DETROIT, Nov. 20 - Mayor Dennis Archer announced today that MGM Grand, Inc. (NYSE: MGG) has been chosen as a finalist for a development agreement to own and operate one of Detroit's three new casinos. MGM Grand proposed a more than $700 million hotel/casino and entertainment complex, with a pledge to expand the facilities and investment to $1 billion if demand warrants. "We're thrilled to have the opportunity to build the pre- eminent entertainment, gaming and hotel facility in the Midwest," said J. Terrence Lanni, chairman and chief executive officer of MGM Grand. "MGM Grand's gaming expertise, international marketing experience, relationships in the entertainment and sports industries, commitment to Detroit's business community and the depth of involvement from our local partners all add up to a winning proposal for the people of Detroit." The hotel/casino and entertainment complex is expected
to employ more than 3,500 people with annual payroll and benefits projected
to approximate $100 million. Lanni noted that MGM Grand is committed to
hiring and
As a part of its proposal, MGM Grand Detroit will create
a $50 million Business Development Fund to be used as a "capital pool"
to fund under- capitalized and start-up Detroit minority- and women-owned
businesses. The fund
"We're pleased to bring this world-class facility to our city," said business executive William F. Pickard, spokesperson for MGM Grand Detroit's co-owner, Partners Detroit, L.L.C., a group of local investment partners. "From thousands of new job and entrepreneurial opportunities to superstar entertainment, our proposal brings a whole package of benefits to the people of Detroit." The art-deco complex is designed to provide a diverse
and complete entertainment district that will attract local, regional and
international visitors to Detroit. In addition to a spacious 100,000-square-foot
gaming area with 40-foot high ceilings, the complex plans include:
Midwest and will help enhance the stature and prominence of the City of Detroit throughout the world." The elegant casino area will be complemented by a variety
of premier dining facilities and some of the finest names from the retail
industry. The MGM Grand and New York-New York hotel/casinos in Las Vegas
both have a
MGM Grand is recognized throughout the world as the leading
name in gaming entertainment, bringing a stellar line-up of headline entertainers
and sporting events through its doors every year. In Las Vegas, these headliner
events have included Bette Midler, Elton John, Barbra Streisand, Neil Diamond
and Whitney Houston. This fall's
Pickard, former chair of the Detroit Urban League Board
of Directors, is one of ten local investors that make up Partners Detroit,
L.L.C. The other investors are:
MGM Grand, Inc. is an entertainment, hotel and gaming
company headquartered in Las Vegas, Nevada. In Las Vegas, the Company owns
and operates the MGM Grand hotel/casino and owns a 50% interest in the
New York-
CONTACT:
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LAS VEGAS, Nov. 20 - Detroit Mayor Dennis Archer today announced his selection of the Circus Circus/Atwater Casino Group to proceed with negotiations of a development agreement to build a hotel/casino in downtown Detroit. "We are very pleased with our selection and commend the City of Detroit for an outstanding job performed bystaff to evaluate the proposals," said Glenn Schaeffer, president and chief financial officer of Circus Circus Enterprises, Inc. Subject to the successful negotiation of a development agreement with the city of Detroit, and receipt of other regulatory approvals, Circus/Atwater proposes to build an urban entertainment center in the central city. The project is proposed to include 801 rooms and suites, seven specialty restaurants, a 100,000 square foot casino, a full service spa and fitness center, a themed retail area and 75,000 square feet of meeting and convention space. The design of the project incorporates a number of existing
and former Detroit architectural landmarks including elements of the Detroit
Opera House, the Fisher Building, National Theater and City Hall.
Circus Circus Enterprises, Inc., owns and operates 10
properties in Nevada: Circus Circus, Luxor, Excalibur and Slots-A-Fun in
Las Vegas; Circus Circus-Reno; the Colorado Belle and the Edgewater in
Laughlin; the Gold Strike and Nevada Landing in Jean and Railroad Pass
in Henderson. The company also operates the Silver City in Las Vegas; owns
a 50% interest in Silver Legacy in Reno and owns a 50% interest in and
operates the Monte Carlo in Las Vegas. The company also owns and operates
Circus Circus-Tunica, a riverboat Casino in Tunica County, Mississippi,
and owns a 50% interest in and operates the Grand Victoria riverboat Casino
in Elgin, Illinois.
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DETROIT, Nov. 20 - Leaders of Greektown Casino today thanked Mayor Dennis Archer and said they look forward to working with Archer and the City Council to make Detroit one of the nation's premier gaming and entertainment destinations. "We commend Mayor Archer for never wavering in his determination to return Detroit to its status as a world-class city. All of us at Greektown Casino look forward to working with Mayor Archer to continue the revitalization of Detroit," said Ted Gatzaros, a partner in Greektown Casino with Jim Papas and the Sault Ste. Marie Tribe of Chippewa Indians. Sault Tribe Chairman Bernard Bouschor said Greektown Casino will create jobs and new opportunities for Detroit much like the Tribe's Kewadin Casinos have boosted the Upper Peninsula. "What a day for the people of Detroit," Bouschor said. "Greektown Casino means 4,000 good jobs with full benefits, and significant new economic opportunities for vendors and suppliers. It also means about 8 million more people coming to downtown Detroit each and every year. Under the leadership of Mayor Archer, and thanks to significant new attractions, the future of Detroit looks very bright." Partner Jim Papas said the casino resort will build on the success of Greektown and improve the district for visitors and merchants. "We will work closely with Greektown's 130 merchants and shopkeepers to ensure continued prosperity and even greater economic success," Papas said. "Adding our casino to the mix of attractions in Greektown will solidify the district's position as Detroit's leading destination for great food, fun and entertainment." Art Blackwell, an investor in Greektown Casino, said many Detroit suppliers and vendors will provide goods and services to the city's three new casino resorts. "The economic impact will be tremendous," Blackwell said. "More than 75 cents of every dollar that comes into a casino goes right back out again to purchase everything from hotel supplies to service contracts." Greektown Casino, with 100,000 square feet of gaming space, 3,000 new parking spaces and 1,000 hotel rooms,will cost about $519 million. |