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MGM Move Disappoints Michigan Officials2 August 2002DETROIT, Michigan – As reported by the Detroit News: "Still saddled with a taxpayer-owned white elephant, Michigan officials say they were disappointed and surprised by MGM Grand Detroit Casino's announcement Tuesday that it was ending talks to buy a vacant state office complex. "Instead, MGM plans to build its permanent $500 million gambling parlor and five-star hotel on 25 nearby acres owned by DTE Energy Co. "…In April, the Michigan Department of Management & Budget accepted offers for the nearly vacant office center, which is across the Lodge Freeway from MGM's existing, relatively bare-bones casino. MGM, the sole bidder, offered $12.5 million for the 10-acre complex as a possible site for the more lavish facility that the city of Detroit is requiring MGM and two rival casinos to build. "But MGM announced to Detroit City Council on Tuesday afternoon that it would build its permanent casino on DTE land. The DTE site had been considered a potential MGM site for months, but the state was counting on completing a deal with MGM and said it felt blindsided by the decision. . "`Even as late as this past Monday, we were making arrangements for MGM's contractors to get access to the building' to start environmental work, Tom Saxton, director of tenant and land service for the Michigan Department of Management & Budget, said Wednesday morning. "…But some say the state let bureaucratic red tape kill the deal with MGM. They point out that MGM made its bid April 12, at which time the state itself imposed a closing date of July 11. "But slower-than-expected progress gave MGM more time to mull alternative deals, like those offered up by a publicly traded company such as DTE. MGM has been under pressure from the city of Detroit to name a site for its permanent casino. Along with rivals MotorCity and Greektown casinos, MGM has promised Detroit Mayor Kwame Kilpatrick that it'll have its permanent casino open in time for the 2006 Super Bowl. "…MGM said it alerted higher-ups at the state about its DTE decision, but Saxton -- point person for the state on talks with MGM -- said he didn't hear the news until after the council meeting. Nor was his boss, Duane Berger, notified, he said. "John Redmond, CEO of MGM Grand Resorts in Las Vegas, said all potential sellers -- including Saxton's department -- had been put on notice that MGM was considering several sites…" |