Costs are skyrocketing at Caesars Virginia in Danville, the casino project authorized by Danville voters in 2020. Originally the cost was estimated at $400 million, but now it’s approaching $750 million according to Caesars officials. The company pointed to unexpected construction issues at the former Dan River Mills textile complex in Schoolfield, plus ongoing inflation causing higher labor and materials costs.
At a recent meeting, the Danville City Council voted 8-1 to approve an updated agreement with Caesars Virginia, the city and the Danville Industrial Development Authority. Danville City Manager Ken Larking said, “The city had some things they wanted to see changed to the agreement. Caesars had some things changed and we came up with what we believe to be a mutually agreeable decision.”
In addition to concurring with the new project cost, the changes include eliminating a 35,000-square-foot, separate entertainment venue. Instead, the facility will be located inside the conference center. Another change will allow Caesars to hire 900-1,300 employees rather than a minimum of 1,300. Also, the new agreement includes a parking garage, which was not part of the original plan. The opening day for Caesars Virginia is scheduled for Dec. 31.
Commenting before the city council vote, Caesars Virginia General Manager Chris Albrecht said, “You’re still getting Caesars Entertainment. That’s the name of our company. That’s what you guys chose, and we appreciate you guys. All of the things that we promised in the beginning are being delivered in the long run, and we promise to deliver even more.”
Larking noted Caesars’ temporary casino already has brought the city about $20 million in revenue, directed to the “Investing in Danville Fund”benefiting the city and public schools.
The original development agreement, signed Sept. 3, 2020, named Caesars as Danville’s preferred casino operator and outlined development, operational, payment and other requirements. Ground was broken for Caesars Virginia in August 2022 and the temporary Danville Casino opened May 15, 2023.
The revised agreement also states the city and Caesars will split the cost of rehabbing Schoolfield’s iconic smokestacks, known as the Three Sisters, now estimated at $2.1 million. Albrecht said, “Costs have increased across the board and work on the smokestacks is no exception. However, Caesars and the city, who are splitting the cost of the rehab, both recognize how iconic the stacks are to Danville and to the skyline in Schoolfield.”
Other revisions include establishing hiring preferences for residents of Danville and adjacent localities, veterans, women and minorities; estimated costs for transportation infrastructure projects to be paid by Caesars; donation by Caesars of a street to be used by the public; and offering the city an option to lease an area near the casino’s entrance for local tourism promotion activities.
