Hard Rock Hotel & Casino
111 3rd St.
Sioux City
, IA
51101
1.APPROVE AGENDA
2.WELCOME – Mayor Bob Scott; Dakin Schultz, President, Missouri River Historical Development
3.APPROVE MINUTES – From April 12, 2018
4.ANNOUNCEMENTS
A. July 12, 2018 – Prairie Meadows Racetrack & Casino, Altoona, IA (Submissions due by June 27, 2018)
B. August 23, 2018 – Riverside Casino & Golf Resort, Riverside, IA
C. October 4, 2018 – Catfish Bend Casino, Burlington, IA
5.ELDORADO RESORTS, INC. -Request for Approval of Shelf Application for Debt Financing
6.SCE PARTNERS, LLC
A. Request for Approval of Development Agreement with City of Sioux City for a Parking Ramp
B. Request for Approval of Remodeling Pursuant to IAC 491-5.4(15)
7.CONTRACT APPROVALS (OSV = Out of State Vendor; RP = Related Party)
A. SCE Partners, LLC
1.Siouxland ATM, LLC – ATM Service
2.Brad Henry Friedmutter & Associates, Ltd. – Architectural Services (OSV)
3.United Talent Agency – Talent Agent and Deposits (OSV)
B. IOC Black Hawk County, Inc. – Altofer – Renewal of Service Warranty Coverage for Power Generation System
C. Ameristar Casino Council Bluffs, LLC – Reedabus – Promotional Items (OSV)
D. Wild Rose Clinton
1.Ecolab – Lease of Dish Machine & Purchase of Chemicals
2.Holmes Murphy – Insurance Provider
3.US Postal Service – Postage for Mailers from The Printer, Inc.
4.The Printer, Inc. – Printing Company for Mailers
E. Grand Falls Casino Resort
1.Brockway Mechanical & Roofing – Mechanical Maintenance (RP)
2.Nexstar Broadcasting, Inc. d/b/a KELO-TV – Television Advertising (OSV)
3.Sysco Food Service – Food Purchases
F. Riverside Casino and Golf Resort, LLC
1.Builders Sales & Service Company – Renovation Project – Interior Framing & Drywall (OSV)
2.Fluffy Tour, Inc. – Gabriel Iglesias Show Outside Venue (OSV)
3.Hawkeye Sports Properties, LLC – Marketing and Sponsorship Agreement
4.Kluesner Construction, Inc. – Asphalt Repair and Overlay Driveways and Parking Areas
G. Harveys Iowa Management Company, LLC
1.Sure Sound and Lighting – Lighting and Sound for Concerts (OSV)
2.Insight Direct USA – Networking Equipment Vendor (OSV)
H. Iowa West Racing Association d/b/a Horseshoe Casino
1.Absolutely Fresh Seafood – Fresh Seafood Vendor (OSV)
2.Holiday Inn Express & Suites – Hotel Room Provider
I. Prairie Meadows Racetrack and Casino, Inc.
1.Cintas Corporation – Employee Uniforms, Linens and Related Services
2.City Supply – Plumbing Supplies
3.Conference Technologies – Audio/Visual Equipment and Service
4.Liberty Fruit Company – Fruits, Vegetables and Other Produce (OSV)
5.Perficut Lawn and Landscape – Lawn Care Services
6.Weitz Company – General Contractor
8.HEARING – Harveys Iowa Management Company LLC – For a violation of Iowa Code § 99F.9 (4) (Minor)
9.PUBLIC COMMENT
10.ADMINISTRATIVE BUSINESS
A. Approval of Regulatory Fees for Fiscal Year 2018
B. Update: Task Force – Best Practices Related to 99D.7(23) and 99F.4(22) (Self-Exclusion)
C. Update of Racing and Gaming Legislation
11.ADJOURN
The Iowa Racing and Gaming Commission (IRGC) met at Hard Rock Hotel & Casino Sioux City (HRHC), Sioux City, Iowa, on June 14, 2018. Commission members present were: Richard Arnold, Chair; Kris Kramer, Vice Chair; and members Pennie Gonseth Cheers, Carl Heinrich and Jeff Lamberti.
APPROVE AGENDA: Chair Arnold called the meeting to order at 8:30 AM, and requested a motion to approve the agenda. Commissioner Kramer moved to approve the agenda as presented. Commissioner Lamberti seconded the motion, which carried unanimously.
Chair Arnold introduced the newest member of the Commission, Pennie Gonseth Cheers.
WELCOME: Jim Franke, General Manager of HRHC, stated it was a pleasure to host the June Commission meeting. He noted that Hard Rock was founded on June 14, 1971 in London. He introduced Dakin Schultz, President of the Missouri River Historical Development (MRHD).
Mr. Schultz welcomed the Commission to Sioux City on behalf of MRHD, and asked the board members and Executive Director Mark Monson to stand. He noted that in January 2019 all of the MRHD board will have been changed. Mr. Dakin stated that since partnering with HRHC, MRHD has been able to increase their grant distributions and scholarships to educational institutions. They distributed in excess of $400,000 during the spring awards program. Mr. Schultz advised MRHD is going to hold a grant application workshop to help other non-profits learn the process of applying for funds from them. He noted HRHC is a true regional destination.
Mr. Franke introduced Mayor Pro Tem Dan Moore. Mr. Moore welcomed the Commission to Sioux City, and advised the City and HRHC have a great partnership. He stated HRHC has had a significant impact on the downtown area; and have ignited the downtown business façade program. For every dollar the City spends on the façade program, the building owners are spending five dollars. Mr. Moore stated the city’s partnership with HRHC is one of the best they have had, and believes HRHC will continue to do its part.
APPROVE MINUTES: Chair Arnold moved to the approval of the minutes from the April 12, 2018 meeting. Commissioner Heinrich moved to approve the minutes as submitted. Commissioner Kramer seconded the motion, which carried unanimously.
ANNOUNCEMENTS: Chair Arnold called on Brian Ohorilko, Administrator of IRGC, for announcements. Mr. Ohorilko advised the next meeting would be held at Prairie Meadows Racetrack & Casino in Altoona on July 12th; submissions for that meeting are due in the Commission office by June 27th. He stated the August meeting would be held at Riverside Casino & Golf Resort on August 23rd; and the October 4th meeting would be at Catfish Bend.
Mr. Ohorilko introduced Steven Vang and Kirk Nielsen, the Commission’s Gaming Representatives assigned to HRHC.
ELDORADO RESORTS, INC.: Doug Gross, legal counsel, requested approval of Eldorado’s modified shelf application for debt financing. He stated they received the original approval in November; however, as Eldorado is in the process of acquiring the Tropicana and Grand Victoria, it is necessary to take on additional debt. The total additional debt will be in an amount up to $805 million; the revolving credit facility may increase in an amount up to $205 million and a bridge loan of up to $600 million lead by JP Morgan Chase or up to $600 million in new senior unsecured notes. Mr. Gross advised if the Commission approved this application, the total of all Eldorado debt financing approved by the Commission will be $3.4 billion.
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Lamberti moved to approve the shelf application for debt financing. Commissioner Heinrich seconded the motion, which carried unanimously.
SCE PARTNERS, LLC: Jim Franke, General Manager, and Bob Bruce, Vice President of Legal Services, were present to address the agenda items. Mr. Franke described the Letter of Understanding regarding the Downtown Retail and Entertainment Complex between the City of Sioux City (City) and SCE Partners, Inc. (SCE) as a win-win for the City and HRHC. The total development costs are not to exceed $11 million with each entity paying 50%. The complex will consist of approximately 15,000 square feet of retail and entertainment space and 420 parking spaces. The upper floor would extend north of the complex across Third Street and connect to HRHC. The City will own the complex and enter into a lease with SCE as the prime tenant. SCE would be responsible for subletting the tenant space with an emphasis on dining and entertainment tenants; however, the subtenants and terms of the subleases would be subject to City approval. The parking spaces would be available to customers and employees of the retail subleases, patrons of the Tyson Event Center and HRHC on a first-come-first served basis. Mr. Franke stated the parties anticipate completion of the complex in the summer of 2019. He indicated the parties are excited about the project, and anticipate the parking ramp will be completed by the time the I-29 construction is finished.
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Lamberti moved to approve the development agreement between the City and SCE. Commissioner Kramer seconded the motion, which carried unanimously.
Chair Arnold called for a motion regarding SCE’s request for approval of remodeling pursuant to IAC 491-5.4(15). Commissioner Lamberti moved to approve the remodeling request. Commissioner Heinrich seconded the motion, which carried unanimously.
CONTRACT APPROVALS:
SCE Partners, Inc.: Mr. Franke presented the following contracts for Commission approval:
- Siouxland ATM, LLC – ATM Service
- Brad Henry Friedmutter & Associates, Ltd. – Architectural Services (OSV)
- United Talent Agency – Talent Agent and Deposits (OSV)
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Kramer moved to approve the contracts as presented by SCE Partners, Inc. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.
IOC Black Hawk County, Inc.: Todd Connelly, General Manager, presented a contract with Altofer for the renewal of service warranty coverage for the power generation system.
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Heinrich moved to approve the contract as submitted by IOC Black Hawk County, Inc. Commissioner Kramer seconded the motion, which carried unanimously.
Ameristar Casino Council Bluffs, LLC (ACCB): Misty Wilburn, Corporate Director of Operational Compliance, presented a contract with Reedabus for promotional items (OSV).
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Lamberti moved to approve the contract as submitted by ACCB. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.
Wild Rose Clinton, L.L.C. (WRC): Rick Gilson, Director of Regulatory Compliance for Wild Rose Entertainment, presented the following contracts for Commission approval:
- Ecolab – Lease of Dish Machine & Purchase of Chemicals
- Holmes Murphy – Insurance Provider
- US Postal Service – Postage for Mailers from The Printer, Inc.
- The Printer, Inc. – Printing Company for Mailers
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Kramer moved to approve the contracts as submitted by WRC. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.
Grand Falls Casino Resort (GFCR): Sharon Haselhoff, General Manager, presented the following contracts for Commission approval:
- Brockway Mechanical & Roofing – Mechanical Maintenance (RP)
- Nexstar Broadcasting, Inc. d/b/a KELO-TV – Television Advertising (OSV)
- Sysco Food Service – Food Purchases
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Lamberti moved to approve the contracts as submitted by GFCR. Commissioner Kramer seconded the motion, which carried unanimously.
Riverside Casino & Golf Resort, LLC (RCGR): Ms. Haselhoff presented the following contracts for RCGR for Commission approval:
- Builders Sales & Service Company – Renovation Project – Interior Framing & Drywall (OSV)
- Fluffy Tour, Inc. – Gabriel Iglesias Show Outside Venue (OSV)
- Hawkeye Sports Properties, LLC – Marketing and Sponsorship Agreement
- Kluesner Construction, Inc. – Asphalt Repair and Overlay Driveways and Parking Areas
Ms. Haselhoff advised the renovation project is proceeding as planned with the goal of being completed by the time they host the August Commission meeting.
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Lamberti moved to approve the contracts as submitted by RCGR. Commissioner Heinrich seconded the motion, which carried unanimously.
Harveys Iowa Management Company, LLC (Harveys): Janae Sternberg, Vice President of Finance, presented the following contracts for Commission approval:
- Sure Sound and Lighting – Lighting and Sound for Concerts (OSV)
- Insight Direct USA – Networking Equipment Vendor (OSV)
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Kramer moved to approve the contracts as submitted by Harveys. Commissioner Lamberti seconded the motion, which carried unanimously.
Iowa West Racing Association d/b/a Horseshoe Casino (IWRA/HC): Ms. Sternberg presented the following contracts for Commission approval:
- Absolutely Fresh Seafood – Fresh Seafood Vendor (OSV)
- Holiday Inn Express & Suites – Hotel Room Provider
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Lamberti moved to approve the contracts as submitted by IWRA/HC. Commissioner Kramer seconded the motion, which carried unanimously.
Prairie Meadows Racetrack & Casino (PMR&C): Gary Palmer, General Manager, presented the following contracts for Commission approval:
- Cintas Corporation – Employee Uniforms, Linens and Related Services
- City Supply – Plumbing Supplies
- Conference Technologies – Audio/Visual Equipment and Service
- Liberty Fruit Company – Fruits, Vegetables and Other Produce (OSV)
- Perficut Lawn and Landscape – Lawn Care Services
- Weitz Company – General Contractor
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Gonseth Cheers moved to approve the contracts as submitted by PMR&C. Commissioner Heinrich seconded the motion, which carried unanimously.
HEARING: Mr. Ohorilko advised Commission staff and Harveys Iowa Management Company LLC have entered into a Stipulated Agreement for a violation of Iowa Code 99F.9(4). On October 20, 2017, an underage individual entered the gaming floor unchallenged, was on the gaming floor in excess of 30 minutes, gambled and consumed alcohol. The underage person was identified by an employee of Harrah’s who had denied service to her earlier at another restaurant on property. Mr. Ohorilko stated Harveys Iowa Management Company LLC acknowledges the above facts constitute a violation of Iowa Code 99F.9(4) and have agreed to an administrative penalty of $20,000.
JC Rieger, Assistant General Manager, advised the security officer was removed from his position and not allowed back at a turnstile until he had been retrained. He indicated it was disappointing to learn family members assisted in getting the underage individual on the gaming floor. Mr. Rieger stated the minor received a citation, and all family members received a company-wide ban.
Hearing no further comments or questions, Chair Arnold requested a motion. Commissioner Lamberti moved to approve the Stipulated Agreement as submitted. Commissioner Kramer seconded the motion, which carried unanimously.
PUBLIC COMMENT/ADMINISTRATIVE BUSINESS: As there was no Public Comment, Chair Arnold moved to Administrative Business and called on Mr. Ohorilko.
Approval of Regulatory Fees for Fiscal Year 2019: Mr. Ohorilko advised IRGC’s fees had been distributed to the industry 2-3 weeks ago and DCI’s were distributed on Tuesday of this week. He stated staff has not been made aware of any concerns by the industry.
Hearing no comments or questions, Chair Arnold requested a motion. Commissioner Kramer moved to approve the IRGC and DCI regulatory fees for Fiscal Year 2019 as presented. Commissioner Lamberti seconded the motion, which carried unanimously.
Update: Task Force – Best Practices Related to 99D.7(23) and 99F.4(22) (Self-Exclusion): Mr. Ohorilko stated following an evaluation of the programs, practices, and capabilities of the facilities toward compliance with the Commission’s Resolution for Iowa Statewide and Lifetime Self-Excluded Persons, Commission staff developed recommendations that are included in the Commissioner’s meeting packets and have been distributed to the industry. Commission staff found a number of things that could be improved. He stated it was important to go through the process as the environment allowed for significant conversations. Mr. Ohorilko stated it is not the Commission’s role to operate the facilities, but hopes the facilities are willing to take the recommendations under advisement.
Wes Ehrecke, President & CEO of the Iowa Gaming Association, thanked the Commission for the recommendations, and the opportunity to be a part of the IRGC task force process. He noted it was good to review the Code of Conduct and processes as they are approximately 10 years old.
Commissioner Lamberti stated he thought the process to reach the recommendations was good, and he encouraged the facilities to work with the Commission staff.
Mr. Ohorilko thanked everyone for being open to the suggestions, and hopes the industry will look at the recommendations and determine which ones would fit in each facility.
Update on Racing and Gaming Legislation: Mr. Ohorilko provided an update on legislation pertaining to racing and gaming that passed during the 2018 Legislative session.
As there was no further business to come before the Commission, Chair Arnold requested a motion to adjourn. Commissioner Kramer moved to adjourn. Commissioner Heinrich seconded the motion, which carried unanimously.