CLEVELAND, Aug 19, 2010 /PRNewswire via COMTEX/ --
Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) and Rock Gaming LLC, today announced that subsidiaries have reached agreements under which Rock Gaming will acquire land and air rights from Forest City for development of a casino along Huron Road adjacent to the Tower City Center complex in downtown Cleveland.
Under the agreements, Rock Gaming will acquire approximately 16 acres, including land immediately adjacent to Tower City as well as a portion of the current Riverview parking lot. The land and air rights transaction is expected to close in Forest City's fiscal 2010 fourth quarter.
In addition, the two companies also announced an agreement in principle on a multiyear lease for space in the Higbee Building within Tower City for potential construction and operation of a Phase 1 casino.
"The casino is an important project for Cleveland and the entire Northeast Ohio region, and today's agreements are major milestones in moving forward," said Charles A. Ratner, Forest City president and chief executive officer. "We are confident that the partnership of Rock Gaming and Harrah's Entertainment will create and deliver a great project that will benefit not only downtown, but all of Northeast Ohio for years to come. The Rock Gaming casino at Tower City Center represents the start of a dynamic new future for downtown entertainment and economic revitalization in Cleveland."
Forest City owns and operates a total of more than 2 million square feet of commercial space at Tower City Center, as well as parking for approximately 3,500 automobiles. The complex includes the 365,000-square-foot Avenue at Tower City retail center, five office buildings - Skylight Office Tower, Post Office Plaza (formerly the M.K. Ferguson Building), 250 Huron, the Higbee Building, and the landmark Terminal Tower, the site of Forest City's corporate headquarters - and the 206-room Ritz-Carlton, Cleveland hotel.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $11.5 billion in total assets. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit http://www.forestcity.net/.
About Rock Gaming
Rock Gaming LLC is a Midwest-based gaming partnership formed with an initial focus to develop first-class casinos in two of Ohio's largest cities, as well as to explore other potential gaming opportunities. The company has an agreement in principle to partner with Harrah's Entertainment Inc., the world's largest and most successful gaming company, to build and operate first-class casinos in downtown Cincinnati and downtown Cleveland. Dan Gilbert, a principal of Rock Gaming, is also chairman and founder of Quicken Loans, Inc., the country's largest online retail mortgage lender. In addition, he is the majority owner of the NBA's Cleveland Cavaliers and the American Hockey League's (AHL) Lake Erie Monsters, which both play at the Quicken Loans Arena in downtown Cleveland.
Safe Harbor language
Statements made in this news release that state Forest City Enterprises' or its management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The Company's actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of current lending and capital market conditions on its liquidity, ability to finance or refinance projects and repay its debt, the impact of the current economic environment on its ownership, development and management of its real estate portfolio, general real estate investment and development risks, vacancies in its properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, its substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by its credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, volatility in the market price of its publicly traded securities, litigation risks, as well as other risks listed from time to time in the Company's SEC filings, including but not limited to, the Company's annual and quarterly reports.
SOURCE Forest City Enterprises, Inc.