October 14, 1999



DETROIT (AP) – Michigan's gaming laws will ensure the impact of Detroit's three casinos spreads beyond their walls, officials said at a meeting of northern U.S. and Canadian gaming industry members.

Proposal E, which Michigan voters approved in 1996 and allows three casinos to open in Detroit, gives the city significant power to control the casinos' development and ensure their estimated $2 billion investment here sparks additional growth, said Phyllis James, corporation counsel for the city.

"It's the city's motive to develop other businesses," James said Wednesday at the Northern Gaming Summit at the Cobo Conference and Exhibition Center. "The casinos are very important if you're trying to revitalize the downtown entertainment district."

Mike Mecca, Greektown Casino's chief operating officer, said "we understand gaming is only part of the solution of the revitalization of Detroit."

Michigan's gaming law is unique because the casinos must have a city-approved development plan before the Michigan Gaming Control Board can consider licensing, said Nelson Westrin, executive director of the gaming board. "If the city should terminate the development agreement, the board can revoke the license at the request of the city," Westrin said.

Detroit's agreements with the MGM Grand Detroit Casino, MotorCity Casino and Greektown Casino mandate a minimum number of hotel rooms and the size of convention, entertainment and dining facilities that must be included. City officials must approve design plans.

The casinos also are required to create a minimum number of jobs and ensure at least 51 percent of their employees are Detroit residents, Ms. James said.

The added regulation allows the city to work the casinos into a master plan with the city's new sports stadiums, an influx of corporate headquarters and additional commercial development, Mayor Dennis Archer said at the three-day summit, attended by gaming industry representatives from 15 northern U.S. states and two Canadian provinces.

MotorCity Casino already expects its temporary casino to have an impact after its slot machines and blackjack tables move to a permanent home.

The temporary facility, an old Wonder Bread bakery, will be converted to commercial and retail space, said Glenn Schaeffer, president of MotorCity's developer, Mandalay Resort Group. "It should prove to be a lasting contribution to this city," he said.

Lyn Baxter, president of MGM Grand Detroit, said when that permanent casino opens here, gamblers will have available to them lake cruises, golf outings and sporting events.
"Then this city will really realize what they've created, and the casinos will be a small part of that puzzle," he said.

Greektown Casino's Mecca said he believes that Detroit's permanent casinos could produce $1.5 to $2 billion in annual revenues.

MGM brought in $4.8 million from gambling in the first three days, according to state figures.

MotorCity will be ready to open by the end of the month, but it will have to wait for its license. If all goes as planned, it could receive approval as early as mid-December. Greektown Casino could have its license in early 2000, he said.

Under the development agreements, the casinos must open permanent facilities on Detroit's riverfront within four years.

Copyright, 1999, The Associated Press, All Rights Reserved.


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