Pinnacle's casino project looks dicey

Pinnacle's casino project looks dicey

There are 17 comments on the www.pressofatlanticcity.com story from May 8, 2008, titled Pinnacle's casino project looks dicey. In it, www.pressofatlanticcity.com reports that:

The sprawling dirt site where Pinnacle Entertainment's $1.5 billion megaresort is supposed to rise will remain vacant for at least two more years.

Join the discussion below, or Read more at www.pressofatlanticcity.com.

Fares

Northfield, NJ

#1 May 8, 2008
Figures. You got the Best land in atlantic city and your a small time casino company, you know eventually a Big name casino company will make its way and buy it for 4 times the amount u did. These pinnacle a$$holes need to build the city needs it. Either BUILD OR SELL NOW! dont wait till 2010!
Don

Hazleton, PA

#2 May 9, 2008
The rest of those scheduled to build will pull out also.Lost to much business to Pa. and will NEVER get it back.

Since: Feb 08

Location hidden

#3 May 9, 2008
I don't think Pinnacle wanted the Sands in the first place. They had just netted a 44 million dollar break up fee in May '06 on the failed Aztar deal. Their letters of credit for that deal were extinguished. So they come down the street and bid on a "for sale" casino (Icahn wanted out of AC)
bidding 250 million on a small, open,and yes, profitable business with lots of land for expansion. The deal called for a window during which any other bids could be considered. If a 'superior offer' were made, ACE Gaming could accept that offer and Pinnacle would receive a 10 million dollar break up fee, as well as any money over and above the original 250 million bid by Pinnacle. What kind of deal is that?
No one bid more.

Did the Sands have to close because Pinnacle wasn't licensed? No. Pinnacle could have operated under a provisional license just as Columbia Sussex did.

Did the name have to remain Sands, with a licensing fee payable to the Las Vegas Sands Corporation? No. You just change the name to Pinnacle Atlantic City.

Eighteen months later the only movement on the project is the company's attempt to buy every piece of real estate surrounding the the original tract. Those who refuse to sell to Pinnacle find themselves under potential threat of property seizure through eminent domain as the city council tried to sneak through a 'blight' designation against reluctant sellers. Luckily for the property owners the Council move was outed. Now there is a looming legal battle over the land grab scheme.

Interesting side bar to this is that City Councilman John Schultz, who has a property right in the middle of the potentially 'blighted' area, has had his property exempted by the Planning Board from the 'blight' designation. So, while others could potentially be forced to sell for pennies on the dollar to Pinnacle, he could get top dollar for his property. This is how things go in Atlantic City.

When you start adding up the money spent to buy the Sands, close it up, tear it down, clear the lots and buy additional lots, you have to conclude that a fraction of that money could have been better spent up grading and keeping the Sands opened. 2100 plus people would still be working and Pinnacle would be garnering 'good will' in Atlantic City. And making money for the company. Now they're just the company with grandiose plans that will never happen.
Don

Hazleton, PA

#4 May 9, 2008
EminentDomain wrote:
I don't think Pinnacle wanted the Sands in the first place. They had just netted a 44 million dollar break up fee in May '06 on the failed Aztar deal. Their letters of credit for that deal were extinguished. So they come down the street and bid on a "for sale" casino (Icahn wanted out of AC)
bidding 250 million on a small, open,and yes, profitable business with lots of land for expansion. The deal called for a window during which any other bids could be considered. If a 'superior offer' were made, ACE Gaming could accept that offer and Pinnacle would receive a 10 million dollar break up fee, as well as any money over and above the original 250 million bid by Pinnacle. What kind of deal is that?
No one bid more.
Did the Sands have to close because Pinnacle wasn't licensed? No. Pinnacle could have operated under a provisional license just as Columbia Sussex did.
Did the name have to remain Sands, with a licensing fee payable to the Las Vegas Sands Corporation? No. You just change the name to Pinnacle Atlantic City.
Eighteen months later the only movement on the project is the company's attempt to buy every piece of real estate surrounding the the original tract. Those who refuse to sell to Pinnacle find themselves under potential threat of property seizure through eminent domain as the city council tried to sneak through a 'blight' designation against reluctant sellers. Luckily for the property owners the Council move was outed. Now there is a looming legal battle over the land grab scheme.
Interesting side bar to this is that City Councilman John Schultz, who has a property right in the middle of the potentially 'blighted' area, has had his property exempted by the Planning Board from the 'blight' designation. So, while others could potentially be forced to sell for pennies on the dollar to Pinnacle, he could get top dollar for his property. This is how things go in Atlantic City.
When you start adding up the money spent to buy the Sands, close it up, tear it down, clear the lots and buy additional lots, you have to conclude that a fraction of that money could have been better spent up grading and keeping the Sands opened. 2100 plus people would still be working and Pinnacle would be garnering 'good will' in Atlantic City. And making money for the company. Now they're just the company with grandiose plans that will never happen.
And like ALL the other companys that HAD plans to build,It will Never happen in A/C!!!

Since: Feb 08

Location hidden

#5 May 9, 2008
Not everyone is pulling out, Don.

From Press of Atlantic City

MGM moves ahead with A.C. casino project

(Published: Thursday, May 08, 2008)

From Press staff reports

ATLANTIC CITY - Gaming giant MGM Mirage Inc. continues to work with its architects and is preparing to hire a construction contractor as it moves forward with plans for a $5 billion Atlantic City megaresort, the company said Tuesday.

MGM hopes to start construction this year on a development that would feature three hotel towers totaling 3,000 rooms, the largest gaming floor in town and 500,000 square feet of retail, dining and entertainment space.

Chairman Terry Lanni said the company is refining the designs with its New York architect Kohn Pedersen Fox Associates and is in the advance stage of selecting the general contractor to oversee construction.

Lanni, who gave a brief update on the project Tuesday during a conference call on MGM's first-quarter earnings, also said the company is awaiting approval of a key construction permit from the New Jersey Department of Environmental Protection.

Dubbed MGM Grand Atlantic City, the complex would open in 2012 on a 72-acre site next to Borgata Hotel Casino & Spa, which MGM already co-owns with Boyd Gaming Corp.

Since: Apr 08

Location hidden

#6 May 9, 2008
Thanks for the MGM piece... it had been posted, but apparently got glitched away.
Don

Hazleton, PA

#7 May 10, 2008
EminentDomain wrote:
Not everyone is pulling out, Don.
From Press of Atlantic City
MGM moves ahead with A.C. casino project
(Published: Thursday, May 08, 2008)
From Press staff reports
ATLANTIC CITY - Gaming giant MGM Mirage Inc. continues to work with its architects and is preparing to hire a construction contractor as it moves forward with plans for a $5 billion Atlantic City megaresort, the company said Tuesday.
MGM hopes to start construction this year on a development that would feature three hotel towers totaling 3,000 rooms, the largest gaming floor in town and 500,000 square feet of retail, dining and entertainment space.
Chairman Terry Lanni said the company is refining the designs with its New York architect Kohn Pedersen Fox Associates and is in the advance stage of selecting the general contractor to oversee construction.
Lanni, who gave a brief update on the project Tuesday during a conference call on MGM's first-quarter earnings, also said the company is awaiting approval of a key construction permit from the New Jersey Department of Environmental Protection.
Dubbed MGM Grand Atlantic City, the complex would open in 2012 on a 72-acre site next to Borgata Hotel Casino & Spa, which MGM already co-owns with Boyd Gaming Corp.
MGM will Never happen.They were ALL talk years ago and did Nothing.Its just Free advertising for borgata these days.
bob

Smithtown, NY

#8 May 10, 2008
watch Pinnacle buy tropicana and wait even longer on building a new casino.

Since: Feb 08

Location hidden

#9 May 10, 2008
bob wrote:
watch Pinnacle buy tropicana and wait even longer on building a new casino.
That will not happen. It was discussed during their conference call this week.
Fares

Northfield, NJ

#10 May 10, 2008
Rebel is allready building, they have 7 200 story cranes allready up plus another 4 smaller cranes, iv never seen a construction site like it before, how could u say they are pulling out? They allready started with the concrete and are starting to build up. The property by hilton is allready in the works. They are alleady looking to by the houses around that property trust me, i own one and they just recently came up to me to sell it. So dont tell me they are pulling out. The smoking ban effect will last untill PA bans too, then everything will be back to normal. No one can compete vs what atlantic city has now and no wway in hell to whats in its future.
Don

Hazleton, PA

#11 May 11, 2008
Fares wrote:
Rebel is allready building, they have 7 200 story cranes allready up plus another 4 smaller cranes, iv never seen a construction site like it before, how could u say they are pulling out? They allready started with the concrete and are starting to build up. The property by hilton is allready in the works. They are alleady looking to by the houses around that property trust me, i own one and they just recently came up to me to sell it. So dont tell me they are pulling out. The smoking ban effect will last untill PA bans too, then everything will be back to normal. No one can compete vs what atlantic city has now and no wway in hell to whats in its future.
Dream on!!!

“Be HAPPY don't WORRY”

Since: Sep 07

Planet Earth

#12 May 11, 2008
Fares wrote:
Rebel is allready building, they have 7 200 story cranes allready up plus another 4 smaller cranes, iv never seen a construction site like it before, how could u say they are pulling out? They allready started with the concrete and are starting to build up. The property by hilton is allready in the works. They are alleady looking to by the houses around that property trust me, i own one and they just recently came up to me to sell it. So dont tell me they are pulling out. The smoking ban effect will last untill PA bans too, then everything will be back to normal. No one can compete vs what atlantic city has now and no wway in hell to whats in its future.
you are NOT going to see a Total smoking ban in PA like we have here in NJ. ALL the politicians agree if anything is going to get passed it will have many exceptions like bars,clubs and casinos.

http://www.philly.com/inquirer/local/pa/20080...

Four of the six conferees supported exceptions in last year's bills, so the likelihood of a total ban emerging from the committee is remote.

Since: Feb 08

Location hidden

#13 May 12, 2008
Retired Jersey Boy wrote:
<quoted text>
you are NOT going to see a Total smoking ban in PA like we have here in NJ. ALL the politicians agree if anything is going to get passed it will have many exceptions like bars,clubs and casinos.
http://www.philly.com/inquirer/local/pa/20080...
Four of the six conferees supported exceptions in last year's bills, so the likelihood of a total ban emerging from the committee is remote.
FARES is correct. REVEL ENTERTAINMENT is moving ahead nicely and will probably make the 2010 scheduled opening date.

Once the NJ State's Attorney General completes it's investigation of Atlantic City local gov., perhaps the state will take over AC gov. and reverse the local smoking ban. Political correctness started the slide, high gas prices have made it worse.

Since: Feb 08

Location hidden

#14 May 12, 2008
Click here to find out more!
St. Louis Business Journal - May 12, 2008
http://stlouis.bizjournals.com/stlouis/storie...

Click here to find out more!
Business News - Local News Click here to find out more!
Monday, May 12, 2008 - 12:02 PM CDT
Admissions, revenue down at most St. Louis area casinos in April
St. Louis Business Journal - by Matt Allen

Of the six casinos in the St. Louis area, five suffered a decrease in admissions in April and only Ameristar Casino-St. Charles posted an increase in revenue, according to figures from the Missouri Gaming Commission and Illinois Gaming Board.

Revenue remained relatively flat at Ameristar, but did slightly increase to more than $25.0 million during April compared to $24.9 million in April 2007. The casino had a one percent decrease in admissions from 743,243 in April 2007 to 739,088 this April.

The Casino Queen in East St. Louis was the only casino in the St. Louis area to post an increase in admissions. The casino reported 186,142 admissions in April, up 17 percent from last April's 159,041 admissions. The Casino Queen was also the only casino in Illinois to post a year-over-year increase in admissions. However, the casino's revenue did fall more than 5 percent to $13.5 million, compared to $14.2 million in April 2007.

Admissions at Pinnacle Entertainment's Lumiere Place, which opened Dec. 19, fell more than 8 percent from March to 510,304 in April. Revenue in April was $13.1 million, a 6.9 percent drop-off from March's revenue of $14.0 million.

President Casino's admissions and revenue took a significant hit in April partially due to the casino temporarily closing for several days earlier in the month due to rising flood waters on the Mississippi River. Admissions fell 42 percent from last April's 219,853 to last month's 126,662. Revenue for the month was $2.6 million, down 51 percent from revenue of $5.2 million in April 2007.

Admissions for Harrah's St. Louis Casino and Hotel in Maryland Heights fell 19 percent last month to 626,463 from 769,918 in April 2007. The casino's April revenue declined 16 percent to $23.0 million from $27.2 million in the same month last year.

The Alton Belle Casino in Alton, Ill., reported a 27 percent drop in revenue to $8.0 million last month from $10.9 million April 2007. Admissions fell almost 17 percent from 121,726 to 101,099.

matthewallen@bizjournals.com

All contents of this site American City Business Journals Inc. All rights reserved.
voiceofreason

Ventnor City, NJ

#15 May 13, 2008
Again the taxpayers are being duped by corrupt polititians and developers. Why not get in writing there financials? Afraid of the truth, I suspect. As it stands with the Bashaw project, no money, haven't bought any property in area! Creative financing then flip property. Why not make all of AC look like Sands site? People just don't get what makes a city a city. Pathetic.
Fares

Northfield, NJ

#16 May 19, 2008
Wow... seriously? Dream on? The facts are there... Pay attention and you will see. Fact of the matter is real estate is a business, and Pinnacle is a business its going to go for its own interest. and that is... IT WILL MAKE MORE MONEY SELLING THE SITE!
Don

Hazleton, PA

#17 May 20, 2008
Fares wrote:
Wow... seriously? Dream on? The facts are there... Pay attention and you will see. Fact of the matter is real estate is a business, and Pinnacle is a business its going to go for its own interest. and that is... IT WILL MAKE MORE MONEY SELLING THE SITE!
And who will buy in A/C these days???.Just another Eyesore sitting there for years.A/C lost out to other states by Screwing ALL their customers.We don't need A/C anymore.Wait til Pa. gets Table Games here SHORTLY!!!

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