Las Vegas Sun

April 24, 2024

Trump makes a fast public pitch for casino bid

But those visions came with no specifics and one big condition: No casino license, no revival with Trump's help.

At a news conference Thursday, the real estate mogul officially announced that Trump Hotels & Casino Resorts Inc. will apply for one of three licenses to build a casino in Detroit.

"We look forward to doing a really spectacular job in Detroit," Trump said. "We think it's going to be a terrific place, a magnificent casino, and if we're chosen, we will not disappoint."

Trump made the announcement with former Detroit Lions standout Mel Farr, a successful Detroit auto dealer who Trump brought in as a local partner.

"I chose Don because, No. 1, he's a proven commodity for doing business in an urban area like Atlantic City," Farr said. "We would not be here ... talking about gaming in Detroit if it were not for Don Trump, who started gaming outside the desert and Atlantic City."

Trump Hotels operates three casinos in Atlantic City and a riverboat in Gary, Ind. In the first three months of 1997, the company lost $13.9 million on revenues of $343 million.

While Trump said his Detroit casino could lead to more development in the city, he offered no specifics on his deal with Farr, the size the casino and hotel, or how much money he would spend on other projects.

"If we're chosen, we're looking to do major development in the city of Detroit," Trump said. "We would make a major commitment to develop housing and other things that Detroit desperately needs."

When asked if he would make the same commitment if he does not receive a casino license, Trump replied: "Probably not."

Farr is the latest in a string of high-profile Detroit-area leaders who have joined groups making bids for casino licenses. Former mayor Coleman Young and Marian Ilitch, who co-owns the Detroit Red Wings with her husband, Mike, are among the investors for casino licenses.

Such luminaries are popular because Mayor Dennis Archer has made it clear the winning bid will need a strong Detroit link.

"It's just got to be obvious a Detroit partner plays a significant role in the ownership and operation of a casino," said Archer spokesman Anthony Neely.

Archer is expected to pick three casino licensees later this year.

The lack of a local partner has caused Trump some trouble in another casino development.

Trump is being sued by eight Gary, Ind., civic leaders who say he invited them to own part of the riverboat, then took back the invitation once the casino opened.

The city had required that 15 percent of any casino be locally owned. The eight plaintiffs say they were offered 7.5 percent and the chance to run a charitable foundation which would own 7.5 percent.

Jon Krahulik, an attorney who represents the leaders, say the deal was outlined in papers Trump's company filed with the Indiana Gaming Commission. But after the commission allowed Trump's boat to open in 1994, the leaders were told they had no ownership rights.

"He obviously felt he needed them for some reason," Krahulik said. "The spiel to them was, you'll be of use because you do have a good reputation and name in the community, and we want you to put your good name with us and not someone else.

"When they were no longer needed, he let them go."

Trump said Thursday he never had minority partners in the Gary casino.

"What happened is a group of people came along and said they were minority partners and we didn't know who they were," Trump said. "We own 100 percent of a very successful boat.

"Mel and I have a signed contract. There's a big difference."

The case is scheduled to go to trial in October.

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