Pinnacle Entertainment, Inc. announced that its Board of Directors has approved an increase in the scope and budget of the Company's casino resort under construction in the city of St. Louis, Missouri. The Company has added a nightclub, parking and site improvements, retail stores, and other program adjustments. The budget changes also reflect significant increases in the cost of construction materials since the initial budget was set. Overall, the budget was increased to $430 million from $350 million to reflect these changes. The $430 million budget includes significant contingencies for additional increases in the cost of construction materials and other factors.
Additionally, Pinnacle has finalized the terms for many of its bid packages. It expects to complete the other bid packages and enter into a final agreement with its general contractor for the St. Louis City project within the next 30 to 60 days. Once signed, the construction contract will lock in approximately 90% of anticipated hard construction costs of the project.
"Since our original efforts in the area began, the St. Louis gaming market has shown solid growth and the revitalization of the downtown area has continued, including the recent opening of the new Busch Stadium approximately ten blocks from our site," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "We remain confident about our investment in downtown St. Louis and look forward to our resort's opening in the second half of 2007."
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