HOME > Investment Details   Project Introduction: South Dakota Regional Center's (SDRC) 15th project is the Deadwood Mountain Grand Hotel, Casino & Event Center ("Deadwood Hotel & Casino"). The investment for this project is currently set for a period of 5 years and the investment will be made to Tentexkota, LLC in a form of loan. The project includes the construction and operation of the Deadwood Hotel & Casino which includes a 100 room upscale hotel, an event center with 2,500 people capacity, a 210 game casino and a parking structure. The Deadwood Hotel and Casino construction began in fall of 2008, and is expected to be completed and begin operations in July of 2010. The City of Deadwood: The city of Deadwood is located in western South Dakota, just off of Interstate Highway 90 (I-90, western terminus is in Seattle, Washington, and its eastern terminus is in Boston, Massachusetts, 4,959km). It is located within 45 minutes from the Rapid City Regional Airport and is the most important tourist site in the State of South Dakota. Among the major tourist attractions in the area includes: Mount Rushmore, Crazy Horse Memorial, Custer State Park, and Wind Cave National Park. In addition, within 10 miles radius of Deadwood, there is Sturgis, which hosts the America's largest motorcycle rally, as well as 2 private airports, 4 golf courses, and 2 skiing areas. The State of South Dakota also features 130 miles of connected hiking and biking trails. The most popular outdoor activities in South Dakota include snowmobiling, horseback riding, and skiing. In the near by forest, there are significant population of Elks, Deer, Wild Turkey, and Mountain Lions, all of which are hunted regularly by local hunters. In 1990, the South Dakota Legislature passed a law that allowed limited stakes gaming exclusively in Deadwood, which makes Deadwood the only city in the state of South Dakota that allow legal gambling. Because of its close geographic location to the neighboring states of Montana and Wyoming, the city of Deadwood also attracts tourists from these two states. In recent years, there has been an increasing annual growth in the gaming market in Deadwood. The annual gaming revenue has topped $93 million dollars. To accommodate the gaming and tourism market, Deadwood already boasts 35 hotels with 1400 rooms and 80 casinos. However, with a rapid increase of tourists each year, these accommodations cannot adequately fulfill the demands of the tourists. Government Support Tourism is the second largest industry in the state of South Dakota, right behind the largest industry of dairy/cattle industry. Mount Rushmore alone attracts over 2 million visitors each year. Since tourism can stimulate the development of many other related industries and thereby increase employment, the government of South Dakota has paid special attention to the tourism and the gaming industry. Developing tourism and the gaming industry can help prosper the economy of South Dakota, increase employment rate, and exploit new sources of tax revenue. At the same time, these benefits will reasonably and legally stimulate consumptions. United States is now experiencing an economic recession and as a result the state governments are more discreet when deciding on economic developments. The South Dakota state government believes that the tourism industry requires little investment, but yields a high payoff in a short time frame. In further developing the tourism and the gaming industry, the government of South Dakota hopes to take the advantage of the timing and help businesses develop and expand through government support. In the long run, South Dakota hopes to not only create more job opportunities but to set a foundation for the revival of the economy. The Nashville Partners Tentexkota, LLC is made up of individuals who have the ability to bring talent and skills that will make the project successful. The group consists of both local businessmen with a thorough knowledge of the local market as well as businessmen from Nashville, Tennessee, who are well known through out the entertainment industry. ● Ron Wheeler: President and CEO of BHL Capital Corporation,; Former President and CEO of Telelect, Inc. where he worked for 26 years as well as former Secretary of Transportation and Commissioner of Economic Development for the state of South Dakota. Currently the director of the South Dakota Science and Technology Center. ● Mike Gustafson: Owner of the First Gold Hotel and Casino in Deadwood. ● George Mitchelle: President and CEO of First Western Insurance, a division of First Western Bankcorp. ● Marc Oswald: With over 25 years of experience in the entertainment industry and an extensive background in innovative and integrated marketing campaigns for large corporations and marketing promotion. Key clients include General Motors, Proctor and Gamble, Miller Brewing Company, Anheuser-Busch, Blockbuster Video, and etc. ● Dale Morris: Involved in the Country Music for the past 40 years and together with Marc Osward, managed numerous popular musicians with 10 million albums sold. ● Dwight Wiles: Certified Public Accountant who formed Copyright Exchange, LLC with Gary Smith. ● Kenny Alphine: Part of the Country Music duo Big & Rich. Amount of Funding and the Purpose of Funds The total expense for the completion of the project is estimated at $42,650,947. Of this amount, $10,150,947 will be cash equity from the owners and $32,500,000 will be financed through a bank. The owners are seeking the rest of the amount of $32,500,000 from the EB-5 investors (65 investors), to refinance the bank loan to a lower cost (bank interest is higher than the EB-5 loan). The difference of the estimated cost and required investment amount will be used in the working capital. Nevertheless, even if the project does not obtain any EB-5 funds, the project will be completed independent of the EB-5 funds. Terms of Funding The funding requires interest only quarterly payments at a rate of 3% per annum. Of this 3%, 1% will be a compensation paid to SDRC, and 2% will be paid to the EB-5 investors. The total investment funds shall be payable in five years from the date of the first disbursement of the funds. Security The Borrower will be secured by the following: ● First Mortgage of the Deadwood Mountain Grand property, which includes the convention center, hotel, casino, and the parking structure, worth $56 million. ● Personal guarantee of a combined net asset of over $175 million by the 8 co-owners. ● The city of Deadwood's government will give the project $550,000 each year for a total of 15 years. Green Card This project has already been approved by the USCIS, that every $1 million investment would create 29.783 jobs (Every $500,000 investment would create 14.89 jobs). Therefore, at the conditional removal stage, the project does not have to provide any evidence to prove the requisite numbers of jobs are created. Units: 65 Investment: $500,000       Project Issuance Fee: $45,000       Attorney Fee: $15,000     Dakota Provisions, located in Huron, South Dakota, is a state-of-the-art turkey processing plant that specializes in processing and packaging sliced turkey meat used for sandwiches. It was completed in January of 2006.   The plant consists of 150,000 square foot production facility that is completely divided into two separate sides, the raw side and the ready-to-eat side, to completely eliminate any chance of contamination. Dakota Provisions is owned by forty-three (43) co-ops of turkey growers, most of whom are members of Hutterite communities in and near South Dakota, and one (1) businessman.   The turkey growers have been growing high quality turkeys in South Dakota, North Dakota and in Minnesota for over 40 years and they have been supplying their turkeys directly to Dakota Provisions. Dakota Provisions is the newest and the most technologically advanced turkey meat processing plant built in the U.S. in 20 years.   The plant's latest innovation in food safety and processing advances has led to a drastic market demand for production.   In February of 2007, only after a year of operation, Dakota Provisions was ranked 19th among U.S.  Top Turkey Plant selected by Watt Poultry USA. Dakota Provisions' major buyers include Sara Lee, Wal-Mart, Coleman, Cloverdale, LaQuercia, J&B Foods and Costco. South Dakota Business Institute, Regional Center for the state of South Dakota, has chosen the expansion plan of Dakota Provisions Turkey Meat Processing Plant as its 14th EB-5 project.  The project consists of providing Dakota Provisions with the necessary funds in the form of a 5 year collateral secured loan for the expansion of the turkey meat processing plant to meet the increased demand from the buyers.     Employment As of December, 2007: 600 total employees currently working By December, 2010: Additional 359 full-time employees will be hired By December, 2011: Additional 308 full-time employees will be hired EB-5 investment will create total of 667 full-time jobs by the end of 2011, bringing the total number of full-time employees to 1,267. Major Clients (1) Sara Lee Foods (2) Wal-Mart, Costco, Coleman, LaQuercia, J&B Foods and other grocery stores (sandwich chains and other leading food distributors prefer Dakota Provisions over others for its ability to custom-package the processed turkeys) Related Sites   - Dakota Provisions: www.dakotaprovisions.com   - South Dakota International Business Institute: www.sd-exports.org/eb-5   - Sara Lee Corp.: www.saralee.com   - Watt Poultry USA: www.wattpoultry.com