Pinnacle proposes passing property (6/21)

Posted June 21, 2009 at 12:15 am
Filed Under News | Leave a Comment

By ERIC CORMIER
AMERICAN PRESS

A proposed land transfer involving Pinnacle Entertainment and the city of Lake Charles has the potential to become the last piece of the puzzle in the development of the lakefront.

Before the deal can be finalized, Mayor Randy Roach’s administration wants to know the condition of the land south of Interstate 10 that makes up the former Players International (and later Harrah’s) casino complex that includes a hotel and parking garage.

“Pinnacle wants to transfer the land in lieu of a $5 million impact fee to the city for utility and safety services for Sugarcane Bay. The proposal creates a whole new dynamic for the city’s lakefront efforts,” Roach told the American Press Saturday.

Last weekend, the newspaper published a story in which Pinnacle Entertainment chairman Dan Lee stated that he wanted to donate the land to the city. A recent appraisal by the company of the lakefront property placed its value between $5 million and $10 million.

If an agreement can be reached between the city and Pinnacle, Roach wants taxpayers to know “we will still get the value. We’ll get $5 million or more in the way of land, not cash right now. But then we could dispose of the land or lease it and then get the revenue.”

Roach said his office received a letter of intent from Pinnacle this week. The paperwork is being reviewed by the administration, which intends to respond to the correspondence with “conditions relative to transfer.”

The mayor explained that several steps need to be taken that include an appraisal of the land, engineering review and environmental inspection.

Adlay Cormier, the new chairman of the Downtown Development Authority, wants to make sure the city doesn’t obtain a piece of land that could drain city financial resources.

“That property may still have some storm damage. If we have to do a remediation project, it could be expensive. We have to investigate all of the ramifications. Money we could spend on remediation is money we could be spending for rebuilding in the lakefront and downtown area,” he said.

The DDA is responsible for overseeing and advising the city in regards to growth and development in the downtown and lakefront districts.

If the Pinnacle property passes inspection, Cormier said “it could be a nice corner piece for the development we’ve started on the lakefront. The property has potential for great development, but it’s also a mysterious package.”

Roach said flooding from two hurricanes, possible uses for the property and pending litigation makes the potential land transfer a delicate matter.

A lawsuit against Pinnacle has been filed by in state and federal courts by Jebaco — the city’s first riverboat casino developer. Roach said the city has no intention of getting involved in that.

“That is one issue we have to evaluate. I don’t want to put the city in position to litigate that issue. But that is something we have to work out with Pinnacle,” Roach said.

Should the city acquire the property, it will allow for the construction of a harbor behind the hotel.

“The city hasn’t been able to move on that concept because of the uncertainty of the property,” Roach said.

Both the City Council and Pinnacle board of directors would have to approve the deal.

Rating: 0.0/5 (0 votes cast)

Comments

What's on your mind?

Use this form to comment on the article above. This box is not intended to be a forum for readers to ask questions of the newspaper staff, but to express their thoughts about the article. To contact the News department, e-mail news@americanpress.com.