XML 24 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Development Projects Costs
12 Months Ended
Dec. 31, 2017
Project Development Costs [Abstract]  
Development Projects Costs
Development Projects Costs
Capitalized Project Development Costs

Once it was awarded the Gaming Facility License on December 21, 2015, the Company began capitalizing certain Project Development costs during the fourth quarter of 2015. At December 31, 2017 and 2016, total Capitalized Project Development costs incurred were approximately $566.8 million and $202.4 million, respectively. Total Capitalized Project Development costs at December 31, 2017 consisted of $560.2 million of construction costs, site development, contractor insurance, general conditions, architectural fees, construction manager fees, and approximately $6.6 million of professional service fees such legal and accounting fees and is reflected on the balance sheet as Capitalized Development Project costs. Total Capitalized Development Project costs at December 31, 2016 consisted of $198.9 million of construction costs, site development, contractor insurance, general conditions, architectural fees, construction manager fees, and approximately $3.5 million of professional service fees such as legal fees and accounting fees.

In 2017, total Development Projects costs incurred were approximately $392.2 million, of which $370.7 million was capitalized and $21.6 million was expensed. Development Project costs consisted of $10.7 million of land lease costs and rents, $4.9 million of salary and related benefits, $2.0 million of bank charges, $892,000 of marketing expenses, $643,000 of real estate taxes, $571,000 of insurance expense, $607,000 in consultants and other professional service fees, $317,000 in legal fees and approximately $490,000 of pre-opening expenses, including travel, relocation, recruiting and other start-up costs.

In 2016, total Development Projects costs incurred were approximately $205.0 million, of which $192.0 million was capitalized and $13.0 million was expensed. Development Project expenses consisted of $10.4 million of land lease costs, $400,000 of real estate taxes, $482,000 of insurance expense, $324,000 in consultants and other professional service fees, $164,000 in legal fees and $1.2 million of pre-opening expenses, including salary and related benefits, as well as, marketing expenses.

Cash Collateral for Deposit Bond

In February 2016 and June 2017, the Company deposited $15 million and $20 million in performance bonds to guarantee the completion of the Development Projects. On December 28, 2017, the Company notified the NYSGC that it had expended 85% of the Company's proposed Minimum Capital Investment (as defined below). On January 4, 2018, the NYSGC notified the Company that it had confirmed that the Minimum Capital Investment criteria has been reached and the funds were returned to the Company for use toward Development Projects expenses.

Restricted Cash and Investments for Development Projects

At December 31, 2017, the $136.4 million of restricted cash and investments for Development Projects represented the remaining funds from the Term Loan Facility and the Kien Huat Montreign Loan to be utilized for the Development Projects. This consists of cash and cash equivalents totaling $41.9 million and short-term marketable securities totaling $94.5 million, which were comprised of commercial paper and U. S. Treasury Notes with maturities of less than one year. At December 31, 2016, the $26.4 million of restricted cash and investments for Development Projects on the Consolidated Balance Sheet represented the remaining funds from the January 2016 Rights Offering (defined below) to be utilized for the Development Projects.