By Ron MacArthur | Feb 28, 2010 | Cape Gazette
Developers of the newest Sussex County casino proposal are betting on location, location, location to sell their idea.
A new casino proposal for Sussex County – the fourth concept to date – has been presented to members of the Delaware General Assembly. Unlike the other three proposals, developer Clinton Bunting is proposing a casino on state property – 10 acres of land in Delaware Seashore State Park near Indian River Inlet. Bunting, president and owner of Coastal Properties Investment LLC and Quality Life Consultants in Rehoboth Beach, and partner Ken Simpler Jr., chief financial officer of Simpler & Sons LLC, a Rehoboth Beach-based property management company, presented their plans for Delaware Seashore Resort & Casino to legislators Wednesday, Feb. 24.
As the list of proposed casino projects grows, the General Assembly ponders legislation to allow the expansion of casino gaming into Sussex County. The state’s three existing casinos are Harrington Raceway and Dover Downs in Kent County and Delaware Park in New Castle County.
Bunting, who worked for then-Gov. Tom Carper and is the son of Sen. George Bunting, D-Bethany Beach, said he’s confident the General Assembly will pass legislation and select a Sussex County location by the end of the session. Still, another casino is proposed for northern New Castle County.
Bunting says his proposal has by far the best location with as many as 20 million vacationers a year visiting the area from Rehoboth Beach to Ocean City, Md.
“It makes common sense to place a casino dead center in the heart of where the tourism is,” he said.
Bunting said two key features distinguish his proposal. The developers would provide 65 percent of gross revenue to the state, which is 50 percent more than the current 43 percent turned over to the state by existing casinos. In addition, Bunting said, 2.25 percent of revenues would be turned over to Sussex County.
Based on his calculations, the expected gross revenue from the operation would be $150 million, providing $3 million to $4 million to the county and up to $97 million to the state. The developers predict they would take in 20 percent profit.
Six percent of revenue, or about $9 million, would be distributed among the state’s horse tracks, although the proposed complex does not include a horse racing venue. “Studies show there is no need for more horse racing in the state,” Bunting said.
Bunting said the casino would also provide a larger revenue stream than the other proposals because of its location. The complex would be accessible from Route 1, a high-traffic four-lane highway, and would also be accessible by boat. He said the land is in a high-density, commercial area.
He said revenues at Delaware Seashore State Park could see a jump of 25 percent because of increased traffic in the area.
The cost of the 200,000-square-foot project is estimated at $35 million.
The proposal includes a 47,000-square-foot casino with 1,500 video lottery terminals, 50 table games and off-track and sports betting; a 98,000-square-foot four-story hotel with 100 rooms; 14,000 square feet of space for up to three restaurants; a parking garage and other spaces for 1,100 cars; 7,000 square feet of retail space; 42,000 square feet of docking and marina space; and a 15,000-square-foot conference center.
Bunting said other Sussex casino proposals have exaggerated the number of new jobs they will create.
He said a realistic number generated by this project would be from 600 to 800 full-time, casino-based jobs, not including construction and ancillary jobs.
“And because it’s on state land, we would have to pay prevailing wages for construction work,” he said.
That could drive up the cost of the total project by as much as $5 million. “But it’s the right thing to do, and it creates Sussex County jobs,” he said.
Bunting said his company should be considered the same as any other state park concessionaire.
If his proposal is selected, it might have to be put out to bid like other state contracts. “I would not like it, but it’s the right thing to do. It’s a risk I’m willing to take,” he said.
Other developers have proposed casinos near Millsboro, Georgetown and Delmar.