Trump Plaza Filing for Casino Deed Restriction

Former Trump Plaza Casino owners are planning to keep the property closed for ten years or more to avoid higher taxes.

The company has filed for deed restriction for the casino which means that the property can’t be used as a casino for ten years or more. However the Trump Plaza can still be used for other purposes.

The Plaza has decided to make that move because of the bill that Gov. Chris Christie may sign soon. According to the Press of Atlantic City, Christie could sign a bill that allows casinos to make payments in lieu of taxes for 15 years as a part of a rescue plan for Atlantic City.

The company was concerned that it could be included in the alternative tax program if Christie signs the bill which applies to properties that are licensed to operate casino last year and properties that don’t have deed restriction. The company has operated the casino for eight and a half months during the 2014 so company plans to avoid potential higher taxes by filling for a deed restriction.

Under the PILOT program, the company would have to make mandatory payments even though the company currently doesn’t generate revenue and hotel rooms are closed.

The Plaza has already appealed its property taxes from 2014 and 2015, believing that it could get a better arrangement instead of participating in the PILOT program. If Christie sings the law, PILOT program will start and casinos won’t be allowed to appeal their property taxes.

Trump Plaza, the last of four casinos that went out of business in 2014, filed the deed on Friday with the Atlantic City officials. As it was reported this deed restriction would apply to any buyer of the property in the next ten years. The deed of course can be canceled but only if the buyer pays ‘release fee’ in order to do so. It is still unknown what the cancellation price is as the company’s CEO, Robert Griffin, refused to comment.

In its filing, the company noted that Caesars also filed a deed restriction for Showboat casino before it was closed in late August last year.

Billionaire Carl Icahn, who is currently trying to buy the property out from the bankruptcy court, has agreed with a deed restriction.

It is unclear whether Trump Plaza will ever be sold to anyone as the company has tried for years to sell it while it was still a casino.