NATIONAL HARBOR, MD-Peterson Cos., and MGM Resorts International unveiled a grand scheme on Friday to develop a $600-million to $700-million destination resort casino here. The complex will not be at downtown National Harbor, but rather on a 30-acre Beltway parcel that the developer also owns at National Harbor, approximately one mile away from downtown, Peterson Cos.’ Jon Peterson tells GlobeSt.com. “MGM will take 13 acres and we will do complementary development.”
It is an important distinction, he says, because the Beltway parcel already has the necessary infrastructure and utilities in place. Also, it is located next to the Tanger Outlet Center that is being developed there.
Before Peterson and MGM can start planning, however, they must overcome a number of legislative hurdles, including having Maryland’s state legislature pass legislation permitting a sixth casino license at National Harbor; establishing a more competitive tax rate for the destination resort; and, finally, sealing the deal by getting Maryland voters’ approval via a state-wide referendum.
All of this is doable, Peterson maintains, adding that the referendum could happen as early as this fall. Assuming the vote is a favorable one, a year of planning will occur followed by a two-year build period. “We could have construction underway by 2013,” Peterson says.
If the project does indeed clear all of those hurdles, it will ratchet up considerably the rivalry between the District and National Harbor for business, tourist and now local traffic. This would be the closest casino to DC, adding to National Harbor’s growing allure.
Developed by Peterson, National Harbor sits on 350 acres along the Potomac River in Prince George’s County. It is anchored by Gaylord National Resort and Convention Center as well as retail, residential, office and hotel development.
National Harbor includes restaurants, retail, office and residences and a number of world-class hotels including the Gaylord Center. As the anchor of National Harbor, Gaylord retains an economic interest along with in the resort casino transaction.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
