Some in the real estate industry doubt the city will buy all the land, which shot up in price once the plans for permanent skyscraper casinos for MGM, Greektown and MotorCity casinos surfaced three years ago.
However, an attorney who represents property owners of the 57 acres says the city has stepped up efforts to buy most of the parcels by April. City officials tried to have the land condemned, but a judge threw out the case. The casinos built three temporary operating facilities while plans for the permanent sites were worked out.
Jerome Pesick, an attorney for property owners such as Lauhoff Rolling Mills and Technicom, which own property on the proposed site, says the city is moving forward on making deals for the land. "We've entered into agreements on some and are close on others. The sense I get is that the city wants to move forward. They're working hard to make it happen. It's not a lock yet, but a good possibility," he says.
Pesick said he could not discuss which properties he has arranged for sale, and the dollar amount, due to a confidentiality agreement.
In November, Milwaukee Investment Co. sold three acres of the property for more than $5.5 million, which is what the city offered to pay when it tried to condemn the property. Pesick says both the city and the casinos are paying the price for the land.
The city sees the proposed development as a moneymaker, he says. "They view the permanent casinos as a long-term benefit for the city."
The Detroit City Council agreed in December to extend the deadline for the land acquisition to December 31, 2001.
The Greektown Casino, the MGM Grand Casino and the MotorCity Casino have already opened temporary facilities in the city, and are reportedly earning $1 million a day each. Each hoped to build large permanent casinos with restaurants and hotels by 2003. The extension pushed the opening date back until at least 2004, or even a year later. The casinos expect to earn 40% more once their permanent facilities are up.
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