COLUMBUS, Ohio--(BUSINESS WIRE)-- The City of Columbus and Penn National Gaming, Inc. announced today they have reached an agreement, subject to final documentation, that will result in the annexation of the site of Hollywood Casino-Columbus into the City in exchange for water and sewer service and other considerations.

The settlement agreement, which is subject to Columbus City Council and Franklin County Board of County Commissioners’ approval, was drafted in response to U.S. District Court Judge Gregory L. Frost’s request that the two parties attempt to reach a settlement prior to hearing the case.

In addition to providing water and sewer service to the site, located near Georgesville Road and West Broad Street, the City will reimburse Penn National for $15 million in public purpose environmental and roadway improvements. The City will also assist Penn National in obtaining all necessary City approvals, including various permits, to help ensure the casino will be ready to open on schedule in late 2012.

“While this has been a lengthy and at times contentious negotiation, I am pleased the City and Penn National have come to terms on the agreement and look forward to fulfilling our promises of revitalizing the West Side,” said Mayor Michael B. Coleman. “I want to thank Judge Frost for his assistance and counsel in this important matter and am excited to work with Penn National to ensure the casino is constructed on time and we begin the process of transforming this important neighborhood.”

Tim Wilmott, President and Chief Operating Officer of Penn National, said of the agreement, “We’re pleased to be in a position to collectively lay down swords and take up shovels to get this economic development project built. I’m sure this settlement will come as welcome relief to the expected 3,500 construction workers, some of whom are already mobilized on the site of our anticipated $400 million economic development project, as well as those looking to fill our nearly 2,000 jobs at the casino.”

A key agreement between the two parties is a commitment to create a “West Side Community Fund.” The City and Penn National have both agreed to contribute $2.5 million each for a total of $5 million over four years in the surrounding neighborhood. The dollars will be used for economic development, job training for West Side residents, minority and small business outreach, additional infrastructure needs, and support of West Side charitable and civic organizations.

The settlement among the City, County and Penn National is conditioned upon the dismissal of all current litigation involving the casino project, including litigation filed by Penn National against entities other than the City, and all litigation filed against Penn National.

The City also announced plans to assist Franklin Township. The City plans to promptly commence good faith negotiations to achieve a new agreement which involves the same core issues addressed in the prior non-binding Memorandum of Understanding between them.

The County previously began to explore redevelopment initiatives for the West Side region surrounding the casino development site. To that end, the County and City, through the Central Ohio Community Improvement Corporation, have engaged consultants to complete a market study and assess improvements such as water, sewer, curbing and lighting.

Penn National Gaming Safe Harbor

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Penn describes certain of these risks and uncertainties in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2010. Meaningful factors that could cause actual results to differ from expectations include, but are not limited to, risks related to the following: our ability to receive, or delays in obtaining, the regulatory approvals required to own, develop and/or operate our facilities, or other delays or impediments to completing our planned acquisitions or projects, including favorable resolution of any related litigation; our ability to secure state and local permits and approvals necessary for the consummation of the city and county settlement agreements; construction factors, including delays, unexpected remediation costs, local opposition and increased cost of labor and materials; the passage of state, federal or local legislation (including referenda) that would expand, restrict, further tax, prevent or negatively impact operations in or adjacent to the jurisdictions in which we do business (such as a smoking ban at any of our facilities) or in jurisdictions where we seek to do business; the effects of local and national economic, credit, capital market, housing, and energy conditions on the economy in general and on the gaming and lodging industries in particular; the activities of our competitors and the emergence of new competitors; our ability to identify attractive acquisition and development opportunities and to agree to terms with partners for such transactions; the costs and risks involved in the pursuit of such opportunities and our ability to complete the acquisition or development of, and achieve the expected returns from such opportunities; our expectations for the continued availability and cost of capital; the maintenance of agreements with our horsemen, pari-mutuel clerks and other organized labor groups; the outcome of pending legal proceedings; changes in accounting standards; our dependence on key personnel; the impact of terrorism and other international hostilities; the impact of weather; and other factors as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. The Company does not intend to update publicly any forward-looking statements except as required by law.


Source: Penn National Gaming, Inc.