Chicagobusiness.com
Ending a political saga that's stretched for two decades, developers of the new Des Plaines gambling casino will break ground on April 16 - finally.
Officials at Midwest Gaming & Entertainment say the final piece in the way of construction fell into place last week, when an agreement was reached for the firm to borrow $175 million for the long-awaited 10th Illinois casino.
With the borrowing scheduled to close later this week and final approval from the Illinois Gaming Board in hand, construction can begin a week from Friday, a spokesman said.
Midwest Gaming, headed by Chicago developer Neil Bluhm, is financing the casino with funds from Goldman Sachs and Credit Suisse First Boston. Overall, the firm has arranged for $285 million in financing, with some available for construction now and the remainder in about a year for slot machines and other equipment, and to pay the state a license fee.
Midwest still has not released a name for the facility, to be located at Devon Avenue and Des Plaines River Road. But, given the 10th license saga, you probably can rule out calling it "Ba Da Bing!," and it's unlikely to be named after Donald E. Stephens or George Ryan.
The 10th license was authorized by the Illinois General Assembly way back in 1990. But a political and legal uproar resulted after former Gov. Ryan tried to steer the license to suburban Rosemont and its influential mayor, the late Mr. Stephens, despite allegations of mob involvement.
The state ended up rebidding the license, with Mr. Bluhm's group emerging as the winner. But as the economy plummeted last year, some wondered whether he would proceed with the Des Plaines project, and whether he would be able to finance it.
Now, we know the answer, though the Bluhm group will have to pay a blended rate of about 11%.
The grand opening tentatively is scheduled for Labor Day weekend, 2011.
