AGENDA ITEM ST. JOHNS COUNTY BOARD OF COUNTY COMMISSIONERS

15 AGENDA ITEM ST. JOHNS COUNTY BOARD OF COUNTY COMMISSIONERS Deadline for Submission - Wednesday 9 a.m. Thirteen Days Prior to BCC Meeting 7/19/2016 BCC MEETING DATE TO: Michael D. Wanchick, County Administrator DATE: June 27, 2016 FROM: Paolo S. Soria, Assistant County Attorney PHONE: 209-0805 SUBJECT OR TITLE: AGENDA TYPE: Discussion and First Reading - Proposed Ordinance for a County-wide referendum for Slot Machine Gaming at a Licensed Pari-Mutuel Facility in St. Johns County Business Item, Report BACKGROUND INFORMATION: Discussion of proposed ordinance calling for a County-wide referendum for slot machine gaming at a licensed pari-mutuel facility within St. Johns County. This discussion is for the Board of County Commissioners to determine whether it will advertise and hear a proposed ordinance allowing for a County-wide referendum for Slot Machine Gaming in St. Johns County in a proposed location in the northeast corner of I-95 and 207. Additionally the proposal is for the County by a separate agreement to receive 1.5% of the gross slot machine revenues. The Board my hold the hearing on the proposed ordinance and referendum, modify the proposed ordinance and referendum, or not hold the hearing. 1. IS FUNDING REQUIRED? No 2. IF YES, INDICATE IF BUDGETED. No IF FUNDING IS REQUIRED, MANDATORY OMB REVIEW IS REQUIRED: INDICATE FUNDING SOURCE: SUGGESTED MOTION/RECOMMENDATION/ACTION: Discussion. No formal motion is required. Second hearing and enactment of the ordinance is scheduled for August 2, 2016. The Board of County Commissioners may choose to hold a second hearing to enact the terms of the ordinance for a county-wide referendum on the November 8, 2016 general election ballot. For Administration Use Only: Legal: N/A OMB: N/A Admin: DML 7/5/2016

Date: July 5, 2016 To: Board of County Commissioners Through: Patrick F. McCormack, County Attorney From: Paolo Soria, Assistant County Attorney Applicant: Bayard Raceways, Inc. d/b/a St. Johns Greyhound Park Agent: Ellen Avery-Smith, Rogers Towers Subject: Discussion and First Reading of Proposed Ordinance for a Referendum for Slot Machine Gaming at a Licensed Pari-Mutuel Facility within St. Johns County Summary: Discussion of proposed ordinance calling for a County-wide referendum for slot machine gaming at a licensed pari-mutuel facility within St. Johns County. This discussion is for the Board of County Commissioners to determine whether it will advertise and hear a proposed ordinance allowing for a County-wide referendum for Slot Machine Gaming in St. Johns County (See Attachment 1). Please also see attachment 2 for a proposed 1.5% revenue share with the County. The Board may hold the hearing on the proposed ordinance and referendum, modify the proposed ordinance and referendum, or not hold the hearing. Background: The proposal was brought to the attention of the County Attorney s office. This Office has authority to review proposed ordinances for legal sufficiently, however policy determinations on whether to implement ordinances are in the sole jurisdiction of the Board of County Commissioners. This item is presented by this Office to the Board for further direction or implementation. If directed by this Board, the Office of the County Attorney will proceed with implementation of the ordinance, referendum, and any other legislation or order required. Slot Machine Gaming is a regulated activity through the State of Florida Department of Business and Professional Regulation, Division of Pari-Mutuel Wagering. Slot Machines are permitted only in eligible facilities which are defined by Florida Statute. (See Attachment 5). (4) Eligible facility means any licensed pari-mutuel facility in any other county in which a majority of voters have approved slot machines at such facilities in a countywide referendum held pursuant to a statutory or constitutional authorization after the effective date of this section in the respective county, provided such facility has conducted a full schedule of live racing for 2 consecutive calendar years immediately preceding its application for a slot

machine license, pays the required licensed fee, and meets the other requirements of this chapter. Section 551.102(4), Florida Statutes (2015). The underlined section of the statute requires a county-wide referendum for a non-chartered County like St. Johns County. In January 2012, the County adopted a resolution, Resolution 2012-25, which placed the same question on whether to allow slot machine gaming in St. Johns County on the November 2012 general election. However, in August 2012, the County rescinded the prior authorization in order for the State to resolve an issue of whether further statutory or constitutional authorization would be required in order to hold a referendum on slot machine gaming. (See Attachment 6). There are six (6) Counties that have authorized referenda on whether to have slot machine gaming in licensed pari-mutuel facilities: Brevard, Gadsden, Hamilton, Lee, Palm Beach, and Washington County. A similar issue of whether to hold a referendum is before the City of Jacksonville. Current Situation: The Florida Supreme Court is set to render an opinion on whether other Counties, such as the six counties above, may hold a referendum on slot machine gaming without additional statutory or constitutional authorization. That case is Gretna Racing, LLC v. Department of Business and Professional Regulation, Division of Pari-Mutuel Wagering, Case No.: SC15-1929. Oral arguments were held June 7, 2016 and a decision is expected late summer. Proposal: The following language is proposed for the November 8, 2016 general election ballot: REFERENDUM TO AUTHORIZE SLOT MACHINE GAMING IN LICENSED PARI-MUTUEL FACILITY LOCATED IN ST. JOHNS COUNTY Shall slot machines be authorized within a licensed pari-mutuel facility located on a parcel of at least 30 acres, with frontage on Interstate 95, near the northeast corner of State Road 207 and Interstate 95 in St. Johns County, in accordance with applicable provisions of the Florida Statutes, subject to the restrictions of state law and limited to persons 21 years of age and older? YES (TO AUTHORIZE) NO (TO NOT AUTHORIZE) Timeline: 1. Section 125.66, F.S., requires a ten (10) day notice for the Board to consider enacting the proposed ordinance 2. Proposed enactment hearing is August 2, 2016. 2

3. Absolute deadline to provide materials to the Supervisor of Election is prior to September 1, 2016. 4. Section 125.66, F.S., requires a certified copy to the Secretary of State within 10 days of adoption. 5. Provide certified copy of ordinance and ballot language to supervisor of elections. 6. Section 100.343, F.S., a referendum must be noticed at least 30 days prior to the election. Advertisement must run at least twice, once in the fifth week and once in the third week prior to the week in which the referendum is to be held. 7. November 8, 2016 General election held. Location: Bayard Raceway Inc. d/b/a St. Johns Greyhound Park holds the pari-mutuel license in St. Johns County. The license is currently assigned to the facility located at 6332 Race Track Road. The referendum is for slot machine gaming in a specified location a minimum 30 acre site with frontage along Interstate 95, near the northeast corner of State Road 207 and Interstate 95. The existing license is proposed to be transferred to the new location. The potential area is depicted below, north of the Farmer s Market. Aerial: The property is currently used for timberland. 3

Future Land Use: The proposed area Future Land Use is designated Business Commerce. It is surrounded by Mixed-Use Districts to the east and south, with Industrial to the west, and Residential-B to the North. Zoning: The proposed area zoning is Commercial Intensive and Commercial Warehouse. It is surrounded by residential PUDs to the north and east, an industrial PUD across I-95 to the west and with largely Commercial Highway Tourist to the south. 4

Revenue Share and Economic Impact: Please see attachment 2. The proposal includes by separate agreement the payment of 1.5 percent of gross slot machine revenues, as defined by Section 551.102(13), to St. Johns County. (13) Slot machine revenues means the total of all cash and property, except nonredeemable credits, received by the slot machine licensee from the operation of slot machines less the amount of cash, cash equivalents, credits, and prizes paid to winners of slot machine gaming. This revenue share provision is the same as the proposed slot machine gaming referendum ordinance before the City of Jacksonville. The Applicant has provided a feasibility and economic impact analysis of the effect of the proposal. See attachment 3. The St. Johns County Office of Management and Budget has reviewed the provided feasibility and economic impact analysis. See attachment 4. Board Action: Discussion this item is brought before the Board of County Commissioners for discussion purposes. No formal action is required by this board, however a consensus is requested on whether to proceed with further implementation of the ordinance and associated county-wide referendum. Options: 1 Direct staff to implement proposed ordinance language as is, with timelines set for enactment on the August 2, 2016 Board of County Commissioners hearing. 2 Direct staff to amend proposed ordinance language, or amend hearing date for enactment of ordinance. 3 Take no action and do not place the ordinance for consideration. Attachments: 1. Proposed Ordinance 2. Letter proposing revenue share 3. Gaming Feasibility and Economic Impact Analysis 4. Review of Feasibility and Economic Impact Analysis by OMB. 5. Section 551.102, Florida Statutes 6. Previous Authorization and Revocation 5

Attachment 1 Proposed Ordinance County-Wide Referendum on Slot Machine Gaming in a Licensed Pari- Mutuel Facility

ORDINANCE NO. 2016- AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF ST. JOHNS COUNTY, FLORIDA CALLING A REFERENDUM FOR THE QUESTION OF WHETHER SLOT MACHINE GAMING SHALL BE AUTHORIZED AT A LICENSED PARI-MUTUEL FACILITY LOCATED WITHIN ST. JOHNS COUNTY AND LIMITED TO PERSONS 21 YEARS OF AGE AND OLDER; DIRECTING THE SUPERVISOR OF ELECTIONS TO HOLD A REFERENDUM ELECTION ON NOVEMBER 8, 2016; PROVIDING FOR TITLE; PROVIDING FOR REFERENDUM AND BALLOT LANGUAGE; PROVIDING FOR NOTICE TO THE STATE; DIRECTING THE CLERK OF CIRCUIT COURT TO ADVERTISE THE SPECIAL REFERENDUM ELECTION IN ACCORDANCE WITH LAW; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. PREAMBLE WHEREAS, Section 551.102(4), Florida Statutes, authorizes slot machine gaming at any licensed pari-mutuel facility in any county in which a majority of voters have approved slot machines at such facility in a countywide referendum held pursuant to a statutory or constitutional authorization in the respective county, provided such facility meets the requirements of Chapter 551, Florida Statutes; and WHEREAS, the First District Court of Appeal in Gretna Racing, LLC v. Department of Business and Professional Regulation, 178 So. 3d 15, entered an order declaring that section 551.102(4) does not, in and of itself, authorize counties other than Broward or Miami-Dade to conduct a slot machine approval referendum; and WHEREAS, the Florida Supreme Court has accepted jurisdiction on the question of whether additional statutory or constitutional authorization is required; and WHEREAS, St. Johns County is authorized by the Florida Constitution and Section 125.01 Florida Statutes, to hold a referendum as provided by law; and WHEREAS, the St. Johns County Board of Commissioners ( Board ) desires to give the citizens of St. Johns County (the County ) the opportunity to decide whether slot machine gaming shall be authorized at a licensed pari-mutuel facility located near the interchange of Interstate 95 and State Road 207 in the County and limited to persons 21 years of age and older; and WHEREAS, the Board takes no position in favor of or in opposition to the matter to be determined by the eligible voters of St. Johns County, but merely deems it appropriate for such voters to be able to make such determination; and WHEREAS, the Board deems it appropriate to direct the St. Johns County Supervisor of Elections to conduct a countywide referendum on November 8, 2016 regarding authorization of same.

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF ST. JOHNS COUNTY, FLORIDA: Section 1. Authorization and Incorporation of Recitals This Ordinance is authorized by Sections 125.01 and 551.102(4), Florida Statutes (2015), and other applicable law. The recitals contained in the Preamble above are hereby adopted as findings of fact and incorporated into the body of this Ordinance. Section 2. Referendum Election. (a) A referendum of the qualified electors residing in St. Johns County, Florida is hereby called to be held on November 8, 2016, the 2016 General Election, and in accordance with the requirements of the Constitution and the laws of Florida, to decide whether slot machine gaming shall be authorized at a licensed pari-mutuel facility to be located on a minimum of 30 acres, with frontage on Interstate 95, near the northeast corner of State Road 207 and Interstate 95 in St. Johns County. (b) The referendum shall be held and conducted in the manner prescribed by law for holding elections under a referendum provision. (c) All qualified electors in St. Johns County shall be entitled and permitted to vote in the referendum. The places and times of voting shall be those polling places and times established for voting by law. The inspectors and clerks for the referendum shall be designated by the Supervisor of Elections in accordance with applicable state law. (d) The Supervisor of Elections is authorized and directed, when printing the mail-in ballots and ballot strips for use in the voting machines for the referendum called for in Section 3(b) hereinafter, to print the referendum title and question set forth in Section 3 hereof on said mail-in ballots and ballot strips at the appropriate place therefor. Immediately after said question shall be provided a space for the voter to indicate whether the vote is yes or no on the question. Section 3. Referendum and Ballot Language. (a) The St. Johns County Supervisor of Elections is hereby directed to hold such referendum election on November 8, 2016, the 2016 General Election. (b) The St. Johns County Supervisor of Elections shall cause the following question to be placed on the ballot: REFERENDUM TO AUTHORIZE SLOT MACHINE GAMING IN LICENSED PARI-MUTUEL FACILITY LOCATED IN ST. JOHNS COUNTY JAX\2052171_2-2-

Shall slot machines be authorized within a licensed pari-mutuel facility located on a parcel of at least 30 acres, with frontage on Interstate 95, near the northeast corner of State Road 207 and Interstate 95 in St. Johns County, in accordance with applicable provisions of the Florida Statutes, subject to the restrictions of state law and limited to persons 21 years of age and older? YES (TO AUTHORIZE) NO (TO NOT AUTHORIZE) Section 4. Advertisement. The St. Johns County Clerk of Court shall insure that notice of this referendum shall be advertised in accordance with the provisions of Section 100.342, Florida Statutes (2015). Proof of publication shall be provided to the Chair of the Board. Section 5. Referendum Results. The Supervisor of Elections shall certify the results of the referendum to the Florida Department of State in accordance with law. If a majority of the votes cast in the referendum shall be for the referendum, the referendum shall be approved and shall take effect as provided in this Ordinance. If less than a majority of the votes cast shall be for the authorization of slot machines, the authorization shall be defeated and shall not take effect. Section 6. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held inoperative, invalid or unconstitutional, it is the intent of the Board that such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the inoperative, invalid or unconstitutional provision or application and, to this end, the provisions of the Ordinance are declared severable. If any provision of this Ordinance is held inoperative, invalid or unconstitutional, the Board of County Commissioners may rescind the authorization granted by this Ordinance. Section 7. Effective Date. Except as provided herein, this Ordinance shall take effect when the St. Johns County Clerk of Court has received notification from the Secretary of State that this Ordinance has been filed with the Secretary of State. PASSED AND ENACTED by the Board of County Commissioners of St. Johns County, State of Florida on this day of, 2016. BOARD OF COUNTY COMMISSIONERS OF ST. JOHNS COUNTY, FLORIDA JAX\2052171_2-3-

BY: JEB S. SMITH, Chair ATTEST: HUNTER S. CONRAD, CLERK BY: Deputy Clerk EFFECTIVE DATE: Form Approved: County Attorney s Office JAX\2052171_2-4-

Attachment 2 Letter proposing Revenue Share of 1.5%

Attachment 3 Gaming Feasibility and Economic Impact Analysis

Gaming Feasibility and Economic Impact Analysis, Executive Summary St. Johns County, Florida Prepared for: Right Coast Strategies May 2016 Prepared by: The Innovation Group 400 North Peters Street Suite 206 New Orleans, LA 70130 504.523.0888 jday@theinnovationgroup.com

Executive Summary, St. Johns County Table of Contents INTRODUCTION... 1 MARKET ASSESSMENT... 2 GAMING... 2 ECONOMIC IMPACT ANALYSIS... 5 ONGOING GAMING... 5 CONSTRUCTION... 6 DISCLAIMER... 8 The Innovation Group Project #025-16 May 2016 Page i

INTRODUCTION The Innovation Group was retained to prepare a high level Feasibility and Economic Impact Analysis for the construction of a pari-mutuel slot facility and adjoining hotel in St. Johns County, Florida. The following contains a forecast of local and tourist market gamer visits and top line revenue, high-level construction cost estimates, and economic impact analysis including direct and indirect employment projections. The projections and analysis are based on The Innovation Group s vast experience in regional gaming markets and incorporated operating data from current BestBet gaming facilities. Gaming market revenue was estimated using The Innovation Group s proprietary Gravity Model and the economic impact analysis utilizes IMPLAN, a commonly used economic impact model. The Innovation Group Project #025-16 May 2016 Page 1

MARKET ASSESSMENT Gaming In developing this analysis a drive-time gravity model was employed. Gravity models are commonly used in location studies for commercial developments, public facilities and residential developments. First formulated in 1929 and later refined in the 1940s, the gravity model is an analytical tool that defines the behavior of a population based on travel distance and the availability of goods or services at various locations. The general form of the equation is that attraction is directly related to a measure of availability such as square feet and inversely related to the square of the travel distance. Thus, the gravity model quantifies the effect of distance on the behavior of a potential patron, and considers the impact of competing venues. The gravity model included the identification of 13 discrete market areas based on drive times and other geographic features and the competitive environment. Using our GIS software and CLARITAS database 1, the adult population (21 and over), latitude and longitude, and average household income is collected for each zip code. The following map and table show the market areas and their respective adult population (21 and over) and average household income. 1 The GIS software used was MapInfo. This software allows for custom data generally in a tabular format with a geographic identification code (census tract, zip code, latitude and longitude, or similar identifier) to be mapped or displayed and integrated with other geographic census based information such as location of specific population or roadways. MapInfo is one of the most widely used programs in the geographic information systems industry. Nielsen Claritas is a vendor of demographic information located in the United States. Nielsen Claritas provides census demographic and psychographic data on a variety of geographic levels of detail ranging from census block groups and counties to postal zip codes. Their information is updated every six months and includes a current year estimate and provides a five year forecast for the future. The Innovation Group has utilized this data for inputs to its models for the last six years and has purchased full access to their demographic database for the entire United States. The Innovation Group Project #025-16 May 2016 Page 2

St. Johns Gaming Market Area The Innovation Group Project #025-16 May 2016 Page 3

Market Carveout Adult (21+) Population 2016 2021 A.A.G. 2016-2021 2016 2021 A.A.G. 2016-2021 Jacksonville 787,766 831,050 1.08% $71,988 $78,809 1.83% St. Augustine 175,597 195,904 2.21% $83,130 $90,905 1.80% Secondary West 187,441 198,644 1.17% $67,734 $72,457 1.36% Daytona 308,565 323,504 0.95% $54,601 $56,798 0.79% Canaveral 318,785 333,198 0.89% $58,472 $59,159 0.23% Orlando 1,383,520 1,510,886 1.78% $68,667 $72,774 1.17% Lake County Area 331,176 359,728 1.67% $63,971 $69,998 1.82% Ocala 271,555 283,149 0.84% $53,466 $58,272 1.74% Gainesville 237,036 249,125 1.00% $59,487 $61,979 0.82% Tertiary West 101,981 105,077 0.60% $52,036 $55,720 1.38% GA Southeast 109,807 114,610 0.86% $61,872 $63,088 0.39% GA Southern 88,914 90,237 0.30% $45,896 $47,787 0.81% GA Central Coast 134,951 142,870 1.15% $63,279 $69,125 1.78% Average 4,437,094 4,737,982 1.32% $65,137 $69,677 1.36% Source: Claritas, MapInfo, The Innovation Group The proposed St. Johns County pari-mutuel facility is expected to generate $329 million in slot revenue during the first stabilized year of operation (2020) from nearly 4 million visits. Five Year Revenue Projections 2018 2019 2020 2021 2022 Slot Revenues $288,886,897 $306,220,111 $315,406,715 $323,291,882 $329,757,720 Poker and Table Revenue $11,746,727 $12,451,530 $12,825,076 $13,145,703 $13,408,617 Gross Gaming Revenues $300,633,624 $318,671,641 $328,231,791 $336,437,585 $343,166,337 Visitation (MMs) 3.64 3.68 3.70 3.71 3.73 Source: The Innovation Group The Innovation Group Project #025-16 May 2016 Page 4

ECONOMIC IMPACT ANALYSIS The economic impact analysis identifies the local and statewide economic impacts for the construction and ongoing operation of the St. Johns County facility, utilizing IMPLAN software. The analysis results in positive economic impacts for St. Johns County. Because a large portion of the economic impact is driven by local revenue sharing and tax revenue to the state, tax impacts were included for local government and the state of Florida. For ongoing operations, the third year of operation, or the stabilized year (2020), was used for assessing impacts. Direct impacts result from the economic activity that occurs on the property itself. The direct impact accounts for the expenditures made by the facility in the form of employee compensation and purchases of goods and services. Induced impacts result from the direct impacts on labor income. As household incomes are affected by direct employment and spending, this money is re-circulated through the household spending patterns, causing further local economic activity. Indirect impacts reflect the economic spin-off that is made possible by the direct purchases of the facility. Local firms providing goods and services to the proposed facility would have incomes partially attributable to these gaming operations and contribute to the vendors spending power. These additional expenditures and revenues continue to flow throughout the economy in a rippling effect. Ongoing Gaming The Innovation Group estimates that the proposed St. Johns pari-mutuel facility would employ nearly 1,400 employees, providing over $48 million per year in labor income. St. Johns Staffing Estimates FTEs Employees Payroll* Tips Total Labor Income Gaming 683 835 $34,889,346 $104,258 $34,993,604 Hotel 63 69 $1,963,671 - $1,963,671 Food and Beverage 387 495 $11,301,709 $351,469 $11,653,177 Total 1,133 1,399 $48,154,726 $455,726 $48,610,452 Source: bestbet facilities; The Innovation Group* Includes Benefits Combined with purchases of goods and services, on-going operations are projected to have a direct economic impact of over $254 million per year in the local area. Including indirect and induced spin-off within the local area, operations are project to support more than 2,100 jobs, labor income of over $78 million per year and total output of nearly $356 million per year. The Innovation Group Project #025-16 May 2016 Page 5

St. Johns County On-Going Impacts Employment Labor Income Value Added Total Spending Direct Effect 1,399 $48,610,453 $122,738,650 $254,207,621 Indirect Effect 511 $19,730,296 $40,132,885 $69,449,381 Induced Effect 235 $9,678,432 $18,880,583 $31,949,020 Total Effect 2,144 $78,019,181 $181,752,118 $355,606,022 Source: 2014 Minnesota IMPLAN Group, Inc.; The Innovation Group St. Johns County will receive over $4.7 million per year in slot revenue share, in addition to the $111.7 million in taxes the state of Florida will collect from gaming activities each year. Local and State Government Revenue Figures 2020 Local Gaming Revenue Share (1.5%) $4,731,101 State Slot Tax Rate (35%) $110,392,350 State Table/Poker Tax Rate (10%) $1,282,508 Annual State Table Fees ($1,000 per table) $40,000 Total Revenue State and Local Government $116,445,958 Source: The Innovation Group Gaming taxes paid to the state government will support approximately 900 direct jobs and over $62 million per year in labor income. These funds will support over $128 million in total spending throughout the state on an annual basis. Statewide Impacts of Government Spending Employment Labor Income Value Added Total Spending Direct Effect 939 $62,028,293 $78,070,449 $91,452,100 Indirect Effect 52 $2,299,263 $3,805,410 $6,747,736 Induced Effect 221 $9,113,933 $17,780,261 $30,087,205 Total Effect 1,212 $73,441,489 $99,656,120 $128,287,041 Source: 2014 Minnesota IMPLAN Group, Inc.; The Innovation Group Additionally, the apportioned impact of state impacts on a county basis has been calculated as proportional to the population breakdown. St. Johns County accounts for 1.1% of the state s population, which is approximately $1 million in direct spending. Construction High-level construction estimates assume a construction budget for the proposed pari-mutuel facility and hotel exceeding $230 million. Of that, $144 million of activity is anticipated to take place within St. Johns County. This includes construction activities, as well as the purchase of other goods and services. The Innovation Group Project #025-16 May 2016 Page 6

St. Johns Economic Impact Construction Budget Estimated Budget* Implan Inputs Hard Costs $130,181,060 $130,181,060 Soft Costs $25,576,624 $11,560,634 FFE $74,431,928 $2,613,264 Contingency $15,000,000 $0 Total $230,189,612 $144,354,957 Source: The Innovation Group *Excludes costs not subject to economic impact. IMPLAN estimates that construction activities will directly support over 900 jobs and $48 million in labor income. In total, construction activities are estimated to support over 1,200 jobs, $62 million in labor income, and $187 million in total spending throughout the county. St. Johns County Construction Impacts Employment Labor Income Value Added Total Spending Direct Effect 969 $48,518,696 $72,575,441 $142,523,065 Indirect Effect 119 $6,168,290 $10,863,487 $18,628,466 Induced Effect 202 $7,743,585 $15,105,824 $25,392,693 Total Effect 1,290 $62,430,571 $98,544,752 $186,544,224 Source: 2014 Minnesota IMPLAN Group, Inc.; The Innovation Group The Innovation Group Project #025-16 May 2016 Page 7

DISCLAIMER Certain information included in this report contains forward-looking estimates, projections and/or statements. The Innovation Group has based these projections, estimates and/or statements on our current expectations about future events. These forward-looking items include statements that reflect our existing beliefs and knowledge regarding the operating environment, existing trends, existing plans, objectives, goals, expectations, anticipations, results of operations, future performance and business plans. Further, statements that include the words "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "plan," project, or other words or expressions of similar meaning have been utilized. These statements reflect our judgment on the date they are made and we undertake no duty to update such statements in the future. Although we believe that the expectations in these reports are reasonable, any or all of the estimates or projections in this report may prove to be incorrect. To the extent possible, we have attempted to verify and confirm estimates and assumptions used in this analysis. However, some assumptions inevitably will not materialize as a result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties and unanticipated events and circumstances, which may occur. Consequently, actual results achieved during the period covered by our analysis will vary from our estimates and the variations may be material. As such, The Innovation Group accepts no liability in relation to the estimates provided herein. The Innovation Group Project #025-16 May 2016 Page 8

Attachment 4 Review by Office of Management and Budget of Gaming Feasibility and Economic Impact Analysis

ST. JOHNS COUNTY OFFICE OF MANAGEMENT & BUDGET 500 SAN SEBASTIAN VIEW St. Augustine, Florida 32084 I N T E R O F F I C E M E M O R A N D U M TO: FROM: SUBJECT: DATE: June 2, 2016 Michael D. Wanchick, County Administrator Doug Timms, Director, Office of Management & Budget Review of Gaming Feasibility and Economic Impact Analysis The following constitutes a brief financial review of the Gaming Feasibility and Economic Impact Analysis for St. Johns County as prepared by the Innovation Group. The main benefits to the County include an annual local gaming revenue share estimated at $4.7 million; trickle down annual revenue from the State of $1 million (estimated based upon relative County population); estimated total direct and indirect jobs of 2,144 or 2% of the projected total County workforce; 1,290 estimated temporary direct and indirect jobs related to the construction of the $133 million facility and adjoining hotel (net of soft costs ); and, although not mentioned in the Impact Analysis, recurring County bed tax and property taxes estimated at about $300,000 annually. The projected financial benefits do appear feasible upon initial review and testing. The estimate of 3.7 million annual visits does appear feasible just using the estimated adult County population (195,904 in 2021). Annual slot revenues of $315 million also appear feasible assuming that the Innovation Group is utilizing internal experience data. The average slot revenue per visit calculates to $85.25. This revenue, on which the $4.7 million County revenue is entirely dependent, can be volatile and likely will decline as the facility ages. For example, average slot revenue per visit of $50 would reduce annual County revenue to $2.8 million. Presumably, restaurant and bar business will add to the revenue per visit average, but the County will not receive much financial benefit from this revenue and it does not appear included in the Impact Analysis. While the direct and indirect jobs created appear attractive, the overall average salary is likely to be about 80% of the average workforce salary for the County. The adjoining hotel size is not disclosed, but at just 69 employees, the hotel appears to be on the smaller size. The trickle down revenue from the State can probably be entirely discounted, since such revenue will be difficult to identify and may occur without any effect attributable to the facility, although revenue to the State attributable to the facility is estimated at over $112 million annually. Recent polling data shows that over 80% of Americans accept gambling, so overall social acceptance of such a facility is likely. More problematic is that the County does serve the social welfare and such facilities are generally supported by 15% of clientele who produce 40% of the visits. Approximately 5% of clientele are estimated to develop serious social problems related to gambling. Finally, the facility is also obviously prone to competing venues including internet gambling. However, if not located in the County, it is likely that another facility will be placed near enough to the County to tap the County market.

Attachment 5 Section 551.102, Florida Statutes Slot Machines Definitions

551.102. Definitions, FL ST 551.102 KeyCite Yellow Flag - Negative Treatment Proposed Legislation West's Florida Statutes Annotated Title XXXIII. Regulation of Trade, Commerce, Investments, and Solicitations (Chapters 494-560) Chapter 551. Slot Machines (Refs & Annos) West's F.S.A. 551.102 551.102. Definitions Effective: July 1, 2015 Currentness As used in this chapter, the term: (1) Distributor means any person who sells, leases, or offers or otherwise provides, distributes, or services any slot machine or associated equipment for use or play of slot machines in this state. A manufacturer may be a distributor within the state. (2) Designated slot machine gaming area means the area or areas of a facility of a slot machine licensee in which slot machine gaming may be conducted in accordance with the provisions of this chapter. (3) Division means the Division of Pari-mutuel Wagering of the Department of Business and Professional Regulation. (4) Eligible facility means any licensed pari-mutuel facility located in Miami-Dade County or Broward County existing at the time of adoption of s. 23, Art. X of the State Constitution that has conducted live racing or games during calendar years 2002 and 2003 and has been approved by a majority of voters in a countywide referendum to have slot machines at such facility in the respective county; any licensed pari-mutuel facility located within a county as defined in s. 125.011, provided such facility has conducted live racing for 2 consecutive calendar years immediately preceding its application for a slot machine license, pays the required license fee, and meets the other requirements of this chapter; or any licensed pari-mutuel facility in any other county in which a majority of voters have approved slot machines at such facilities in a countywide referendum held pursuant to a statutory or constitutional authorization after the effective date of this section in the respective county, provided such facility has conducted a full schedule of live racing for 2 consecutive calendar years immediately preceding its application for a slot machine license, pays the required licensed fee, and meets the other requirements of this chapter. (5) Manufacturer means any person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs, or otherwise makes modifications to any slot machine or associated equipment for use or play of slot machines in this state for gaming purposes. A manufacturer may be a distributor within the state. (6) Nonredeemable credits means slot machine operating credits that cannot be redeemed for cash or any other thing of value by a slot machine, kiosk, or the slot machine licensee and that are provided free of charge to patrons. Such 2016 Thomson Reuters. No claim to original U.S. Government Works. 1

551.102. Definitions, FL ST 551.102 credits do not constitute nonredeemable credits until such time as they are metered as credit into a slot machine and recorded in the facility-based monitoring system. (7) Progressive system means a computerized system linking slot machines in one or more licensed facilities within this state or other jurisdictions and offering one or more common progressive payouts based on the amounts wagered. (8) Slot machine means any mechanical or electrical contrivance, terminal that may or may not be capable of downloading slot games from a central server system, machine, or other device that, upon insertion of a coin, bill, ticket, token, or similar object or upon payment of any consideration whatsoever, including the use of any electronic payment system except a credit card or debit card, is available to play or operate, the play or operation of which, whether by reason of skill or application of the element of chance or both, may deliver or entitle the person or persons playing or operating the contrivance, terminal, machine, or other device to receive cash, billets, tickets, tokens, or electronic credits to be exchanged for cash or to receive merchandise or anything of value whatsoever, whether the payoff is made automatically from the machine or manually. The term includes associated equipment necessary to conduct the operation of the contrivance, terminal, machine, or other device. Slot machines may use spinning reels, video displays, or both. A slot machine is not a coin-operated amusement machine as defined in s. 212.02(24) or an amusement game or machine as described in s. 546.10, and slot machines are not subject to the tax imposed by s. 212.05(1)(h). (9) Slot machine facility means a facility at which slot machines as defined in this chapter are lawfully offered for play. (10) Slot machine license means a license issued by the division authorizing a pari-mutuel permitholder to place and operate slot machines as provided by s. 23, Art. X of the State Constitution, the provisions of this chapter, and division rules. (11) Slot machine licensee means a pari-mutuel permitholder who holds a license issued by the division pursuant to this chapter that authorizes such person to possess a slot machine within facilities specified in s. 23, Art. X of the State Constitution and allows slot machine gaming. (12) Slot machine operator means a person employed or contracted by the owner of a licensed facility to conduct slot machine gaming at that licensed facility. (13) Slot machine revenues means the total of all cash and property, except nonredeemable credits, received by the slot machine licensee from the operation of slot machines less the amount of cash, cash equivalents, credits, and prizes paid to winners of slot machine gaming. Credits Added by Laws 2005, c. 2005-362, 1, eff. Jan. 4, 2006. Amended by Laws 2007, c. 2007-252, 1, eff. July 4, 2007; Laws 2009, c. 2009-170, 19, eff. July 1, 2010; Laws 2010, c. 2010-29, 4, eff. April 28, 2010; Laws 2015, c. 2015-93, 2, eff. July 1, 2015. Notes of Decisions (2) 2016 Thomson Reuters. No claim to original U.S. Government Works. 2

551.102. Definitions, FL ST 551.102 West's F. S. A. 551.102, FL ST 551.102 Current with chapters from the 2016 2nd Regular Session of the 24th Legislature in effect through May 10, 2016 End of Document 2016 Thomson Reuters. No claim to original U.S. Government Works. 2016 Thomson Reuters. No claim to original U.S. Government Works. 3

Attachment 6 Resolution 2012-25 Resolution 2012-225 Previous authorization for referendum