Trump,
Diamondhead to Form JV for Mississippi Casino Resort
Trump
Entertainment Resorts Inc. will join with Diamondhead
Casino Corp. to develop, build, 
and
operate a destination casino resort on a 404-acre
tract in Diamondhead, Miss.
The
companies have signed a letter of intent to form
a joint venture partnership for the project, to
be located on a parcel of land owned by the Mississippi
Gaming Corp., a wholly owned subsidiary of Diamondhead.
Fronting Interstate 10 and the Bay of St. Louis,
the property is zoned as a Special Use-Waterfront
Gaming District by Hancock County. The casino property
itself will occupy a minimum of 40 acres of the
404-acre site.
The
property is zoned as a Special Use District-Waterfront
Gaming District by Hancock County. On October 17,
2005, following Hurricane Katrina, Mississippi Governor
Haley Barbour signed a bill into law that permits
casinos to be built on land up to 800-feet from
the mean high water line of certain bodies of water.
The new law applies to the Diamondhead property.
"We
believe a partnership with Trump Entertainment Resorts
for this venture adds up to an ideal combination
because of their experience, the value of the Trump
brand, the location of our site on Interstate 10
and the vitality of the Gulf Coast market,"
said Deborah A. Vitale, the Chairman, Chief Executive
Officer and President of Diamondhead.
"We
have the land, the location and the desire to pursue
a master plan for the entire tract that should not
only enhance long term shareholder value, but which
should significantly enhance the surrounding economy."
A spokesperson for Trump Entertainment Resorts expressed
confidence that the area would be able to support
a resort property of this type, despite the effects
of Katrina and possible fears of future hurricanes.
"We
believe the marketplace is very strong, and can
support this type of venture," the spokesperson
said. "We also are interested in being a partner
in the rebuilding effort."
He also pointed to the property's location near
a major highway as a particular asset. "It's
a great location, right off Interstate 10, which
essentially is the northern border." The spokesperson
declined to provide further details about the project,
including estimated cost, development timeframe
and whether the individual hotel suites would be
available to buyers as hotel condos, noting that
the project was still in the preliminary stage.
We
are focused on our corporate development initiatives
and expanding the Trump brand into new markets,"
James Perry, president and CEO of Trump Entertainment,
said. "We are excited about the prospect of
bringing the Trump brand to the Gulf Coast, and
we hope to join private and public entities in redeveloping
the region."
About
Trump Entertainment Resorts
Trump Entertainment Resorts, Inc. ("TER")
is a leading gaming company that owns and operates
three properties. TER's properties include Trump
Taj Mahal Casino Resort and Trump Plaza Hotel and
Casino, located on the Boardwalk in Atlantic City,
New Jersey, and Trump Marina Hotel Casino, located
in Atlantic City's Marina District.
Together,
the properties comprise approximately 371,300 square
feet of gaming space and 3,180 hotel rooms and suites.
TER is the sole vehicle through which Donald J.
Trump, TER's Chairman and largest stockholder, conducts
gaming activities and strives to provide customers
with outstanding casino resort and entertainment
experiences consistent with the Donald J. Trump
standard of excellence. Trump Entertainment Resorts,
Inc. is separate and distinct from Mr. Trump's real
estate and other holdings.
About
Diamondhead Casino Corporation
Diamondhead Casino Corporation ("Diamondhead"),
through its wholly-owned subsidiary, Mississippi
Gaming Corporation, owns and intends to develop,
in cooperation with a joint venture partner, approximately
404 acres of land in Diamondhead, Mississippi. Diamondhead
intends to develop the property as a destination
casino resort and hotel with condominiums and other
amenities.
