NY Daily News ran an announcement that Trump Plaza, which closed in September 2014, is expected to remain closed for the next 10 years. Trump Entertainment Resorts filed a deed restriction. The paperwork states the casino cannot be used as a casino for 10 years; however, the building can be reopened as a different type of business. The announcement of the deed restriction was made June 29, 2015. The choice is based on potential tax increases. Governor Chris Christie may sign a bill soon that increases tax payments by casinos for the next 15 years. It is a measure to save Atlantic City, which is in a financial crisis.
The bill applies to any casino in operation through 2014, meaning the Trump Plaza would be subject to the tax payments because it operated for nearly 9 months last year. The company was worried about mandatory payments despite being closed, thus they launched the deed restriction.
Trump Plaza’s holding company appealed 2014 and 2015 property taxes due to the expensive payments required. The attempt to get a better deal through the deed restriction may ensure they are not a part of the pilot plan to increase payments for casinos to help the city.
Caesars Entertainment has already gained a deed restriction for the Showboat Casino Hotel. It was awarded the restriction before closing in August 2014. It shows that the deed restriction is enough to keep the Showboat out of the pilot program Christies may approve soon.
The deed restriction would be in place for anyone who might buy Trump Plaza in the next 10 years. It can also be cancelled if the buyer wants to pay as part of the pilot program and reopen the casino. There would be a release fee in order to remove it before the 10 years is up.