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| DETROIT, Jan. 29, 1999 - The City of Detroit today
moved forward in the development of its three permanent casino complexes
with City Council's 6-3 approval vote on the Waterfront Reclamation and
Casino Development Modified Project Plan, put forth by the City's Economic
Development Corporation (EDC). The vote paves the way for the development
of public park and recreational developments south of Atwater along the
Detroit River, three permanent casino complexes and other commercial uses
north of Atwater, and a transportation corridor between Gratiot and East
Jefferson in the plan's outlined project area. The plan sets a framework
for the described developments in the 137-acre project area, which is generally
bounded by Rivard and Riopelle on the west, Chene on the east, the Detroit
River Harbor Line on the south and East Jefferson on the north. The north-south
transportation corridor is bounded by Orleans on the west, Gratiot on the
north, St. Aubin on the east and East Jefferson on the south.
The Council's EDC Plan approval vote caps a week of other major developments in Detroit's efforts to make casino gaming a reality in the City. Earlier this week, prior to the Council's vote, all three casino developers
The final step for the developers' acceptance of the East Riverview site is approval by the City Council of an agreement for sale by the City to the developers of the land for the permanent casino complexes as delineated in the project plan if the land is acquired by the City. That agreement is expected to be presented to the Council for consideration within the next three weeks. Additionally, pursuant to the Michigan Gaming and Revenue Control Act and their development agreements with the City, each of the three casino developers this week completed payment to the City of Detroit of the first year's $4 million Municipal Services Fee, for a total of $12 million. The Municipal Services Fee is intended to defray the City's costs of providing municipal services necessary for hosting the casinos. The payments will allow the City to make reinforcements and other adjustments to its police, fire, EMS and other services necessary to support the temporary casinos upon their opening. Under the casino development agreements, the casino developers may open a temporary casino seven months after full payment of the Municipal Services Fee, subject to satisfaction of certain other conditions. Detroit's temporary casinos could be open as early as the third quarter of this year, assuming that the developers' facilities are ready and that their licenses have been issued by the State Gaming Control Board. "I fully expect that in the next 30 to 45 days, the principal developers will be approved by the Michigan Gaming Commission, and will be allowed to proceed swiftly with the construction of temporary casinos," said Mayor Dennis W. Archer. "And of course, the in-depth investigations of secondary casino investors would be completed later." Mayor Archer added: "I'm excited about the prospect of these long-awaited Detroit developments moving forward with construction and opening for business in the coming months. "I wish to thank the developers and investors of Atwater/Circus-Circus, Greektown and MGM for signing off on Schedules A and B and for promptly submitting the first year's Municipal Services Fee payment. "Thanks are also due to the six members of the Detroit City Council who approved today's measure and advanced the interests of entrepreneurs, contractors and skilled trades workers who will benefit from these developments. I also wish to thank the staff that has represented the City of Detroit so well in the development negotiations: C. Beth DunCombe and her staff at the Detroit Economic Growth Corporation; Phyllis A. James and the staff of the Detroit Law Department; and Valerie Johnson and her staff at the Detroit Finance Department." |
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