Detroit Mayor, council extend casino deadline

The council now is expected to vote Friday on the development agreements for permanent locations for MGM Grand Detroit, MotorCity and Greektown casinos.

Some council members still question certain aspects of the deals, including oversight and minority hiring, but most seemed to favor the proposals, the Detroit Free Press reported Wednesday.

"We feel confident that by Friday, we will have the five votes we need to get the agreement approved," said Derrick Miller, Kilpatrick's chief administrative officer.

Operators of the MGM Grand Detroit Casino have announced their plan to build a new $500-million casino with a 400-room hotel on land north of their temporary downtown site.

The site near the Lodge Expressway is owned by DTE Energy.

This week, Kilpatrick proposed a new gambling tax for recreation construction projects.

The tax would be 1 percent on each casino's revenues up to $400 million and 2 percent on those over $400 million. Kilpatrick said that could raise $400 million to $600 million over the life of the 30-year agreement.

MGM Grand bid $12.5 million in April for the State Plaza, a state office building.

But John Redmond, president and chief operating officer of MGM Grand Resorts, said the casino notified the state and others Tuesday that it would not proceed with that purchase.

He said he reached terms with DTE for its site Tuesday.

"We love the site, and that's where we would like to put the facility," Redmond told The Detroit News.