In estimating the expenses and the amount of the cost of goods sold in the subject proposed project, statements on existing hotel casino facilities were analyzed and compared to the subject. In arriving at these estimates, quite heavy consideration was given to the type of facility as compared to the subject rather than utilizing direct averages. An excellent quality of information was available for analysis in arriving at the expense estimates for the subject. Following the discussion of the estimate of the expenses are charts setting forth basic expense ratios on competitive facilities. These ratios set forth the expense as a percent of departmental gross with the exception of the operating expenses which are a percent of the total gross income. In addition, overall expense ratios as shown on the preceding income comparison chart were utilized. In all cases, the estimate to the subject is well within the limits of the competitive facilities.

The reader is referred to the following expense detail chart for a visual observation of the comparison of the expenses and the relationship of the expenses to gross income as the competing projects compare to the subject.

At the end of this section, the expense estimates are shown on the summary to the Income Approach to value.