The New Jersey Senate President Steve Sweeney urged the state Casino Reinvestment Development Authority to reject billionaire investor Carl Icahn’s request to be granted $5.6 million to partially fund the demolition of the shuttered Trump Plaza casino resort.
It was announced last month that part of the gambling venue, which was owned by President Donald Trump when it opened doors in the 1980s, would be imploded next spring to vacate room for new Boardwalk development projects. The casino complex shut operations in 2014 and has remained closed since then. In 2015, Mr. Icahn purchased its parent company, which was also the owner of the then operational Trump Taj Mahal.
Mr. Icahn sold Trump Taj Mahal to casino operator Hard Rock International earlier this year. And as for Trump Plaza, parts of the gambling resort, including one of its hotel towers, will be demolished next year. The implosion was estimated to cost $13.2 million. Mr. Icahn requested a $5.6-million payment from a special fund that stored proceeds from the alternative investment tax Atlantic City’s casinos were required to pay to the state. The money from the fund is usually used for different redevelopment and improvement projects in Atlantic City.
Last week, the Casino Reinvestment Development Authority gave a preliminary approval to the businessman’s request. However, the move saw staunch opposition from key New Jersey politicians, including the state Senate’s President.
On Monday, Mr. Sweeney commented on the development authority’s decision, saying that it should actually reject a request from an individual who has long been known for his “antagonistic record” of employees’ treatment.
Last October, Mr. Icahn closed Trump Taj Mahal after failing to agree on the terms of health insurance and pension contracts with the gambling resort’s employees. The lack of accord escalated into a month-long strike, which, according to the New York billionaire investor, was detrimental to Trump Taj Mahal’s profitability.
The Casino Reinvestment Development Authority is yet to schedule a date for making the final decision regarding Mr. Icahn’s payment request.
Senate President Sweeney’s Previous Dispute with Mr. Icahn
Mr. Sweeney was among the heaviest critics of last year’s closure of Trump Taj Mahal. The move resulted in nearly 3,000 people being laid off, and made the Boardwalk casino resort the fifth to close doors in Atlantic City in two and a half years.
Following the property’s closure, Senate President Sweeney introduced a bill that would have banned casino license applicants from receiving authorization to operate gambling venues in the city for a period of five years, in case said applicants had closed a casino previously. The legislative piece was particularly intended to prevent Mr. Icahn from operating a gambling business in New Jersey.
The bill passed the state Legislature, but Gov. Chris Christie refused to sign it. New Jersey’s top official argued back then that Mr. Sweeney’s bill and its approval was an unfair attempt of the Legislature to meddle with private business matters.
