In Indiana, Magistrate Judge Lisa Berdine and Lake County Circuit Judge Marissa McDermott recently ruled that a company affiliated with Spectacle Entertainment’s Hard Rock Casino Northern Indiana, now under construction in Gary, did not follow the proper procedures to acquire a miniscule piece of the 30-acre casino site.
As a result, the brother of the deceased owner may claim the property after paying all past-due taxes, assessments, interest and fees. Then it’s possible he could eventually sell it to the casino for top dollar.
The parcel in question is a 10-foot-wide-by-165-foot-deep lot totaling 0.04 acres, located adjacent to the former home of the late Leland Simms at 2865 Dallas Street in Gary. Court records show on May 22, 2019, Alexander Petrovski purchased the parcel for $2,871 in back taxes. He then assigned the tax sale certificate to Windy City Acquisitions LLC, the land purchasing arm of Spectacle Entertainment. Although Windy City appeared to follow the required notice procedures to secure final possession of the land, Lloyd Simms, the late Leland Simms’ brother, argued Windy City did not give sufficient notice. He asked McDermott to allow him to reclaim the land from the delinquent property list by paying the back taxes and other fees. Spectacle already had cleared the property of trees and other structures to use for a portion of the $300 million casino’s parking lot.
In a 16-page ruling, co-signed by Berdine and McDermott, the court agreed with Lloyd Simms that Windy City is not entitled to receive a tax deed due to insufficient notice; Simms was given 120 days to redeem the property.
However, other entities also claim a substantial interest in the property, including Brentwood Equitable Trust and Green Leaf Enterprises LLC.
Meanwhile, Gary attorney Tony Walker, representing Windy City Acquisitions, said he will appeal the ruling to the Indiana Court of Appeals in Indianapolis. He said the circuit court decision “just clearly contradicts itself in several places.” Walker noted the Simms family had several years following the death of Leland Simms to update the county’s ownership record of the property, ensuring notices were sent to a living person if the property taxes were not paid.
Walker declined to say if casino officials wish to acquire the disputed property or how much Spectacle might pay to purchase it if Windy City’s appeal is unsuccessful. He said the land could become about 40 additional parking spaces. Previously, Spectacle officials said much of the surface parking would be replaced with an attached garage after the casino opens early next year.
