Casino developers prepare for Detroit’s final cut

Thursday, Nov. 6, 1997 | 9:13 a.m.

That's how Mayor Dennis Archer is playing his hand as he prepares to announce which three casino developers should be granted licenses to operate in Detroit.

Archer's announcement of three licensees from among seven applicants will be carried live Friday on Detroit radio and television, and will be monitored by casino investors, gaming analysts and others.

Until then, he won't say much. And that has produced plenty of anticipation, considering that annual revenue from just one casino is estimated at $400 million.

Archer has emphasized financial stability as the key factor in his choices. That has led to speculation that he might be leaning toward the developers with the deepest pockets: Atwater/Circus Circus, MGM Grand and Mirage Resorts Inc.

A confidential financial analysis, given this week to City Council members and cited by the Detroit Free Press in a report Thursday, gave those groups high marks for experience and financial resources. But the report cautioned that all three groups are developing projects elsewhere that could affect their plans for Detroit.

The report also was favorable toward the Greektown/Chippewa Indians and Paradise Valley/Rio groups, but said neither could match the size of the three larger enterprises. Its lowest marks went to Donald Trump's Motor City Casino and Don Barden's Majestic Star, calling both proposals risky.

Atwater and Greektown have legal preference because those groups backed the 1996 statewide referendum on Detroit casino gambling. But Archer has said preferences don't guarantee the award of a license, and he hasn't offered a clear-cut legal interpretation of preferences.

After Archer nominates the three licensees, he will negotiate development agreements with them. City Council must approve those agreements. The Michigan Gaming Control Board then will review the three applicants and ultimately award the licenses.

Archer said he has been reading documents for much of the week. Asked about the possibility of a backlash from losing bidders, he said, "As long as it's a fair process, it won't matter."

It might matter, however, to new City Council President Gil Hill, who has insisted that two of the three licenses must go to Atwater and Greektown, the groups with preferences.

Hill singled out the Greektown group at a June news conference, saying Detroiters shouldn't "forget who was downtown when we were ashamed to bring people here."