Operator News
Spain – Cordish reconfirms ‘steadfast commitment’ to Live! Resorts Madrid
By Phil - 6 April 2017
Heads of The Cordish Companies David S. Cordish and Joseph S. Weinberg have sent a letter to the head of Madrid city government Cristina Cifuentes which reaffirms their willingness to build a large scale resort and casino in the municipality of Torres de la Alameda.
In the letter they express their regret that they had not had the opportunity to meet face to face with Cifuentes since they had submitted their proposal for the Live! Resorts Madrid project and “apologise for any confusion in the translation of our submission.” The letter re-confirms the companies “steadfast commitment to develop the full 2.2 billion Euro project master plan submitted to the Autonomous Community of Madrid Government.” The company also says that it is willing to “quickly resolve any outstanding issues.”
In December Cordish announced plans to create a large scale hotel, casino and leisure complex near Madrid. The company said that it had chosen Madrid due to its already existing infrastructure, its increasing popularity amongst tourists and well developed transportation networks. However last month it was announced that the Madrid government had kicked out plans by Cordish Companies to develop the $2.2bn casino close to the capital city, slamming it as “unviable.” It has though said Cordish is free to resubmit if its concerns are addressed. Having originally welcomed the plan, Madrid’s regional government ruled it could not go ahead in its current form.
It said that for the project to proceed it would need to be classified as Integral Development Center (CID), an ‘absolutely exceptional’ procedure that grants the developer a series of urban, fiscal and regulatory advantages in terms of land use flexibility and tax advantages. It added that only one CID is approved a decade is no small decision, as Madrid is only allowed to issue a CID once every 10 years. It estimated that the government would have to spend €340m on road and rail infrastructure to provide access to the out-of-town complex.
However the letter outlines the company’s position more clearly on a number of points. As well as emphasising that the Cordish Companies has not requested any infrastructure improvements on behalf of the government for the project and that “no public” subsidy” has been requested, the letter further emphasises Cordish’s commitment to develop the entire project “albeit in logical components.” It also says that no “public aid or tax benefits not already provided for in any current laws and/or regulations, will be requested or sought for the benefit of the Project” and that the company would fully comply “with applicable governing legislation, both at the state and regional levels.”
Initial investment could reach as much €2.2bn and could reach as much as €3bn if market conditions allow. If it goes ahead the project will generate 56,433 new jobs, will drive tourism in the area and generate billions in economic development for the region. As well as gaming the resort will also offer four and five star hotels which will offer 2,000 rooms and could eventually offer as many as 4,000. The resort will also include a Broadway type theatre, a permanent circus and acrobatic facility. There will also be a large area dedicated to live concerts, as well as a comedy club and 16 cinemas including an IMAX Theatre. The new resort also aims to become an international shopping destination and will offer as many as 400 different shops. In December Cifuentes said that it was “good” news and that it would serve to revitalise the Corredor del Henares an industrial area in the north of the city and help position it as an area for future foreign investment.
