- Associated Press - Thursday, April 2, 2015

ATLANTIC CITY, N.J. (AP) - Carl Icahn has done battle with corporate boards, company executives and rival investors, yet some of the most intense flak he has ever received is coming from casino workers and college students who see him as the hand holding back the struggling seaside gambling resort of Atlantic City.

The activist investor is taking over Trump Entertainment Resorts, and with it, the struggling Trump Taj Mahal Casino Resort. But even before the deal closes, it has brought numerous headaches as well as five rounds of public protests over the company’s elimination of health insurance and pensions for workers.

College students and union members protested the businessman on Thursday because they are upset over Trump Entertainment’s move to block the former Showboat Casino Hotel - its next-door neighbor - from being converted into a college campus for Stockton University. The proposed reuse of a shuttered casino represented one of the only bits of good news Atlantic City has had in the last year or so, during which four of its 12 casinos, including the still-profitable Showboat, were shut down.

Trump Entertainment says it does not want a college campus next to the Taj Mahal, fearing students under the legal age of 21 will sneak in to gamble and drink, exposing the casino to costly fines. But many students see a different reason behind the company’s refusal to let the deal go through.

“I want Carl Icahn to know what he’s doing is wrong,” said Shannon Herbst, a senior studying forensic psychiatry. “He thinks this is a game, and it’s not. It’s my education, and my future.”

University President Herman Saatkamp emerged from a meeting with school trustees Wednesday night and said the future for converting the Showboat into a campus was “looking positive.” But Saatkamp would not elaborate when pressed for details.

Icahn, who also owns Atlantic City’s Tropicana Casino and Resort, has been locked in a fight with the main casino workers’ union over benefit cuts and work rule changes at the bankrupt Taj Mahal. Though he does not yet own it, he has been lending it money to keep it open.

He said this week he is not involved in Trump Entertainment’s decisions. Local 54 of the Unite-HERE union derided that assertion, calling Icahn “the puppet master” behind Trump Entertainment.

At issue is a 1988 legal covenant among the Taj Mahal, Showboat and Resorts casinos, requiring that the Showboat never be used as anything other than “a first-class casino resort.” Caesars Entertainment closed the Showboat on Aug. 31, and Stockton bought it in December, announcing plans to convert it into a long-sought Atlantic City satellite campus.

Trump Entertainment says Stockton knew of the covenant when it bought the building. Stockton’s president acknowledged there was a covenant but said the university was “led to believe” the matter had been resolved between Trump Entertainment and Caesars.

It was not.

Stockton officials said last month that if the impasse cannot be resolved soon, they will move to quickly sell the property because they cannot afford to keep an empty building.

Florida developer Glenn Straub, whose purchase of the Revel Hotel Casino was approved in bankruptcy court Thursday, said he is acquiring several casinos or former casinos in Atlantic City as part of a $500 million multi-faceted development. His attorney, Stuart Moskovitz, said the Showboat “definitely” is part of that purchase deal.

The developer’s plan for it, including whether he will still allow it to be used as a college campus, remained unknown.

“I’ve never had someone try to stop me from pursuing an education,” said sophomore Kendal Lambert, who is studying communications. “For a billionaire to say no to this is totally unacceptable.”

“I feel robbed,” added Brian Moore, a freshman studying hospitality and tourism management, who hoped to attend specialized classes in the former casino. “The program was going to have unique labs that were going to teach us real-life skills that you can’t learn in a classroom. There were going to be mock dining rooms, wine tasting rooms, and we’re being blocked by big business.”

___

Wayne Parry can be reached at https://twitter.com/WayneParryAC

LOAD COMMENTS ()

 

Click to Read More

Click to Hide