MGM Grand, Detroit mayor win legal battle

Thursday, Jan. 14, 1999 | 11:29 a.m.

MGM Grand Inc. of Las Vegas and Detroit Mayor Dennis Archer won a court battle Wednesday with the Detroit Community Coalition in a lawsuit that threatened to disrupt plans for Detroit's temporary casinos.

Chief Wayne County Circuit Judge Michael Sapala upheld the Detroit City Council's zoning ordinance that allows MGM to build its temporary casino.

The coalition had tried to block the city's plans by submitting signatures for a referendum on the zone change. They said Archer and the City Council illegally made it impossible for them to block the zone change by tacking on an appropriations measure. Appropriations decisions are not subject to referendum votes.

"Now that Chief Judge Sapala has rendered his decision, which finally clears the way for the development of gaming entertainment complexes, it is time for all of us to work together to advance the issue of empowerment from the conversation stage to reality, where the rubber meets the road," MGM Grand President Alex Yemenidjian said in a statement.

Coalition leaders said they would appeal.

Three casino developers plan to open temporary Detroit casinos this summer and permanent resorts about three years later. They are MGM; Las Vegas-based Circus Circus Enterprises and its partner the Atwater group of Detroit; and Detroit's Greektown group.

The Community Coalition has targeted MGM for criticism, saying it has the smallest portion of local and minority participation in the majority-black city.

MGM has responded by suing the coalition for interfering with its ability to do business in Detroit.