Thursday, April 5, 2001 | 10:48 a.m.
The estimated cost of Station Casinos Inc.'s third Henderson hotel-casino has escalated, the company said in its annual report.
Station is now estimating its upscale Henderson resort casino -- now officially called "Green Valley Ranch Station Casino" -- will cost $300 million. A year ago, Station estimated the project's cost at $270 million to $280 million.
Station and its partner, the Greenspun family's GCR Gaming, say the project remains on schedule to open in mid-December.
To cover the increase, Station and GCR Gaming are increasing their equity contributions from $40 million to about $50 million each. Station said it has already invested $32 million in equity into the project, and plans to invest an additional $16 million in 2001. It was not clear from Station's report when the unaccounted $2 million would be spent, or even if it had been budgeted.
GCR Gaming is an affiliate company of the Greenspuns' American Nevada Corp. The family also owns the Las Vegas Sun.
About $25 million of the Greenspun family's equity is in the form of land; the remainder, including the recent increase, is a cash contribution, said Greenspun Corp. Chief Operating Officer Phil Peckman.
Peckman attributed the increased costs to a low early estimate of the cost of building underground parking; plus plans for additional convention space and parking and higher quality hotel rooms than originally planned.
The remainder of the project's cost will be financed from outside sources.
Station revealed additional details about the project, located at the Beltway at Green Valley Parkway. The 200-room hotel-casino will feature more than 2,400 slot machines, 40 table games, a 10-screen movie theater, a spa, poker room, race and sports book, six restaurants, a fast-food court and a 3,200-space parking garage. That would make it Station's fourth-largest gaming operation, trailing Sunset, Texas and Boulder Station.
The Green Valley Ranch expenses will be part of at least $350 million in capital expenditures Station is budgeting for 2001.
The largest expenditure, $175 million, relates to the purchase of the Fiesta and $5 million in improvements planned at the property in 2001. An additional $80 million is earmarked toward the Reserve purchase and $8 million in improvements, while another $43.7 million will be spent to complete the expansion of Santa Fe Station.
About $40 million will be spent to upgrade Station's slot product, while another $33 million will be spent on land purchases. The largest land purchase Station plans is the $23.8 million purchase of a 48-acre land parcel underneath Sunset Station in June. Station now pays $120,000 a month in rent for this land.
Additional, unspecified amounts will be spent on maintenance of Station properties, other "strategic land purchases" and "opportunistic" buybacks of Station stock. In 2000 Station spent $29.3 million in maintenance capital.
Station reported $358.8 million in 2000 capital expenditures. Major expenses included the $205 million purchase of the Santa Fe, the $65.5 million expansion of Texas Station, and $27.3 million in renovations and expansions at Palace and Boulder Stations.
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