Atlantic City marina project back on track - for now

Wednesday, Jan. 17, 2001 | 6:09 a.m.

MGM Mirage Chairman Terry Lanni says his company is beginning the design phase of the project, calling it "our most attractive near-term investment opportunity."

No details about the cost, construction timetable or theme were announced.

Lanni said the announcement was made after MGM Mirage - the corporate successor stemming from MGM Grand Inc.'s 2000 purchase of Mirage Resorts Inc. - reviewed its new development options.

Once it completes design of the project, the size, scope, theme and budget will be announced, Lanni said.

"Our investors have come to expect a disciplined approach to managing our business. We have rigorously examined the myriad development options available to us and have determined that the Atlantic City parcel represents our most attractive near-term investment opportunity," Lanni said.

First proposed by Mirage Chairman Stephen A. Wynn in 1995, the casino was to be a $750 million Las Vegas-style resort. The mere announcement of it triggered a gold rush by other casino companies eager to enter the Atlantic City market.

Within months, MGM Grand and Boyd Gaming Corp. announced similar plans.

Wynn persuaded New Jersey officials to help finance a 2.2-mile road-and-tunnel connector improving access to the marina district site for inbound traffic from the Atlantic City Expressway.

The state is paying $220 million and Mirage $110 million to build the tunnel, which is to open in July.

But MGM Grand's $6.4 billion purchase of Mirage last June put Mirage's casino deal in limbo, with MGM Mirage officials reluctant to commit to it.

Now, MGM Mirage - which has backed off its plan to build a new Boardwalk casino - says it is proceeding full speed ahead on the 55-acre marina district site originally bought by Mirage.

John Redmond, co-CEO of MGM Mirage, said he understands why people ask questions about the plans for new marina casinos.

"People just have to look at our track record. When we make statements, we tend to deliver on them. In this case, all we're saying is we're directing our attention here. We're literally starting today."

He said design could take about a year and construction three years.

Construction began last year on The Borgata, a 2,010-room joint venture between Boyd Gaming Corp. and MGM Mirage. It is scheduled to open in 2003. The MGM Mirage project would be built adjacent to The Borgata.

One analyst called the MGM Mirage announcement encouraging news for Atlantic City.

"The potential of this market is enormous, and this company sees that," said Michael Pollock, editor of Michael Pollock's Gaming Industry Observer newsletter. "This announcement is significant because it sends out an important signal. And this is a company that doesn't make statements like this lightly."