Virginia: Caesars casino project in Danville sees development agreement revision as costs surge

The anticipated opening of Caesars Virginia Casino later this year has prompted officials in Danville to revisit the original development agreement. Both city authorities and representatives from Caesars have cited several reasons for the revision, including changing economic conditions and evolving workforce dynamics.

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."

One notable alteration involves the project's cost. Initially pegged at $400 million, the new proposal sets the capital investment at $750 million. Larking attributed this increase to various factors such as the pandemic, rising business costs, the discovery of underground tunnels, and inflation-driven increases in labor, material costs, and supply chain disruptions.

Additionally, the revised agreement proposes consolidating the entertainment venue into the conference center, at a size of 40,000 square feet. Caesars Virginia is expected to be completed sometime before the year’s end.

Another modification pertains to the minimum number of employees required, which is being revised from 1300 to a range of 900-1300. According to Larking, the revised agreement reflects months of collaboration and balances the needs of both parties.

He told WSET that this is still "a top-notch agreement" with great things in store for the city. “It’s already producing great results with the temporary casino, and we look forward to seeing it open in full-fledged form later this year,” Larking said.

Caesars Virginia General Manager Chris Albrecht told the Danville Register & Bee: "Since we began working on this project, the hospitality landscape has changed significantly. As our industry evolves, the employment range in the development agreement allows us the flexibility to operate a world-class resort in a way that leaves room for innovation, efficiency, and the exceptional experience we’ve promised."

This isn't the first time the project has undergone changes. Initially proposed as a 500-room hotel, the project has been adjusted to approximately 320 rooms. The Danville City Council is scheduled to review the proposed amendments this week.

In January, Caesars Virginia commemorated the advancement in the construction of the upcoming hotel and casino complex by holding a topping-off ceremony for the property's 12-story hotel.

The event featured the hoisting of a tree and an American flag to the top of the building, symbolizing respect for the land and nature, as explained by Albrecht. 

The resort is scheduled to open later this year, with Albrecht reiterating the commitment to the stipulated timeline. “I no longer have to say next year or late next year. We are opening this year. We are on target, and everything is moving along well,” he said.