Report: MGM Grand to unveil interest in Detroit casino

Wednesday, Feb. 12, 1997 | 11:59 a.m.

MGM Grand also announced Tuesday that with its pursuit of a license to own and operate a casino in Detroit, it has received a commitment to increase its credit line to $1 billion.

This ensures MGM Grand has the immediate ability to finance construction of a major complex in Detroit in addition to its development plans elsewhere, MGM said in a release today.

"The marriage of MGM Grand's experience and depth of financial resources with this distinguished group of community leaders as our investment partners will serve Detroit well," J. Terrence Lanni, chairman and chief executive officer of MGM Grand, said.

"We are extremely excited about the potential for the gaming and entertainment industry in the Detroit area, and we look forward to working with city officials as the application and selection process moves forward."

Alex Yemenidjian, MGM Grand president, chief operating officer and chief financial officer, said expanding the credit line from $600 million to $1 billion positions the partnership to develop a first-class gaming and entertainment complex.

The local investment group partnering with MGM Grand includes nine business, civic and community leaders.

"Our elected officials have made it clear that they want a world-class gaming industry in this state," said business executive William F. Pickard, spokesperson for the group.

Pickard, owner of Roseville-based automotive supplier Regal Plastics Inc., was a roommate of Detroit Mayor Dennis Archer at Western Michigan University in the 1960s.

Lanni said the Detroit partnership will finalize project plans after requests for proposals have been issued.

"It would be premature at this time to propose specific plans for the project," Lanni said. "We are prepared to bring to the people of Detroit and to the state of Michigan an emotionally engaging facility that will attract tourists from the Midwest region, Canada,and from throughout the world."

Two local casino groups, Greektown Casino LLC and Atwater Entertainment Inc., get licenses under language of the November ballot initiative legalizing casino gambling in Detroit.

MGM owns the MGM Grand Hotel and Casino, and is 50 percent owner of New York-New York, a glitzy casino with a Big Apple theme that opened last month in Las Vegas.

All the groups must meet standards set by Archer's staff to reach a development agreement, gain ratification of the agreement from City Council, then be investigated for background and suitability by the Michigan Gaming Control Board.

Billionaire Kirk Kerkorian, who attempted a hostile takeover of Chrysler Corp., is the majority stockholder in MGM.