Detroit council backs Mayor Archer's casino plan

The Detroit city council Thursday narrowly approved a divisive, $1.8 billion plan to develop three riverfront casinos, making the city the largest in North America to authorize land-based casino gambling.

Council members ended a week of heated public hearings and intense lobbying by Detroit Mayor Dennis Archer by approving development agreements with three groups that plan to build casino and hotel complexes on Detroit's east riverfront.

Archer, who initially opposed the move to bring legalized gambling to the once-thriving U.S. automotive capital, said the three complexes would bring 11,000 construction jobs and 15,000 permanent positions -- full time and part time -- to a city center in need of economic rejuvenation.

The proposal ran into opposition from a variety of fronts. Business, neighborhood and church leaders were angry over Archer's last-minute decision to switch the gambling district site to a 57-acre warehouse area on the riverfront.

Some in the city's African-American community remain upset that none of the casino operators Archer selected has a majority of black investors. About 80 percent of Detroit's residents are African-American.

Two of the casino operators are nationally connected: Atwater/Circus Circus Enterprises Inc. (CIR.N), which has said it will build a $600 million complex and create 3,800 jobs; and MGM Grand Inc. (MCG.N), which will build a $602 million casino and hotel with 3,400 jobs.

The third license will go to the Greektown group, comprised of local investors and the Sault Ste. Marie Tribe of Chippewa Indians. That group has pledged to build a $519 million project that would employ 4,000 people.

There are still some obstacles to be overcome before the casinos have a clear green light. A state gaming board must license the casinos, and there is an August ballot measure that seeks to create a black-owned casino.