Yesterday, Diamondhead Casino Corp. announced that they agreed to extend a Letter of Intent (LOI) entered into with Phoenix Gaming and Entertainment, LLC (Phoenix) for sixty days.
Diamondhead Casino Corp. owns, via their wholly-owned subsidiary, Mississippi Gaming Corporation, approximately 404 acres of land in Diamondhead, Mississippi. The property is lien-free and debt-free and the zoning is for a casino as well as other commercial uses. The property fronts Interstate 10 for approximately two miles and the Bay of St. Louis for approximately two miles.
Diamondhead Casino Corp. (DHCC) entered into an LOI with Phoenix on December 10, 2010. Under the LOI’s terms, 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.
DHCC retains the right to construct their own casino on the remaining land. However, 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 shall be free to continue discussions with other interested parties.
The Letter of Intent was originally scheduled to terminate automatically on January 31, 2011, if no Definitive Agreement was in place. The parties have agreed to extend this termination date to April 1, 2011. DHCC remains in discussions with other parties with respect to the remainder of the property.
Phoenix Gaming and Entertainment, LLC was originally founded by Edward M. Tracy, now President and Chief Operating Officer of Sands China Ltd. Phoenix operations are now managed by James Ahearn, who serves as Chairman and Chief Executive Officer of the Company and David Jonas, who serves as President and Chief Operating Officer of the Company.
Mr. Jonas recently served as Chief Operating Officer of Philadelphia Park Casino and previously served as regional President in charge of Harrah’s four Atlantic City casinos (Caesars, Harrah’s, Bally’s, and Showboat).
Speaking on behalf of Phoenix, Mr. Jonas stated, “We are very excited about the Diamondhead project and the potential revenue it can generate because of its location on a major interstate highway. This is a unique opportunity because approximately 18 million vehicles pass the site annually, an attribute which other competing casinos in the area simply do not enjoy.”
Diamondhead Casino Corporation has their headquarters in Largo, Florida.