CELEBRATION PARK INC. ENGAGES CAESARS WORLD INC. TO MANAGE THE GRAND PALAIS CASINO PROPOSED FOR NEW ORLEANS
CELEBRATION PARK INC. ENGAGES CAESARS WORLD INC. TO MANAGE
THE GRAND PALAIS CASINO PROPOSED FOR NEW ORLEANS
NEW ORLEANS, June 24 /PRNewswire/ -- Celebration Park Casino Inc., a corporation owned by developers Christopher B. Hemmeter and Daniel P. Robinowitz, announced today that it has entered into a management agreement with a wholly owned subsidiary of Caesars World Inc. (NYSE: CAW) to act as the manager of the "Grand Palais" casino proposed to be built by Hemmeter/Robinowitz in New Orleans at the Rivergate site. The casino project development, known as the "Celebration of New Orleans and its Riverfront for the 21st Century" will include, in addition to the approximately 250,000-square-foot casino, landscaped areas in excess of 15 acres including a 10-acre park and plaza anchoring the foot of Canal Street, a "hands on" exploratory museum dedicated to family-oriented activities and parking for more than 7,000 cars. The architectural designs created by Hemmeter will reflect the architectural grandeur of 19th century New Orleans and will enhance New Orleans as a tourist center.
Hemmeter, chairman of Celebration Park Casino Inc., stated that "every effort should be made to preserve and enrich the heritage of the City of New Orleans and its unique assets. Our proposed development of the Rivergate and related properties along the Riverfront will add to the total environment in this area and complement the outstanding renewal begun through the Aquarium of the Americas, Woldenberg Park, Riverwalk, the New Orleans Convention Center and related developments while maintaining the integrity of the nearby sensitive historic areas of the Vieux Carre and the warehouse district."
Hemmeter expressed delight in engaging Caesars World as the casino operator. "Caesars World has proven itself to be the premier casino operator and we believe its internationally renowned expertise will help us create a world-class facility. The Hemmeter organization's ownership of the Grand Palais and its reputation as the nation's leading developer of destination resorts combined with the casino management and marketing capability of Caesars will provide New Orleans and the State of Louisiana with a team of professionals that can develop and operate the Louisiana casino in a most spectacular and professional fashion."
The management agreement is long term and calls for Caesars to receive a fee of 3 percent of gross revenues up to $750 million with additional adjustments thereafter based on gross revenues. No other terms were disclosed.
As a result of the agreement with Celebration Park Casino Inc., Caesars is withdrawing its previously submitted proposal to develop its own casino project on the Rivergate site.
Hemmeter estimates that the development will create approximately 6,800 permanent on-site jobs and more than 19,000 additional permanent jobs off-site. New payroll in New Orleans from this project will exceed $500 million per year. Additional benefits to the community will include a commitment to favor local contractors, vendors and labor as well as an active, managed program to encourage minority participation. Hemmeter has also pledged to create a fund to enhance community projects with an initial commitment of $30 million.
/CONTACT: Cezar M. Froelick, 312-836-4002/
(CAW) CO: Celebration Park Casino Inc.; Caesars World Inc. ST: Louisiana IN: CNO SU: CH-JL -- LA030 -- 3476 06/24/92 17:08 EDT