Bayport International Holdings Inc. (BAYP)

[Mephistopheles]

I have been doing some reading on the history here on this board, and a long while ago in penny stock land an old poster Linda and Earnest came up with a list that seemed at the time to be the cornerstone of everyone’s thought process on here.

It pains me to bring back an old memory that appeared to be a glaring measure of black and white with no grey area, but I am going to.

Taking this one step farther I postulate to say that this yard stick is equal to the Mt. Everest of the entire penny stock world!
However, I was reading this board and found this reoccurring table of measurement and thought I would like to take a crack it as well. It reads, and I quote:

A change from text for cars (EXTO)
Asset (s) in the company
Contract for this Land.
Environmental study of the Land.
Architectural Drawings and Models of what is being built
Organizational Structure of the Corporation
State issued License for a Casino
Financial information
Financials, either audited or not

I think that we all can agree that this might be the Holy Grail of the Penny Stock World should this list pan out. So let us examine for a minute this list of requirements in depth and see what we come up with.

A change from text for cars (EXTO)
To address this first topic of discussion I will point to the recent press release of January 2010, and the past press release of November 25th 2008.
Exit Only Inc. Signs Agreement to Merge With Summit City Grand Resort & Casino Holdings Corporation
SANTA MONICA, CA--(Marketwire - November 25, 2008) - Exit Only, Inc. (PINKSHEETS: EXTO) today announced that it has signed a definitive agreement to merge with Summit City Grand Resort & Casino Holdings Corporation. The Chief Executive Officer (CEO) and President of Summit City Grand Resort & Casino are H.S. Liddell and Todd Smith.
Key political leaders have previously met to organize getting legislation approved for its gambling license for the state of Indiana. The construction of the proposed casino will be joined with the construction of a major water park, resort, and hotel. The goal is to revitalize the downtown Fort Wayne, Indiana area and provide financial support for the city. Key constituents have already conducted meetings with the Indiana Gaming Commission to initiate the process. The project is expected to bring approximately 1500 jobs to the city of Fort Wayne, Indiana.
Indiana is one of the most popular resort and casino destinations in the United States. The Annual Reports filed within the Indiana Gaming Commission by other resorts and casinos in Indiana reflects a total of $2.219 billion for annual gross revenues generated within the gaming industry for FY2008. Summit City Grand Resort & Casino Holdings Corporation is very confident that its resort and casino operations will make significant contributions towards the growth of the gaming industry while being a very unique and perfect counterpart for the state of Indiana. http://www.in.gov/igc/files/FY2008-Annual.pdf
The CEO of Summit City Grand Resort & Casino Holdings Corporation, H.S. Liddell, is currently a part owner of the Sosua Bay Grand Casino & Resort and the Hotel Villa Chessa out of the Dominican Republic within the Caribbean Gaming & Acquisition Corp. http://www.sosuabayresort.com/, http://www.sosuabaygrandcasino.com/hotel_casino.html, http://www.caribbeangamingcorp.com/about.html
For over 20 years, Mr. Liddell has been the owner and operator of "Piere's", one of the largest nightclubs in the Midwest located in Fort Wayne, IN. Piere's includes 5 great clubs under one roof and its "million dollar stage." Piere's is 4th in the world in concert ticket sales for "over 21" concerts. Over 1000 National Recording Artists have performed including the likes of Godsmack, Creed, REO Speedwagon and Willie Nelson. Piere's has over 65 national concerts per year and entertain over 6,000 people per week. http://www.itstheparty.com/
Mr. Liddell brings a great background in operations of large scale entertainment projects to the Company and is also the owner of some properties within Sosua including a property housing 20 apartments and 12 hotel rooms. Mr. Liddell also owns two other nightclubs, other commercial buildings, millions of dollars of downtown prime real estate development properties and warehouses in Indiana.
Mr. Liddell owns Allure Limousines, a premier limousine company that provide services for all of the Fort Wayne, Indiana area. Allure Limousines also owns a Classic Trolley in the area that holds up to 28 passengers. http://allurelimos.info/
Mr. Liddell owns Picasso's, the city's premier banquet facility. All of Picasso's food for weddings, anniversaries, corporate parties & more is catered by the four star restaurant owned by Mr. Liddell, Trolley Steaks & Seafood. The restaurant can cater from 10-250 people. http://www.picassosevents.com/, http://www.thetrolleybar.com/
As President, Todd Smith will oversee all operations for Summit City Grand Resort and Casino Holdings Corporation. Mr. Smith brings experience from currently overseeing 18 corporations, with over 300 employees, owned between himself and Mr. Liddell's umbrella of businesses over the past 21 years.
The consummation of this merger did not require a reverse of the existing shares. The merger was completed in a share swap between current management and Summit City Grand Resort & Casino Holdings Corporation. Shares were recently retired to enhance valuation in preparation for the merger completion. The current share structure will be updated on www.pinksheets.com in the near future.
The company is currently in discussions with major partners to continue contributing towards the completion of this project. Significant financing options have been discussed and will be announced in detail in the near future.
About Summit City Grand Resort & Casino Holdings Corporation
Summit City Grand Resort & Casino Holdings Corporation engages in the development, ownership, and operation of casino resorts. Its primary mission will be to manage and operate the premier casino, water park, resort and hotel operations that will be based out of Fort Wayne, Indiana. http://www.summitcityholdingscorp.com/, http://www.summitcityresort.com/

For one reason or another closing the deal took a very long time by my standards, but then again I am not a club owner and managing several night clubs, restaurants, hotels, and real estate properties. This then came out:

Exit Only, Inc: Exit Only, Inc. Completes Merger with an Indiana Based Hotel & Real Estate Developer
Posted on: Tue, 26 Jan 2010 08:59:48 EST

FORT WAYNE, INDIANA, Jan 26, 2010 (M2 PRESSWIRE via COMTEX) --
Exit Only, Inc. (OTC PINKSHEETS: EXTO | Quote | Chart | News | PowerRating) (the "Company"), announced that it has completed its acquisition of Summit City Grand Resort & Casino Holdings Corporation ("Summit City"), a hotel and real estate developer headquartered in Fort Wayne, Indiana. In addition Summit City owns and operates a hotel resort in the Dominican Republic.

The transaction was structured as a business combination between the parent Exit Only, Inc. and Summit City Grand Resort & Casino Holdings Corporation whereby Summit City will become a wholly owned subsidiary and the management of Summit City were appointed as officers and directors of Exit Only, Inc. In addition, the Company plans to change its name to a name more consistent with its business and real estate development operations. The effective date of the merger was December 10, 2009 and the Company will be posting its year end financials shortly to reflect consolidated business operations. The new Chairman and CEO, H.S. Liddell proudly stated, aEURoeThe public company platform will enable Summit to facilitate our long term vision and strategy for the greater Fort Wayne community and landscape.aEUR Mr. Liddell further stated that he was looking forward to sharing his strategic goals for the Company in the near future. About Summit City: Summit City Grand Resort and Casino Holdings Corporation specializes in the development and management of hotel, resort and entertainment properties. Management of Summit City currently own and operate several entertainment venues in the greater Fort Wayne metropolitan area. Furthermore, management possesses significant experience in all phases of the hospitality industry and in the development of large scale real estate and construction projects. Summit CityaEUR(TM)s hotel and resort in Puerto Plata, Dominican Republic combines hotel rooms and apartment suites and full range of resort amenities within close proximity to the beach, attractions and casinos. This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended; such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operations to vary significantly from prior periods, and those projected in forward-looking statements.

CONTACT: Les Barber, Investor Relations, Exit Only Inc Tel: [phone]

My thoughts on this point:
We have completed this merger and are now beginning to move forward with the plans as they were laid out. For one reason or another, and they might include the casino referendum vote being moved back for a year and so they worked on other aspects of the deal and left this on the table, or perhaps Boatman was right and David Dion was a snake and tried some shady dealings with them, or perhaps any number of other reasons that made us anticipate something and it took longer than we thought it would. In the end they clearly said they expected to have the merger complete by the end of 2009 and they did accomplish their goal.

Asset (s) in the company: I think this may be a rhetorical requirement tied synonymously to number eight and nine on our list so I will address them all here.

As I understand it there are now assets in the company. The hotel in the Dominican Republic seems to be a much better asset than intellectual property rights to a text for cars idea.
I would take 50% of a resort hotel over “intellectual property and a software data base” developed for an undetermined amount by a non reporting company that is not located in the united states any day.

Business 101: I would not buy a shell with the debt attached. That is completely and totally absurd. Any businessman with even one firing brain cell would stipulate in the contract of purchase that your company stays with you, including all assets and liabilities. We buy the public corporation and we replace assets equal or greater value to what was in it for the benefit of the share holders so they are not screaming fire while we are building. Has anyone called the company and ask them if they have assumed all debts for Text for Cars and David Dion because they are nice guys, and dumb as a box or rocks?

Summit City has delivered on what they have promised thus far without PR pumping this stock to death to sell shares. They have stated very clearly, in English, that they will be posting financials in the near future and I believe that will deliver these financials as promised. Why do I believe this? I believe this because of past performance and a track record of success and deliverables. For more than 20 years Summit City has been performing and delivering, I see no reason they would suddenly jump ship and call off everything over a few dollars when they are clearly grossing more than $10,000,000.00 without this venture.

Contract for this Land and Architectural Drawings and Models of what is being built.

I too am waiting to see this land secured and expect to see it listed as an asset in the company. I cannot for the life of me understand why a company would commission a very well to do and very expensive architectural to render drawings of a site without having land. I might be able to get my head around a feasibility study and that might include some sort of buck shot render, but as I understand it, what was presented to a merchant association was so detailed that they were talking about above and below grade parking and streets. That is not some crayon and protractor drawn mock up, that is getting pretty far along. To have a Lead Architect and partner of the firm presenting your project to association to gain their confidence is not cheap.

Spending several hundred thousand dollars before a merger is complete with a public shell is one more indication to me that we are not dealing with knuckle heads on this project. As I stated earlier I am waiting to see when the land becomes property of Summit City. I am sure that will be press released by either Summit City or Steel Dynamics/ Omni Source at the appropriate time.

Environmental study of the Land: This land is not brown site.
http://oaspub.epa.gov/enviro/multisys2.get_list_tri?tri_fac_id=62832CBLCTUS51S

Call the City of Fort Wayne for more details, or the EPA.
More speculation has been focused on this trying to detract from the project than certainly should have been. IF you do your DD on this, there are environmental studies (several) out there on the land. Not to mention the massive cleanup that has been occurring over the last twelve months. The bears will have you believe this is the home of two headed fish and three eyed snakes to detract from any forward progress.

Organizational Structure of the Corporation: From everything I have seen to date, they have two officers of the company. I am very interested to see how the rest of it plays out.

State issued License for a Casino:
This is the sticking point on this project. This is the dirty little issue that can make this a couple of dollar stock or make it a ten dollar or more stock. Nowhere is a better contrast of a good stock or a great stock. If you got in at triple zero whatever and this stock goes to two bucks it is time break open the bottle your dad has been saving in the basement behind the golf clubs and that thigh thing Suzan Summers was paddling in the 90’s, maybe pay off your debt and make sure life insurance is adjusted to take care of the kids when your make your journey to the next life.
If you got in at triple zero whatever and this little stock goes to ten dollars or more, it is time to call your realtor and your financial planner, and pick up that new import you have been drooling over in your old copy of the Rob Report for the last 5 years.
I think it is fair to say that this is the Watergate of the EXTO controversy. It maybe the White Water and Watergate rolled into one. I wanted to time line this for a second and put it on paper in front of me.

It seems this all started with an idea. And then a few small details got it rolling. If I recall, I never heard of any of this until November 16th 2009. That day this caught my attention.


A casino in Fort Wayne?
There's talk but little action from leaders and lobbyists
Niki Kelly
The Journal Gazette
INDIANAPOLIS – “Pssstt. Have you heard Fort Wayne is going to become a casino town?”
Or so go the persistent rumors and gossip for the past year.
The subject comes up at cocktail parties and City Council meetings. Local blogs and newspapers have polled on the possibility, with slight majorities against the idea.
Some people have even picked a spot for the fictitious casino – the north river development site along the St. Marys River.
But legislatively, the likelihood is slim, especially with no coalition of local officials, businesses and citizens actively or publicly pushing the idea.
The last casino approved by the General Assembly was in French Lick, and legislators did so through an existing but unused license rather than creating a new one. And dozens of supporters in orange shirts came to the legislature every day for a decade before they succeeded.
Then there are the competitive factors as casinos around the state are making less money. Any shuffling of the 11 licenses could negatively affect the entire landscape.
“I would be utterly amazed if (a Fort Wayne casino) ever happened,” said Rep. Trent Van Haaften, D-Mount Vernon, chairman of the House Public Policy Committee where all gambling legislation is heard.
“We have done quite a bit in regards to gaming in the past two years, and I am of the belief that it is time to let it settle; let those companies do business in the places they are at currently.”
So why do rumors persist?
It’s simple. Governments need revenue, and casinos bring in millions for the owners of the boats, the state and cities where they are located. This is true even with a recent drop in attendance attributed to the economic downturn.
Another reason for the rumors is because there is at least one unhappy casino owner looking to move to northeast Indiana, whether it is Steuben County along the Toll Road or Fort Wayne with access from Interstate 69.
Don Barden, the businessman who owns the two Majestic Star casinos in Gary, tried last session to get lawmakers to let him move one of his side-by-side underperforming licenses to northeast Indiana while upgrading the casino that remains in Gary.
Gary officials protested loudly. Eventually, the bill, carried by former Sen. Robert Meeks, R-LaGrange, was altered to simply allow referendums on casino gambling in Steuben County and the city of Fort Wayne. But it didn’t receive a second in committee and died a quick death last January.
A few weeks later, Barden sued the city of Gary, withholding annual payments of up to $6 million because the city failed to build a promised access road. Although he has since released some of the money to the cash-strapped city, litigation is pending, and there has been no negotiation on a casino move since.
Barden did not return several messages seeking comment.
Rep. Charlie Brown, D-Gary, said he hears rumors almost daily about the two boats in Gary. He concedes it’s doing the city no good to have two licenses in one place, especially with both struggling.
But he thinks Gary should receive additional compensation through a revenue-sharing option if the license is transferred.
Senate President David Long, R-Fort Wayne, has made it clear that legislation to move an existing casino license will stall in the Senate unless legislators and city officials from the Gary area come up with a relocation agreement that pleases all sides.
“There is currently not a license available. That could change, and if that does, that’s why there is some behind-the-scenes maneuvering,” Long said.
If an agreement is worked out, he said he would not block the issue.
“I’m not a fan of it, to be honest with you. But I don’t think that’s for one person to decide. I think it’s up to the community,” Long said, noting a referendum would be required. “There are a lot of barnacles to having a casino in your community. But it probably would help downtown.”
Even if the idea gets past opposition coming from Gary, legislators who represent other counties with casinos would no doubt balk.
“You have to look at the loyal opposition; who will it harm?” Brown asked. “This is a lobbyists’ feat.”
Strong resistance would likely come from Blue Chip Casino and Hotel in Michigan City as well as Hoosier Park Racing and Casino in Anderson because both venues depend on northeast Indiana for customers.
“When it comes to the legislature, every location with a boat or casino doesn’t want any movement because it cuts their revenue,” said Rep. Win Moses, D-Fort Wayne. “Once they are in there, they are going to be hard to move. I give it a 1-in-10 chance. It’s very small.”
An alternative
Perhaps another gambling rumor might have better luck. Last week word surfaced that Centaur Inc. – an Indiana company that owns and manages Hoosier Park in Anderson – wants to move some of the slot machines from its track there to its off-track-betting parlor in Fort Wayne.
Susan Kilkenny, spokeswoman for Centaur, said the company doesn’t comment on development opportunities until there is substantive information to report.
“We are constantly assessing new opportunities and have found it best to not comment on speculative scenarios or projects in preliminary stages,” she said. “We are absolutely interested in monitoring any expansion possibilities in northeast Indiana. We consider Fort Wayne as one of our ‘hometown communities.’ ”
Fort Wayne Mayor Tom Henry’s office has been mum, saying only, “It would be irresponsible for us not to talk to individuals interested in gaming issues because of the potential revenue it would create to help us provide the level of service we want for residents.”
Rep. Randy Borror, R-Fort Wayne, said if a Fort Wayne casino has any chance, local officials like Henry are going to have to be more vocal.
“It takes hundreds and hundreds of people to lobby here for years. And there is nothing like that going on,” he said. “If gaming is ever going to come to Fort Wayne, Tom Henry is going to have to come out and lead the effort.”
City Councilman Tom Smith, R-3rd, said he would probably lean against a Fort Wayne casino, calling it a “low road to economic development.”
“I’m not an expert on this, but my initial reaction would be to be very cautious and not support it at this time,” he said. “I’d like to see all other means of community development and improvement exhausted before we get to gambling.”
[e-mail] Wiehe of The Journal Gazette contributed to this story.
I thought about it and sort of dismissed it. I have heard on and off for a while the rumor of a Fort Wayne Casino. I think in the 80’s someone had thought about putting one on the river by Don Halls Gas House.

For a moment let’s recoil and look at it. Most Republicans are against it, some Democrats are for it, and we are locked in a serious political charged fight where there are teeth, claws, and hand grenades.

This is not an new issue. From everything I have read on this issue Fort Wayne has been the Red Headed Step Child of Indiana for a long time. They paid forward many favors to other cities and sat quietly on the side as others have prospered. Now that the recession has got the city on the ropes after a bitter 13 round bare knuckle death match, city officials have pulled out the casino card and held it high so the whole General Assembly can see it, and a gasp has come from the capital.

Enter EXTO. Like a shot in the night! An otherwise seemingly generic page 6 column was written in the local paper that got the whole state in a total feeding frenzy, and our entire “I want it and I want it now” community turned investor pool involved. When this interview hit the presses it seemed to changed whole dynamic of the general assembly in Indianapolis. And everyone in Fort Wayne started talking.

Published: November 16, 2008 3:00 a.m.
Investors moving on casino idea
Water park possible side attraction
Jeff Wiehe
The Journal Gazette
Don’t believe what you hear. A casino in Fort Wayne is no pipe dream.
So says a local businessman who scoffs at the idea from legislators in Indianapolis that there’s no one – businesses, local officials or private citizens – pushing for a local gambling place to attract visitors.
A casino would fit in nicely with the prospect of a new water park resort and hotel being planned for Fort Wayne with the help of several investors and a new company set to be made public soon, according to businessman Chris McKenna. “It’s not going to be Vegas,” said McKenna, a Detroit native who has lived in Fort Wayne since 1989, regarding the possibility of installing a single casino in town. “We want to keep it a family place. We strongly feel a casino can be done here in a family-friendly way.” McKenna also said such a resort would give Fort Wayne about 1,500 new jobs. His plan is to keep everything going into the casino as local as possible. From the companies that make the dice to those who mint the coins, McKenna said he can find businesses in the area that can provide such goods.
“Everything has to come from here,” he said.
McKenna’s plan is partly backed by local businessman Stan Liddell, owner of Piere’s Entertainment Center, who has holdings in numerous restaurants and other nightclubs and has bought a hotel and part-interest in a casino in the Dominican Republic.
Still, he knows a hard road lies ahead in getting gambling into the resort, which he and fellow investor Nathan Stephens described as including a “full-fledged” casino you could find anywhere in the country.“We know there’s a fight coming, of course,” McKenna said. “The biggest hurdle is probably our current legislative process.” Four possible locations have been identified for the water park resort, McKenna said, which he believes will happen with or without a gambling component. He would not disclose which spots or areas of town have been targeted, but Liddell gave a bit of a clue as to one possibility. “We need something to attract people downtown,” he said. Without costs related to a casino, McKenna said the water park and hotel will cost probably $150 million. But, he said, the group believes they can obtain up to $1.2 billion for the project. McKenna would not name other investors or political figures who have been consulted. McKenna said he and the investors are creating a company called Summit City Grand Resort & Casino Holdings Corp., which he said will go public soon. Liddell will be CEO of the company, and McKenna will be a partner, they both said. “We’re in the infant, infant stages on this,” he said. “A lot of work has gone into this to get this far.”

So what I got from this article is that Mr. McKenna came up with an idea for a casino and water park, they were in the infant stages of planning, but local businessmen in Fort Wayne were putting their hat into the ring against the big boys from Kentucky. Mr. McKenna and Mr. Liddell knew it was going to be a tough journey ahead, they spoke about downtown revitalization, they were kicking tires on locations, and they have some funding options. Pretty generic stuff, but what I got out of this is it was going to be more than an Idea for the first time. These guys were going to make a serious run at it, which I thought was pretty laughable, until I look beneath the surface.

Fort Wayne historically has made some pretty outlandish decisions as has the State of Indiana but one thing has held true. They favor local boys over outsiders. This local group was not your average bunch of nah sayers, they were doers.

Several articles have hit the presses since this one both for and against the idea, but this one let us know that EXTO was in the hunt and an option we could participate in.

Fast Forward One Year: As we march on in this fight and begin to pick up some momentum the mayor now mirrors the same key points that EXTO has been saying since the infant phases.

Prepared comments of Fort Wayne Mayor Tom Henry for the Gaming Study Committee
Good afternoon, Chairman Kenley, Chairman Crawford and members of the Gaming Study Committee. Thank you for the chance to speak to you today. As Mayor of the City of Fort Wayne and on behalf of its citizens, I commend you for your leadership on the issue of
gaming in Indiana.

I am here today in search of opportunity â?? the opportunity for new jobs and economic growth. I am here to ask for your recommendation to the Indiana General Assembly in support of a referendum on legalized casino gaming for the people of Fort Wayne.

I am committed to securing a referendum that will allow Fort Wayne residents to make their own decision about gaming â?? to choose for themselves what is beneficial for our community and what opportunities they want to explore.

I believe an opportunity that can strengthen the economy of Fort Wayne, our region and state, that can bring new jobs, high-quality investment and development, and significant new revenue every year into our community, is one that deserves serious consideration.

If upon your recommendation the General Assembly enacts legislation allowing a referendum on legalized casino gaming in Fort Wayne, if our community chooses to support gaming, and if a development meets our conditions, I will pursue it.

As Mayor, I am committed to creating opportunity for all our citizens and making sure that Fort Wayne has every chance to thrive. In these difficult economic times, I believe that we must find new ways to grow jobs and build a more attractive and competitive city and region.

But more than anything else, I want the people of Fort Wayne to have the chance to decide for themselves on this important issue.

Indiana recently marked the 20th anniversary of the lottery. In the two decades that have followed its introduction, legalized gaming has grown substantially in Indiana. In fiscal year 2009, gaming tax revenue totaled nearly $1.1 billion dollars â?? that includes revenues from the lottery and the many other forms of legalized gaming that exist in our state. Today those options include lottery games, riverboat casinos, racinos, horse racing, pull-tabs, charity bingos and charity casinos.

Gaming is already a reality in Fort Wayne. In fact, it permeates the community. Please allow me to share a map that better makes this statement. Thanks to the Hoosier Lottery, off-track betting, pull-tabs in bars and taverns, and a number of charity bingos and charity casinos operating at present, legalized gaming already exists in 336 venues in Fort Wayne. Except for the lottery, all of those opportunities came to pass without a referendum.

As the second largest metropolitan area in the state of Indiana without a casino, Fort Wayne has not been a full beneficiary of the potential financial benefits of casino revenues. As Mayor, my first responsibility is to the citizens of Fort Wayne and the cityâ??s economic health. In these challenging times, I am committed to exploring opportunities for all our citizens and helping to position Fort Wayne for a future of growth and prosperity. If a casino in Fort Wayne represents the potential for new jobs, high-quality investment and significant new revenue, it is an opportunity that the citizens of Fort Wayne should have the right to consider.

The exploration of gaming and the request for a referendum is not a decision that my administration has come to lightly. We have commissioned studies, we have investigated the impact on other communities in Indiana, and we have looked at how the other communities have integrated gaming into their agendas, goals and operations. We have examined whether and how there have been positive impacts on those communities. Having studied the issue thoroughly, I am convinced now is the time for Fort Wayne to have this debate.

In a recent poll, Fort Wayne voters were asked who should decide whether legalized gaming comes to our city. Their choice was clear and overwhelming: 89 percent of those surveyed believe Fort Wayne voters should decide.

When asked whether a referendum to allow gaming in Fort Wayne should be put on the ballot, 82 percent said yes. Only 13 percent said no.

In short, Fort Wayne voters believe that they should decide the future of legalized gaming in Fort Wayne, and they want to see a referendum on the ballot.

I respect the fact that there are diverse opinions on the issue of gaming. Thatâ??s why I believe it is important for the citizens of Fort Wayne to have the right to decide what opportunities they want to explore.

On an issue of this magnitude, the public should be allowed to speak. To be able to choose our own destiny is a founding American principle. I trust the judgment of the people of Fort Wayne. I ask that you support legislation that would permit a referendum on the issue of gaming so that the citizens of Fort Wayne may voice their own decision.

Thank you very much for the invitation to present testimony here today. At this time, I am happy to answer any questions that you may have. Thank you again.
And now to follow up on that point:
Two City studies contribute to greater understanding of gaming issue
Research to Aid Mayor, Community in Assessing Potential in High-Profile Opportunity

Advancing the communityâ??s investigation of the gaming issue, Mayor Tom Henry today announced the release of two studies commissioned by the City of Fort Wayne on the topic. The research consisted of an independent analysis of the fiscal and economic impacts of gaming in Fort Wayne, and a review of the academic literature on the subjectâ??s social and community effects.

Mayor Henry was joined at the event by the research teams: Valerie Richardson and John Stafford of the Community Research Institute (CRI) at Indiana University-Purdue University Fort Wayne (IPFW); and Charlie Hiltunen, Jeff Lilly and Sam Turpin of The Third House Advocacy Group, LLC, in Indianapolis. To aid in comprehension, principals from both groups presented overviews of their respective data.

“From the moment we learned that private business groups were exploring the potential for gaming in Fort Wayne, I knew that we had to become informed and prepared,” said Henry. “As we continue to pursue a full consideration of this issue, these two studies will help equip our community to effectively evaluate the possibilities and to make decisions that both benefit us and are right for us.”

This research is part of Mayor Henry's pledge to thoroughly and objectively examine the implications of the gaming issue. The work began in mid-January.

Findings from the economic and fiscal analysis prepared by The Third House include the following:

* Fort Wayne is a substantial and relatively untapped gaming market;
* A mature Fort Wayne gaming market, at capacity, may generate between $184 million and $244 million in annual adjusted gross revenue;
* This market could support between 1,727 and 2,283 gaming positions, at full capacity;
* Based upon economic considerations, Fort Wayne may have to enter the gaming market more conservatively, with a smaller facility housing between 500 and 1,500 positions;
* The estimated direct local net tax impact would likely range from $7.9 million for a 500 gaming position facility to $44 million for a 2,200-plus gaming position facility in mature-year operations;
* Depending on the authorizing legislation, Allen County, Fort Wayne and other county municipalities may forfeit future, annual non-host gaming community revenue sharing;
* Direct facility construction impacts may range from $50 million to over $500 million, based upon the type and scale of the facility. Indirect construction impacts may range from $41 million to over $410 million, depending on the level of direct capital investment;
* Direct employment impacts may range from 387 full-time equivalent employees for a 500 position facility to nearly 1,800 employees for a casino and entertainment destination complex. Indirect employment impacts may range from 535 employees to over 2,400 employees depending on the type of facility constructed; and
* Due to current and potential regional competition, the timing of opening a gaming facility in Fort Wayne may be critical to its eventual viability. If established first, a Fort Wayne casino would be able to tap the primary gaming market and affect business feasibility of potential competitors in neighboring states. Thus, the State of Indiana may have a substantial financial stake in this decision.

The CRI report provides an in-depth review of the extensive, previously published research and literature on the social costs and community impacts related to the presence of a casino facility within a community. It details a broad range of divergent data and opinion on the subject, underscoring the potential for social costs and the necessity for mitigation planning as part of any development strategy. The CRI did not attempt to assess the impact of specific alternatives or facility options.

“As Mayor, I am committed to creating opportunity for all our citizens and making sure that Fort Wayne has every chance to thrive,” added Henry. “In these difficult times, I believe that we must find new ways to grow jobs, enhance our neighborhoods, secure investment and build a stronger Fort Wayne. I am also reminded that every venture comes with costs that must be balanced. As a result, we must be as discerning in our decision making as we are courageous in our quest, always keeping the door open for opportunity to enter.”

The Third House Advocacy Group is a governmental affairs firm offering a full array of services including legislative and regulatory monitoring, issue management, research, state and local government procurement, and legislative and administrative lobbying.

The CRI is a Center of Excellence at IPFW providing research and analytical support to the private, public and nonprofit sectors in Northeast Indiana in the areas of socioeconomic data, economic development, municipal finance, public policy and urban planning.

County Economic Development Income Tax dollars were used to fund the studies. The Third House contract was for $32,000. The CRI work was part of an existing contract with the City.

Both documents are available on the Cityâ??s Web site at www.cityoffortwayne.org.

My thoughts on this issue:
There is a wave of motion to allow the people to speak on behalf of their will! This is a fundamental right of the American People. A referendum will allow the door to open to move this available license from Gary to move to Fort Wayne. This seems to have been the plan all along for EXTO, while others were pointing to statements by the Governor’s office that no new gaming licenses would be issued, EXTO seemed to stay on course working at a transfer of a License from Gary Indiana. Oddly enough, in recent weeks there has been a great deal of discussion about a transfer of a license from Gary Indiana. These guys have kept their heads down, allowed chatter, but have worked on these issues diligently in my opinion and are not messing around. I applaud their effort.

Do I think we will see a license transfer from Gary to Fort Wayne? Yes I believe we will. Will it be this Year? No it will not be this year. The legislation to change the license from Gary to Fort Wayne may pass this year, but I do not believe not even for a minute that we will have a casino in Fort Wayne in 2010. The construction alone will take one to three years to complete. Grand Opening Ceremonies will take months of media preparation, pre opening parties, a number of pre open business deals, positioning, branding, staffing details, dealer training, lay out walk through, dry runs, calibration, inspections, and a number of other details I have forgotten to mention. This lemonade stand has many moving parts that cannot have corners cut and the company knows that.

What that means to the stock: The stock will build slowly over time, I believe it will increase, but in our internet “I want it and I want it now society” it will not jump to ten, twelve, or fifteen dollars over night, it will be a long slow sustained build until the opening day of the casino.

These are pretty general thoughts, and I welcome discussion on any of the above. I am happy to see a little more volume and a good increase today. Strong Share structure, not bad volume, a dismal market cap, but it is young. Let’s see how she holds.