Request for Proposals

Regarding

Manager Developer & Financier

AMC Thompson Casino

November 26, 2015

AMC Thompson Casino RFP

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TABLE OF CONTENTS

1.

BACKGROUND .......................................................................................................................... 3
a.
b.
c.
d.

2.

EVALUATION CRITERIA ............................................................................................................. 3

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.

3.

Projected Revenue Potential ........................................................................................................................4

Scope of Investment and Construction ........................................................................................................4
Financing .......................................................................................................................................................4
Management ................................................................................................................................................5
Marketing......................................................................................................................................................5
Risks ..............................................................................................................................................................5
Employment..................................................................................................................................................5
Training .........................................................................................................................................................6
Procurement .................................................................................................................................................6
Community Contribution ..............................................................................................................................6
Regulatory Compliance .................................................................................................................................6
References ....................................................................................................................................................6

APPLICATION PROCESS ............................................................................................................. 6

a.
b.
c.
d.
e.
f.

4.

Introduction ..................................................................................................................................................3
Objectives .....................................................................................................................................................3
First Nation Gaming in Manitoba .................................................................................................................3
Purpose of RFP ..............................................................................................................................................3

Submissions of Proposals..............................................................................................................................6
Review of Proposals ......................................................................................................................................6
Shortlist of Applicants ...................................................................................................................................7
Interview of Applicants .................................................................................................................................7
Selection of Applicant ...................................................................................................................................7
Site Selection Commences with Advice of Developer Financier ..................................................................7

GENERAL TERMS AND CONDITIONS .......................................................................................... 7

a. Applicants can seek clarification of the requirements of this RFP during office hours by submitting the
request in writing via fax or email: ..............................................................................................................7
b. Applicants should submit their proposals (5 copies) to: ..............................................................................7
c. Application Fee .............................................................................................................................................7
d. Disclaimer .....................................................................................................................................................7
e. Costs of Proposal ..........................................................................................................................................8
f. No Guarantee ...............................................................................................................................................8
g. Possibility of New legislation ........................................................................................................................8
h. Rectification ..................................................................................................................................................8
i. No Binding Agreement..................................................................................................................................8
j. Confidentiality...............................................................................................................................................8
k. Timeline ........................................................................................................................................................8

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1.

BACKGROUND
a. Introduction
The Assembly of Manitoba Chiefs (AMC) through the Chiefs Gaming Committee (the Committee),
hereby invites proposals from interested parties for Manager and Developer for a fourth First Nation
operated casino in the Province of Manitoba (the province), Canada.
The AMC and the Province of Manitoba have an ongoing working relationship to develop gaming
opportunities, including casinos, through the Joint Steering Committee established in December 2005.
Through this table, the province and the AMC have agreed to explore the potential and develop a new
casino in the Thompson region that is commensurate with the opportunity.
The new casino development will be licensed and regulated by the Manitoba Liquor & Lotteries
Corporation.
b. Objectives
The goal of the Joint Steering Committee on Gaming is for the AMC and the Manitoba Government to
work together to close the gap in Standard of Living between First Nations people in Manitoba and the
rest of Manitobans.
More specifically, the development of a First Nation operated casino fulfills this overarching agenda by
meeting the explicit objectives of providing the following: revenues to First Nations in Manitoba,
sustainable economic benefits and opportunities, creation of jobs, promoting tourism and acting as a
catalyst for economic development. Revenues from gaming must also be used to directly mitigate
adverse socio-economic impacts of gaming.
c. First Nation Gaming in Manitoba
First Nations currently operate three casinos: at Opaskwayak Cree Nation near the Pas (Aseneskak
Casino); Brokenhead Ojibway Nation (South Beach Casino); and on Swan Lake First Nation near
Carberry (Sand Hills Casino).
d. Purpose of RFP
The Committee anticipates that this process will ultimately result in the award of an initial
management contract for a period of seven years from date of opening. The successful Applicant will
submit a comprehensive proposal addressing all of the evaluation criteria. The successful Applicant
must commit to providing or obtaining financing for the project including pre-development costs.
Once selected, the Committee will consult with the Applicant in determining the location and
negotiating the terms of a site-holder agreement.

2.

EVALUATION CRITERIA
The Committee requests that each of the listed items in this section be directly addressed. Additional
information may be provided by the Applicant but is not required. The Committee maintains sole
discretion in evaluating the merits of each application.

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a. Projected Revenue Potential

The Joint Steering Committee has conducted an initial market study, conducted by HLT, on the
Thompson Region. All Applicants will be provided a copy upon execution of a non-disclosure
agreement. Generally speaking, the HLT market study estimates the market potential to be
approximately $21.1 million. Of this potential, HLT estimates that a casino located in Thompson
would capture $10 million.
All proposals should demonstrate, based on your expertise and research, whether you project a
new casino development would generate revenues that differ from this projection. An explanation
of any assumptions used in the model or calculations should be provided, particularly those that
would cause an estimate to vary from the study performed. Pro-forma financial statements and
operating budget is requested.
b. Scope of Investment and Construction
Based on projected revenue and patronage, a proposal must include a recommendation for the scope
of investment. The recommendation will identify whether the project would occur in phases, utilize
existing structures, and how much the project will cost to develop for the initial phase.
The proposal will include a timeline required for construction and whether the facility would be new or
retrofit an existing structure. The timeline would indicate critical dates of construction of each part of
the development i.e. start and end dates, additions etc.
The Committee contemplates that a facility would potentially include a gaming centre along with
ancillary businesses of hotel and restaurant, keeping in mind that the developments may be
implemented in phases. The Committee is open to exploring other related businesses, based on
feasibility, e.g. a movie theatre.
Design and conceptual ideas are encouraged and will be important considerations of the committee in
final selection. The Committee will consider the quality of the proposed design of all proposed aspects
i.e. casino, hotel, and amenities. Specific attention will be given to layout, parking, security, and
internal and external design etc. Illustrate examples of past projects may also assist the Committee.
The Committee requests a description of the proposed facilities and how the facilities will function in
relationship to adjacent or nearby businesses.
c. Financing
The successful Applicant must commit to providing or obtaining financing for the project including predevelopment costs. The successful Applicant will be able to secure financing, whether internally or
from third party lenders. Costs of the initial casino phase may vary per proposal. The Committee
recommends that the Applicant consider retro-fitting existing structures as an option in their proposal.
The recently constructed Sand Hills Casino exceeded $20 million in construction and development
costs.
An Applicant may be conditionally awarded the management and development agreement provided
financing is provided by a date set at the sole discretion of the Committee and at a rate agreed to by

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the Committee.
Committee.

The rate, or cost of financing, will be an important factor considered by the

The cost of financing will form part of the Scope of Investment analysis. This project may require up to
100% financing of pre-development and development costs. The successful Applicant will maximize
the return on investment through strategic development of the casino project.
d. Management
The successful Applicant will demonstrate that it has the professional expertise to operate a casino at
standards that meet or exceed regulatory requirements and that will ensure successful operation. A
detailed description of team members, their qualifications and experience will form an important part
of this criterion.
The Applicant would identify the role the members would play in the operation including such areas as
regulatory compliance, surveillance, finance, hotel management etc.
Where an Applicant currently manages other casinos, or where they have previously managed casinos,
these examples may be utilized to demonstrate the quality of management the Committee could
expect.
e. Marketing
The successful Applicant will demonstrate knowledge of the regional market and culture in advancing
general and specific marketing proposals. The facilities should reflect the values of a well run business,
First Nation culture and the surrounding community. In other words, the concept design may form
part of the marketing strategy.
f.

Risks

The successful Applicant will demonstrate a clear understanding of the risks associated with each stage
of development and operation. The Applicant should identify any risks that might materially affect the
casino development or operation and explain how each of these risks can be strategically addressed.
g. Employment
Description of employment opportunities will be considered and full employment details should be
provided such as the following:
1. Proposed organizational chart for the casino including management positions. If any of the
positions will be occupied by the Applicants own personnel, a description of whether these
individuals will be paid by the Manager or from the revenues generated.
2. Strategy for employing the maximum number of First Nation persons, during both
development and operational stages.
3. The number and types of jobs estimated to accrue to each of the casino, hotel, and ancillary
business.

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h. Training
The extent to which the Applicant will strive to train First Nation people for vacant positions will be
considered. The Applicant should submit a strategy that will be employed to train local First Nation
people to assume management of the operations at the conclusion of the Management Agreement.
Proposed courses and programs as well as funding mechanisms to achieve the training strategy will be
an important factor considered by the Committee.
i.

Procurement

Procurement strategy of the Applicant will be considered, particularly as it relates to procuring First
Nation trades, professionals, services and labour at each stage of development and operation.
j.

Community Contribution

First Nation casinos in Manitoba contribute 2.5% of the net earnings to the Manitoba First Nations
Casino Trust for responsible gaming initiatives. In addition to this contribution, there may be other
ways that a manager/developer can contribute to the communities it serves.
k. Regulatory Compliance
Preference of the Committee is to have the casino located on-reserve, however, the proposed project
may be located on or off-reserve. In either event, it will be necessary to consider First Nation as well as
provincial and federal laws. The successful Applicant will demonstrate knowledge of the regulatory
processes applicable to Manitoba gaming and indicate what personnel and processes it has in place to
ensure that all regulatory compliance and licensing will be met for development and operations of the
development on or off-reserve. The Successful applicant will be eligible for licensing by the Manitoba
Liquor and Lotteries and obtain licensure within one year.
l.

References

The Committee requests at least three references that can speak to the Applicants experience related
to the foregoing criteria.
3.

APPLICATION PROCESS
Applicants are invited to submit their proposals responding to this RFP. The Applicant must
demonstrate that the Applicant is able to successfully finance, develop, manage and operate the casino
within the legal framework of First Nations gaming in Manitoba.
The process will proceed as follows:
a. Submissions of Proposals
Applicants proposals to be submitted before specified deadline.
b. Review of Proposals
Committee review of proposals and follow-up information requests.

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c. Shortlist of Applicants
Committee will narrow the Applicant search to not more than five.
d. Interview of Applicants
Committee to conduct face-to-face interview. The meeting may occur at AMC or site of the
Applicant.
e. Selection of Applicant
After full review of the Applicants, the Committee will recommend to the AMC Executive
Council of Chiefs that one of the Applicants be engaged.
f.
4.

Site Selection Commences with Advice of Developer Financier

GENERAL TERMS AND CONDITIONS

a. Applicants can seek clarification of the requirements of this RFP during office hours by
submitting the request in writing via fax or email:
mbalfour@manitobachiefs.com
fax: (204) 943 2369
b. Applicants should submit their proposals (5 copies) to:
Director, Gaming Development
Assembly of Manitoba Chiefs
5th Floor, 275 Portage Avenue
Winnipeg, MB, R3B 2B3
mbalfour@manitobachiefs.com
fax: (204) 943 2369
c. Application Fee
Applications must be accompanied by $25,000 application fee. The application fee is partially
refundable. $5,000 is not refundable to any applicant; however, $20,000 from each applicant will be
placed in escrow and in the event an applicant is not successful in securing the bid, $20,000 will be
returned to the applicant. The applicant who does secure the bid, can apply up to $20,000 of the
deposit towards work that results in the successful completion of the project i.e. opening a casino as
represented in the successful bid.
d. Disclaimer
The information contained in this RFP is subject to clarification and alteration. The information is not
exhaustive of the statutory or regulatory requirements. Each applicant should consult with their own
legal counsel, financial and other advisors.
The Chiefs Gaming Committee and the AMC and its agents accept no liability for the information
contained in this RFP nor any opinion or expression of law whether included or omitted from this RFP.
It is the duty of each Applicant to carry out their own due diligence, at their own expense, with respect
to their application.

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e. Costs of Proposal
Costs associated with responding to this RFP are the sole responsibility of the Applicant. The
Committee and AMC will not reimburse the Applicants costs, nor is an Applicant entitled to
reimbursement from future casino development regardless of whether the Applicant is successfully
selected.
f.

No Guarantee

The Committee and AMC make no representation that any Applicant shall be granted a casino license
or agreement to develop, manage or finance a casino and this RFP does not constitute an offer of any
kind.
g. Possibility of New legislation
Each Applicant shall be aware that the Province of Manitoba or the Federal Government of Canada
may enact new or amend existing legislation that could result in material changes in law and
regulations of gaming. The Committee and AMC are not responsible for any such changes.
h. Rectification
It shall be the duty of the Applicant to ensure all information in its proposal submission is correct and
to correct any errors. The Committee reserves the sole discretion to treat errors and corrections as it
wishes.
i.

No Binding Agreement

This RFP and any proposal submission in response does not constitute a binding agreement and the
selection of a successful candidate does not mean that a proposal is totally acceptable. The Committee
reserves the right not to enter into an agreement should the Applicant fail, neglect or refuse to
conform with any further or alternate requirements or conditions stipulated by the Committee or
should any of the information contained in the proposal be determined to be incorrect or invalid. The
Committee reserves the right to select an Applicant from the remaining pool of applicants should
negotiations fail with the successful Applicant.
j.

Confidentiality

The Committee reserves the right to publicly disseminate any information of a non-confidential nature
contained in any proposal or application.
k. Timeline
The RFP will open on December 1, 2015 and close on March 1, 2016.

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