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Tuesday, February 23, 2010
Ind. Decisions - More on: What East Chicago case is being settled here?
Updating this ILB entry from yesterday, that quoted Jon Seidel of the Post Tribune writing:
Indiana Attorney General Greg Zoeller said he will personally ask the East Chicago City Council to vote against a court settlement with Second Century Inc. at its meeting tonight.Today Christin Nance Lazerus of the Post Tribune reports:
The East Chicago City Council failed to approve a settlement between the city and Second Century Inc., but Monday's meeting likely isn't the last time the council will consider the measure.The settlement would end a court case that originated in 2005 over a deal, signed by former mayor Robert Pastrick, that directed 0.75 percent, or more than $1 million, of the annual gross revenues of the city's casino boat to Second Century.
The council voted 4-4, which stalled the resolution. Councilman Lenny Fanciski was absent. Jimmy Ventura, Christine Vasquez, Robert Garcia and Richard Medina voted in favor of the settlement, while Adrian Santos, Gilda Orange, Juda S. Parks and Myrna Maldonado voted against it.
Mayor George Pabey or any council member can reintroduce the resolution after 30 days have passed. In the agreement, Second Century will no longer get a share of the casino money and the city will get 54 percent of funds remaining in an escrow account set up at the start of the lawsuit.
Indiana Attorney General Greg Zoeller was present at the meeting to express his disappointment that the settlement doesn't require Second Century to disclose how it has spent $16 million received from the East Chicago casino.
"Up until this point, the city of East Chicago has sided with the state in terms of opening the books of Second Century Inc.," Zoeller said. "We're pursuing the accounting of $16 million that's supposed to be for the economic benefit for the people of East Chicago.
"I ask you to stand firm. This is no time to back down."
Council attorney Joseph Allegretti presented the resolution before the council, but he admitted that he had no hand in negotiating the settlement. Allegretti said there's debate among the parties whether the city needs the council to sign off on the settlement, with Second Century Inc. believing it's not necessary.
City attorney Carmen Fernandez, who was part of the negotiations, wasn't present to answer questions from the council until halfway through the meeting.
Fernandez estimated that the city has accrued $450,000 in legal fees, and the court fight continues. Zoeller said he would look to see if the attorney general's office could help with city's legal costs.
Posted by Marcia Oddi on February 23, 2010 07:38 PM
Posted to Indiana Decisions