DRAFT Table of Contents 3 4 6 Executive Summary Regional Economic Profile Local Projects 7 8 9 Station Casinos and Local Casino Developments Site Profile the Las Vegas Market 11 12 13 Demographic Summary Household Wealth Development Activity Map 14 15 16 About Durango Station The Developer The Manager Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Executive Summary Population Growth between FOUNDED IN 1976, Station Casinos, Inc. (“Station”) is the premier provider of locals-oriented gaming and entertainment services. We currently own and 2017 and 2022 Durango Station’s operate ten major hotel casinos and seven smaller gaming operations in the primary trade area Las Vegas metropolitan area. In addition, we own a 50-percent interest in, is projected to see and manage, three properties in Henderson, Nevada and operate the Gun substantial Lake Casino near Grand Rapids, Michigan and Graton Resort & Casino near population Santa Rosa, California. growth during the next five years The Station brand has become synonymous with value, convenience, quality, excitement and entertainment. In Las Vegas, a majority of adult households are active members of our loyalty program – the Boarding Pass. This loyalty has been earned by surpassing the expectations of our customers at every turn. Proprietary gaming products like a monthly kiosk game have elevated the gaming experience, while our properties consistently rank among the most desirable in terms of restaurants, live entertainment, movie theaters and bowling. Las Vegas has undoubtedly provided a fertile market for our company. During the past 25 years, the region has ranked at or near the nation’s highest in terms of population, employment and income growth. Future developments across the valley will not only provide further growth, but also promise a more stable economic base and a continuing stream of investment well into the future. Publicly owned land and resource limitations within the Las Vegas valley limit where growth can occur. A key emerging area is the valley’s southwest region – the location of Durango Station. This fast-growing corridor is not only expected to see higher- than-average population and employment Population Increase growth, but the barriers to entry for competitive gaming properties are formidable and legislatively -53 - 0 imposed. This combination of a favorable demographic climate and limited competitors will position 0 - 150 Durango Station for success well into the future. 150 - 250 250 - 400 400 - 1,000 1,000 and Above Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Regional Economic Profile SOUTHERN NEVADA’S economic development has been nothing short of remarkable during the past 25 years. The region’s population has increased from 816,085 to 2.2 million since 1991, or at Las Vegas’ population has grown at roughly an average annual rate of 3.8 percent. This translates into roughly 6.2 new people every hour of 6.2 new people every hour of every day for 25 years. every day for 25 years. Although slower (conservative) rates of population expansion are projected going forward, southern Nevada’s population is expected to reach 2.5 million in the next decade. Las Vegas’ largest employment sector is leisure and hospitality, accounting for 30.2 percent of the region’s workforce or 284,900 employees. The economic recovery in the valley has continued, and new large projects are beginning in the valley in 2017, such as Genting’s Resorts World Las Vegas and Wynn Paradise Park. Clark County Population Taxable retail spending sourced to southern Nevada’s 2.2 million residents and 46.1 million annual Historical and Projected visitors totaled $39.9 billion in twelve months through November 2016. Aggregate spending Clark County Population (in millions) increased at an average annual rate of 3.7 percent during the past 15 years. Simply stated, southern Nevada has been the most prolific economy of its size during the past 3.0 2.53 2.50 2.47 2.44 2.41 25 years. The fundamentals giving rise to this growth remain sound; and, while not immune to 2.38 2.35 2.5 2.29 2.32 2.26 2.23 2.21 2.12 2.10 2.06 economic cycles, the region is expected to outpace national and regional growth averages in the 2.01 1.97 1.96 1.93 1.90 2.0 1.85 foreseeable future. 1.5 iionS 1.0 0.5 Top Five Demographic Considerations: 0.0 7 6 8 7 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 • Population growth expected to outpace national and regional averages through 2022 5 0 2 0 2 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 • New developments and strong growth across multiple sectors • Pro-business tax and regulatory environment creates an incentive for future business investment Nevada has been the fastest growing state in the nation for 17 of • Increased transportation capacity resulting from I-11 and other highway improvements the past 25 years. Accounting for 73 percent of the state’s population, • Southern Nevada ranks among the nation’s highest in terms of retiree in-migration Clark County has captured the lion’s share of that growth. Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Regional Economic Profile 10.6% 6.1% Government Construction 2.3% Simply Stated, 2.8% Manufacturing southern nevada Other Services has been the most 18.7% Trade, Transportation & Utilities Prolific 30.2% Las Vegas MSA Employment Distribution Leisure & 1.1% Economy Hospitality Information of its size during 10.0% Education & Health the past 25 years. Services 13.3% 4.8% Professional & Financial Activities Business Services $39.9 $38.6 $36.4 $36.5 $34.6 $33.5 Taxable Retail Sales $32.0 $30.1 $28.5 Clark County $28.3 Consumer and visitor spending has not only continued to grow iionS in southern Nevada, but thrive. Taxable retail sales reached a record $38.6 billion in 2015, and looks set to break it again in 2016. 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 ¹12 onts nin o 2016 Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Local Projects Project Cost Status1 Estimated Completion Date Las Vegas Projects Resorts World Las Vegas $4,000,000,000 Under Construction 2019 The Las Vegas Stadium, early Las Vegas Stadium (65,000 Seats) $1,900,000,000 Planned Q3 2020 Wynn Paradise Park $1,500,000,000 Planned 2020 in its planning process, could Convention Center District Expansion $1,400,000,000 Planned 2022 potentially be home to the Union Village $1,200,000,000 Planned 2025 Switch $1,000,000,000 Under Construction 1-3 Years relocated Raiders NFL franchise. Project Neon (Highway Infrastructure Improvements) $900,000,000 Under Construction 2019 Park MGM (former Monte Carlo) $450,000,000 Planned Late 2018 It will provide hundreds of I-11 Boulder City Bypass $318,000,000 Under Construction Late 2018 thousands of additional ARIA Resort & Casino Convention Center Expansion $154,000,000 Under Construction February 2018 Flamingo Remodel $100,000,000 Planned 2021 visitors attending games, Moulin Rouge Las Vegas $100,000,000 Planned 2019 concerts and other large-scale Las Vegas Monorail Extension to Mandalay Bay $100,000,000 Planned 2019 UNLV New Medical Education Building $100,000,000 Planned TBD events. UNLV University Park Apartments Phase I $94,500,000 Under Construction Mid-2017 MountainView Hospital Expansion $90,000,000 Under Construction Early 2017 Vegas Extreme Park $60,000,000 Planned TBD UNLV New Hotel College Academic Building $57,000,000 Under Construction Q1 2018 MGM Resorts New Parking Facility (near Excalibur) $54,000,000 Under Construction Mid-2017 McCarran - D Gate Connector (D Gates to U.S. Customs) $51,000,000 Under Construction Spring 2017 Resorts World Las Vegas is UNLV University Gateway $48,100,000 Under Construction Q4 2016 currently in the early stages Henderson Freeways Crossing $40,000,000 Under Construction Q4 2016 MGM Resorts Existing Parking Facility Improvements $36,000,000 Under Construction Q2 2017 of development. The $4.0 Billion Pedestrian Bridge Upgrade (Las Vegas Strip at Tropicana) $30,000,000 Under Construction Mid-2018 project represents the largest UNLV University Gateway Development Phase II $30,000,000 Planned TBD UNLV Engineering Academic and Research Building $30,000,000 Planned TBD investment on the Strip since the Southern Hills Hospital Behavioral Health Center $26,000,000 Planned Late 2017 Wynn Plaza $25,000,000 Under Construction Fall 2017 end of the Great Recession. The UFC Headquarters DND Under Construction March 2017 property will provide thousands Sands/Madison Square Garden Performance Venue DND Planned TBD Palace Station Remodel and Expansion DND Planned Mid-2017 (Phase I) of jobs when it opens. Other Projects $334,590,000 Various 2017-2018 Total $14,228,190,000 DND = did not disclose ¹as of January 2017 Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S.