Pinnacle increases investment in St. Louis-area casinos
By Jim Salter
Associated Press
08/29/2005
ST. LOUIS (AP) -- Pinnacle Entertainment Inc. plans to substantially increase its investment in two casinos planned for St. Louis and St. Louis County, the company said Monday.
The Missouri Gaming Commission in September approved plans for Pinnacle casinos along the Mississippi River in downtown St. Louis and in Lemay in south St. Louis County. At the time, Pinnacle said it planned to spend at least $208 million on the downtown casino and $300 million on the one in Lemay.
Now, the Las Vegas-based company plans to spend about $400 million downtown and $375 million in the county.
The downtown casino will be on 18 acres in the Laclede's Landing area north of the Gateway Arch. Pinnacle's plans for the casino, scheduled to open in 2007, include 2,000 slot machines, about 40 table games and 200 luxury hotel rooms.
The additional commitment includes $45 million to purchase and refurbish the Embasssy Suites hotel. An additional $15 million is being spent to acquire more land around the casino site.
Pinnacle also has agreed to spend $50 million on residential development in the city, perhaps in the form of a condominium tower at Laclede's Landing. Pinnacle will pay a fine if it does not build the project within five years of opening the downtown casino.
"This level of investment makes Pinnacle a major force in the renewal of downtown St. Louis, and it will further strengthen our market position," said Daniel Lee, Pinnacle's chairman and chief executive officer.
"After examining the growth of the market and the status of the competition, we've decided to build a facility that is significant in both scope and quality. We intend to lead the currently underserved downtown gaming and entertainment market and today's announcement reflects that commitment."
The only other gambling boat in the city of St. Louis is the President, also at Laclede's Landing, which has struggled financially. Other St. Louis-area casinos include Harrah's Maryland Heights in northwest St. Louis County, Ameristar St. Charles in St. Charles, and two casinos on the Illinois side of the Mississippi -- the Casino Queen in East St. Louis and the Argosy Alton Belle in Alton.
In Lemay, Pinnacle plans to open a casino in late 2007 on a former industrial site. The company will build a four-lane road and a bridge over railroad tracks to the site, and create a county park on 24 acres of the 80-acre site.
The complex is expected to feature a 90,000-square-foot casino, 100-room hotel, retail space, movie theater and bowling alley. Lee said the company expects the Lemay casino to become a travel destination for the region.
"We have great confidence in the St. Louis County market," Lee said.
Pinnacle also operates casinos in Nevada, Mississippi, Louisiana, Indiana and Argentina, and receives lease income from two card club casinos in Los Angeles. The company opened casinos in Lake Charles, La., in May, and in Neuquen, Argentina, in July.
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On the Net:
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