to herein as “Developer”; and <br /> <br />WHEREAS, <br /> the Development Agreement has been reviewed by City Council and <br />was approved by the EDA Board of Commissioners on May 19, 2020; and <br /> <br />WHEREAS, <br /> the Act requires that each host city submit its preferred casino gaming <br />operator to the Virginia Lottery Department for pre-approval; and <br /> <br />WHEREAS, <br /> as required by the Act, the Developer has submitted a proposal <br />(“Proposal”) to the City of Portsmouth stating its qualifications to serve as Portsmouth’s <br />preferred casino gaming operator in accordance with the Development Agreement, and <br />within the meaning of Sections 58.1-4100, et seq. of the Act; and <br /> <br />WHEREAS, <br /> City Council has reviewed the Proposal and given substantial weight <br />to the following factors: <br /> <br />1. The potential benefit and prospective revenues of the proposed casino gaming <br />establishment; <br />2. The total value of the proposed casino gaming establishment; <br />3. The proposed capital investment and the financial health of the proposer and any <br />proposed development partners; <br />4. The experience of the proposer and any development partners in the operation of a <br />casino gaming establishment; <br />5. Security plans for the proposed casino gaming establishment; <br />6. The economic development value of the proposed casino gaming establishment and <br />the potential for community reinvestment and redevelopment in an area in need of such; <br />7. Availability of city-owned assets and privately owned assets, such as real property, <br />including where there is only one location practically available or land under a potential <br />operator and the city, incorporated in the proposal; <br />8. The best financial interest of the city; and <br />9. The proposer’s status as a minority-owned business as defined in § 2.2-1604 of the <br />Virginia Code or the proposer’s commitment to solicit equity investment in the proposed <br />casino gaming establishment from one or more minority-owned businesses and the <br />proposer’s commitment to solicit contracts with minority-owned businesses for the <br />purchase of goods and services; and <br /> <br /> <br />
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