Hurricane Katrina, the recession, the oil spill, and topping it all off, flooding. The Gulf Coast has been in the headlines for the past six years—unfortunately, in ways that don’t exactly lure tourists to visit for a fun or relaxing vacation. But through it all, the gaming industry has been a leader, says Mississippi’s Director of Tourism Mary Beth Wilkerson.
Wilkerson takes us back to 2005: “Following Hurricane Katrina, the industry was pretty much decimated down on the coast. Actually, it was the gaming industry that kind of jump-started the revitalization of the Gulf Coast and the tourism industry. So we were really coming back and getting to that point at the start of 2010, and then we had to face the other crisis—the BP oil spill. Really the impact there was the perception that was portrayed by the media that the entire Gulf Coast and the Mississippi Gulf Coast were essentially covered in oil, which was not the case.”
Now the gaming industry is leading the way once again. Construction has already begun on Jimmy Buffet’s Margaritaville in Biloxi, Miss. Expansions are happening now at the Palace Casino Resort in Biloxi and Coushatta Casino Resort in Kinder, La. Plans are in the works for CanCan Development’s D’Iberville, Miss., casino and resort, Oyster Bay in Biloxi, and more. Also, Bok Homa Casino in Heidelberg, Miss., opened its doors in late 2010.
Tom Hoskens, AIA, LEED AP, vice president at Cuningham Group Architecture, P.A. (Cuningham Group), is working with his company on a number of projects on the Gulf Coast. He says, “These new projects will broaden the gaming market in Mississippi.”
Cuningham Group, with five offices nationally, has an office in Mississippi and many long-term client relationships there as well. “Our soul is in Mississippi and our staff is from Mississippi,” Hoskens says. Leading the way in rebuilding the area is a natural fit for the company. “The wave of Hurricane Katrina wiped out so many of the houses and so much of the history of the Mississippi Gulf Coast. It’s a matter now of trying to bring back the history and rebuild in the best possible manner for the entire community.”
Cuningham Group believes it’s important for new projects to offer visitors a unique Southern theme, based on the history of the South. Hoskens explains: “When you can enliven a casino with the richness of history, then it’s more than just a theme, because the project has authenticity and a distinctive appeal to guests. I think this is part of the excitement about these new ventures along the Gulf. We believe people will come from all over the country to see these new projects and experience Southern and coastal hospitality as it was meant to be.”
Hoskens believes by bringing back more of the buildings and investing in the community, more people will return to the area to live, work and visit. “These projects are part of the fabric of the Gulf community and an important part of the rebuilding of the area,” Hoskens says. “It’s more than simply the architecture; it’s about the community we are helping to shape.”
George Toth, president and CEO of CanCan Development, also believes gaming will spur other development. He adds: “Gaming is going to bring quite a population of people, but it also puts people to work. And those families that come down here to work will be looking for other things to do with their time and their kids, so you’re going to get an explosion of different kinds of projects.”
Why Now?
Hoskens attributes the current wave of Gulf Coast projects to three factors: developers are noticing pent-up demand from clients, financing is becoming more available, and material and labor prices make it more affordable to build.
Toth adds that the publicity, although it has been that of challenges and disasters, has helped by keeping the region on people’s minds. “People started looking at the region because of the tragedies, but then they realized it’s a stable market with a lower tax rate and that the coast is beautiful. There’s a moderate climate year-round, 26 miles of beach, and the people are friendly. Gulf Coast residents have a great attitude toward tourists, so I think as people begin to look at all of these advantages they will see a great opportunity to come back here and develop hotels and other amenities.”
The Projects
Palace Casino Resort – Biloxi, Miss.
Cuningham Group’s expansion and new construction at the Palace Casino Resort is underway and expected to open this summer. The project includes taking the gaming floor and putting it above the flood elevation level. Hoskens says that’s an important part of the project, “So if a hurricane and tidal wave comes through again, the casino/entertainment area should be safe.” The expanded casino will house 1,100 slot machines and 26 table games. The expansion, which is opening in phases, also includes a high-limit gaming area, new buffet, sports bar, remodeled hotel lobby and new spa and business center. The buffet opened in April, and a major portion of the smoke-free gaming floor opened in June. The remodel of the main entrance, atrium, spa and lounge into the steakhouse restaurant is scheduled to open in August. That makes Palace the first non-smoking casino along the Gulf Coast.
Jimmy Buffet’s Margaritaville – Biloxi, Miss.
Jimmy Buffet’s Margaritaville on Biloxi’s Back Bay is another project Cuningham Group is working on. The $50 million to $60 million, 68,000-square-foot project will include a restaurant, gaming floor, event center and outdoor party area near the marina. Cuningham Group expects this project to open in March 2012 and employ about 650 people.
Hoskens says this project will give visitors a fun, island resort, getaway experience. “Imagine the Jimmy Buffet songs playing in the background and the volcano that erupts inside with green margaritas flowing down into a big blender. It will be a great place for action and excitement.”
It is important to note that this project is not associated with Ceasars Entertainment’s terminated plans to build a Jimmy Buffet’s Margaritaville.
Coushatta Casino Resort – Kinder, La.
The Coushatta Tribe of Louisiana is adding a seven-story hotel to the Coushatta Casino Resort in Kinder, La. The $60 million hotel will consist of 401 rooms, 18 luxury suites, lobby bar, coffee house and retail shop. Upon groundbreaking, the Allen Parish tourist commission's executive director, Adagria Haddock, said the growth will bring more people to the area, helping the economy. The hotel is expected to open in 2012.
Pinnacle Facility - Baton Rouge, La.
Pinnacle Entertainment will be opening a new casino in Baton Rouge, La., in the beginning of 2012. The $357 million project is expected to create 1,000 new jobs. The casino will feature a 30,000 square foot gaming floor with 1,500 slot machines, 51 table games and a poker room. The project also includes an event center, a 206- room hotel with a rooftop pool, restaurants, a casino bar and views of the Mississippi River.
CanCan Casino Resort & Spa and French Village - D’Iberville, Miss.
Toth and his team at CanCan Development are in the process of putting the final financing package together for CanCan Casino Resort & Spa and French Village, their planned $425 million project in D’Iberville, Miss. “Luckily, we’ve been working on this for more than 15 months, so we’ll be able to get out of the gate and take advantage of the improved economy, people going back to work and jobs.” Toth says. “I think our timing will be just right if the markets continue to improve over the next three to six months.”
Once financing is wrapped up, CanCan will go to the gaming board and city for final approvals. Toth expects to start construction around the end of the summer and open in 2013. Toth says the land to be used is now about half vacant and half filled with homes. But he adds that all of the property is under contract.
The casino resort will offer two hotels—one on top of the casino and another in the French Village area of the development. The project will have restaurants, nightclubs, a wedding chapel, strolling entertainers, fountains, meeting and event space and 75,000 square feet of retail space. Toth says it will be a brand new type of development for the area. “It’s a very significant project for the region because it will create jobs along with tax and revenue for the city,” Toth says. “We expect that the project will create approximately 2,000 jobs, plus generate an additional 1,000 construction jobs to build it.”
The gaming floor in D’Iberville is planned to be 60,000 square feet with 1,800 machines, 46 table games and 16 poker tables. Many of the details for the development are still top secret. One hint Toth will give is regarding the loyalty card program. “We’ll have a lot more flexibility in our card programs. That in itself will change the way card programs work,” Toth explains.
Toth has big expectations for the development, largely based on plans the city has for the entertainment zone it is in. He explains: “They have set aside a 200-acre zone and we are the cornerstone of that zone. I would expect other amenities or entertainment venues to come into there, probably more oriented to families. I think once we’re under construction, you’ll see interest peak in the area because they’re going to want to be close to what we’re building.”
Toth knows it has taken more time than some had hoped to get this project up and running. But he says it’s because they’re taking the road less traveled and are not willing to back off on their original plans. “We here at CanCan Development have taken a huge step,” Toth says. “We could have taken an easier path to get a casino built, but we want to produce a model that’s going to bring in tourists and that the community can be proud of, and I think it’s very exciting.”
Oyster Bay – Biloxi, Miss.
The master plan for Oyster Bay, created by Cuningham Group, calls for a wharf-type atmosphere with shops, restaurants and retail, combined with an authentic replica of an 18th century tall ship. “The project is rich with the history of a seafaring life from centuries ago along the Gulf Coast and uses historical cues as metaphorical design ideas,” Hoskens explains. The $150 million project has received Mississippi Gaming Commission site approval. When all three phases are completed, Oyster Bay will include a casino, hotel and conference center, retail and entertainment venues, and an event center.
Cuningham Group is working on another project in Biloxi, but plans are so early that Hoskens cannot share much yet. He says it’s equally exciting and another distinctive project that ties to the rich history of the area. “It adds another flavor to the richness of the resort experience in Biloxi,” Hoskens says. “All of these projects we are working on represent a level of sophistication and cultural perspective that will help to distinguish the Gulf Coast as a thriving resort destination.
Bok Homa Casino - Heidelberg, Miss.
One of few notable casino openings in the U.S. in late 2010 was that of the Mississippi Band of Choctaw Indians’ Bok Homa Casino in Heidelberg, Miss. The 27,000-square-foot venue has 768 gaming devices and is located 130 miles north of Biloxi. Upon its opening, Tribal Miko Beasley Denson said, “This project is an investment in the future of our tribe and will serve as a catalyst for continued economic development in and around Jones County.” Choctaw tribe leaders used local companies during construction of the property and hired more than 300 workers to run the operation.
Impact on Mississippi and the Gulf Coast
In fiscal year 2010, the travel and tourism industry employed more than 78,000 people. 26,500 of those jobs were at casino resort destinations. In Mississippi’s three coastal counties, visitor expenditures were $1.6 billion in fiscal year 2010. Across the state, that number was $5.5 billion. According to Wilkerson, that spending translated to $415 million in state tax revenues or fees, which is about 8 percent of Mississippi’s general fund. Thirty percent of that was gaming related.
Of course, the industry is still not back to pre-2005 numbers, but Wilkerson is confident they’re getting there. “Certainly as we’re able to continue to market and promote the Gulf Coast and showcase all the new reinvestment and redevelopment of the area, that can only get us there faster,” Wilkerson adds.
Economics aside, Wilkerson says the reinvestment is boosting morale. “We’ve been through Katrina and then the oil spill and the recession. Anytime you see anything new happening, that would have to give people the sense of, OK, things may be coming back.”
The tourism department couldn’t be more excited about the new gaming projects that are showcasing the history and culture of the coast. It fits with many of the state’s current efforts to draw visitors from around the country. Wilkerson says, “If we look at positioning ourselves with Atlantic City or Vegas, what we have is that Southern culture and heritage that can be promoted along with the gaming.”
Wilkerson’s hope is that progress continues and new jobs are created. Hoskens is looking forward to the projects being planned today and those we have yet to learn about. “It’s time for a rebirth and a renewal, and I think this is some of that rebirth and renewal that’s happening now,” he says.
Sarah Klaphake Cords is the New Media Editor for Casino Enterprise Management. She can be reached at editor3[at]aceme.org.
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