It was reported that Showboat Atlantic City, one of the city’s iconic casinos, which closed doors in August 2014, might not be converted into a university campus as it was initially planned.
The local Stockton University purchased the shuttered gambling venue in order to turn it into a campus back in December 2014. However, a legal agreement between Caesars Entertainment, the previous owner of Showboart, and the owners of Trump Taj Mahal that was inked back in 1988 seems to be preventing the afore-mentioned plan from materializing.
Last night, Herman Saatkamp, who is taking the position of a President of Stockton University, explained that the covenant contains a clause, under which the Showboat property can only be used as a casino and nothing else. Mr. Saatkamp also informed that Trump Entertainment Resorts has decided to enforce the agreement.
He shared that he and his colleagues are doing their best to reach an agreement with the gambling operator but if this does not happen, the controversial property will be put up for sale once again.
Mr. Saatkamp further commented that he was extremely disappointed with this turn of events, as Stockton University has been trying to build a campus in Atlantic City for quite some time and every single attempt failed.
Caesars Entertainment was supposed to resolve the legal hurdles coming from the 1988 agreement, but this did not happen, and as it seems, Trump Taj Mahal owners are not particularly keen on having a university campus anywhere near their venue.
Trump Entertainment Resorts officials refused to comment on the issue and Caesars Entertainment representatives could not be reached for their opinion.
Mr. Saatkamp said that Stockton University will probably prevail, provided that the matter enters court. Yet, he pointed out they do not have time for legal battles, as according to the initial plan, the venue was to be renovated and opened by the summer.
If, however, university officials bring the issue to court, they will be stuck with a dysfunctional property that does not generate any revenues. This might result in financial instability, which, in turn, might lead to an increase in tuition fees and job losses among both faculty and staff members.
As previously mentioned, the Showboat was one of the four Atlantic City casinos that were closed in 2014. The property was purchased by Stockton University towards the end of the year for the sum of $18 million.
Mr. Saatkamp explained that if the issue does not get resolved, the struggling city will lose a “major economic and community engine”, as the campus was supposed to bring significant revenues. What is more, he pointed out that students will be deprived of excellent academic opportunities.
