D
anville City Manager Ken Larking has announced the development agreement with Caesars Virginia to build a casino in the city is nearing completion.
The development agreement is a legally-binding document outlining what Caesars Virginia is promising to deliver to the City of Danville, should the referendum regarding casino gaming pass on Nov. 3.
“From the beginning, the City has taken seriously its responsibility to make sure that, should the citizens vote in favor of casino gaming, it would be implemented in the best possible way. This development agreement is the culmination of months of work to make sure that this project will be of the highest quality, producing several good-paying jobs, and bringing much-needed revenue to the City,” Larking said.
The highlights of the development agreement include the following:
- Construct a Caesars-branded resort casino with a minimum of $400 million in capital investment, to include multiple restaurants and bars, a hotel with 300 four-star guest rooms, a 35,000-square-foot conference center, a 2,5000-seat live-entertainment venue, a pool and a spa which is expected to be open in 2023.
- Employ 1,300 full-time equivalent employees, earning an hourly wage of at least $15 per hour.
- Generate 900 construction jobs during the construction period.
- Within 30 days of the referendum, pay $15 million to the City.
- Guarantee a minimum of $5 million in gaming tax revenue each year for every full year Caesars is in operation.
- Provide an annual supplemental payment directly to the City based on a percentage of net gaming revenue.
Larking said that, based on estimates provided by Caesars and reviewed by Convergence Strategy Group, it is expected that by year three of being in operation, the project will produce $22 million in state-collected gaming tax revenue remitted to the City of Danville as well as $12 million in supplemental payments to the City of Danville, and $4.2 million in meals, sales, hotel/motel, and property taxes.
The resort would be located at the former Dan River Mills Industrial Complex in Schoolfield.
