City pegs cost of casino land at $247 million

Land acquisition, environmental cleanup, road reconstruction and other infrastructure improvements along the Detroit River will cost the casino developers $247 million, according to an estimate by the city.

Under Detroit's agreement with the developers, the parties can reconsider whether to go ahead with the casinos at their planned location on 100 acres just east of downtown if the estimate had exceeded $250 million.

Finding another location for the projects, valued at nearly $2 billion combined, would have meant more delays. Michigan voters approved casino gambling for Detroit two years ago next month, but even the temporary casinos sought by the developers have yet to open.

"I've not had a chance to review (the estimate), but based on the preliminary findings, I'm cautiously optimistic," Mayor Dennis Archer told the Detroit Free Press in a report published Thursday.

Casino officials have said they probably would accept a figure somewhat exceeding $250 million. But they remain leery of the city's estimate that land acquisition alone will cost $154 million, the newspaper said.

The actual price could depend on whether the city buys the riverfront properties through negotiations or has to go to court to acquire the land by condemnation.

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