Back in 2014, Stockton University purchased the shuttered Showboat casino with the aim of turning it into a college campus but everything went in the wrong direction when the casino next door – Taj Mahal, strongly opposed the location of a student campus nearby.
Stockton officials invested $18 million in acquiring the property but the complicated situation made them sign a contract with Glenn Straub. Instead of putting end to all rumors and speculations, Stockton officials were exposed to even more severe criticism and they had no choice but to answer communities’ questions about the troublesome deal.
One of the questions was related to the employees who used to work at the Showboat and were added to the public payroll once the University became the owner of the property. It was announced that as many as 36 employees were included in the aforementioned payroll.
Apart from that, Stockton University is threatened to face unexpected costs due to the reluctance of Taj Mahal to put up with the establishment of a college campus next door.
New Jersey lawmakers also raised the question about the careful consideration of all aspects of the deal, which made Herman Saatkamp, the soon-to-resign President of Stockton University, to set a meeting with the Senate Budget Committee and answer their question related to the purchase of the former casino property.
Senator Paul Sarlo, considered to be one of the opponents of the deal, said that he has always regarded the proposal as “bizarre” and the events that took place during the last three months came to support his standpoint.
Mr. Saatkamp was also required to explain why he had proceeded with the deal regardless of the restriction imposed.
The contract, signed between Stockton University and the former owner of the Showboat, Caesars Entertainment, says that the latter is to assist in solving any issues related to the deed restriction and the issues with Taj Mahal.
As previously reported, the costs continue to increase and according to Mr. Saatkamp’s announcement, the monthly expenses for utilities is as much as $400,000 a month not to mention the staff salaries.
Questions over the agreement with Glenn Straub about the purchase of the Showboat also arose and people with knowledge on the matter defined it as “jeopardy”. Meanwhile, people familiar with the ongoing affairs said that the hastily purchased property creates many questions. So does the sale to Straub who made comments regarded as humiliating by the students and the local communities.
