Gary casino withholds monthly tax payment to city

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By Beth Boehne

Story Created: Feb 19, 2008 at 2:00 PM EST

Story Updated: Jul 14, 2008 at 7:35 AM EST

GARY, Ind. (AP) — Majestic Star Casino owner Don Barden is withholding a monthly tax payment to the city, saying it has failed to live up to its promise to build access roads to his business.

Mayor Rudy Clay said Barden's move puts Gary in a "major financial dilemma."

"The city was skating on thin ice anyway," Clay said.

Majestic's payments total roughly $6 million a year depending on how much money it makes, city controller Celita Green said.

Barden filed complaints against the city with the American Arbitration Association and Marion County Circuit Court last week, naming the Indiana Gaming Commission as a defendant in Marion County, as well.

Barden said he would begin depositing 3 percent of adjusted gross receipts for each of his two casinos, Majestic Star I and II, into a "segregated account" instead of paying it to the city. He is asking the court to force the city to use that money to build the access road.

Green said the payment due Feb. 12 is typically used to make state-mandated bond payments for debts dating to the construction of the city's baseball stadium and the renovation of Gary's public safety building. It is also used to supplement the general fund as the city makes overtime and insurance payments, Green said.

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Information from: Post-Tribune, http://www.post-trib.com

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