Can another casino be squeezed onto Point Cadet?
A group of homeowners and others who own small parcels of land between the Palace Casino and U.S. 90 are pooling their properties to lure another casino developer to Point Cadet.
But the biggest financial beneficiary could be the city of Biloxi. It owns the waterfront locations crucial for any casino development. One is the Point Cadet Plaza. The other is a parcel north of the plaza that the Isle of Capri leases for employee parking.
Mayor A.J. Holloway is working behind the scenes to make the deal a reality. One of the companies he’s courting is Ameristar Casinos, but others are also interested.
“I think it’s a fantastic location,” Holloway said.
Casino Row could be extended around the bend of Point Cadet, putting five or more gambling resorts within easy walking distance especially with the construction of a waterfront boardwalk.
No hearings have been held on the future use of the city-owned land, but the news is out about the proposal and so far there’s been no public outcry. Two important cultural centers, the Seafood Industry Museum and Slavonian Society lodge, are located there.
Members of the Slavonian Society, which is a private club, may decide to sell their property. I doubt, though, that the Seafood Museum will move.
The city should require any casino development to accommodate the needs of the museum, which is a great tourism attraction in its own right and an invaluable historical resource.
The loss of the Point Cadet Plaza, an old aircraft hangar, would displace several festivals and the farmers market. Biloxi residents and the people they elect will have to make some hard choices.
Some legal issues would also have to be resolved.
The Isle of Capri has the right of first refusal for a casino development on the property it leases for employee parking. Talks have begun.
“We’ve had a chance to speak with the mayor,” said Tim Hinkley, president and chief operating officer of Isle of Capri Casinos Inc. “That’s about all I can say on that.”
With the other city-owned parcel, the Point Cadet Plaza, Biloxi would have to get permission from the Secretary of Interior before converting it to commercial use. It might even take an act of Congress. The reason is deed restrictions.
In 1972 when the federal government gave the city the old Coast Guard property, it stipulated that the land “shall not be sold, leased, assigned or otherwise exposed of except to another governmental agency that the Secretary of the Interior agrees in writing can assure the continued use and maintenance of the property for a public park or public recreational purposes.”
With all these hurdles, why is Holloway pushing to make this deal a reality? After all, Biloxi already earns millions of dollars in taxes from casinos.
Rental income is a different matter.
Biloxi used to receive all the rental income from the Isle for another parcel of land south of U.S. 90 where the company’s casino and hotel are located. Not anymore. The city now splits the rent with the state College Board and the the state Tidelands Fund. In the future, as existing leases expire and are renegotiated, the city could end up with zilch.
Secretary of State Eric Clark claimed the 13 acres at the southeast tip of Point Cadet as state tidelands about three years ago to settle land use disputes between the city, the state university system and the Isle.
To put it in simple terms, the state took the city’s land.
Source: Sun Herald