Though casinos have been taking up temporary quarters in and around the Motor City during the past handful of years, permanent facilities are finally scheduled to break ground within the next six months. When completed by early 2008, Greektown Casino, MGM Grand Detroit Casino and MotorCity Casino will add 400 room hotels, 100,000 sf of gaming space, as well as convention facilities, restaurant and retail space to the area.
"This type of thing helps a lot, directly in construction of course," says Jacob L. Miklojcik, president of Michigan Consultants, a casino/gaming consulting service based in Lansing.
In one report, Miklojcik predicted that the construction and creation of the casinos could generate up to $1 billion to the local economy. Additionally, he tells GlobeSt.com that casinos tend to create "oodles of subcontractors."
He adds that subcontractors are businesses that do everything from clean the carpets, to balance the books, to promoting the casinos. The implication is that a growing base of subcontractors could lead to a growing need for business space for such contractors. "I don't think that's fully appreciated--that 18%-22% of revenues from these businesses end up to subcontractors," he says.
Miklojcik also suggests that a more permanent gaming base in the Detroit area could ultimately lead to an increase in retail centers. "They might not be next door; they could be across town," he explains. "We talk about the idea that 17% of earnings in gambling is spent in food, lodging and some retail, either onsite or off site."
Does the attractive potential of gaming mean that a glut of gambling establishments might come to town? Not at all, Miklojcik says. "We had to have a referendum to get these three sites going," he comments. "The legal hurdles would be huge for those coming into town. People might want to build more, but it would be a very long road to hoe before that could happen."
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