Groups unveil plans for casino; Young’s group introduces partner

Friday, Aug. 1, 1997 | 9:02 a.m.

Don Barden said Aretha Franklin and the Four Tops, as well as boxing trainer Emanuel Steward, all plan to invest in his proposed casino, The Detroit News and Detroit Free Press reported in today's editions.

Franklin would own and operate a Pink Cadillac Cafe and lounge in the casino's hotel. The Four Tops would own and operate a two-story Tops Star Lounge.

Steward's investment would include a sports merchandise center and theater to stage boxing events in the casino, the Free Press reported.

Barden's group, along with others including Greektown Casino, Atwater Entertainment, Detroit Plaza, MGM Grand, Donald Trump, and a group put together by former Detroit mayoral candidate Charles Costa, are expected to pay $50,000 each and submit bids for one of three casino licenses.

The application deadline is 4 p.m. today.

On Thursday, two other firms announced their intentions to pursue licenses.

Real estate developer and businessman Sam A. Danou said he has partnered with Riviera Gaming Management of Las Vegas to offer a unique twist to the stew of businesses vying for a license.

And a group headed by former Mayor Coleman Young introduced its gaming partner. A team assembled by Young and Paradise Valley LLC said it was partnering with Rio Hotel and Casino Inc. of Las Vegas in its bid to operate Paradise Valley Rio.

"We're delighted, absolutely delighted," Young said in a written release. "This is a marriage of the best and the brightest leaders in Detroit joining the best, brightest, leaders of Las Vegas."

Danou's group, called Detroit, Detroit, said it plans a $700 million project including the International Trade and Conference Center, two hotels, housing, and 2 million square feet of office and retail space.

The trade center group, in conjunction with Wayne County Community College and a consortium of universities, would allow residents to get training and education focused on the global trade system.

"We believe we have the best project for Detroit," Danou said. "It provides an economical focus and boost to the city."

The main depository institution would be Omnibank, a minority-owned bank headquartered in downtown Detroit.

The group envisions a live-performance theater and 85,000-square-foot casino. Detroit, Detroit also plans to turn at least $1 million a year over for Detroit social programs.

Danou said he would own 40 percent, partner Allen E. Paulson, chairman emeritus of Gulfstream Aerospace Corp., would own 50 percent, and residents of Detroit would own 10 percent through stock options.

Paulson owns the Del Mar Country Club in Rancho Santa Fe, Calif. He is one of the largest owners of thoroughbred breeding and racing stables.

Mayor Dennis Archer has said he will narrow the list of casino bidders to about six finalists by Aug. 22. The finalists will be asked to submit more detailed plans.

On Nov. 10, Detroit plans to announce the winners of three casino licenses. Two groups already have preference, Atwater Entertainment and Greektown Casino.

The city will then negotiate development deals, which require City Council approval, before going to the Michigan Gaming Control Board for licenses.

Meanwhile, an Indian tribe awaits an Aug. 20 hearing on its challenge to Detroit's casino-selection process.

The Lac Vieux Desert Band of the Lake Superior Chippewa Indians filed a lawsuit in February claiming that tribes have exclusive rights to operate Michigan casinos under an agreement with the state and a federal court order.

The Upper Peninsula tribe also contend their constitutional rights are being violated by the preferential treatment secured by the Atwater and Greektown groups under wording in Proposal E, passed by voters in November 1996.

The tribe has a casino on its reservation in Gogebic County and has expressed interest in a Detroit or Pontiac casino.

The tribe filed its lawsuit and request for injunction against the city, the state gaming board and the Atwater and Greektown groups.