Page 51 - 2009_2010_Annual_Report

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Saskatchewan Indian Gaming Authority
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NOTES TO THE FINANCIAL STATEMENTS
Year Ended March 31, 2010
49
13. CAPITAL LEASE OBLIGATION
On December 23, 2004 SIGA entered into an agreement with STC Casino Holdings Limited Partnership, a related party, for lease of
Dakota Dunes Casino on Whitecap Dakota First Nation. Beginning in April 2007, SIGA leased the property from that Partnership for
approximately 20 years at an annual cost of $2,248,477.
On October 26, 2005 SIGA entered into an agreement with PHC Holdings Limited Partnership, a related party for lease of Painted
Hand Casino in Yorkton. Beginning in February 2009, SIGA leased the property from that Partnership for approximately 19 years at
an annual cost of $1,646,400.
On January 26, 2006 SIGA entered into an agreement with FHQ Casino Holdings Limited Partnership, a related party, for lease of
Living Sky Casino in Swift Current. Beginning in December 2008, SIGA leased the property from the Partnership for approximately
19 years at an annual cost of $2,195,200.
The minimum lease payments under the capital lease obligation are as follows:
2010
2009
2011
$ 6,090,077
$ 5,842,226
2012
6,090,077
5,872,885
2013
6,090,077
5,872,885
2014
6,090,077
5,872,885
2015
6,090,077
5,872,885
2016 and subsequent
75,916,079
77,506,395
Total minimum lease payments
106,366,464
106,840,161
Amount representing interest at rates between 12.18% and 13.72%
(62,909,832)
(65,194,181)
Balance of the obligation
43,456,632
41,645,980
Less current portion
(749,871)
(600,090)
$ 42,706,761
$ 41,045,890
Due to the related party nature of the capital lease obligation, fair value information has not been disclosed as fair value cannot
be reliably measured.
14. COMMITMENTS
LEASES
SIGA has obligations under operating leases for buildings, equipment and vehicles. The minimum lease payments required under
these operating leases over the next five years are as follows:
2011
$ 5,409,932
2012
4,746,256
2013
4,653,848
2014
4,475,077
2015
4,064,349
The above commitments include amounts committed to related parties of $12,841,628 for years 2011 through 2015.