PHL Local Gaming, LLC Announces Commitment by the Lomax Family to Acquire 9% of the Company's Total Equity
PHILADELPHIA, Jan. 29, 2013 /PRNewswire/ -- PHL Local Gaming, LLC, one of six bidders for the available casino management license in Philadelphia, today announced that prominent, African-American business leader Walter Lomax Jr. , MD, together with his family members, has committed to make a significant investment in the South Philadelphia-based gaming company at a level that, as presently constituted, would equal about 9 percent of the total equity in the venture.
It was also disclosed that the Lomax family will, along with other investors, have the opportunity to make additional equity investments in PHL Local Gaming LLC, up to a total of $40 million, over time. As part of the Lomax investment, Dr. Lomax will become a member of PHL Local Gaming's Board of Managers.
While other investors may, eventually, be invited to participate as stakeholders, it has been determined that Joseph G. Procacci , who conceived the PHL concept, and who serves as the company's CEO, will always retain 60 percent of the gaming entity's equity.
Commenting on the Lomax investment, Mr. Procacci said: "We are very excited to have the Lomax family with us as we move forward to the next level of what's expected to be a very competitive bidding process. They are another business-focused family with strong South Philadelphia roots, and they will play an important role. In addition to capital, they bring proven business acumen, and an exceptional, local and national network of potential supporters."
Joseph Canfora , PHL's President, said: "While Mr. Procacci has more than sufficient resources to finance the entire project, by himself, his commitment to building a winning team is apparent from the quality of the partners he has invited to the table.
"We believe," added Canfora, "that the city and state are both ready, now, for a high-quality, casino/hotel that will be a partner to its community and a valuable asset to Philadelphia's tourism development mission."
"To paraphrase the old Temple University commercials, we, literally, could have taken our investment and business experience 'anywhere,'" said Dr. Lomax, "but when my son, Bennett, and I completed our due diligence, we were convinced that PHL Local Gaming had a package that would be an exceptionally strong contender for the license.
"We believe," continued Lomax, "that PHL has the best, least-neighborhood-intrusive location among all of the bidders, and unparalleled, convenient, accessibility to major interstates. Perhaps equally important to us was learning that the company has a top-down commitment to maximize the economic benefits of the property for local Philadelphia workers and business owners, and for minority and female workers and businesses. That was very important in our final decision."
Walter Lomax 's professional career has included serving as a medical practitioner in the South Philadelphia community where he lived as a child, and growing that practice, over time, to include more than 20 well-trained physicians.
Beginning in 1984, he led a company, Correctional Healthcare Solutions, Inc. (CHS), that delivered health services to correctional facilities. When he eventually sold that business, in October, 2000, CHS was providing health care in 60 correctional facilities, in 16 states.
In 1990, another Lomax company, Healthcare Management Alternatives, Inc. (HMA) won a contract from the Commonwealth of Pennsylvania to provide healthcare to Medicaid recipients in South and West Philadelphia. After forming a holding company, AmeriChoice, to manage HMA's operations in Pennsylvania, New Jersey and New York, Lomax sold the entity, in 2002, to United Health Group. Dr. Lomax currently serves as chairman of the Lomax Companies, the Lomax Family's investment office.
If successful in its bid for the available casino management license in Philadelphia, PHL Local Gaming LLC plans to open "Casino Revolution," a high-quality, "destination"-caliber, 250-room hotel and casino, with 2,000 slots, 85 table games, an Italian restaurant, a steak house, a coffee/espresso bar, a 200-seat banquet/events room and a 156 seat cafe. The facility would be located at Front and Pattison Streets, in South Philadelphia.
More information about PHL Local Gaming is available on Facebook.
SOURCE PHL Local Gaming, LLC
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