This links to the text of remarks by Detroit Mayor Dennis Archer on November 20, 1997. At that time he announced his final three choices to develop and manage Detroit’s three commercial casinos as provided for under the passage of Proposal E in 1996.
The post is a great backgrounder on the Detroit casino chronicles leading up to the selection of MGM, Detroit Entertainment LLC (dba MotorCity Casino) and Greektown to develop and manage Detroit's three Las Vegas-style casinos.
In the 1970s former Mayor Coleman Young had been the first to propose consideration of gaming in Detroit as a catalyst for economic development. In making his announcement Archer chronicled the quest for Detroit casinos beginning in 1994 advisory measure to repeal Detroit’s ban on Gaming. That had been backed by local business people including Herb Strather, Nellie Varner and the group that formed the Greek Town team.
Archer explains how Governor John Engler blocked Detroit’s desire even after a blue ribbon committee and others had approved Gaming in Detroit and then to the eventual passage of statewide Proposal E in 1996 which included preferences for development teams that included local business and community leaders.
Archer detailed how it was he came to pick the three finalists over teams that included Mandalay Resort Group, Don Barden, Trump and Paradise Valley Rio. (later Circus Circus would merge into Mandalay Resort Group and so Mandalay ended up as part of the Detroit Casino scene anyway).
Marian Ilitch was a substantial partner in Atwater Casino Group (ACG) at the time Archer awarded one of three casinos to the partnership known as Detroit Entertainment LLC (DELLC). Circus Circus Michigan (Mandalay Resort Group) controlled majority interest in DELLC. ACG controlled 45% of DELLC most of which was owned by Marian Ilitch and was one of six ACG reps on the Management Committee yet Archer stated:
Fast forward to 2005, Marian Ilitch acquired outstanding shares of DELLC and is said to have sole control over MotorCity Casino although Ilitch Holdings wasn’t any better off in 2005 then it was in 1997; and the major Casino development phase (and requisite financing) that Archer had anticipated back in 1997 had still not begun as all three casinos were still in their temporary facilities.“The Atwater Casino Group recognized that it did not alone have the capital and the knowledge and experience to construct and manage a mega casino complex of the size and sophistication that we are contemplating for Detroit. Although others may not agree with his partnership decision, many analysts and other observers will readily assert that Herb Strather made a shrewd business judgment that married the business assets of both partners and put Atwater Casino Group in the best position to compete successfully in this selection process. “
Mayor Dennis Archer
November 1997
The Atwater group including Marian wasn’t substantial enough, in Archer’s eyes to take on a project like MotorCity casino in 1997 but somehow on her own Marian Ilitch is capable of taking on MotorCity Casino and the development of the permanent casino and hotel in 2005? Just one more curious set of circumstances.
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