Opinion ID: 618830
Heading Depth: 1
Heading Rank: 16

Heading: KPG's withdrawal

Text: Prior to the Management Contract being approved by the KRGC and becoming final and binding, KPG made a final determination that the proposed project on the Subject Property was not commercially viable, id. at 127, and thus would not be a reasonable investment. According to Snyder, the opening of the Downstream Casino facility was the single most critical factor in this determination. Id. Snyder also cited certain of KELA's requirements, including the capital expenditure requirement of $225 million and the $25 million license fee, as well as the statutory minimum payments that the State of Kansas [would] collect from the operations of the casino facility. Id. at 128. Consequently, on September 11, 2008, KPG notified the Kansas Lottery that it was withdrawing its application for the southeast gaming zone. Because the KRGC had not yet approved the Management Contract, the Kansas Lottery permitted KPG to withdraw its application and obtain a refund of the $25 million privilege fee it had deposited. On September 11, 2008, KPG gave notice to HV, pursuant to Section 2 of the Repurchase Agreement, of KPG's intent to terminate the Sale Contract. HV chose not to exercise its repurchase option under the Repurchase Agreement.