MotorCity, owned by Mandalay Resort Group, becomes the first to reveal specific desires for construction.
A deal was reached in March with the three temporary casinos to eliminate a required move to permanent facilities along the Detroit River. Under the agreement, MGM Grand Detroit will build a new permanent casino Downtown, while Greektown and MotorCity casinos will convert their existing temporary facilities into permanent faci1ities.
Each casino has agreed to build a 400-room full-service hotel at their establishments.
The plan has yet to be fully approved by the Detroit city council.
Under MotorCity's plan revealed publicly Tuesday, the casino will build a 16-floor hotel with the required 400 rooms, an 800-seat showroom, new restaurants and lounges, a 50,000-sf convention center area, a spa and fitness center and additional retail outlet space.
With the new expansion, the casino also will grow its 68,000 sf of gaming space to 100,000 sf.
"We're very excited about the plans; we think it's great for the city and good for the economy," Jack Barthwell, MotorCity director of public relations, tells GlobeSt.com. "We're anxious to get started. We will continue to boost the fortunes of Detroit."
The current temporary casino is located on about a dozen acres along Grand River Avenue. The new hotel and the rest of the expansion will occur on 10 acres to the south and west of the current building, along an addition to the 3,500 vehicle parking structure, Barthwell says.
The city-casino agreement requires the expansions to be completed by November 2005.
Mayor Kwame Kilpatrick says the agreements are a significant milestone in the establishment of Detroit as a major entertainment center.
As part of the casino deal, the city will receive $102 million from the casinos as part of the deal over the next two years.
Four years ago, former Mayor Dennis Archer had announced a deal that would have required the three new casinos to eventually move to lavish casinos along the river for an estimated $2 billion. However, because of lawsuits by property owners, the city stalled on land purchases.
The deal died, and the casinos, happy where they are, announced they werenot moving to the river.
Now, the city will keep the riverfront property it procured, and the casinos are forgiving a $150-million debt the city incurred purchasing that land.
"At the same time, we retain ownership of 42.5 acres of prime real estate near the General Motors Corp. world headquarters, helping set the stage for a major redevelopment of the east riverfront," Kilpatrick says. "That is a huge step forward in the continued rebuilding of Detroit."
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