Casino news from http://www.courier-journal.com/
INDIANAPOLIS -- One year ago it seemed that entrepreneur Bill Cook of Bloomington and developer Bob Lauth of Indianapolis would be the saviors of a long-awaited casino at French Lick.
Now it's not clear whether their partnership can even survive.
After negotiations between the state and Trump Hotels & Casino Resorts -- the original successful bidder -- broke down in 2005, the partnership between Lauth and Cook offered the sole new proposal, a lavish one that called for restoring not one but two historic hotels in the area.
But now, that partnership -- called Blue Sky Casino LLC -- has broken down as well. Lauth and a company created by Cook and run by his son are essentially trying to take over the project from each other. It's a nasty battle that started in mediation but has erupted in court.
It seems only one of these companies will survive it -- at least as far as the casino is concerned.
"Somebody's going to go," said Lauth attorney Reed Oslan. "It's just inevitable."
The Lauth Property Group has asked a mediator to essentially liquidate the partnership and give it the authority to buy out Orange County Holding LLC, the company Cook created but has no ownership in. Lauth also has asked a judge to bar Cook from participating in the project at all.
And Orange County Holding claims that it now owns 75 percent of the project (as opposed to the original 50/50 split) because it says Lauth missed a deadline to secure some of its financing. Also, Orange County Holding acted to try to oust Bob Lauth from the board of Blue Sky so it would have total control of the project.
Orange County Circuit Judge Larry Blanton will try to sort out the issues. And the Indiana Gaming Commission is investigating as well.
It seems to be another terrible setback for the folks of Orange County, who have been seeking a casino to prop up their economy for well over a decade.
But despite the problems, the companies seem to be getting the casino and the hotel restorations completed.
That only seems possible because Lauth and Cook -- through their respective construction and general contracting companies -- have taken on separate roles.
Lauth is building the casino, parking garage and some other structures. Cook Construction is handling the hotel restorations, pool and other spaces. Both say they will finish by the projected November opening date, although Lauth is skeptical of Cook's ability to do that.
Regardless, the gaming commission's executive director, Ernie Yelton, remains confident the casino will open on time.
What happens then remains a mystery, though.
Both companies say they are wholly committed to the project. But it's clear neither wants to continue working with the other.
Longtime gaming commission member Don Vowels said the future is hard to predict. Lauth is clearly interested in the project as an investment. Bill Cook, however, seems to have no financial motive.
In fact, Orange County Holding won't keep any casino profits but will pass them on to community organizations.
"These are millionaires and then billionaires, and so it will be interesting to see how it all pans out," Vowels said. "It would seem it would all come down to money. But Cook's heart is there (in Orange County) and not in his wallet, and it's hard to predict the future when people go forward with their heart."
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