Archive for the ‘Go Zone General Info’ Category

By Michael C. Zari

Developers of the new Margaritaville Casino in Biloxi Mississippi have received approval from the Department of Marine Resoureces (DMR) to build a 27-ship marina as part of the new casino project.

The authorization was given at a recent monthly meeting of the Commission on Marine Resources in Biloxi. The new marina will be built adjacent to the casino project, near the foot of 5th Street on Biloxi’s Back Bay.  A DMR coastal ecology representative told commissioners that several other sites had been considered for the new marina, but were rejected due issues including wetland concerns.

According to several other media sources, the marina still requires additional approval from the Department of Environmental Quality.

By Michael C. Zari

Huntington Ingalls Industries Inc. (NYSE:HII), the recent shipbuilding spin off from Northrop Grumman Corp., has received a $98 million Navy contract modification.  The cost-plus-fixed-fee advance procurement contract modification is for long-lead materials for LPD 27, the 11th amphibious transport dock ship of the USS San Antonio (LPD 17) class.

The work, which will be conducted by the Ingalls Shipbuilding division in Pascagoula Mississippi, will include the purchase of long-lead-time materials and major equipment in support of the new ship, such as main engines and diesel generators and other equipment, including electrical switchboards, deck equipment and fire extinguishing systems.

According to Doug Lounsberry, vice president and program manager of the LPD program for Ingalls Shipbuilding, “This contract provides means to continue our development and efficient planning to build LPD 27.”

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By Michael C. Zari

Last month, the Port of Gulfport received final federal funding of $481 million for a six-year project to complete Katrina restoration and elevate the port to 25 feet, quadrupling its capacity according to one source. This brings the total amount of funds received by the port to $570 million.

The expansion of the Port of Gulfport is a long-term project that will create thousands of jobs and strengthen the state and national economies, according to Gov. Haley Barbour.

“This will be a huge economic boom, not just for Gulfport, and I think that’s very important to understand,” Barbour said. “I honestly believe 25 years from now we’ll look back - I won’t because I’ll be dead and gone - but you young people will look back and say this is the biggest economic development project in the history of Mississippi.”

According to Barbour, it’s critical to expand the port to make it ready for increased traffic resulting from a bigger Panama Canal.  Benefits could stretch to Hattiesburg (the location of a critical railroad hub) and beyond, he said.

By Michael C. Zari

On June 16th, Boyd Gaming Corporation announced that it has entered into a definitive agreement to acquire the IP Casino Resort and Spa in Biloxi, Mississippi for $278 million in cash. In addition, Boyd will also contribute $10M at closing to the Engelstad Family Foundation, which will be distributed over the next 5 years to local and regional charitable organizations in the Biloxi area.

After the acquisition is complete, Boyd Gaming plans to invest approximately $44M into the project for certain capital improvement projects at the Biloxi property.

Keith Smith, President and CEO of Boyd Gaming, said “this acquisition is an excellent fit to our existing business and provides further geographic diversification by giving us a presence in a leading regional destination market.”

Mr. Smith went on to say that “this is another important step toward achieving our strategic goal of significantly strengthening our balance sheet.  We will continue to look for additional acquisitions that are complementary to our current operations, deliver a solid return for our shareholders, and are priced appropriately.”

It is anticipated that the deal will close before the end of this year.

By Michael C. Zari

You may have read that the Palace Casino is undergoing some major renovations.  When I say major, I am not only talking about the $53 Million that is being spent on the new project and upgrades.  I am also talking about a new title that the casino will hold.  As of June 14th, 2011 the Palace will get the title Smoke Free Casino!

That is right! When the casino opens up again on the 14th of this month, the casino will be completely smoke free:  No smoking on the casino floor, in restaurants, and in all of Palace hotel rooms.  This is a breath of fresh air (sorry - I could not help myself) for a lot of would-be casino guests who have been turned off by the smoke-filled casino floors in the past.

The Palace said that a recent survey showed that an overwhelming 80% of visitors/guests to the casino were non-smokers and that the move to go smoke free will be very beneficial for all.  The General Manager for the casino said “this decision will allow us to maintain our fresh air quality, creating a healthier, cleaner and more enjoyable environment.”

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By Michael C. Zari

During the first half of May 2011, Biloxi Mississippi saw a huge increase in new construction for the city.  This, according to Jerry Creel (the Director of Community Development for the City of Biloxi) includes both commercial and residential new starts.  As an example, a $29 million construction permit was pulled for Jimmy Buffett’s Margaritaville Casino & Restaurant and a $1 million permit for a smoking lounge at the Palace Casino, which is undergoing a major expansion.

During a recent conversation with Mr. Creel, he discussed some major items that have been approved and some that are still in the works, including some significant commercial growth to the area as well as residential new starts.

Based on this, there does not seem to be a slow down in growth but just the opposite.  According to the City, Biloxi has issued over $767 Million in permits for new construction since Katrina with the momentum really picking up again within the past 12 months. To further highlight this growth consider this: In the first several months of this year alone, the city is already at the 70% point for all 12-months in 2010 (for new commercial investments).

By Michael C. Zari

Chevron recently announced that a $1.4B expansion project has received full funding approval.  The expansion project, for the company’s Pascagoula Mississippi Refinery, is expected to create about 1000 new jobs.  Construction has already started on the expansion and is expected to be completed by the end of 2013.

According to one source, the Mississippi Gulf Coast refinery was founded in Pascagoula back in 1963 by Standard Oil (California).  Plant General Manager Tom Kovar said that the “project will have a big impact here in Jackson County as well as the state.”

Mississippi Governor Haley Barbour, who was also at a recent event with Chevron when the announcement was made, said Chevron has invested about $3B in the Pascagoula facility since he took office. He went on to say, “that’s a huge statement about the confidence they have in the workforce here at Chevron, and a huge statement about the business environment in Mississippi” 

Pascagoula is just minutes away from Ocean Springs, MS along the MS Gulf Coast (one of the hottest areas in the GO Zone).

By Michael C. Zari

Huntington Ingalls Industries Inc. (NYSE:HII), the $6.7B spin off from Northrop Grumman Corp., is getting started on the right foot.  A $1.5B contract was awarded to the Ingalls Shipbuilding division, for the construction of a San Antonio-class amphibious transport dock; with construction of the John P. Murtha (LPD 26) expected to start in May.

This is great news for the local economy along the MS Gulf Coast in the GO Zone.

“This is the first contract awarded to our new company, and our shipbuilders are excited about continuing the LPD product line,” said Irwin F. Edenzon, corporate vice president and general manager, Gulf Coast Operations. “More than 1,500 shipbuilders will be working on LPD 26 over the next four years.”

Edenzon went on to say “I am confident that LPD 26 will be a great ship, and that is our commitment to the sailors and Marines who will serve on her.”

The new spin off company currently operates yards in Pascagoula, MS, Avondale, LA, and in Newport News, VA. The ~39,000 employee-based company will be headquartered out of Newport News. In addition,  Northrop CEO Wes Bush said that the company plans to close Avondale yard by 2013 and move that work over to Mississippi Gulf Coast.

By Michael C. Zari

The Mississippi Gaming Commission approved the development of Jimmy Buffett’s Margaritaville Casino & Restaurant in Biloxi, MS today.  As a result, the developers are now proceeding with the development and construction.

The Margaritaville Casino and Restaurant will be located off of the Back Bay of Biloxi (off of 5th Street at old East Harrison County Industrial Park).

The development of the new Margaritaville Casino & Restaurant is expected to start within a week and is expected to be completed in 9 months time.  Plans include a 68,000 square-foot casino and Margaritaville-themed restaurant, retail, events center and also a marina.  Reports estimate that the $48 Million development would bring with it almost 700 new jobs.

A spring 2012 Margaritaville opening is currently planned. 

This is great news for GO Zone investors, the local economy, tourists, and Parrot Heads alike.

By Michael C. Zari

Last month, it was reported that the new Margaritaville Casino and Restaurant had its plans reviewed and approved by the Biloxi City Council.  Now, the developers are moving ahead and has a meeting with the Mississippi Gaming Commission on April 7th, 2011. 

At this meeting in Biloxi, the developers will ask the Mississippi Gaming Commission for the site approval, and for permission to proceed with the project.

The Margaritaville Casino and Restaurant will be located off of the Back Bay of Biloxi (off of 5th Street at old East Harrison County Industrial Park). 

Buffett, who was born in Pascagoula MS, and other investors (such as MVB Holding LLC) proposed the $48 million casino resort back in January of this year.  Plans include a casino, a Margaritaville-themed restaurant, retail, events center and also a marina.  Reports estimate that the development would bring with it almost 700 new jobs.