Page 1 of 1 aul Eckert - Follow-up ee From: Paul Eckert To: Danelle Smith Date: 10/16/2012 1:21AM Subject Follow-up CC: Hanson Jeff, Jensen, Nicole; Padmore, Robert; bob@rescttcacom jo Hi Danelle, ‘Tanks agen for meeting. Following up on our October Sth meeting with Ho-Chunk and Lew regarding your ‘wo Downtown Sioux City Casino concepts. We want to make certain there was no misunderstanding, We all ‘agreed atthe conclusion ofthe meeting that Ho-Chunk and Lew would send the Cty specific term of interest, ‘beyond the concepts you shared during the meeting and the City would then send a daft Letter of Understanding afew days after geting those terms rom Ho-Chunk and Lew for your review. The City remains very interested in working with you and Lew. We look forward to receiving additonal information in order to progress your concepts tothe next level. Please let us know if we can be of assistance or ifyou would like to meet again ‘ants, aulPage 1 of | Paul Eckert - Ho-Chunk Proposal for Ci eee Fro Danelle Smith To: "Paul Eckert (pauleckert@sioux-city.org)" Date: 10/25/2012 5:27 PM Subject: Ho-Chunk Proposal for Attachments: 2012-10-25 HCDL City of Sioux City Letter pa Dear Pau, Please see atached letter and attachments regarding Ho-Chunk’s casino development proposal, Please contact ‘me with any questions. ‘Thanks, Danelle Danelle Smith, Esq, | Fredericks Peobles & Morgan LLP | 504 Ho-Chunk Plaza, Ste 7 | P.O, Box 782 ‘Winnebago, NE 68071 | 402 678 4363 tle. | 402 353.4078 croc fax a ine mene reece ete epee oh ek pan Sto ae oy Sed aDANELLE J. SMITH 04 Ho Chan Pas, Ste 7 P20, Bon 792 Winnebago, NE 68071 ": 02) 878.4385 F402) 335078, B: dsmihndaa com ‘rena October 25,2012 Paul Eckert, City Manager City of Sioux City P.O. Box 447 405 6 Street. Sioux City, IA 51102 RE: Letter of Understanding - Proposed Casino Terms for City of Sioux City Dear Mr. Ecker (On behalf of Ho-Chunk Development, LLC (“Ho-Chunk”), thank you and your staff for {aking the time to meet wit us to discuss our casino license bid and development proposal. The following summarizes the proposed tenms and elements relating to the Cty of Sioux City (he City”), and is primarily based upon the overall project proposal as presented on October 5, 2012. ‘The proposed terms and elements are contingent upon the award of a license by the Towa Racing and Gaming Commission to Warrior Entetsinment, LLC to operate a land based gaming facility in downtown Sioux City. All development and other agreements willbe arranged by oF ‘with Warrior Entertainment, LLC, or a related entity of Warrior Entertainment, LLC, a nevly’ {formed lows limited liability company of which Ho-Chunk Development isthe majority owner (Warrior). Warrior willbe the owner/operator ofthe proposed casino project and will also be the gaming license applicant along with its qualifying sponsoring organization. Additionally, please note that only the Warrior site option will now be submitted to the Towa Racing and Gaming Commission for consideration, CITY OF SIOUX CITY FEES: ‘The Iowa gaming statute directs 0.5% of Adjusted Gross Receipts tothe City asa portion ofthe overall gaming twxes imposed on the gaming facility. In addition to the 0.5% gaming related tax that is allocated to the City, Warrior offers to pay the City a percent of its Adjusted Gross Receipts derived fiom gaming as provided hereinafter: (3.0% ofits Adjusted Gross Receipts fo operational years | to 5, (Gi) ‘After year 5, the City may choose from the following two options: a. 3.25 % of the Adjusted Gross Receipts; ot b. 3.0% ofthe Adjusted Gross Receipts plus 4 perent ofthe audited Net Income ofthe Casino Project