|
Notes Receivable, Tribal Governments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes Receivable, Tribal Governments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOTES RECEIVABLE, TRIBAL GOVERNMENTS |
The Company has a note receivable related to advances made to, or on behalf of, Nambé Pueblo
to fund tribal operations and development expenses related to a potential casino project.
Repayment of this note is conditioned upon the development of the project, and ultimately,
the successful operation of a casino. Subject to such condition, the Company’s agreements
with the Nambe Pueblo tribe provide for the reimbursement of these advances plus applicable
interest, if any, either from the proceeds of any outside financing of the development, and
the actual operation itself.
Note receivable from tribal governments was as
follows:
In the first quarter of 2008, the Company received notice that the Nambé Pueblo tribal
council had effectively terminated the business relationship with Full House. The
development agreement between the Company and the Nambé Pueblo provides that the Company is
entitled to recoup its advances from future gaming revenues, even if the Company does not
ultimately develop the project. The Company is in discussions with the Nambé Pueblo and the
developer to determine the method and timing of the reimbursement of our advances to date of
$0.7 million. Management is currently engaged in assisting the Nambé Pueblo in the process
of obtaining financing to develop a small casino or slot parlor addition to their existing
travel center which will likely have the ability to repay the advances from future cash
flows of the project once open. Funding is expected during the third quarter of 2011 with
the expected facility opening during the second quarter of 2012. There can be no assurance
that a facility will ever open or that the Company will receive all, or any, reimbursement.
With due consideration to the foregoing factors, management has estimated the fair value of
the note receivable from the Nambé Pueblo at $0.4 million as of June 30, 2011.
The following table summarizes changes in the estimated fair value of notes receivable from
tribal governments, determined using level 3 estimated fair value inputs, from January 1,
2011 to June 30, 2011:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||