Majestic Star Casino sues Gary

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BY JOE CARLSON
jcarlson@nwitimes.com
219.662.5339 | Wednesday, February 13, 2008 | (6 comment(s))

GARY | The Majestic Star Casino is threatening to withhold all revenues it pays to Gary until city leaders make good on what casino owners call promises to build a highway interchange and access roads to the gambling boats.

In a lawsuit filed Monday in Marion County court, the casino alleges the city has failed to live up to its 1999 contract agreement -- which was reiterated in an updated contract in 2005 -- to build convenient access roads to the property from Cline Avenue.

During that time, the casino has paid the city more than $285 million in tax revenue and has invested $269 million in the construction of its two casino boats, the lawsuit says.

Monday's lawsuit claims the casino intends to place "the amounts that would otherwise be paid to the city" into an interest-bearing account so the city will have money to fulfill its obligations and pay any court-ordered damages for its breach of contract.

"This breach has put us at a significant disadvantage in the marketplace," said David Schugar, senior vice president and general manager of Majestic Star Casinos and Hotel. "Customers have found access to our casino inconvenient, cumbersome and inaccessible."

City Attorney Hamilton Carmouche, who received the lawsuit Tuesday afternoon, said the suit has no merit and the city is considering whether to cross-file its own complaint against the casino.

Carmouche said the 2005 agreement between the casino and then-Mayor Scott King was illegal and unenforceable because the contract was not approved by the Gary Board of Public Works.

The 2005 agreement came about after Detroit-based casino operator Don Barden, who already owned one of the casinos in Gary, bought out Donald Trump's ownership of the city's second gambling boat.

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don't feel sorry wrote on Feb 13, 2008 10:56 PM:

" We can't bulldoze because Clay's "few bad apples" will take the new South Shore spurs to towns that don't want them. What should happen, is just build a wall around the city; nothing goes in and nothing goes out. That will keep the "bad apples" contained and eventually, the entire city, what's left of it, will just self-destruct. This would be much more economical than throwing money at this dump to "rehab" and "revitalize." When all is said and done, expand the Indiana Dunes National Lakeshore and make the entire place green space and beaches. "

Is It Worth The Gamble? wrote on Feb 13, 2008 10:13 PM:

" Mayor Clay is a joke! Maybe he'll do something now that he will be out the income to pay for his Hummer and his sons employment. Majestic Star Casino is the cities fourth largest employer, a huge tax contributor, deeply involved in the community and the only company willing to spend hundreds of millions in Gary. Oh wait; there is the Country Market that was built in Gary. Oops, it’s just another abandoned building in Gary. But hey, at least it’s a “brand new” newly abandoned building! Maybe they should move the Casino over there. Also, could you please recommend me another Steakhouse, Hotel, or Buffet I can eat at while visiting Gary? Keep in mind that when Donald Trumps Casino was up for sale I did not read that any other BIG companies were beating down the doors to purchase it. And someone explain why did it go for hundreds of millions of dollars less than the sales of Showboat, Harrah’s, Resorts, or Horseshoe? Maybe because Gary was Forbes biggest kept secret?

"

TAX PAYER wrote on Feb 13, 2008 11:08 AM:

" If I'm sitting on the jury for this trial, I will award the casino the amount of money it would take to build the roadway. Nothing more. Nothing less. To claim that the current road to "our casino is inconvenient, cumbersome and inaccessible, you must be speaking about your Amish customers. Either that or NASCAR drivers who are customers since you need to make so meny right turns to get in. Maybe your talking about those that take buses from Chicago to Resorts and walk down the train tracks to get there. I say build the road, keep the tax money.
"

poor gary wrote on Feb 13, 2008 10:22 AM:

" i totaly agree with the person above me.,, they need to tare down the whole gary and start a fresh. it looks horrable over there, hope change comes soon to all them poor people waiting for change. "

NO BULLDOZER wrote on Feb 13, 2008 10:13 AM:

" To: Go Figure -
If you were to bull doze Gary, all the criminals and thugs, including the "on the take" scumbags running things would scatter like roaches and take up residence in the surrounding communities. I say Gary should become its own country and let the rest of the state be done with supporting a community that does not want to help itself and keeps voting for the same criminals. They deserve who they vote for. "

Go figure wrote on Feb 13, 2008 8:22 AM:

" 285 million in tax revenue and the only thing that looks like it got better in Gary are the pockets of the corrupt mayor and his cronies. Gary is such a dump with nothing but problems. we should bulldoze the whole city and start over! "

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