Officials for Carl Icahn’s recently closed Trump Taj Mahal in Atlantic City hinted that they are considering plans to possibly re-open the property by sharply criticizing a bill currently in the New Jersey legislature that would prevent them. The bill was passed by the state Senate, but no vote has yet been scheduled in the Assembly. Observers believe, however, that Governor Chris Christie will veto the bill.
The bill has been approved by the State Senate and is specifically tailored to stop Icahn from re-opening the Taj as a non-union shop. The casino closed October 10 after a long dispute with the city’s main casino workers union over healthcare benefits. The union—UNITE HERE of Local 54—had been on strike at the casino since July, refusing to allow the rank-and-file to weigh in on a settlement offer from the Taj Mahal.
When the casino closed, union officials said they believed Icahn would try and re-open the casino in the spring without union workers. At the very least, Icahn does appear to have been thinking about re-opening.
Tony Rodio, who ran the Taj Mahal for Icahn, said in a press statement that the proposed bill would prevent the company from reopening the casino and restoring lost jobs. He also pointed to Icahn’s ownership of another casino—the Tropicana—which he returned to profitability.
“Punishing Mr. Icahn by revoking his ability to reopen the Taj or making further investments in Atlantic City for five years, as well as restricting his ability to sell the Taj, is unconscionable especially in light of his record in saving the Tropicana,” Rodio said. “It is particularly ill-advised because with this legislation Carl Icahn’s ability to further invest in Atlantic City has been constrained and the possibility of creating additional jobs, as he did at the Tropicana, has been seriously limited.”
Rodio also said the bill is likely unconstitutional and aimed only at one person. He said the bill will discourage future investment in Atlantic City if the state government involves itself in the collective bargaining process of its casinos, according to the Associated Press.
However, Rodio stopped short of saying that Icahn had any specific plans to re-open the property.
The bill was introduced by Senate President Steve Sweeney who said it was designed to prevent casino owners from closing a casino and then “sitting on” the license for years. Sweeney has said that the bill was aimed at keeping Icahn from re-opening the property without settling with union workers.
Under the bill, a casino owner would see their license returned if he or she reaches a deal with casino labor unions to reopen the casino. Rodio condemned that provision, saying that Sweeney, a union official, is trying to please union workers, according to the AP.
The bill would be retroactive to January and would not apply to casinos that closed in the city in 2014.
