The outcome of the debates, concerning the reduction of the revenue of the casino in East Chicago, has been officially announced. The bone of contention were the funds that were generated from the cut of the revenue with the aim of being invested in boosting the local economy.
Mayor George Pabey, who took the reigns of East Chicago ten years ago, was said to having made attempts to control the funds spending. He accused the company, called Second Century in misusing the money, set aside from the casino revenue. According to him, the authorities didn’t use the sum for public benefit, which, respectively, can be regarded as a violation of the laws implemented.
The only casino, located in the region, that allowed a for-profit organisation to get a part of the amount of money, the casino has generated, was the one in East Chicago. As a matter of fact, this kind of actions are illegal on the territory of the state.
The company Second Century was established with the aim of boosting the city economy by establishing inexpensive housing and taking part in various, beneficial to the local communities, projects. It got 0, 75% of the income because of the clause in an agreement that dates back to 1994. The agreement was signed by the former Mayor of the city whose aim was moving the casino venue to Lake Michigan city.
The agreement, that was signed a few days ago, obliges Second Century to pay $154, 000 to the city.
Greg Zoeller said that the total amount, received by the company, was $16 million but only a modest part of it was spent on projects that contribute to the city development. However, reports show that the two principals of the company as well as their closest relatives were paid more than $6 million for wages.
Zoeller also added that the actions of Second Century authorities are dishonourable and the use of money for their own benefit instead of the well being of the community is shameful.
According to the paperwork available, Michael Pannos and Thomas Cappas acquired almost $4 million in the period 1997-2008.
The defender of the two partners claims that Pannos and Cappas invested a great amount of money into different projects and the sum invested was several times bigger than what was announced by Zoeller. The attorney considers the actions of both partners to be absolutely reasonable and sensible.
Michael Pannos, Thomas Cappas and their relatives were the owners of the Showboat casino in 1997. However, they sold their shares to Harrah’s. Later on, the partners were allowed to take the reigns of Second Century and convinced the authorities that they won’t ask for salaries but they are likely to ask for another form of compensation.
The present Mayor of the city announced that the amount of money Second Century is supposed to pay, will be used for reducing the crime rate in the region.
