Donald Trump's casino company has pledged to provide Orange County residents with $108 million casinos with marble floors, carved stair banners and sparkling chandeliers. However, the company, which was struggling financially, was unable to deliver.
Six months after Trump Hotel & Casino Resorts acquired Indiana's 11th casino, state gambling regulators announced on Wednesday that they needed to find another company to build the French Rick Casino. Trump did not meet the deadline imposed by the state.
"I will do everything in my power to make your dreams come true," Ernest Yelton, the new executive director of the Indiana Gaming Commission, told residents at a meeting in French Rick on Wednesday. And Yelton convinced the audience in orange shirts promoting the casino that they would get one.
"I've never received any indication that this ship will move out of Orange County," he said. Suffering from high unemployment but blessed with two historic hotels, residents of Orange County rely on casinos to bring jobs and money to their towns of French Rick and West Baden Springs.
On Wednesday, Trump officials said they should step down, including the prospect of more competition, because Indiana's gambling market could change.
Scott C. Butera, the company's president and chief operating officer, said in a statement that the tax atmosphere for casinos in Indiana has become "more onerous." He also said the prospect of further gambling in Indiana "looks imminent."
More gambling facilities, including the possibility of slot machines being installed at two racetracks in the state, could reduce Trump's revenue.
Another development after Trump's approval, which Butera did not mention, was filing for bankruptcy protection in New Jersey.
Yellowton said the Game Commission could resume bidding processes or compress them into groups that lost last year. The two companies that lost to Trump said they were still interested in building casinos.
"The Orange County development, which is partnered with basketball legend and Frenchman Larry Bird, is still interested and looking for a new casino partner," said Lou Mays. And Bird is still interested, Mays added.
Vernon Back, a lawyer for Lowe's real estate group who was Trump's runner-up, said Lowe's was "ready to move very quickly to bring this casino to Orange County." The company would have been a partner in French Rick's Lost River Development Casino project.
Negotiations between the state and President Trump began to unravel on Feb. 17, when gambling regulators delivered a list of requirements to the company. The state wanted full details on how to finance the project and a strict timeline for approval.
Blessed by Gov. Mitch Daniels, Yelton hired bankruptcy lawyers and casino experts to help review transactions and compile a list of requirements.
Trump told game officials on Monday that he could not meet the requirements and needed more time. Yelton did not extend the deadline.
Greg Hahn, Trump's Indianapolis lawyer, said the company was considering re-applying to the French Rick project.
But local historical committee members accused of recommending companies to the state said it would be difficult to recommend Trump again.
Adina Cloud, chair of the Historic Hotel Preservation Commission, said her panel recommended Trump last year because it promised Orange County the most.
But she said her committee, which did not have access to Trump's detailed financial information, relied on the Indiana Gaming Commission to ensure the company had the money to carry out the project.
In July, the Gaming Commission voted 4-2 to award the project to Trump, who made the most ambitious offer. Trump's casino company offered a larger facility with more gambling revenue than the two competing bids.
The committee awarded the project to Trump despite the company's involvement in a financial overhaul to emerge from less than $1.8 billion in debt. In addition, Trump did not provide specific information on how to pay for the project.