Pinnacle Changes Direction For Lake Charles
Pinnacle Entertainment Inc. (PNK: 7.16 0.00%) has submitted plan changes to the Louisiana Gaming Control Board for the Lake Charles casino project. The plan has been restructured to reduce the estimated cost from $407 million to $305 million.
Since the resignation of former CEO Daniel Lee earlier this month, the company has been looking at capital expenditures associated with projects and whether or not the associated returns are adequate.
Proposed changes to the Sugarcane Bay project will eliminate earlier plans for a retail area and substitute an expansion of the spa, estimated to save the company approximately $100 million. The venue will include a single level riverboat casino, 400 room hotel, dining and lounge establishments, and an entertainment complex.
The gambling facility is expected to open in late 2010 with the hotel and related amenities to follow in the first half of 2011.
The gaming company has spent approximately $54 million to date on developing the sister property of the highly successful L’Auberge du Lac casino resort. Plan changes also include renaming the venue Sugarcane Bay at L’Auberge du Lac.
The new plan is subject to approval from the Control Board which will consider the changes at a meeting on December 15th.
Pinnacle has not made any changes to the Baton Rouge project and will proceed with the $260 million development as planned.
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