XML 28 R11.htm IDEA: XBRL DOCUMENT v3.19.1
Development Projects Costs
12 Months Ended
Dec. 31, 2018
Project Development Costs [Abstract]  
Development Projects Costs
Development Projects Costs
Capitalized Project Development Costs

At December 31, 2018 and 2017, total Capitalized Project Development costs incurred were approximately $5.7 million and $566.8 million, respectively. Total Capitalized Development Project costs at December 31, 2018 consisted of $4.2 million of construction costs, site development, contractor insurance, general conditions, architectural fees, construction manager fees, and approximately $1.5 million of professional service fees such as legal fees and accounting fees. 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. The full opening of the Casino and The Alder occurred on January 1, 2019.
In September 2018, ERREI entered into a standard contractor agreement for the construction of the Golf Course Project, at a cost of approximately $21.2 million. The Company began construction in September 2018 and anticipates the Golf Course will be open for play during Summer 2019.
In fiscal 2018, total Development Projects costs incurred were approximately $150.2 million, of which $137.6 million was capitalized and $12.6 million was expensed. Development Project expenses consisted of $10.4 million of land lease costs, $0.4 million of real estate taxes, $0.5 million of insurance expense, $0.3 million in consultants and other professional service fees, $0.2 million in legal fees and $1.2 million of pre-opening expenses, including salary and related benefits as well as marketing expenses.
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, $0.9 million of marketing expenses, $0.6 million of real estate taxes, $0.6 million of insurance expense, $0.6 million in consultants and other professional service fees, $0.3 million in legal fees and approximately $0.5 million of pre-opening expenses, including travel, relocation, recruiting and other start-up costs.
In 2016, Development Project costs consisted of $10.4 million of land lease costs and rents, $0.4 million of real estate taxes, $0.5 million of insurance expense, $0.3 million in consultants and other professional service fees, $0.2 million in legal fees and approximately $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, respectively, in performance bonds to guaranty the completion of the Development Projects. On December 28, 2017, the Company notified the NYSGC that it had expended 85% of the Company's required minimum capital investment which would trigger the return of the deposited funds to the Company. On January 4, 2018, the NYSGC confirmed that the Company met such minimum capital investment criteria as required by the Gaming Act and $35 million was returned to the Company and deposited into a lender-controlled account for use towards the expenses of the Development Projects.

Restricted Cash, Cash Equivalents and Investments for Development Projects

At December 31, 2018, $20.1 million of restricted cash and cash equivalents for Development Projects represented the remaining funds from the Term Loan Facility to be utilized for the Development Projects. At December 31, 2017, $136.4 million of restricted cash, cash equivalents and investments for Development Projects represented the remaining funds from the Term Loan Facility to be utilized for the Development Projects. This consisted 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.