Atlanta City Council formally backs Underground Atlanta casino as currently proposed
Council calls for the establishment of an advisory board to enable city and community input 

ATLANTA (March 2, 2009) – The Atlanta City Council is formally supporting an effort to establish a $450 million Georgia Lottery-tied gaming casino at Underground Atlanta that is presently before the Georgia Lottery Board.

The Council approved a resolution Monday by a vote of 11-0. The resolution (Legislative Reference No. 09-R-0368) also calls for the establishment of an advisory committee to enable city and community input and involvement in the planning and implementation process of the project.

Underground Atlanta leaseholders Dan O’Leary and John Aderhold presently have a half billion-dollar casino/hotel proposal before the Georgia Lottery Board. The proposal calls for a conversion of the 12-acre Underground complex into a casino featuring lottery terminals restaurants, shops and a new 29-story hotel 

“As a long-standing partner of the City, we are thankful to the Council for its support for this proposal,” stated Dan O’Leary. “We look forward to the opportunity to work with the City to make this redevelopment a reality, and bring economic vitality to the City, as well as help to expand the educational opportunities that HOPE and Georgia Pre-K programs have provided to the students of Georgia.”

The developers say phase I of the project would involve a $50 million makeover of Underground that could be completed in 12 months and phase II would provide a new $150 million hotel with arenas for shows and concerts.

Developers also say the facility will house up to 5,000 video lottery terminals (VLTs), and by phase II of the operation, will generate revenue of $600 million annually, with half of that -- $300 million – going to the HOPE scholarship and pre-kindergarten programs.

The casino and hotel complex could generate new, much-needed jobs and provide millions of dollars in additional tax revenue for the city of Atlanta that could be used to fund various services from public safety to infrastructure improvements. The revenue stream could also go toward paying off the bond debt on Underground Atlanta, some City Council say.

“As a city we want to ensure that Atlanta’s interests and needs are addressed as well as this proposal moves forward,” said City Councilman Jim Maddox, Chair of the City Council’s Community Development Committee. “The development has the potential to create 1,000 new jobs in the first phase of the development and a cumulative 2,000 direct jobs in the second phase. Additionally, we expect $42 million to be spent on food and beverages the first year and a total general and administrative payroll of more than $20 million. 

“Put revenue generated from that on top of increases in hotel/motel taxes, sales taxes, increased tourism, food and beverage taxes, and you realize just what an economic stimulus this plan really is,” said Maddox, a long-time proponent of casino-style gaming in Georgia.

The Municipal Clerk has been directed to forward a copy of the resolution to all members of the Georgia Lottery Board.