
Steven Wynn dropped out of his deal to take control of the floundering Foxwoods casino project yesterday.
Wynn, who submitted a financial agreement just last week to the state Gaming Control Board issued a stunningly brief statement saying that he has "terminated all agreements and negotiations" to take over the long-stalled project.
"We are fascinated by the legalization of full gaming in Pennsylvania and stimulated by the opportunity that it presents for Wynn Resorts, but this particular project did not, in the end, present an opportunity that was appropriate for our company," he said.
An attorney for the local investors, Steve Cozan, said that the investors had no idea that Wynn would be dropping out of the deal and learned of his decision through the news release receiving no explanation or other information.
"We are shocked and amazed," Cozen said. "We're trying to find out what is behind it and what if anything can be done about it."
Mayor Nutter, who recently sat down with Wynn, was also reported to be stunned by the news. He said that when he spoke to Wynn on Monday he had told him to research the many things Nutter has said in the past about problems with that particular location but that he had offered to help Wynn do what he needed to do to make the project work.
Nutter has in the past called the site “wrong for Philadelphia” said Wynn’s attorney but he wanted to make it clear that Wynn’s decision "had nothing to do with the city of Philadelphia or their interaction with us."
The Gaming Control Board has been ready to revoke the would-be casino’s license for some time now. Its license was issued back in 2006 and since that time very little progress has been made. On April 21st there will be a board hearing in which investors will be asked to explain why their casino’s license should not be revoked and things are not looking good for them.
The investment partners paid $64.7 million for the South Philly site in 2005 and an additional $50 million for the casino license in 2007. When Wynn told the board last month that he would take a 51 percent stake in the casino and put up 40 percent of the projected $600 million for construction many investors were probably letting out a sigh of relief. The local investors would have still received a 35 percent share in the casino and the tribe 14 percent but with the deal gone it’s likely neither party will see any return on the initial investment.
Not everyone was disappointed by the news however many nearby neighborhood groups were rejoicing at news of Wynn's pull-out. They hope that it could mean the end of plans for a casino in their area.
"If it's a bad location for Steve Wynn, who the hell is it a good location for?" asked Pennsport Civic Association President Tom Otto. "Whoever woke him up, God bless him. I'm just so relieved."
Queen Village Neighbors Association president Jeff Rush was also ecstatic.
"I give kudos to Steve Wynn, who is enough of a professional to know when to walk away," Rush said.
We'll see if investigators can pull off another extension but if that doesn’t work out, there is always a chance the rights will be auctioned off.