sc15
sc15
Joined: Sep 28, 2014
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March 25th, 2015 at 5:50:40 PM permalink
Quote: jerrysnj

So the Taj has a convenient that says there has to be a casino and Caesars has a deed restriction saying there can't be a casino. Which one supersedes?
I can see a college next door doesn't help Taj as most students would be underaged and can't gamble or drink in the clubs. A casino hotel next door would probably bring more business in. I agree with others though that this is probably just a chance to get some money out of the deal.



A college next door basically means taj needs to check ID at the entrance.

Also, the original would definitely supersede. Caesars added the deed restriction on just now when they were selling the property because they don't want more competition in town.
sodawater
sodawater
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March 25th, 2015 at 6:10:44 PM permalink
Quote: sc15

A college next door basically means taj needs to check ID at the entrance.



Why would the college kids want to go to the Taj -- AKA the most depressing beachfront building in the universe -- when they can go to The Pool at Harrah's right across town or mur.mur at Borgata?

There are plenty of underage kids trying to get into Harrah's and the Trop and Borgata now. No one tries to get into the Taj. Proximity or not, this will not be a problem for them.
Intheknow
Intheknow
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March 25th, 2015 at 6:59:05 PM permalink
Why wouldn't another crack dealer want another crack dealer living next door? More foot traffic helps each other. Casinos don't care about AC nor should they. They have responsibility to shareholders.
vendman1
vendman1
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March 26th, 2015 at 5:44:46 AM permalink
I have no direct knowledge of this. But I'm guessing that the agreement with Trump stems from when they connected the Showboat and Taj up near where the ballrooms for Taj are. I'm sure when they made it possible to walk from one to the other without going outside. Each property wanted some assurance that the other would run a decent business, hence the 1988 agreement. I would love to be the lawyer that figures this mess out. Think of the hours you could bill.

Someone said this should have been found "in discovery". Two things about that: First, it's a 1988 agreement. Very possible it was filed away so deep it was impossible to find. Who has 25 year old paperwork(obviously the Taj does :). So I might give them a pass on that. Second, I don't know who much "discovery" occurs during a real estate transaction. Which at it's core is what the Showboat sale was. Yes you would do a title search and all that jazz, but look for a 1988 agreement with a neighboring casino that might impact the sale?....easy to miss I think, which they did. Only in AC baby.
vendman1
vendman1
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March 26th, 2015 at 5:49:06 AM permalink
Quote: Intheknow

Why wouldn't another crack dealer want another crack dealer living next door? More foot traffic helps each other. Casinos don't care about AC nor should they. They have responsibility to shareholders.



In business school they would call that "ancillary marketing". Sometimes having a bunch of restaurants or bars in the same neighborhood helps everybody. Same with Casinos. If Vegas just had 5 or 6 casinos. It wouldn't be Vegas. 40 Casinos. Yeah baby.

I think it probably hurts Taj, to have a college next door. Helps them to have a casino. A year ago there were 4 casinos at the north end of the AC boardwalk. Now only 2. No reason to go to that part of town any more.
ACMama
ACMama
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March 26th, 2015 at 6:02:49 AM permalink
I am still puzzled as to why Caesars lawyers at least were not aware of this agreement even if it was beyond the reach of Stockton's lawyers. I just don't see how this could have escaped Caesars attention especially when they drafted the sales agreement specifically forbidding the use of the Showboat property as a casino. So what happens now? This would make a good bar exam question. Why did it take so long for the Trump lawyers to bring this agreement to the parties attention?
I give this post an hour. Tee Hee!
bobsims
bobsims
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March 26th, 2015 at 8:52:14 AM permalink
Quote: MprtUSA516

Another reason not to go to the Taj. The Taj's statement on this said: "You do not see a college on the Las Vegas strip."

What bullshit. You can practically throw a stone from UNLV and hit Hard Rock Casino.


No, it's quite a ways. More importantly Hard Rock ain't the Strip.
kewlj
kewlj
Joined: Apr 17, 2012
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March 26th, 2015 at 9:11:52 AM permalink
Quote: MprtUSA516



What bullshit. You can practically throw a stone from UNLV and hit Hard Rock Casino.



Quote: bobsims

No, it's quite a ways. More importantly Hard Rock ain't the Strip.



The most western tip of the main UNLV campus is at Harmon and Swenson, about 50 yards from Hard Rock at Harmon and Paradise. You could literally throw a stone to Hard Rock. However that section and entrance to UNLV campus is not classrooms nor student housing. It is the athletic fields and buildings.
Just say no to 6:5 Blackjack, Continuous shuffle machines and Blackjack the Forum. All are Negative expected value.
boobert
boobert
Joined: Mar 23, 2015
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March 26th, 2015 at 4:33:48 PM permalink
There's an easy solution to that entrance, lock the doors, lol. One other point is if the property must be a casino , then the no casino clause with Caesars is void. Stockton might be able to sell it without that restriction and make a little.
aceofspades
aceofspades
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March 26th, 2015 at 4:36:40 PM permalink
Quote: vendman1

I have no direct knowledge of this. But I'm guessing that the agreement with Trump stems from when they connected the Showboat and Taj up near where the ballrooms for Taj are. I'm sure when they made it possible to walk from one to the other without going outside. Each property wanted some assurance that the other would run a decent business, hence the 1988 agreement. I would love to be the lawyer that figures this mess out. Think of the hours you could bill.

Someone said this should have been found "in discovery". Two things about that: First, it's a 1988 agreement. Very possible it was filed away so deep it was impossible to find. Who has 25 year old paperwork(obviously the Taj does :). So I might give them a pass on that. Second, I don't know who much "discovery" occurs during a real estate transaction. Which at it's core is what the Showboat sale was. Yes you would do a title search and all that jazz, but look for a 1988 agreement with a neighboring casino that might impact the sale?....easy to miss I think, which they did. Only in AC baby.





All deeds and covenants pertaining thereto are recorded with the county clerk's office.





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