Fernwood Hotel And Resort Submits Category 3 Gaming License Application

BUSHKILL, PA - After carefully considering the ramifications of gaming to their current business model, Fernwood Hotel and Resort located in the Pocono Mountains in Bushkill, PA, has submitted an application to be considered for a license. Andrew Worthington, President and CEO of the Bushkill Group, the parent company for Fernwood Hotel, comments, "We have spent a considerable amount of time and money conducting a thorough analysis of whether a Resort Gaming License was an appropriate fit for our property and whether the business model made sense. To better make that decision, we aligned ourselves with many companies that are leaders in their respective areas in gaming including operations, market analysis, legal representation, facility design and equipment." He continued, "We have been diligently working on this for over a year, and believe we have submitted a very comprehensive application for the Gaming Board's consideration."

The legislation for this size facility requires that the applicant must demonstrate a history of operating a four-season resort hotel facility with a minimum of 275 rooms. Worthington continues, "After reviewing the legislation, we knew we had all the appropriate rooms, amenities and facilities."

Companies that participated in the project and the application submission included: Fox-Rothschild of Atlantic City, NJ; Herbert, Rowland and Grubic of Harrisburg, PA; Urban Systems of New Orleans, LA; Delta Development Group of Harrisburg, PA; the Innovation Group of New Orleans, LA; and Textron Financial of Providence, RI.

Now that the application is submitted, the State will begin its review with an expectation that the two Category 3 licenses will be awarded by late 2007 or early 2008. If that timeline holds and Fernwood is awarded a license, they intend to begin construction of the 500 slot gaming floor in the existing Event Center building with projections of being open by early summer 2008.

Worthington said, "Our economic impact consultants have estimated that by the first full year of operation, monies contributed towards property tax relief from our facility will exceed $9 million, plus over $2 million paid in state development, infrastructure and local taxes. In addition, there will be sales tax revenues and room tax contributions." The operation of the new facility is expected to create over 150 permanent new jobs.

Public hearings will be announced by the Pennsylvania Gaming Control Board. For information about the application process and the progress of the Category 3 licensing, go to pgcb.state.pa.us.

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Press Contact: Gina Bertucci  570-588-6661 ext. 2118  eMail gbertucci@bushkillgroup.com
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2007/06/29