Carl Icahn Proposes to Buy Atlantic City's Trump Taj Mahal Casino
Billionaire Carl Icahn is considering spending $100 million to save the bankrupt 2,010-room Trump Taj Mahal Casino Hotel, slated to close Nov. 13, if he can get considerable tax and financial concessions, according to press reports. On Monday, however, Atlantic City Mayor Don Guardian rejected the request for tax concessions, stating that the city's finances were too stressed.
Icahn also requested concessions from the main union that represents employees at the resort, Unite Here Local 54, to convert members' pensions to a 401(k) plan and drop their company-paid health insurance. But union president Bob McDevitt said Icahn is "seeking to take advantage of the Atlantic City crisis to do away with the health care thousands of South Jersey casino workers and their families have fought for and relied upon for over 30 years."
Icahn's proposal also calls for the Casino Reinvestment Development Authority to provide $25 million in tax credits or other investments. John Palmieri, executive director of the agency, said he has not received the request yet, but added the agency is not allowed by law to give gambling-related financial assistance to casinos.