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FRENCH LICK, Ind. - Bloomington-based Cook Group Inc., the co-developer of the $382 million Orange County casino, says it remains committed to the project despite an ongoing legal dispute with its casino partner.
The company's statement, released Friday, came three days before details of the dispute between Cook Group and Indianapolis-based Lauth Property Group are expected to be revealed.
Lauth Property Group and Cook Group sued each other last month, but both lawsuits have remained under seal in Orange Circuit Court in Paoli at the parties' request.
During a hearing set for Monday, however, those lawsuits are expected to be unsealed.
Last November, the two companies formed Blue Sky Casino LLC and signed a long-term contract with the Indiana Gaming Commission to open a 1,200-slot riverboat casino by late this year.
The project includes renovations for two century-old hotels in French Lick and adjacent West Baden, as well as construction of an 18-hole golf course, parking garage and convention center.
In its statement, Cook Group said it has a long-term commitment to the project.
Cook Group president Steve Ferguson said Friday in an interview with The Courier-Journal of Louisville, Ky., that word of the dispute has created concerns about the project's future.
"I just want to alleviate concerns of employees, the people of Orange County and state government ... that we are fully committed to this project," he said.
Ferguson said he and Lauth executives remain under a confidentiality agreement involving the lawsuits, and he declined to answer any questions.
The first lawsuit was filed by Cook's Orange County Holdings LLC naming Lauth Resorts and Casinos LLC and Lauth Chairman Robert L. Lauth Jr.
Lauth's lawsuit names only Bloomington billionaire William Cook.
Asked whether he believes Lauth is committed to the project for the long term, Ferguson said, "We have a partner, and whether they stay or go obviously is up to them."
The split came to light in early June, when Ernie Yelton, the Indiana Gaming Commission's executive director, mentioned that the two companies were in mediation over financial matters.
Commission members indicated that Lauth's financing was not in place by April 15, as its contract required. An agreement between the two companies calls for Lauth to transfer 25 percent of its interest to Cook if that happened.
Yelton also had said that the parties failed to meet a May 1 commission deadline to secure the financing.
Don Vowels, the commission's secretary, said last week that commission members have not been told much about the dispute. But if it results in a change in ownership, it's a significant matter for gambling regulators.
"We approved it based on each party being 50-50 owners," Vowels said. "If there's any change of ownership, that's something we need to know about."
State Rep. Jerry Denbo, a French Lick Democrat who spearheaded legislation to allow the casino, said county residents have heard rumors about differences between Cook and Lauth, but they're confident that the project won't be hurt in the long run.
"We've had a struggle all the way along," Denbo said.
The Cook-Lauth partnership was announced in April 2005 after Donald Trump's casino company dropped its Orange County plans the year after it had been awarded the contract for Indiana's 11th and final casino.
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