Saturday, March 22, 1997 | 11:59 a.m.
"I had been thinking the chances were 50-50 there would be a casino. Now, I think the chances are 70-30 that we won't. They just don't seem to want to do what we need to do."
Foster, speaking to the Louisiana Association of Broadcasters, said he's still not certain that the state has sufficient financial guarantees in a bankruptcy plan filed by the partners that own the casino project. The lead partner in the Harrah's Jazz partnership group is Harrah's Entertainment Inc.
Harrah's has agreed to pay the state a minimum $100 million a year tax, which Foster insisted on. However, if the casino fails, Foster said, he is not certain the state would be protected financially.
Under the current bankruptcy plan, the state would be first in line to receive money from the sale of the casino owners' assets if the casino fails. However, Foster noted that the biggest asset, the casino building across from the French Quarter, is owned by the city.
The city would have to give up its rights to the building if the state was to come out all right in case of an operator bankruptcy, said Foster. "And, the city is not wild about that."
Foster indicated he is still in negotiations with the city over the subrogation of New Orleans' rights. Mayor Marc Morial was not immediately available for comment.
If the city and state come to an agreement, Foster said he would present the plan to the Legislature but not endorse it. "I will be neutral," he said.
Harrah's began construction of its casino in 1995 while operating a temporary casino. But the gamblers didn't show up in expected numbers for the temporary casino. Harrah's closed it and went to bankruptcy court for protection from creditors.
A Harrah's spokesman declined comment on the issue Friday.
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