Mandalay inks Detroit deal

August 06, 2002 9:51 AM
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Mandalay Resort Group announced Monday that its Detroit affiliate has signed a revised development agreement with the city of Detroit.

Under the agreement, MotorCity Casino will expand into a permanent property that will include, by Dec. 31, 2005, a 100,000-square-foot casino, 400-room hotel, theater with at least 1,200 seats, convention center, and additional restaurants, retail shops and parking.

The company’s affiliate (of which Mandalay owns 53.5 percent) Detroit Entertainment LLC, will pay the city $17 million in 60 days, another $10 million in four equal installments next year, and an additional $17 million in 12 monthly installments beginning June 1, 2003.

In addition, Detroit Entertainment will pay the city 1 percent of daily casino revenues beginning Jan. 1, 2006, which increases to 2 percent if revenues top $400 million a year.

"This is the right step for quickening the growth of the Detroit gaming market," said Glenn Schaeffer, Mandalay Resort Group’s president.