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Greektown can't reach goals

DETROIT, Michigan – As reported by the Detroit Free Press: " Greektown Casino LLC's inability to reach revenue goals established in gaming control board documents could ultimately lead to its sale, casino regulators said Tuesday.

"Greektown officials told the gaming control board Tuesday that the casino would not be able to meet financial projections established in a November 2005 agreement with the board. According to those documents, the casino must maintain certain annual debt-to-earnings ratios.

"Greektown officials asked the board Tuesday for a 12-month extension to meet revenue goals. Board members reacted negatively to the request before voting to table the motion until its next meeting Dec. 12.

"In addition, Greektown officials said the casino was unable to meet construction deadlines on its new 20-story, 400-room hotel complex because of slow negotiations with the City of Detroit in purchasing a parking garage.

"Because of delays, the hotel will not open as projected in January 2008. It now is expected to open in September 2008.

"…The construction problems stem from a six-month delay in negotiations on the cost of a parking garage that Greektown eventually bought from the city for $32 million, Eggan said.

"…Regarding the request for a revenue goal extension, board member Barbara Rom told Greektown officials they should offer something in exchange for the proposal.

"Rom said the casino's owners -- the Sault Ste. Marie band of Chippewa Indians -- should come up with $23 million by April 2009, the amount specified in documents…"

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