For the second time in six months, local investors in the proposed Foxwoods Casino will present state gaming regulators with a new partner and a plan to revive the stalled South Philadelphia project.
This time around, they have a deal with Harrah's Entertainment to step in as both investor and operator of the waterfront gambling hall. Because Harrah's already has a casino 15 miles away in Chester, it is allowed by Pennsylvania law to have only a one-third stake in Foxwoods.
In an announcement Tuesday, the local investor group - Philadelphia Entertainment and Development Partners (PEDP) - said it planned to work with Harrah's to build a $438-million casino with 1,500 slots and 70 table games on Columbus Boulevard, between Tasker and Reed Streets.
Earlier this year, Las Vegas gambling mogul Steve Wynn appeared ready to mount a similar rescue. But in April, he abruptly dropped out of negotiations.
Now, for the Foxwoods Casino to move forward, the new Harrah's partnership must persuade the Pennsylvania Gaming Control Board not to strip the project of its license due to chronic delays.
The commissioners will take up the revocation question Wednesday. They could decide to hold a full hearing on the motion, or make a summary judgment based on documents and depositions already in hand.
Doug Harbach, a board spokesman, said the seven members could vote immediately or take the matter under advisement.
The new group has retained the Keating Building Co. to develop the casino, which could be up and running in 20 months, said Stephen A. Cozen, a lawyer for the local partners.
Chairman Dan Keating said his company had been involved in the initial design work. Keating Building also constructed the SugarHouse Casino, which opened last month along the Delaware in the Fishtown section.
In addition to securing regulatory approval, the parties still must work out final details and arrange "acceptable financing," Cozen said.
The new group will have to raise $275 million in debt and equity to finish the project. Existing partners already invested $163 million, mostly for the land and $50 million license, Cozen said.
He added that Harrah's would convert money it is owed by local investors into an equity position in the new deal. In 2005, a Harrah's affiliate sold them the 16-acre lot for the casino - a deal now valued at $52 million.
Citizens Bank, which is owed $60 million, also will exchange its debt for an equity stake, Cozen said.
