Straub wins again; Delaware, racinos at an impasse

Revel is Glenn Straub‘s — if he wants it. HQ nightclub, ACR Energy Partners and other Revel tenants saw their objections swept aside at a bankruptcy hearing yesterday. Judge Jerome revel-appeal-720x340Simandle wrote that “the court notes that, the palpable risk of losing a ready buyer demonstrates, without more, a risk of substantial harm” when there was a bid on the table, a risk too great to take. The plaintiffs fear that an earlier ruling by Judge Gloria Burns that Revel can be sold “free and clear of liens, claims, encumbrances and interests,” means they could be evicted and their investments eradicated. But Straub’s Polo North Country Club said it would rather forfeit a $10 million deposit than humor the dissidents.

“The land that we have the right to occupy would have been sold to another party, which would have the right to kick us off it,” complained ACR attorney Craig Martin, raising the specter of ACR being forced to dismantle its own building. Simandle was unmoved, calling the relationship between Revel and ACR “symbiotic,” since the former is the latter’s sole customer. Revel attorneys are antsy for a resolution to the impasse, saying it’s costing the defunct megaresort $8 million a month simply to be kept in mothballs. “Right now, it’s not an asset. It’s a liability,” Revel attorney Jason Zakia said.

* Faced with a racino industry that’s struggling, Delaware lawmakers are reaching the somewhat illogical conclusion that people need more places to play slots. Using a plan markellpreviously trotted out by Gov. Jack Markell (D, right), the proposal would create “satellite” casinos in which the existing racinos could place their unused slot quota. However, Dover Downs CEO Denis McGlynn is already against the idea. He’s probably be more amenable to alternatives that include a lower tax on table games and tax credits for facility upgrades. Still another idea is a tiered tax structure where racino payments are indexed to revenue received instead of a fixed rate.

However, House Majority Leader Valerie Longhurst said, “There’s not a big appetite for this General Assembly to do something the third year in a row. I think you need to look very carefully at what, if anything that we do … to sit here and say that we’re going to go back and give them $12 million, I’m just not prepared to do that.”

This entry was posted in Atlantic City, Delaware, Glenn Straub, Politics, Racinos, Revel, Taxes. Bookmark the permalink.