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Detroit Casino Plan Downsized

"Kilpatrick has taken off the table requirements that the casinos each build 800-room hotels, contribute to a city development fund and help build a riverfront park.

"Kilpatrick's approach to casinos means that tax revenues from gambling are likely to stabilize about where they are now, around $95 million a year.

" That's far below the $248 million that former Mayor Dennis Archer once projected.

"…Archer had envisioned clustering the permanent casino-hotel operations on the Detroit riverfront to create a destination for tourists and conventions.

"…Bob Berg, Kilpatrick's spokesman, said the mayor's request for an extension doesn't indicate that the administration has abandoned hope of reaching a deal by March 31.

"…Berg said he wasn't willing to characterize talks with the MGM Grand, MotorCity and Greektown casinos `in any definitive way.' One apparent holdup involves MGM Grand's search for a permanent location. The two others are expected to stay where they are.

"…The temporary casinos have been successful, employing about 7,500 people with jobs ranging from valets to dealers, bartenders, cooks and wait staff, security and managers. The casinos brought in $47 million to city coffers during the 1999-2000 fiscal year and about $73 million during the 2000-01 fiscal year. The city estimates it will get about $95 million in wagering taxes this fiscal year.

"Wagering taxes alone now roughly pay for the equivalent of the city's annual Health Department budget.

"Although the Kilpatrick is pursuing a more modest final plan for Detroit casinos than his predecessor, his approach seems closer to delivering what Archer never could: permanent casinos. Kilpatrick's approach is profoundly different, dropping efforts to control all aspects of casino development in favor of letting the casinos find their own land and working out separate agreements with each one…"

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