Caesars Virginia to Increase Cost of Casino Project in Danville to $750 million
Caesars Entertainment continues to develop an integrated casino resort on the site of the former Dan River Mills textile campus in Danville. Within four years, the cost of the project was adjusted several times, and now amounts to about $750 million.
Danville residents voted to build a gambling property during a local referendum held in November 2020. At that time, the cost of the project was estimated at approximately $400 million, but by September 2021, the amount had risen to $500 million, and then, in August 2022, it grew to $650 million.
Regular financial adjustments are normal as a number of economic factors influence the amount of building materials and labor needed. Caesars Danville, which is expected to open by the end of this year, is not the only casino in the state experiencing budget changes. Hard Rock Hotel & Casino in Bristol has also revised its investment, which increased from $300 million to $550 million.
The operator has also proposed the City Council to optimize the minimum workforce required to launch the project. Under the current contract, at least 1,300 employees are needed, but if the application is implemented, the number will decrease to 900 people.
Chris Albrecht, general manager of Caesars Virginia, commented on the initiative. He said that since they had begun working on that project, the hospitality landscape changed significantly. Albrecht added that as their industry evolved, the occupancy range in the development agreement allowed them the flexibility to operate a world-class resort in a way that leaves room for the innovation, efficiency and exceptional experience they had promised to deliver in Danville.
Caesars has also proposed eliminating a 2,500-seat live performance venue from the project plan. In exchange, the convention center could be expanded from 35,000 square feet to 40,000 square feet to accommodate entertainment events. The Danville City Council will consider the amendments proposed by the operator in the near future.
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