Harrah’s Philly?
Local investors in the troubled Foxwoods Philadelphia waterfront casino project could have a new savior in the world’s largest casino operator.
Harrah’s Entertainment last month partially confirmed a report by the Philadelphia Inquirer, quoting unnamed sources, that the operator is in talks with local members of the partnership that owns the Foxwoods project to take over as a 33 percent investor in the South Philadelphia casino, in addition to contracting to develop and manage the property.
Harrah’s Entertainment sold the 16-acre riverfront parcel for the project to local partners including Comcast-Spectacor Chairman Ed Snider and the family trusts of lawyer Lewis Katz and developer Ron Rubin in 2005. The parcel had been purchased by the former Caesars Entertainment before its merger with Harrah’s, but Harrah’s sold it because its local partners in the Harrah’s Chester project, six miles south of Philadelphia, objected to the local competition.
Since Harrah’s has bought out its local partners in the Chester project, a Philadelphia sister property makes more sense. The operator could use it to create a local synergy and cross-marketing between Philadelphia, Chester and the three properties the operator owns in Atlantic City.
Harrah’s holds a promissory note from the local Foxwoods partners for $67.3 million, due in 2015, on the land purchase.
A statement from Harrah’s said the company is not at liberty to discuss the substance of the talks, but that “over the years we have had numerous discussions around different deal structures involving the note and other roles.” The operator did not elaborate.
