GULFPORT, MS (WLOX) - Gulfport may sue Rotate Black to get money the developer owes the city.
City council members took back the Rotate Black lease from the Gulfport Redevelopment Commission at Tuesday's city council meeting. The move gives the city the power it needs to pursue legal action against Rotate Black's development team.
Rotate Black had a lease with Gulfport to build a casino resort on city property adjacent to Jones Park. That project fell apart when Rotate Black couldn't put a financial package together to build a Hemingway Resort. City leaders say Rotate Black developers left town owing a lot of money to several groups and businesses.
The casino group reportedly defaulted on its Gulfport lease, failing to pay the city as much as $300,000 in rent. In its last quarterly filing with the SEC, the company notes recent revenue losses since its inception, a deficit of $41 million, and negative working capital of $20 million and says further losses are anticipated.
The filing says, "These factors raise doubt about the Company's ability to continue as a growing concern." That filing details the Gulfport project, and mentions the 99 year ground lease with the city. "The minimum rent guarantee is $110,000 million per month," the filing explains.
Now, city attorneys are exploring Gulfport's options to demand that money. They say taking Rotate Black to court is a possibility.
WLOX News attempted to reach Rotate Black executives, but a recording says the number listed on its website is temporarily unavailable.