Boyd's casino in AC bigger, costlier

Boyd Gaming Corp. of Las Vegas detailed plans today for the Atlantic City casino it plans to build with Mirage Resorts Inc.

Plans for "The Borgata" call for a considerably larger resort than previously announced. The Italian-themed hotel-casino will include 1,500 rooms -- up from the 1,200 announced last summer and the 1,000 originally planned -- and 120,000 square feet of gaming space. Its cost will reach $750 million, considerably more than the $500 million originally envisioned for the project.

The Borgata, which means the village, will be designed in the Italian style increasingly common to casino resorts.

"At the Borgata, we want to create the ambiance of an Italian village reflective of what Italy is today, a balance of traditional and contemporary settings, set to a high-energy beat," said William Boyd, chairman and chief executive of Boyd, in a statement.

Several other new or in-development resorts, including the Bellagio and Venetian in Las Vegas, will carry Italian themes.

In Las Vegas, Boyd is best known as the owner of the Stardust and Sam's Town hotel-casinos as well as some downtown properties.

The Borgata will adjoin a planned 2,000-room Mirage-owned resort on the H-Tract in Atlantic City. Groundbreaking is scheduled for fall, and the resort is expected to open in mid-2002.

Amenities will include eight restaurants, a variety of shops, a European health spa, a performing arts theater and a nightclub. The casino will include 120 table games and 3,000 slot machines.

The $750 million price will be paid with $150 million equity contributions from both Boyd and Mirage, and with $450 million in debt financing.

Boyd said the Borgata marks a "milestone" in the company's plan to penetrate other gaming markets. The resort will be a significant departure from other Atlantic City resorts, he said.

"We intend to attract visitors to Atlantic City who never before considered it a true entertainment resort destination," said Boyd.

Boyd Gaming also announced two executive appointments to the Borgata. Robert Boughner was named chief executive of the resort, and Kevin Sullivan was named vice president and project manager. Boughner will continue to serve as Boyd's senior executive vice president and chief operating officer. Sullivan is currently Boyd Gaming's vice president of planning.

archive