BILOXI, Miss. (WLOX) – A lawsuit from the Secretary of State‘s office and letters of opposition lead to a pause on Tullis Gardens’ casino site approval for its Biloxi development.

Thursday, developers appeared before the Mississippi Gaming Commission. According to Executive Director Jay McDaniel, commissioners decided to pause the decision on whether or not the project will get gaming site approval. The delay will give commissioners time to review both the Secretary of State’s lawsuit and letters of opposition, McDaniel said.

WLOX News obtained copies of the opposition letters submitted to the commissioners. One was written by the Mississippi Gaming and Hospitality Association, and the other was signed by four Biloxi casinos: Treasure Bay, Harrah’s Gulf Coast, Beau Rivage, and Golden Nugget.

Both letters claim the property that Tullis Gardens optioned from the City of Biloxi does not extend to the water line and calls into question the developer’s intentions to build a pier through a lease with the City.

Among the requirements to get site approval from the gaming commission, the developer “must own and/or lease the land that is contiguous both to the parcel used to conduct gaming and the point of reference used to determine the mean high water line.”

In November 2022, Tullis Gardens entered into an agreement with the City of Biloxi for an option to purchase the old Tullis Manor property located between Ohr O‘Keefe Art Museum and Harrah’s Casino. The land included in the option stretches south of Highway 90 to the shoreline, according to the agreement, and is part of the 1784 Spanish land grant.

In July 2024, the City of Biloxi agreed to enter into a lease with Tullis Gardens to build a public pier south of the Tullis Manor property.

Wednesday, the day before the gaming commission meeting, Secretary of State Michael Watson filed a lawsuit against Tullis Gardens. The lawsuit states that the City of Biloxi falsely represented to Tullis Gardens that the Tullis Manor property included land to the water line. It also states that Tullis Gardens’ lease agreement with the City of Biloxi to build a public pier was only for the purpose of applying for gaming site approval, and would need a tidelands lease.

The issues brought on by the Secretary of State are similar to two lawsuits that went before the Mississippi Supreme Court. Both rulings affirmed judgments opposing the Secretary of State’s position.

In Mississippi v. RW Development, Watson claimed that a state tidelands lease was needed to build a public/private pier at Veterans Avenue. The City of Biloxi, Harrison County, and RW Development entered into an agreement to construct the pier. Supreme Court judges affirmed that Mississippi law does not require cities or counties to enter into a tidelands lease to build piers, harbors, and boat launches, even if a private company is involved in the construction.

In Mississippi v. Aldrich, Watson argued that a portion of John Aldrich’s land is state property because it is tidelands. The Supreme Court ruled that lots outlined in the 1784 Spanish land grant remain under private ownership, even if the lines extended to the tidelands, and are not state property.

Secretary of State Michael Watson told WLOX News he cannot comment on pending litigation.

WLOX News reached out to Tullis Gardens developers, who sent this statement: “We are committed to the development and are optimistic.”

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