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| Volume XXIV Number 2 |
February 7, 2003 |
Honesty and Integrity
The second in a series about the Tribe's new Hard
Rock projects
By Elrod Bowers
In addition to the hiring of Edward Jenkins as Director of Gaming-Compliance
and Regulations, the Tribal Council hired veteran casino executive Jim Allen
to become the Executive Operating Officer of the Seminole Tribe's Gaming
Operations.
Allen, who reports to the Tribal Council, brings 24 years of gaming experience
to the Tribe. Allen has held executive positions with Sun International, the
Trump Organization, Hilton Hotels, Park Place Entertainment and Hemmeter, and
supervised the openings of the Mohegan Sun in Connecticut and Atlantis in Paradise
Island, Bahamas.
"I was first introduced to the tribe by a mutual friend who's in
the gaming business and he told me about gaming in Florida, which I didn't
even realized even existed," said Allen. "So I came over and looked
at the Hollywood operation."
"I initially met the Seminole Tribe back when I was with the Trump Organization
and I believe the Tribe had conversations with Donald Trump about possibly getting
involved in their gaming operations. I was just Vice President of Operations
and I just met some of the individuals that came up to the casinos in Atlantic
City back in 1993."
Since his hiring, Allen has had one goal in mind for the Seminole Gaming, integrity. "That
was one of the biggest things that we represented to the bondholders when we
sold the first round of bonds: integrity and honesty," said Allen, "There
is a 100% commitment from the Tribal Council and myself to make sure that we
have integrity and honesty in the gaming operations."
"
Things like the vendor registration program and bringing in Gaming Laboratories,
Inc. to test the machines. I am also licensed in five different jurisdictions,
key licensed, so my background has been checked by five different gaming boards
for the last 23 years and everyone on the Hard Rock team has the same type
of background."
To help with the Hard Rock projects, as well as overhaul and standardize operations
at the tribe's five existing casinos, Allen hired Brad Buchanan, Senior
Financial Officer; Kathleen L. Rybar, Senior Human Resources Officer; Lyle
Bell, Senior Information Technology Officer; Thomas W. Sparks, Senior Officer
for Security, Transportation and Administration; Charles Lombardo, Senior Gaming
Officer; and Jeanine Repa, Marketing Officer.
"
No one on the management team has less than 20 years experience in the gaming
business and all have worked in the major markets, Las Vegas, Atlantic City,
Connecticut, etc." said Allen. "They've all been key licensed,
their backgrounds checked to the utmost degree."
"More importantly, everybody has been through an opening, and one of the
criteria that I set out was that, to open a casino, we want to make sure that
we don't select a system, or have someone in a position, that hasn't
been successful in a similar opening environment. The amount of work and hours
is tremendous."
Allen's biggest challenge has been not only coordinating the Hard Rock
projects, but also overseeing the Tribe's five existing casinos as well. "The
biggest challenge is time," said Allen, " I wish I had more time
to give to the existing operations, which sometimes becomes difficult."
"
To build one casino is a tremendous task, but to do two simultaneously, and
one of them will have an accelerated opening so that we can knock down the
old one, I honestly don't think that people realize how big of a challenge
we have taken on."
"
I wish I had the time to spend with, say the GM in Immokalee or Brighton, but
we make sure we still do budget review every month and that somebody gets to
those properties once a month."
Upon his arrival, Allen began to see how big of a job it would be to restructure
Seminole Gaming.
"
I think that the first thing is that when I initially got involved with the
Tribe on the gaming side it was obvious to me that through the years of different
management companies there was a lot of different philosophies on how to do
things," said Allen, "the Tribe ran some of the operations, management
companies ran some of the other ones."
"
It appeared that there was no standardization of the fundamentals that you
would normally have in any company, and obviously in a gaming operation: financial
procedures, human resources procedures, personnel procedures."
At press time, Allen expected the standardization of all job descriptions,
minimum requirements and pay rates to be completed within a matter of days.
When they are done, the information will be printed and distributed to the
Tribal members and employees.
However, right now, Allen's time is taken up by the massive demands of
the Hard Rock project.
"
It's actually very unique, because if I was just hired to run the existing
five facilities, that would really be the major task: to try to standardize
and become more automated and lot of those different things as soon as possible," said
Allen.
"
That is one of my goals, but, more importantly, I was really hired for the
Hard Rock projects, which is the project that is the future of the tribe, at
least the gaming side of the business. My responsibilities are to represent
the tribe with the designers, the developer, to make sure the buildings are
constructed according to the standards that we set out, which was a four-star,
four-diamond facility.
"
That's a continual challenge on daily basis, when building facilities
this large, it's not like you just design it once, it's every single
day, literally 100's of items come up where there's questions that
you have to follow up on. We have to do that within a budget, so the financial
side of it is also a responsibility.
"
Then, the other part is the whole operations side. We have to get our existing
employees trained and add the additional employees necessary to operate the
gaming side of the facilities. Then, we have to create the whole new area,
department if you will, for hotel operations, beverage operations, pools, retail."
According to Allen, one of the important new areas was engineering. Unlike
the old facilities, the new facilities are designed to be completely stand-alone
facilities that can withstand 150 mile per hour winds. Other features include
the redundant power feeds into the property.
"
So if we lose power on one line, we have it on another, and if both fail we
have a whole generator system.
"
The complexity of just operating a facility like this is obviously much different
than what we have today, and there's also hotel operations, front desk
and housekeeping, the employee cafeteria, food courts, health spas.
"
So obviously a major portion is to take advantage of the job that we've
done with our existing employees but also expand that to the next level and
find additional people to fill all those other positions that we're going
to need in order to staff the facilities." Allen expects to have about
3,000 employees in the Hollywood Seminole Hard Rock Resort and Casino.
There are planned job fairs, so everyone will have an opportunity to work at
the Hard Rock. Allen has also agreed with the Tribal Council that Tribal members
who meet the minimum requirements will automatically get the position.
"It gives us the ability to help the Tribal members learn more about the
gaming business," said Allen, "and hopefully, someday, somebody takes
my job."
Allen started a similar program at the Mohegan Sun and, "it was very
successful there, and there are a lot of Tribal members in management positions," said
Allen.
Allen stressed that all current Hollywood Casino employees will have the chance
to work at the Hard Rock. In fact, he can't afford to overlook the approximately
900 current employees when he takes on the task of filling the 3,000 planned
jobs.
"It won't be easy, it'll be very difficult," said Allen, "but
when we did the Mohegan Sun, we hired close to 7,000 employees. There's
not a lot of hospitality and entertainment opportunities in New England, it's
really a defense area. South Florida at least has a lot of restaurants and hotels."
"In Atlantis, we hired close to 9,000 employees on an island that only
has 280,000 people in the whole country. That was very difficult, but we found
them and trained them. At the Taj Mahal, we hired over 5,000 employees, this
was in 1990, and we actually brought people in from as far as Ireland.
"Our goal is to hire Tribal members first, then the existing employees
and that's what we're going to do. We're going to try to fill
as many positions internally before we go outside."
When the Hard Rock projects were first announced, rumors persisted that the
Hollywood Casino employees were not going to have the opportunities to work
at the resort.
"Here's what I have said officially, and I have had meetings with
all employees," said Allen, "Every existing employee has the opportunity
to work in the Hard Rock project."
"When we had the employee meeting, I asked the question: Does anybody in
the room want to work with somebody who is not friendly, does not come to work,
does not care about their fellow employees, or does not respect the Tribe? The
answer, overwhelmingly, was no, they do not."
Allen then announced that the slate was wiped clean for any employees who had
a questionable work ethic prior to the employee meeting. However, since that
time, "if we have an employee that applies for the new Hard Rock job
that has all kinds of write-ups in their file for mean or rude customer service,
has been caught hurting or destroying Seminole property, bad attendance, or
constantly calling in sick, then they will not be guaranteed a position."
"We want the best employees to work in the new facility. Anybody who's
doing a good job will definitely have a position, they will keep their seniority,
all of their benefits and they will move forward."
"We're going to have a whole training program that's going
to start about six months from opening, there's definitely an opportunity
for them. Hey, we need 3,000 employees!"
Even so, some of the employees have not taken the hint. "If we think
that we can be successful while having employees who are sleeping on the job,
or smoking cigarettes on the floor," said Allen, "I'm here
to tell you that would be a mistake. I do not want that to happen in the new
building."
"For those bad apples who don't care, I guess the rumor has some
truth to it. We do not want to hire those type of individuals."
While construction continues on the Hollywood Hard Rock, upgrades have also
been made to the existing Hollywood Casino facilities. "The Tribe has
been very successful for 20 years, but the type of facilities that we operate
today are totally different then what we're going to be operating with
the Hard Rock projects, and I think it would be fair to say that the existing
facilities had gotten a little bit tired," said Allen.
"
We've replaced some carpet, added a sign, done some touch up painting
and replaced all the dead landscaping. I think that the operation really had
suffered a little bit, and, with the help of Larry Frank and his team, we've
been able to spend a few dollars to increase the public perception that it's
not just a place filled with smoke."
To combat the smoke problem, air handler units from the Tribe's now-demolished
Sheraton Four Points hotel in Tampa were put in the Hollywood casino. "We
didn't fix the problem completely, but we tremendously reduced the smoke
problem in the Hollywood facility," said Allen, "so, when you go
in there, you know the customer feels a little bit more in tune to have some
fun, not just gamble, because we really need to have both."
"
I believe that the direction I received from the Tribal Council and Mr. Shore
was that we're trying to create world-class facilities here and we want
to do it as well as they do it in Las Vegas, Atlantic City and the tribes up
in Connecticut. That's really the goal we're striving for, and
I'm really happy to say that our numbers have been up significantly,
profit-wise, since we've been making a lot of these changes."
Allen also focused on the types of games that are offered in the Seminole casinos.
The consensus was to offer casino patrons exciting and, more importantly, familiar,
games. "The existing equipment that was in the Seminole casinos was very
antiquated," said Allen, "every game looked the same."
The Tribe approached all of the Class II, and the major Class III, vendors
in search of a better deal. Recently, the Tribe entered into an agreement with
Sierra Design Group, which is affiliated with IGT, the largest manufacturers
of slot machines in the world.
Under the new agreement, the new Seminole Hard Rock Casinos will offer class
II versions of popular slots seen in Las Vegas such as Double Diamonds, Triple
Sevens, Storm Chasers, and Red, White and Blue. "We will have these games
on our floor next month," said Allen, "and they are Class II."
"
We have over 600 titles that we have access to, so we'll be able to design
the casino floor to look identical to a Las Vegas, Atlantic City or Connecticut
casino. Right now, when all of the people now come to our casinos, they don't
see any games they know, and a lot of people just leave."
"
The new games, and the affiliation with IGT, is going to be a huge windfall
for the Tribe."
The agreement with IGT has Allen convinced that the games will put the Seminole
Tribe at the forefront of Class II gaming. "What we've designed
here is legendary," said Allen, "everybody told me that none of
the Class III vendors would ever do business with the Tribe and that's
completely inaccurate."
In addition to the new games, Allen and Jenkins brought in Gaming Laboratories
Inc., an independent testing facility used by every major gaming jurisdiction
worldwide to verify the integrity of the gaming devices. In the past, the Tribe
had never used any type of testing on the machines it had purchased.
"There was nobody completely independent of the Tribe that was checking
to make sure that we were getting what we were buying, that the games were producing
what they were supposed to produce, etc.," said Allen.
GLI was brought in to the test all of the Tribe's existing gaming devices, "and
no future devices will go out onto the floor unless they're tested to
insure the integrity of the gaming operation," said Allen.
Before, the Gaming Department did not have adequate internal controls and procedures
in place to protect the Tribe. However, "whatever deficiencies we had,
that was why I was brought in, to try to help fix those things, " said
Allen.
"By having the assistance of GLI, which is not something that just I would
do, Harrah's, Caesars, Park Place, MGM, it's required in every other
gaming jurisdiction."
"What it also does is protect the Tribe so that I or Ed cannot do something
that's not 100% above board. It's like another set of eyes that really
protects the Tribe."
Presently, Allen is also focusing on raising the additional $95 million needed
to complete the second phase of the project. After seven months of meeting
with bondholders and investors, in May 2002, the Tribe secured the first $315
million to begin the first phase of construction, the second financing would
pay for an additional 250 rooms to be added on to the hotel.
"Our goal is to do Phase II now, our goal is to raise the $95 million right
now and have Hollywood open up with the 500 rooms and retail in check," said
Allen, "and we believe we can do that."
The Seminole Hard Rock Projects
On May 15, the Seminole Tribe secured $315 million in bond financing for the
first phase of construction for the Hollywood and Tampa Seminole Hard Rock
Hotel & Casino projects.
The Seminole Tribe of Florida will own and operate the Tampa and Hollywood
Seminole Hard Rock Hotel and Casinos, according to the licensing agreement
with Hard Rock Café International.
The Hollywood Seminole Hard Rock will be located on 86 acres north of Stirling
Road, between State Road 7 and the Florida Turnpike.
The destination resort and casino will consist of a 115,000 square foot casino
in a 339,000 square foot building. There will also be a 15-story Mediterranean-style
hotel tower and an enclosed 1,700 space parking facility, as well 1,700 surface
parking spaces.
Once Phase II of construction is complete, the hotel will have 500 guestrooms,
including 64 suites with the latest in amenities and security features, and
over 40,000 square feet of meeting space.
The casino will have over 2,000 electronic gaming machines, 65 poker tables
and a bingo gallery that will be able to seat 800 people.
There will also be a 19,000 square foot lagoon-style pool area that will feature
a pool bar nestled in a rock mountain, waterslide, elevated spa, shallow kiddie
pool with play features, beach volleyball area and poolside cabanas.
Dining and entertainment will include a Hard Rock Café, hotel restaurant,
Coffee Bar, Pool Bar, Casino Center Bar, and a 250 seat Food Court. There were
be additional restaurants in the nearby retail center.
There will be shopping throughout the resort including a gift shop that will
market Seminole art and crafts. Phase II of construction will feature an adjacent
retail and entertainment complex that will have specialty stores, restaurants
and a multi-use venue.
The hotel is 10 minutes from the Hollywood International Airport and 30 minutes
from the Miami International Airport.
Under construction since the middle of 2002, the Hollywood Seminole Hard Rock
is scheduled to open in the spring of 2004.
The Tampa Seminole Hard Rock is located on the 37 acres west of North Orient
Road, between I-4 and Hillsborough Avenue.
It will have a 90,000 square foot casino within a 210,000 square foot building,
10-story hotel tower and an enclosed 1,600 space parking facility, as well
as 1,000 surface parking spaces.
The hotel will have 250 guestrooms, including 46 suites. There will also be
10,000 square feet of meeting space.
Guests can also visit the Spa, which will offer wet and dry treatments, exercise
room, private outdoor garden, and separate men's and women's changing
areas with steam, hydrotherapy pools and showers.
Outside, the pool area will have cabanas equipped with televisions and refrigerators
and areas designed for beach volleyball, horseshoes and table tennis.
The casino will have over 1,500 electronic gaming machines, 55 poker tables
and a bingo gallery for 800 people.
Dining and entertainment will include a 24-hour restaurant, Casino Center Bar,
Sports Bar, Lobby Bar, 250-seat Food Court, and a specialty restaurant that
includes staging for live performers and a DJ booth.
There will also be shopping opportunities throughout the resort and a Hard
Rock retail store.
Under construction since 2002, The Casino is set to open in the spring of 2003,
and the hotel in the spring of 2004.
The project developer is The Cordish Company of Baltimore, Maryland. In addition
to the Seminole Hard Rock projects, Cordish is developing three other projects,
the Atlantic City Walk, Power Plant Live and Capital Centre.
The Atlantic City Walk is a $100 million retail and entertainment district
connecting the Atlantic City Boardwalk and the City's Convention Center.
In a public-private partnership with the City of Baltimore, Cordish is developing
a 400,000 square foot entertainment and office development, which will be the
only pure entertainment district in Baltimore.
Capital Centre is Cordish's redevelopment of the former USAir Arena in
Washington. DC in conjunction with the ownership of the NBA Wizards and the
NHL Capitals.
The Seminole Hard Rock architect is Klai Juba of Las Vegas Nevada. The construction
company is Perini/Suitt A Joint Venture from Tampa, Florida.
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