Permanent hotel-casinos planned under pact

Tuesday, March 26, 2002 | 10:43 a.m.

DETROIT -- The city and its three casino operators have reached an agreement in principle in which each will build permanent casinos, including 400-room hotels, and give Detroit more than $100 million to wipe out its deficit, Mayor Kwame Kilpatrick announced today.

The casinos also will forgive $150 million in debt the city owes them. MGM MIRAGE of Las Vegas owns one of the casinos. Mandalay Resort Group of Las Vegas is a partner in another. The third is controlled by Michigan investors.

Kilpatrick said the permanent casinos each will include 100,000 square feet of gaming space and will feature retail facilities, restaurants, ballrooms and theaters.

Though in existence only three years, the casinos have become crucial to city finances, employing 7,500 people and providing an estimated $95 million this year in wagering taxes to city coffers. Last fiscal year, the casinos brought in $73 million for the city.

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