City Council approves purchase of casino land

Friday, April 30, 1999 | 9:14 a.m.

The legal step comes despite a lawsuit that, if successful, could jeopardize one or more of the city's choices of casino operators.

The City Council voted 5-3 Thursday to spend an estimated $250 million to buy land or take unwilling owners to court to take their property.

The three casinos need 19 acres apiece, and the city plans to acquire another 40-plus acres for roads and other public uses.

The city will pay up to $50 million for public land, but the other $200 million of the cost - and any overruns - will be reimbursed by the casino developers.

The money will cover buying the land, demolishing existing buildings, doing environmental cleanup and relocating existing businesses.

Councilwoman Brenda Scott said she voted against the measure because she doesn't want casinos on the riverfront.

"That's the wrong site for casinos," she told the Detroit Free Press for a Friday story. "This is going to create a mess with traffic congestion, for residents and surrounding businesses."

Although his property will be bought or condemned, Soup Kitchen Saloon owner Brian McDonald said he's relieved to be out of limbo. He started the business in Rivertown 25 years ago.

"This means things are actually going to come to fruition down here," he said. "For the last year or more, we've all been immobilized. Now there's some direction."

Casino developers were pleased by Thursday's vote.

"It's significant, and it's an important step," said Jack Barthwell, spokesman for the Atwater/Circus casino.

The casinos are to open in 2003.

But the city's choices of three developers - MGM Grand, Atwater/Circus and Greektown - could still be in doubt.

Earlier this month, a federal appeals court in Cincinnati reinstated a lawsuit by the Lac Vieux Desert tribe in the Upper Peninsula, challenging the city's process for choosing the three casino developers.

The tribe said it was unfair to have given preferences to Atwater and Greektown.

The lawsuit had been dismissed by U.S. District Judge Robert Holmes Bell but will be sent back to his court for more hearings.