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Company also scales back Sugarcane Bay complex
Pinnacle Entertainment Inc. said it won’t proceed with plans to build a casino resort in Atlantic City, N.J., on the former site of the Sands Hotel & Casino. Pinnacle, which demolished the Sands complex in 2007, disclosed plans to sell that land in its 2009 earnings release.
For the year, the Las Vegas-based company reported a net loss for the year of $258 million. “We're evaluating our underperforming and non-strategic assets; reducing corporate overhead costs and taking a disciplined approach to capital spending,” said John Giovenco, the company’s interim ceo.
As part of that process, the company said it plans to sell the19 acres of land near Atlantic City’s Boardwalk that formerly housed the Sands complex. Pinnacle bought that site for $270 million in 2006, and had planned to build a resort there.
In addition, Pinnacle said it has scaled back plans for its Sugarcane Bay at L'Auberge du Lac project in Lake Charles, La., and cut its construction budget by more than $100 million. The Sugarcane Bay project will include a new single-level riverboat casino and 400 guest rooms and suites; several food and beverage outlets and a multipurpose venue for entertainment and group meetings.
The company said The Sugarcane Bay project was relocated from land adjacent to Pinnacle’s existing L'Auberge du Lac to the existing L'Auberge du Lac footprint. In addition, “the size of the project, the anticipated amenities, and other items were reduced in scope.” It did not offer further details on specific cuts made to the project, but said its budget is now $305 million, down from its original $400 million-plus price tag.
Posted Feb. 8, 2010