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President completes sale of local casino to Pinnacle

St. Louis Business Journal - 10:56 AM CST Thursday

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President Casinos Inc. said late Wednesday that it completed the sale of its St. Louis operations for about $31.5 million in cash and hasn't determined whether it will liquidate or continue operations in some form.



St. Louis-based President Casinos Inc. (OTC: PREZQ.OB) sold all the capital stock of its St. Louis casino subsidiary, President Riverboat Casino-Missouri Inc., to Pinnacle Entertainment Inc. (NYSE: PNK). The dollar amount of the deal, first announced in February, is subject to certain post-closing adjustments, according to a release. Pinnacle said in a release early Thursday that the effective purchase price is about $45.7 million, subject to subsequent reductions.





The parties involved in alternative bankruptcy reorganization plans for President Riverboat Casino-Missouri's Chapter 11 bankruptcy reached a settlement in October that allowed Pinnacle Entertainment's purchase of the firm proceed.



Fort Mitchell, Ky.-based Columbia Sussex Corp. won a bid for President's St. Louis operations in October 2004, but bowed out of the $57 million deal in October 2005.



Proceeds from the sale of President's St. Louis casino will be placed in a trust for distribution in accordance with the bankruptcy reorganization plan previously confirmed by the court for President Riverboat Casino-Missouri Inc., according to a release.



President Casinos Inc. (OTCBB: PREZ) filed for bankruptcy in June 2002. Following the sale of its St. Louis operations, President Casinos Inc. said its remaining assets consist primarily of cash and certain pending litigation claims. The company remains in Chapter 11 bankruptcy reorganization proceedings, and said Wednesday that it hasn't determined whether it will liquidate or continue operations in some form, or whether any assets will be available for distribution to stockholders.



The President's St. Louis casino, which now has about 800 slot machines and 30 game tables, is located on the Mississippi River within walking distance of the Laclede's Landing historic district and Pinnacle's under-construction $430 million casino project in downtown St. Louis, named Lumiere Place. The new casino and resort is expected to be completed in November 2007.



Construction also is under way for Pinnacle's new $375 million River City Casino & Hotel in Lemay, Mo., which will open in 2008.



Pinnacle Entertainment Inc. is a Las Vegas-based company that owns and operates casinos in Nevada, Louisiana, Indiana, Missouri, Argentina and the Bahamas.

littlestar wrote:anyone else see smoke on the dt skyline a few minutes ago? It seemed to be coming from this area and I think I saw smoke on their webcam. It's gone now though, except for a haze in the sky.

Pinnacle said in its quarterly release that Lumiere Place is on schedule for a fourth-quarter opening, subject to state licensing. The budget for Lumiere Place is currently under review by management, but is expected to increase from $430 million to a total of about $475 million to $495 million due to certain changes in scope and construction cost increases, according to the release.

Downtown Diary

By Doug Moore

ST. LOUIS POST-DISPATCH

03/05/2007



A "pedestrian vestibule" at Baer Plaza will give people access to a tunnel linking the Edward Jones Dome to a new hotel and casino on Laclede’s Landing. The portal will replace an area used by Rams fans for tailgating.



The builders of a casino and luxury hotel on Laclede's Landing had to find a way to link downtown to their $430 million investment. But how best to overcome the elevated Interstate 70, a huge obstacle?



The original concept was a sky bridge that would carry pedestrians from a spot near the Edward Jones Dome over I-70 and into the Landing.



That idea, however, was tossed aside. It was not feasible, based on the grade of the land, according to Pinnacle Entertainment Inc., the company building Lumère Place, a casino and 24-story luxury hotel just north of the Martin Luther King Bridge.



Instead, the developers have chosen to build a 500-foot-long tunnel. They will burrow 30 feet under Fourth Street, I-70 and Third Street. The idea is to easily link the Dome, America's Center and Washington Avenue to the landing — specifically Lumière Place. The elevated interstate has served for decades as a physical and psychological barrier dividing the landing from the rest of downtown.



"The city has sought for a long time a solution to the barrier that is Interstate 70," said Pinnacle spokesman Mack A. Bradley. "Pinnacle realized it had to do something."



The skywalk was favored. But with the lay of the land, "it would have taken six banks of escalators just to get (to the skybridge)," Bradley said.



Crossing Fourth Street, walking under the interstate, then darting across Third Street while keeping an eye out for traffic coming off the Martin Luther King Bridge has proved undesirable.



"People have voted with their feet that they don't like walking under the highway," Bradley said. "It's a tangle of roads. How do you overcome it? Create an experience that is quick and pleasant."



A pedestrian vestibule will be built at street level in Baer Plaza, the area where tailgaters party before Rams games near Broadway and Convention Plaza. Once inside, an elevator, escalator or stairs can be accessed to get to the tunnel where people movers similar to those in airport concourses await. One will run in each direction.



The climate-controlled tunnel ride will take two to three minutes and will feature music and ample lighting. Maybe even light shows and artwork. The tunnel will have 24-hour security.



At the other end, pedestrians are delivered into Lumière Place, where they can head to the casino, hotel or one of at least four restaurants in the new complex. But there also will be an exit onto the street and access to a sky bridge to the Embassy Suites, which is now a part of the Pinnacle development.



The tunnel will be open by the end of the year, the same time as Lumière Place is set to accept guests. Look for the 200-room hotel to officially be announced as a Four Seasons later this month.



Rising nearly 300 feet, the hotel tower will be illuminated from within at night, forming an arc of light. Thus the name, Lumière, which is French for light.



Pinnacle touts the tower as a "new icon in the downtown skyline" that "unites the dramatic curve of the Arch with the traditional St. Louis skyline."



That sounds ambitious, in any language.