Council approves amended lease and consent agreement for Biloxi Capital pier and casino project; state objects

The Biloxi City Council unanimously approved a resolution amending a prior authorization to enter a lease and consent agreement with Biloxi Capital LLC for a waterfront development that includes a publicly accessible pier and a proposed casino-hotel complex.

Biloxi Capital and partners have proposed a waterfront project on approximately 32 acres including a hotel (about 1,300 rooms) and roughly 100,000 square feet of gaming. Under the council action, the company will construct and maintain a public pier; Biloxi Capital is responsible for construction, maintenance, insurance and utilities on the pier and will make in-lieu payments to the Mississippi Secretary of State’s office as required by statute.

Nut graf: The council approved the amended resolution despite formal written objections from the Mississippi Secretary of State’s office arguing the disposition of trust property must follow state law and fair-market rules; city attorneys and proponents said the city has authority under precedent (Long Beach and prior local rulings) to enter such leases and pointed to large projected job and tax gains, plus a public pier amenity that would be built at private expense.

What council heard

Counsel for the Secretary of State (represented by Mark Alexander) asked the council to include the office’s written objections in the record. Alexander said Mississippi law limits disposition of tidelands and that the state’s statutes and constitution require fair-market value or in-lieu payments under certain circumstances. He asked the council to consider those legal questions in the record.

Biloxi Capital’s attorney and city counsel outlined the deal’s components: the developer bears pier construction and maintenance costs and will make statutory in-lieu payments to the state (staff estimated the in-lieu amount for a project this size would likely be in the $900,000–$1,000,000 range, though statutory minima are lower). Attorneys pointed to court precedent in Long Beach and earlier Biloxi cases that upheld municipal authority to lease certain tidelands and waterfront rights; the council’s action included additional language clarifying the developer’s obligation to make in-lieu payments.

Supporters and risks

Supporters, including some council members, stressed anticipated local economic impact: construction jobs, permanent employment in hospitality and gaming, and increased tax revenue. Opponents — and the Secretary of State’s representative — warned of litigation risk. City attorneys and proponents said litigation was likely regardless of the council’s vote and that the city’s record needed fuller findings; the action passed after council members recorded their statements and reasons as part of the public record.

Action and outcome

Councilman Gonzales moved the resolution and Councilman Tisdale seconded. After discussion, the council voted unanimously to approve the amended resolution authorizing entry into the consent and lease agreement for the site associated with Biloxi Capital LLC. The council directed the record be clear about findings and the developer’s commitments; attorneys and staff confirmed that Biloxi Capital will pay in-lieu sums required under state law and will operate the pier for public use.

What’s next

The Secretary of State indicated it will keep its objections in the public record and is positioned to litigate; city staff said they expect appeals. Staff also noted coordination with Harrison County is required for activities on the sand beach, and the pier must meet permitting and ADA-access requirements. The project remains subject to state permitting and possible appeals, and the council’s approval is one step in a process that planners and developers said could produce hundreds of construction jobs and thousands of permanent positions if the full project is built.

Ending: The council approved the resolution but acknowledged implementation risk from expected legal challenges; staff and councilors said they would document findings and developer commitments in the record to support subsequent legal review.