PENN AND CITY REACH ARGOSY LEASE DEAL (UPDATE)

PENN NATIONAL GAMING AND THE CITY OF SIOUX CITY HAVE REACHED AN AGREEMENT ON EXTENDING THE OPERATING LEASE FOR THE ARGOSY RIVERBOAT CASINO.

THE INITIAL EXTENSION IS FOR 12 MONTHS FOLLOWING THE END OF THE CURRENT AGREEMENT ON JANUARY 13TH.

PENN WILL PAY RENT UNDER THE EXISTING FORMULA TO THE CITY DURING THE NEXT YEAR. PENN THEN WILL HAVE AN 18 MONTH OPTION TO EXTEND THE LEASE IN JANUARY OF 2014.

PENN NATIONAL WOULD PAY A MODEST MONTHLY INCREASE TO THE CITY DURING THAT 18 MONTH EXTENSION.

CITY MANAGER PAUL ECKERT SAYS THE CITY AND PENN HAVE AGREED TO RELEASE EACH OTHER FROM LIABILITY FOR PAST CONDUCT.

PENN NATIONAL PRESIDENT TIM WILMOTT ISSUED A STATEMENT THANKING THE CITY FOR THEIR WORK AND SAYS THE LONG TERM STABILITY OF THE ARGOSY'S EMPLOYEES AND THE REVENUE GENERATED FOR THE COMMUNITY HAVE BEEN IMPORTANT TO PENN SINCE DAY ONE.

ECKERT SAYS THE CITY COUNCIL STILL NEEDS TO APPROVE THE LEASE. THEY WILL BEGIN CONSIDERATION ON DECEMBER 17TH AND BY LAW WILL MAKE THEIR FINAL DETERMINATION AFTER A MINIMUM 30 DAY PERIOD ON JANUARY 28TH. THE COUNCIL WILL NOT MEET ON THE 21ST BECAUSE OF THE MARTIN LUTHER KING HOLIDAY.

PENN AND THE CITY HAVE ALSO COMMITTED TO COOPERATE ON A LETTER OF UNDERSTANDING AND DEVELOPMENT AGREEMENT WITH PENN'S DOWNTOWN CASINO BID.

THAT ACTION IS CONSISTENT WITH THE CITY'S ACTIONS WITH THE COMPETING WARRIOR AND HARD ROCK CASINO PROPOSALS.