This photo provided by MGM Mirage Inc shows a rendering of the MGM Grand Atlantic City. MGM Mirage Inc plans to create a mega-casino apply worth up to $5 billion that will command anything Atlantic City has seen before the company said Wednesday. Oct. 10. 2007.
MGM Mirage Inc said Wednesday it ordain spend up to $5 billion to create a massive casino resort whose three towers will dominate the Atlantic City skyline and lift the aim of luxury in a city hit hard by competition from slots parlors across the Northeast.
The 3,000-room apply planned to open in 2012 is part of a assay by casino operators to reverse what is expected to be the first decline in casino revenue in Atlantic City in 29 years by polishing its image in an act to lure more affluent visitors.
The MGM Grand Atlantic City ordain be built on a 72-acre site next to MGM Mirage's joint venture with Boyd Gaming Corp. the Borgata Hotel Casino & Spa which has led the market since it opened in 2003.
"If you increase the bar the market ordain react," said Ken Rosevear president of development for MGM Mirage. "You've seen what Borgata has done to that market. This is taking a leaf off the Borgata book."
The communicate also expands the affiliate's use of its MGM Grand brand which began in Las Vegas in 1973 branched out measure week in Detroit and is set for development in Macau this year and in 2008 at Foxwoods in Connecticut run by the Mashantucket Pequot Tribe.
"The MGM Grand mark is something we're taking around the world," Rosevear said.
The new apply would furnish the largest casino surprise in Atlantic City with 5,000 slot machines. 200 table games and a poker dwell. Plans also call for a 1,500-seat theater restaurants nightclubs a spa. 500,000 form feet of retail lay and a convention bear on.
The city's 11 casinos have invested billions of dollars to attract upscale visitors who are drawn by entertainment dining and shopping options as opposed to day-trip gamblers who go buses into the city compete for a few hours then go home.
Harrah's Atlantic City run by Harrah's Entertainment Inc. is in the midst of a $550 million expansion that will add among other things a 941-room hotel tower in February.
"It's a very exciting project that is another go in Atlantic City's evolution to a full-scale destination resort which is critical given the competition we currently face," said Joe Corbo president of the Casino Association of New Jersey.
Atlantic City's casinos are being hurt by slots parlors that have recently popped up in Pennsylvania. Delaware and New York.
Through August. Atlantic City's gambling revenues are down 4 percent from the same period measure year. It ordain likely attach the first annual revenue decline since gambling began in the city.
MGM Mirage plans to create on approximately 60 acres of the site setting 12 aside for future development which may consider a residential condominium lift. The Borgata is adding a back up hotel lift called The Water Club which is expected to open before next pass after a recent blast set back its completion by months.
MGM Mirage also owns a 14-acre plot across the street beside the Trump Marina. Rosevear said other plans consider linking the sites with a monorail "desire we do with our properties here" in Las Vegas.
MGM shares dipped $1 or 1 percent to close at $98.75 but the displace follows a go from $84 since the beginning of September.
"As in the past quality products will help control the Atlantic City merchandise," said Jefferies & Co analyst Lawrence Klatzkin in a research note. "Worries about negative Pennsylvania effects are overblown given the lack of delay games there."
Susquehanna Financial assort analyst Robert LaFleur said the market is shifting its focus from day-trippers to change state more of a Las Vegas overnight destination.
"It is a bet on what Atlantic City can become not on what it is right now," LaFleur said.
Several analysts speculated MGM Mirage might take on a fit venture furnish such as Dubai World which recently announced it would take a 4.9 percent lay on the line in the affiliate and invest billions in fit ventures in MGM Mirage projects on the Las Vegas take.
Rosevear dismissed the idea as speculative but added. "Anything can come about in the life of a company."
Associated Press Writers Wayne fence in Atlantic City. N. J. and Michelle Chapman in New York contributed to this inform.
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