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Paragon Addresses Concerns over Vancouver Casino Funding
March 30, 2011
Public apprehension over Paragon Gaming Inc.'s financing of a proposed $450-million casino in Vancouver has been mounting, but according to Paragon's president, Scott Menke, the company does not intend to rely on taxpayer money to fund the ambitious project.
In an news conference amongst casino advocates earlier this month, Menke stated that provincially owned PavCO will be assisting with its own money as equity, and looking to capitol markets to secure an estimated $350-million worth of debt financing for the remainder.
"We'll do so hand in hand, as our agreement says, with PavCo, ensuring that we have the safest [financing] and most clarity on our ability to complete the project," explained Mr. Menke.
"We talked to major lenders in Canada about the financeability of this project and we are satisfied that it is financeable," added PavCo chairman David Podmore.
Both Menke and Podmore also awknowledged that many of the concerns for Paragon's project stemmed from issues surrounding the financing and repurposing of the Olympic Village, now known as the Village on False Creek.
"We certainly are living that history that happened on the Olympic Village," said Menke. "We think everybody's learned from that and I know that PavCo has. And we are certainly going to make it a much more secure financing, with our ability to put all the money up front."
The proposed casino is slated to be built next to B.C. and will feature two hotels and a 24-hour-a-day casino with 1,500 slot machines. It is currently awaiting city approval.