Cost for Hollywood Slots Project Grows Dramatically
On February 9, 2007, it was announced that the cost of building the Hollywood Slots’ “racino” has ballooned from $90 million to $131 million due to the soaring prices in construction materials, as well as the additional funds needed for building the hotel which is part of the project.
National Chairman and CEO of Penn, Peter Carilino, commented that the hotel is one of the main reasons why there has been a $40 million increase on the project costs. He added that with the positive results that have been generated by their temporary facility located on the main street and a good number of their customers traveling the distance to the Hollywood Slots in Bangor just to play slots, they have decided to build the hotel in addition to their permanent establishment. That way, their customers will not be forced to commute the long distance on their way home. Officials in Bangor are happy that the project will also include a hotel.
Edward Barrett, the City Manager, commented that he is very happy that the hotel plans will push through because the project will carry a huge assessed value when it is completed. In the meantime, Penn National will be continuing their operation at the Temporary Hollywood Slots in Bangor with about 475 machines in their offering located at the former Miller’s Restaurant. The establishment, which opened in November 2005, has already given more than $21 million to Bangor and Maine.
The new facility, which is 116,000 sq ft, will also contain 1,000 machines with an added space for 500 more machines. It will also feature 3 new restaurants, an entertainment facility, a merchandise shop and a parking area for 1,500 cars and trucks aside from the new hotel. The construction of the new facility will begin in April and should be ready for opening by mid-2008.