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Friday, December 21, 2007

Ind. Decisions - "Appeals court stymies EC in cash bout" [Updated]

Today's 38-page COA opinion in the case of City of East Chicago, Indiana v. East Chicago Second Century, Inc., RIH Acquisitions, et al (see ILB entry here, 2nd case) is already the subject of a brief NWI Times story:

INDIANAPOLIS | The Indiana Court of Appeals dealt East Chicago a setback today in its two-year legal battle to win control of millions in casino-funded community development dollars.

The city, led by Mayor George Pabey, wants the courts to void a pair of agreements that steer $8 million a year to the Foundations of East Chicago, a nonprofit, and East Chicago Second Century, a for-profit developer. Until recently, both groups received the casino subsidies under a 1994 deal former Mayor Robert Pastrick brokered to bring riverboat gambling to the lakefront city.

The appeals court denied the Pabey administration's motion for summary judgment, upholding the ruling Marion County Judge Cale Bradford made in June 2006. The ruling sets the stage for a trial on the merits of the case, though the city could instead ask for a rehearing or appeal to the Indiana Supreme Court.

The Pabey administration argues the Foundations and Second Century, both of which are run by former Pastrick allies, have squandered huge chunks of the casino cash on salaries and overhead. Indiana Attorney General Steve Carter has backed up those allegation in financial investigations of both groups.

The Pabey administration contends the people of East Chicago would be better served if the casino subsidies are turned over to the city. It has found success before the General Assembly and the Indiana Gaming Commission, but the court battle has prevented the money from flowing to the city.

For more, read The Times on Saturday.

[Updated 12/22/07] Patrick Guinane has the full story here in the NWI Times. And here is coverage from Christin Nance Lazerus of the Gary Post-Tribune.

Posted by Marcia Oddi on December 21, 2007 03:11 PM
Posted to Ind. App.Ct. Decisions