Casino news from http://www.courierpostonline.com/
Kim Townsend is glad to be back home.
A senior vice president of marketing for Las Vegas-based Pinnacle Entertainment, Townsend is scouting for houses in Egg Harbor Township near her sister's place. She is one of four staffers approved by the Casino Control Commission Wednesday to act as liaisons with the Sands Hotel & Casino as Pinnacle's acquisition of the 26-year-old casino hotel moves forward.
In addition, the commission approvals establish procedures to allow Pinnacle to take over and transport slot machines, gaming tables and other equipment, control Sands casino records and pay off and collect money owed to and by customers. Pinnacle will take title to the Sands Nov. 17, less than a week after the casino hotel closes its doors for good.
"This will ensure a smooth transition process between now and Nov. 17," Townsend said. "This will lead the project to the construction phase."
Pinnacle agreed to buy the Sands from Carl Icahn for $270 million in September in a deal which involves land stretching from the old Traymore Hotel site along the boardwalk across Pacific Avenue. The company, which lost out in its bid to acquire Aztar Corp. earlier this year, will demolish the existing Sands to pave the way for a $1.5 billion resort which could break ground by the end of 2008, with an opening date early in 2011.
"We haven't set a demolition schedule yet," Townsend said. That schedule, along with a construction timetable, will not be worked on until the purchase closes.
The Pinnacle-Sands deal is swimming in uncharted waters, said Kenneth F. Oettle, a lawyer representing Pinnacle. "Closing a casino and transferring its assets at the same time has not been done before," he said.
Trump World's Fair and before that, the Atlantis, have closed their doors in the past. And the entire industry closed for several days in July. "This goes further," said Linda Kassekert, commission chairwoman.
The commission does not need to sanction the closing of the casino or its demolition, but must approve the required procedures for the shutdown, Kassekert said. A plan is needed to deal with the alcohol, the games, employees needed to secure the premises, the destruction of chips, dice and cards.
"There are so many things which need to be done," said Sands president George Toth, noting the casino has to count the money, put important keys away and decommission the slot machines.
Said Kassekert, "Our chief concern is that the gaming equipment is secured, and that we help employees find jobs."
The future of the furnishings and equipment will also have to wait. Pinnacle could have a liquidation sale of nongaming items down the road. "At this point, we have limited access to review all the assets," said Townsend.
The 2,000 slot machines and close to 100 table games will be sold or sent to other Pinnacle properties around the country. The company owns and operates casinos in Nevada, Louisiana, Indiana, Argentina and the Bahamas. Pinnacle also has two casino development projects under construction in the St. Louis area, and has a bid in for a license in Philadelphia.
A full investigation of all Pinnacle principals, including CEO and board chairman Dan Lee -- a necessary step before the corporation is deemed qualified to run a casino -- is still months from completion, Oettle said.
Look for Townsend to be an integral part of Pinnacle's team.
"I'm just sorry I sold my house in Ocean City six years ago," she said.
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