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Feb
19
Majestic Star Stops Paying Gary, Ind.
Filed Under Gary, Majestic Star, tax revolt | 1 Comment
Majestic Star stops paying Gary, Indiana.
The Majestic Star stopped payments to the city of Gary on February 12th causing the city to have to cut back, reports the Post-Tribune.
Majestic Star Casino owner Don Barden cut Gary off from a key source of revenue last week, keeping a promise and putting pressure on the already cash-strapped city.
Celita Green, the city controller, said Majestic Star never made its monthly tax payment last week.
Majestic’s monthly payments total roughly $6 million each year depending on how much money it makes, Green said.
Mayor Rudy Clay said Barden’s decision to withhold payment puts Gary in a “major financial dilemma.”
“The city was skating on thin ice anyway,” Clay said.
Barden filed complaints against the city with the American Arbitration Association and Marion County Circuit Court last week, naming the Indiana Gaming Commission as a defendant in Marion County, as well.
Feb
15
Majestic Star v. City of Gary
Filed Under Gary Indiana, Majestic Star, Rudy Clay, lawsuit | Leave a Comment
The Majestic Star
The Majestic Star has filed a lawsuit against the City of Gary in Marion County and is threatening to withhold money from the city, reports Joe Carlson in the Northwest Indiana Times.
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.
