June 28, 2015
A deed restriction filed by Trump Entertainment Resorts may keep the shuttered Atlantic City casino closed for at least ten years as a tax-saving measure.
After closing in Septemeber 2014, the move was made in anticipation of a bill New Jersey Governor Chris Christie may sign that would allow casinos to make specified payments in lieu of taxes as part of an Atlantic City rescue plan, ABC News reports.
RELATED STORY: New Jersey lawmakers OK legislation to help Atlantic City
Hoping to avoid inclusion in the PILOT program's alternative tax program, which applies to any property that operated as a casino in 2014 and does not have a deed restriction, the company filed the deed on Friday.
In its filing, the company noted that Caesers Entertainment placed a similar deed restriction on the Showboat Casino prior to its closing in August, a move that kept it out of the PILOT program. Trump Entertainment resorts has already appealed its 2014 and 2015 property taxes in attempt to get a better deal. If the PILOT program passes, casinos would be prohibited from making further appeals.
Trump Entertainment hopes a bankruptcy judge will approve the deed restriction on July 9 and notes in its filing that billionaire investor Carl Icahn, who is currently buying the company out of bankruptcy court, approves the restriction. It remains unclear whether any buy of the property would intend to keep the casino standing or use the site for another purpose.
