From the Detroit News:
Lawyers for Greektown Casino-Hotel and the city of Detroit will have to wait two more weeks to hear if a bankruptcy judge thinks the casino can assume a development agreement that would grant a tax rollback saving roughly $17 million annually.
At an unusually short Friday hearing, federal Judge Walter Shapero said he’ll issue his opinion on the matter at 3 p.m. on May 14.
The tax rollback issue is particularly contentious for Greektown, which entered Chapter 11 proceedings 11 months ago. By filing, Greektown was able to secure the financing it needed to complete construction on its 400-room hotel and resort complex.
The casino expects to exit bankruptcy by Sept. 1; it will either reorganize its debt and keep the Sault Ste. Marie Tribe of Chippewa in control, or sell to new owners. The tax rollback is considered especially important in trying to attract bids from potential buyers, since a lower tax rate would greatly enhance the property’s value, said Chuck Moore, an adviser from Birmingham-based Conway MacKenzie Inc., a firm working on the case.
Detroit has argued that Greektown is violating its development agreement with the city, which called for, among other items, an equity offering for city residents and construction of an events center. The casino’s lawyers maintain Greektown isn’t in violation and should be able to assume the contract, allowing a rollback and the ability to transfer it to a new owner.
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