Barden’s two casinos are in bankruptcy. His license is up for renewal, although the Indiana Gaming Commission won’t take the matter up until September, pending the outcome of a report on the fiscal health of the Majestic Star boats.
Actually, it’s the Gary City Council wants Barden’s licenses pulled, citing nonpayment of taxes. Barden’s people respond that their casinos are up to date – except for the taxes they’re contending.
At issue is a revised assessment of the value of Majestic Star’s property, which has raised its levy from $49 million to $110 million (at least until property-tax caps kicked in). Barden wants to keep paying at 2005 levels and has appealed the higher valuation. However, that disagreement does not account for all of the money – as much as $27 million -- for which Majestic Star could be liable ... more, as interest continues to accrue on the tax arrearage.
Barden is not appealing the revised assessment on some of Majestic Star’s Gary real estate and officials like Lake County Council member Larry Blanchard demand that Barden show them the money, $2 million worth. Gary Mayor Rudy Clay doesn’t want the IGC to renew Barden’s license until $22 million in Majestic Star tax bills are paid.
The tax-appeal process is agonizingly slow (the matter has been in litigation for four years) and even Majestic Star isn’t sure how many assessments it’s disputing. Last month, IGC Director Ernest Yelton told Gary’s Post-Tribune "he had reviewed a report prepared by Majestic Star regarding the company’s tax payments and that his office was confident Majestic Star was caught up." Majestic Star General Manager Larry Buck is not only sure his company has paid in full, he thinks Lake County might owe the casino some money.
Lacking evidence that Barden is derelict, Majestic Star’s license appears safe. And since the casinos are in Chapter 11, local officials can’t seize and re-sell them to collect the money to which they believe they’re entitled. For now, the opinion that counts is that of the Calumet Township Assessor, in which case we may be in for a long wait.
In the meantime, Chicagoans can look forward to at least three more months of gambling aboard Barden’s two ships – and probably another year after that.
