Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

DETROIT-The Michigan Gaming Control Board has rejected a planned expansion at the Greektown Casino in the city, raising concerns over the financing of the project. But the state panel has approved an expansion at the MotorCity casino.

MotorCity’s plans to add 100,000 sf of gambling space and an 18-story, 400 room hotel at the casino’s present location, at the intersection of Grand River and the Lodge expressway in the city. The plan also includes a convention area, a 1,200-seat multi-use theater, restaurants, bars and 4,400 parking spaces.

“MotorCity looks forward to completing a process that began seven years ago and that Detroit will be proud of,” says Gregg Solomon, chief executive of casino owner Detroit Entertainment LLC. The expansion is expected to be finished by 2008 and add an estimated 300 jobs.

A similar expansion plan, which also included financing to restructure debt, was rejected for Greektown Casino, but a casino spokesman says he expects a re-submitted plan to be approved by the end of October.

“We’re going to break ground,” Greektown spokesman says. “We’re going to build our casino. We want to get this done.” The gambling board rejected the Greektown Casino’s $635-million financing plan, which would produce $175 million to $200 million for an expanded casino, a hotel, parking structure and theater. The rest of the money was to pay off debts to two former owners and refinance other debt.

When first opened in 1998, Detroit’s three casinos were said to be “temporary.” Since then, plans for the casinos to relocate to “permanent” locations have beenscrapped.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.