Indiana Casino Resort Proposals Due...Again

FRENCH LICK, IN-Two Indiana companies will vie for the right to develop a resort, casino and conference center here now that Trump Hotels and Casino Resorts Inc. is out of the picture. CFC Inc., an affiliate of medical device manufacturer Cook Group Inc. of Bloomington, and Lauth Group Inc., a national real estate development and construction company headquartered in Indianapolis, plan to submit a proposal Wednesday, April 13, the deadline for submissions in response to the Indiana Gaming Commission’s March reissue of its RFP for the project.The commission originally issued the RFP in March 2004 and received three proposals. In July, the commission selected Trump Hotels to develop the resort over the two other competitors–Orange County Development LLC, a group that includes NBA legend Larry Bird, and Lost River Development LLC, led by France-based casino operator Groupe Tranchant. Trump Hotels submitted its formal plan for a $123-million casino development in October and planned for it to open in 2006. Last month, however, citing a less profitable outlook for the project, Trump Hotels ceased negotiations with the Indiana Gaming Commission, prompting the commission to reissue its RFP and start the process anew. Initial proposals are due today, April 13, with full proposals due in early May and presentations on June 22.Although Orange County Development has made no formal announcement, published reports have said the group plans to submit a new proposal. However, CFC Inc. and Lauth Group Inc. have positioned themselves well. CFC is acquiring the French Lick Springs Resort & Spa, according to the seller, Cleveland-based Boykin Lodging. The $25-million sale, which includes excess landholdings in Orange County, was scheduled to close April 13. In addition, CFC will acquire the The West Baden Springs Hotel, which is owned by the Historic Landmarks Foundation of Indiana but was partially renovated by CFC at a cost of more than $30 million. Each of the original proposals placed the casino on a manmade waterway running between the French Lick Springs Resort & Spa and the West Baden Springs Hotel. In addition to the casino, the $123-million Trump Hotels plan called for the purchase and restoration of the historic West Baden Springs Hotel and ongoing financial support for upgrades to additional area landmarks including the French Lick Springs Resort and Spa and the Indiana Railway Museum. Lost River proposed a development with a nautical theme that, like the Trump plan, included the purchase of the West Baden Springs Hotel. Orange County Development’s plan, which did not necessarily include the hotel, proposed three restaurants, a 600-seat showroom and a Larry Bird Museum in addition to the casino. CFC and Lauth’s plan, in addition to the casino, calls for a makeover of both the French Lick Springs Resort and Spa and the West Baden Springs Hotel, and a restoration of the area’s Donald Ross-designed golf course, which hosted the 1924 PGA Championship. Restoration costs are estimated at approximately $30 million for the West Baden Spring Hotel, which has already been partially renovated, and up to $80 million for the French Lick Springs Resort and Spa, which includes the golf course. The new enterprise would be owned equally by Lauth Resorts & and Casino, LLC and Orange County Holdings, Inc., a charitable, non-for-profit organization that will use its proceeds to fund charitable and philanthropic purposes in the county and other parts of Southern and Central Indiana. Benchmark Hospitality International of Texas will manage the French Lick Springs Resort and Spa.In explaining Trump Hotels’ change of heart, company officials there cited a recent state tax court decision that the company owed $18 million in back taxes for its casino along Lake Michigan in Gary and the potential expansion of gambling elsewhere in the state. “The financial prospects for a casino in French Lick have changed since the time we were awarded the project,” says company president/COO Scott Butera in a prepared statement. “The tax burdens have become more onerous, and the proposition for additional gaming facilities in Indiana appears eminent.” The Lauth Group, on the other hand, “is very confident” about the project, a company spokeswoman tells GlobeSt.com. A spokesperson for CFC did not return a phone call seeking comment. A spokesperson for the gaming commission also was not available.