Trustees of the Stockton University agreed at a Wednesday meeting to spend no more than $350,000 on investigating the matters related to the purchase and the potential sale of the former Showboat casino.
Dean Pappas, Chairman of the board of trustees, pointed out that even though the university bought the Showboat for the right reasons, all legal obstacles the property is facing and the fact that the institution pays $400,000 monthly for its maintenance require for its sale to Florida developer Glenn Straub to be completed.
Stockton University purchased the former casino from Caesars Entertainment in December, in order to turn it into a campus and a privately operated hotel. A legal agreement signed in 1988, however, required the property to be used only as a casino.
Trump Entertainment, owner of the neighboring gambling venue Trump Taj Mahal, was one of the partners in the covenant and earlier this year, the operator announced that it was planning to enforce it.
All interested parties are set to meet on Friday, in order to discuss their future moves.
During yesterday’s meeting, Mr. Pappas also noted that he would resign as Chairman of the board but he would remain a trustee. Madeleine Deininger, who is currently taking the position of Vice Chairwoman, is to take over as Chairwoman of the board.
Ms. Deininger said after the meeting that the decision for the investigation came after both trustees and the Senate Budget Committee raised certain questions at a hearing held last week, during which the current President of Stockton University, Harvey Kesselman, testified on the purchase of the former casino.
Neither Ms. Deininger, nor Mr. Pappas revealed comprehensive information about the investigation. Yet, the board’s Chairman noted that there are a lot of things trustees are still not aware of. He also explained that in future, measures are to be taken regarding financial reporting and inclusiveness with both faculty and stuff members.
No timeline for the upcoming investigation was revealed during yesterday’s meeting.
Last month, Herman Saatkamp, former President of the Stockton University, resigned from his post. Similarly to Mr. Pappas, Mr. Saatkamp, cited health reasons for his departure.
Michael Jacobson, a board member, said that he was Chairman of the committee that appointed Mr. Saatkamp as President of the university. He pointed out that although the next few months might be difficult for the institution, it would certainly “survive and prosper.”
