Trump Taj Mahal owners released a statement late on Friday, in which they questioned Stockton University officials why they spent $18 million on the shuttered Showboat Atlantic City, despite the fact that it could not be legally converted into a campus.
Stockton University acquired the closed casino from its previous owner Caesars Entertainment Corp. in December 2014. The property was planned to be turned into a university campus with classrooms and a dormitory. The acquisition deal was closed, despite the fact that under a covenant Showboat owners had inked with Trump Taj Mahal almost three decades ago, the building of the shuttered gambling venue could not be used for any other purpose. In other words, the Showboat is legally required to only operate as a casino.
Stockton officials said they were assured by Caesars Entertainment that they would not be prevented from carrying out their plan, despite the 1988 agreement. Owners of Trump Taj Mahal, however, decided to enforce the legal covenant, as they believed a campus would have negative effects on their business.
In their statement from last night, they questioned Herman Saatkamp, President of Stockton University, whether he had made sure that no legal issue would emerge before the controversial property was purchased. Dr. Saatkamp was also asked whether title insurance had been obtained and the transaction had involved a title company.
Sharon Schulman, a spokeswoman for Stockton University, refused to provide comments on Trump’s statement.
A few days ago, Dr. Saatkamp stated that the acquisition of Showboat was signed off by the university’s lawyer as well as by the respective title and insurance companies.
Paul Fader, who represented Stockton University on the purchase deal, could not be reached to share his opinion on the matter.
Dr. Saatkamp said earlier this week that they will sell the property, provided that no agreement is reached with Trump. He pointed out that the university spends up to $400,000 monthly to maintain the Showboat site and it will not be able to pay such considerable sums for long.
Atlantic City officials expressed their support for the conversion of the former casino into a campus, as this will help the city diversify and boost its economy.
Last night’s statement was released on behalf of Kathleen McSweeney, who is taking the position of Vice President of Trump. Ms. McSweeney stated that the Showboat had been a fully operating and seemingly profitable gambling venue. She also pointed out that Trump Taj Mahal had benefited from being in a near proximity to the former casino, as more visitors had taken the short walk between the two properties. In other words, this had been good for their revenues.
Ms. McSweeney said that she and her colleagues approve of the establishment of a campus in Atlantic City, but they do not think it should be located near an operating casino due to the fact that this will not be beneficial to both properties. She suggested that the closed Atlantic Club is one of the properties that are perfectly suitable for that purpose.
