Detroit Free Press from Detroit, Michigan • Page 8

8A DETROIT FREE FRES8 FRIDAY. AUGUST 19. 1994 U.S. OK of Greektown casino won't hurry Engler Everything he set we have met; now we look to the governor to keep his part of the bargain. Ted Gatzaros The mayor's willingness to negotiate with casino operators oversteps the instructions voters spelled out in the Aug.

2 casino referendum, said City Councilman Gil Hill, who campaigned heavily for the Greektown casino measure. "We have two new laws and one of them directs the mayor and council to negotiate with Ted Gatzaros and the Chippewa tribe for a casino at 1010 Beaubien," Hill said. "Until we have ruled them out, we should not be talking to anybody else." Associated Press contributed to this report. finding tours in Atlantic City and Las Vegas. They also would visit tribal casinos in Minnesota and the nation's largest Indian casino in Connecticut.

Last week, Archer visited New Orleans, where Harrah's Casinos plans to open a establishment that would take in $400 million a year. Harrah's has agreed to pay New Orleans $12 million to lease the gambling site, plus 5 percent of the proceeds. The casino also will pay the state of Louisiana $125 million during its first year and $100 million each year thereafter. Archer insisted any casino in De troit could meet his revenue-sharing requirements. "We're just setting high stakes," he said.

The city may also require casinos to hire employees who are Detroit residents. Detroit currently carries the heaviest tax burden in the state, partly because of its income tax 3 percent on residents, 2 percent on corporations and 1.5 percent on commuters. Archer said he hasn't decided whether the city should have one, two or three casinos, but said the city may take bids or conduct an auction for casino rights. Bureau of Indian Affairs, said a franchise fee has never been attached to a tribal casino. In fact, the federal government has rejected some state-tribal agreements where the state required revenue sharing from the casino.

Tribes, however, have reimbursed local governments for city services. "We'd just have to look at what comes down," he said. Archer said Thursday he will appoint someone in the next 30 days to review Detroit's casino gambling options. He also said that, by Dec. 1, he, Police Chief Isaiah McKinnon and other city officials would conduct fact Archer's proposals.

Bob Walker, spokesman for the 7 There's A New Name In 1 OWN Casino, from Page 1A foot casino at 1010 Beaubien St. The tribe would give 8 percent of slot machine profits to the state and has offered to give the city 5 percent of its profits or a minimum of $20 million, plus another 2.5 percent for a redevelopment fund for the city or a minimum of $10 million. Casino operators estimate it would employ 4,500 people. The casino would offer only gambling, having a less negative impact on Detroit's economy than a fortress-style casino that includes hotel and eating facilities in the casino building, said John Hatch, spokesman for the Sault Ste. Marie Tribe of Chippewa Indians.

"This leapfrogs us ahead of any other gaming interest in Detroit, Hatch said of Babbitt's decision. "We have the land in trust. We could be ready to open up in six months." Engler has said he opposes more casinos but would consider one if it were part of an economic development plan for Detroit. Engler wants his study commission to determine how a casino would affect crime and unemployment in Detroit and the city's economy. His spokesman, John Truscott, said Thursday that the governor's study commission, consisting of about a dozen members, would be appointed this week.

But Truscott said it wouldn't report back to Engler before the end of the On Aug. 2, Detroit voters overwhelmingly approved two gaming issues one allowing a casino in Greek-town and the other allowing a casino on a boat docked on the Detroit River. On Aug. 10, Harrah's Casino Hotels announced plans to build a $300-mil-lion casino and 400-room hotel on a 10-acre plot near the Fox Theatre in downtown Detroit. Michigan's seven American Indian tribes would own the casino and Harrah's would manage it.

Like the Greektown plan, the Foxtown plan would require approval from the U.S. Bureau of Indian Affairs, Engler, and Archer. The riverboat plan would require approval by the Legislature. The mayor said Thursday that he will demand, in addition to a franchise fee and enough gambling revenue to cut city income and corporate taxes, that a casino owner pay associated costs such as police and fire protection. Archer didn't say how much money he would seek.

The corporate and individual income taxes raise about $296 million a year and provide some 13 percent of all city revenue. "Either Detroit is dealt a winning hand or we will call off the game," Archer said at a news conference where he spelled out his criteria for casino gambling in Detroit. "1 want no less for our cities than other cities have." Truscott said Archer's request seems reasonable and predicted that Engler and the Legislature would demand a state cut, too. "I can't imagine the governor or Legislature allowing anything to happen unless there's compensation for the state," Truscott said Federal officials are skeptical of WHAT DID THAT HOUSE SELL FOR? Buying a home and wondering if the asking price matches the going rate? Refinancing and wondering what homes in your neighborhood are selling for? Free Press Plus offers the new easy-access Home Sales Line that can provide you with instant key information on home pricing. Follow these five easy steps: 1.

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