Imperial Palace drops challenge to Clark’s authority over state tidelands

Tuesday, Sept. 16, 1997 | 8:29 a.m.

Clark sued a year ago claiming his office has the right to negotiate a tidelands lease with Imperial Palace, not the Biloxi Port Commission.

The lawsuit was filed in Harrison County Chancery Court and a hearing was scheduled for Sept. 23.

But, the Las Vegas-based company agreed Monday to pay $500,000 to lease space for its dockside casino. Imperial Palace officials said the casino will still ask a judge to reduce the payment and the amount of space it must lease.

Biloxi attorney Britt Singletary, who represents the casino on Biloxi's Back Bay, said "we believe that ultimately we would have to sign a lease with somebody; that ends that debate."

A final lease agreement has not been signed.

David Blount, a spokesman for the secretary of state, said Monday if the casino recognizes the state's authority to manage the tidelands and agrees to pay the $500,000 lease price, an agreement could be near.

Imperial Palace had challenged Clark's authority to require casinos to lease tidelands where gambling barges float.

Ralph Engelstad of Las Vegas, who is building the $300 million casino resort in Biloxi, said casinos - particularly his - had been singled out in the lawsuit filed by Clark.

If Engelstad would have won, the victory could have reduced lease payments by all casinos and could have reduced the state's ability to control dockside casino development.

Imperial Palace officials say they will continue arguments that the lease payments are too large and that it has been forced to rent two-thirds more space than the barge actually covers.

"We want some judicial interpretation," Singletary said.

The Imperial Palace resort just off Interstate 110 will include the casino, a 1,000-plus room hotel, showroom and multi-screen movie theater.