Diamondhead Casino Corporation Enters Into Letter of Intent
LARGO, Fla., Dec. 15, 2010 /PRNewswire/ -- Diamondhead Casino Corporation (OTC Bulletin Board:DHCC.ob - News) (the "Company") announced that on December 10, 2010, it had entered into a Letter of Intent "LOI") with Phoenix Gaming and Entertainment, LLC.
DHCC owns, through its wholly-owned subsidiary, Mississippi Gaming Corporation, approximately 404 acres of land in Diamondhead, Mississippi. The property is lien-free and debt-free and is zoned for a casino. The property fronts Interstate 10 for approximately two miles and the Bay of St. Louis for approximately two miles.
Under the LOI, Phoenix proposes to purchase 25 acres of land for $1 million per acre to be used, in part, for the construction of a casino. DHCC has agreed to give Phoenix an additional 15 acres of land to be used for the construction of roadways and right-of-way requirements, greenery, buffering, on-site mitigation and/or the footprint for a possible parking garage. Under the LOI, DHCC retains the right to construct its own casino on the remaining land, but Phoenix gets the right of first refusal with respect to any additional, future gaming development by other parties on the property. The LOI is a non-binding agreement and unless and until DHCC and Phoenix sign a Definitive Agreement, the relationship between the parties will be non-exclusive and DHCC shall be free to continue discussions with other interested parties. Unless extended by the parties, the LOI will automatically terminate if no Definitive Agreement is in place by January 31, 2011.
Zoning Extension
The Diamondhead property, which is located entirely within Hancock County, is zoned as a Special Use District-Waterfront Gaming District, which permits the development of a casino resort. The Company is pleased to report that on November 18, 2010, the Hancock County Planning Commission voted to approve the Special Use zoning through December 31, 2011. On December 6, 2010, the Hancock County Board of Supervisors ratified the decision of the Planning Commission.
Director Resignation
Mr. Steve Norton, who has been a Director of the Company since 2002, announced that he was resigning from the Board of Directors of the Company. It was felt that Mr. Norton, who has been active in the gaming industry for many years, had a personal and business conflict of interest. Mr. Norton has been a valuable asset to the Company and his presence will be missed. |
