SkyCity's tropical resort dream on a roll

SkyCity Entertainment's plan to build a tropical resort beside its Darwin casino is progressing, with the NZX-listed company named top bidder for the prime site.

The undeveloped 5400sq m site, known as Little Mindil, is owned by the Northern Territory Government.

The company said yesterday that it was the preferred tenderer and further negotiations with the authorities were expected to start within a few weeks.

The project would allow SkyCity to expand, but details - including cost and scale - would not be publicly released until site arrangements progressed, the company said.

"There is a considerable way to go in this process but we are pleased our concept plan has been well received," said SkyCity managing director Evan Davies.

"Our proposal builds upon the Northern Territory's growing reputation as a tourist destination and encourages growth."

SkyCity - which owns outright or has a substantial stake in casinos in Auckland, Hamilton, Christchurch, Queenstown and Adelaide - bought the Darwin business in 2004.

The company proposes to shift its Darwin outdoor entertainment area the Gala Lawns to the Little Mindil site and build the resort on part of its current property, said a spokesperson.

The Gala Lawns is a park-like space on the beachfront in which functions and concerts are held during the dry season.

Australian media reported the SkyCity plan would preserve the site's foreshore and escarpment as green space and return A$6.6 million ($7.6 million) to the area's taxpayers.

Shares in SkyCity closed down 1c yesterday at $5.10.