City of Gulfport taps Natchez casino developer in $140M plan
Published 5:00 pm Wednesday, January 27, 2016
GULFPORT, Miss. (AP) — Gulfport city officials on Tuesday named a developer who helped build a casino in Natchez to build a second casino in the Gulf Coast city.
Mayor Billy Hewes announced that the city has chosen Mississippi Coast Entertainment LP to build a $140 million casino complex at the city’s small craft harbor. The company is led by Robert Lubin, who developed the Magnolia Bluffs Casino in Natchez, in part using money raised by foreigners who can get visas to enter the United States by investing money that creates jobs.
The company is proposing a 300-room hotel, an entertainment venue, a parking garage and an additional attraction that hasn’t been announced. The Mississippi Gaming Commission, which must approve any casino plan, demands new entrants bring special amenities in an attempt to bring more gamblers to Mississippi.
The Natchez casino opened in 2012, and became the only casino in Natchez last year when Isle of Capri closed its dockside casino, which had operated under various names since 2003.
The privately-owned Island View Casino, with nearly 1,600 employees and 2,000 slot machines, is currently Gulfport’s only gambling hall. Gulf Coast cities have worked to lure casinos because of the taxes they pay. The $290 million Scarlet Pearl casino became D’Iberville’s first gambling hall when it opened Dec. 10. After a decline, Gulf Coast casinos overall have seen an increase in revenue in the last year.
The Gulfport City Council discussed terms of a proposed lease in a closed session Tuesday night. Hewes told the Sun Herald (http://bit.ly/1PCg4Vh) that the Gulfport Redevelopment Commission selected the plan over two others, including one from Island View.
“He had the best presentation,” Hewes said, noting Lubin has previously been approved by the Gaming Commission. “He committed the largest investment. He has to a great degree already been vetted. I think that was part of the appeal, too.”
Mississippi Coast Entertainment has not yet named the proposed resort. Foreign investors can secure permanent residency through the program by investing as little as $500,000 in an American business. Lubin’s law firm says on its website that it created 27 major development projects by April 2014, including raising $23 million for Magnolia Bluffs. The company has also bought the Eola Hotel in Natchez and built a Hilton Garden Inn in Natchez using money from the visa program, called EB-5.
Gulfport previously terminated a lease with Rotate Black, which had proposed to spend $170 million to build Hemingway Resort and Casino. Though it won state approval, Rotate Black couldn’t raise money to build its casino, and lost its lease on parcel near Jones Park in downtown Gulfport in part because it fell $375,000 behind on its rent.
