Pinnacle promises big investment in St. Louis

ST. LOUIS (AP) -- Pinnacle Entertainment Inc. officials said they'll guarantee more than a thousand jobs, a luxury downtown hotel, and invest about $250 million into their plan to develop a casino in the city.

The agreement reached this week will be the foundation for a final contract that the city and Las Vegas-based Pinnacle will sign by March 19. The project ultimately will need Missouri Gaming Commission approval to move forward.

"We have a commitment for a luxury-quality development downtown, and we want people from all over to come here, and try the city's casino first," Rodney Crim, the executive director of the St. Louis Development Corp. told the St. Louis Post-Dispatch. He served as chairman of the selection committee that chose Pinnacle.

The two sides have been negotiating in the six weeks since the city chose Pinnacle to build a casino at Laclede's Landing, just a few blocks from the bankrupt President Casino on the Admiral.

The city asked for some additional things after Pinnacle also was selected to develop a $300 million casino in Lemay, just south of downtown in St. Louis County.

Pinnacle agreed to open its city casino at least a year before it opens the casino in the county. The company also said it would pay St. Louis $1 million a year to help make up for money that may be lost to a county operation.

The hotel will have either the Four Seasons, St. Regis, Fairmont or Intercontinental nameplate. If none of those chains will agree to locate a hotel at the casino, the city will have the ability to approve any other brand of hotel.

The company also had committed to building a $50 million "luxury condominium tower." But if the real estate market will not support the project, Pinnacle can build a variety of residential and commercial projects downtown with a total value of $50 million, the sides agreed.

Pinnacle will pay a fine if it does not build the promised $50 million project within five years of opening the downtown casino.

Pinnacle also will be given an option to lease up to seven acres of land owned by a city authority to expand its casino, housing or retail buildings at Laclede's Landing.

The casino and hotel will provide the equivalent of at least 1,157 full-time jobs with benefits.

Pinnacle also agreed to build two new pedestrian bridges.

"We've not backed off a single commitment we've made to the city," said Wade Hundley, the executive vice president and chief operating officer of Pinnacle. "We've just added a few things."

Pinnacle hopes to open the city casino late next year or early 2006, if it wins additional approvals.