Land Costs Stop $2-Bil Casino Project

DETROIT-Mayor Dennis Archer recently informed the city council he’s cutting off plans that would have allowed the development of three permanent casino complexes along the Detroit River, at a cost of $2 billion. Now, he says, only one casino, MGM Grand, has indicated it will move from a temporary site Downtown to the riverfront, adjacent to the Renaissance Center, General Motors Corp.’s headquarters.

Both Archer and his press secretary, Greg Bowens, say land owners of just more than 40 acres along the river held out for too much money, and the city could not acquire enough land for all three casinos. “The mayor negotiated in good faith with all the land owners,” Bowens told GlobeSt.com. “Escalating costs pushed away the choice of having all three of them there. Folks were acting like the city had a bottomless pit of money to pay for those sites.”

Attorneys for the land owners had indicated they were close to signing deals with the city. However, many people in the city didn’t think the entire property could be acquired. It’s also believed that the three casinos, MGM Grand, Greektown and MotorCity, are happy in the temporary facilities they have already built and opened, spread out in the Downtown area.