Diamondhead Casino enters LOI with Phoenix
Published: December 17,2010
DIAMONDHEAD — On Dec. 10, Diamondhead Casino Corporation (DCC) entered into a letter of intent (LOI) with Phoenix Gaming and Entertainment, LLC.
DCC owns, through its wholly-owned subsidiary, Mississippi Gaming Corporation, approximately 404 acres of land in Diamondhead on the Mississippi Gulf Coast. The company has been trying since the 1990s to build a gaming venue in Diamondhead.
Under the LOI, Phoenix proposes to purchase 25 acres of land for $1 million per acre to be used, in part, for the construction of a casino. DHCC has agreed to give Phoenix an additional 15 acres of land to be used for the construction of roadways and right-of-way requirements, greenery, buffering, on-site mitigation and/or the footprint for a possible parking garage.
Under the LOI, DHCC retains the right to construct its own casino on the remaining land, but Phoenix gets the right of first refusal with respect to any additional, future gaming development by other parties on the property.
The LOI is a non-binding agreement and unless and until DHCC and Phoenix sign a definitive agreement, the relationship between the parties will be non-exclusive and DHCC will be free to continue discussions with other interested parties. Unless extended by the parties, the LOI will automatically terminate if no definitive agreement is in place by Jan. 31, 2011.
In a non-related item, Steve Norton, who has been a director of the company since 2002, announced that he was resigning from the board of directors of DCC. It was felt that Norton, who has been active in the gaming industry for many years, had a personal and business conflict of interest, the company said.
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