The Trump organization is one of five contenders for the two Category Two slots licenses to be granted by the state for Philadelphia. The Budd site, west of the city at the intersections of Interstate 76 and Route 1, is being redeveloped by Conshohocken-based Preferred Real Estate Investments. This is the only one of the five slots parlor applications that is not proposed for locations east of the city along the Delaware Riverfront. In evaluating an initial 11 proposed sites, the city's gaming advisory task force, which has no legal influence over the state gaming board, recommended that Philadelphia's two casinos flank the city. The state expects to grant the licenses by the end of this year.
Keystone paid Tasty Baking $1.6 million for the option. If exercised, it would pay the locally based baker $14.4 million for the acquisition. It must exercise the option by June 30, 2008, but, according to a Tasty Baking statement, it may, under certain, unspecified circumstances, extend the term for an additional year. In either case, it must provide Tasty Baking with at least nine months notice prior to closing.
This May Tasty Baking announced that it was exploring "long-term strategic manufacturing options," including a reconfiguration of its real estate, but reiterated its preference to maintain operations in Philadelphia. The agreement with Trump does not include its bakery, which is located near the corporate offices and distribution center.
During a conference call announcing the Trump agreement, Charles Pizzi, the baking company's president and CEO, said, "this transaction provides our company with additional cash for investment in our [TastyKake] brand and strategic growth plan. If Keystone exercises its option, we believe that real estate opportunities exist to accommodate our preference to maintain operations in Philadelphia."
Meanwhile, during a July 11 press conference at the site, James Perry, president and CEO of Trump Entertainment Resorts, said, "with 30 acres of developable land, we will have greater flexibility to help drive economic development and to maximize the value created by the design and operation of our facility if we are successful in obtaining a gaming license." Specifically, he said the increased land would create the option to construct, staff, and operate a temporary gaming facility on the property that would hold at least 1,500 slot machines. A license allows for the initial operation of 3,000 slot machines and the ability to apply for an additional 2,000.
Just prior to submitting the TrumpStreet plan to the state gaming board last December, Croce, former president and co-owner of the Philadelphia 76ers basketball team, told GlobeSt.com the TrumpStreet plan would cost about $350 million. "It's not going to have the glitter and glitz of Las Vegas or Atlantic City," he said. "It won't be so ostentatious and will include restaurants and entertainment."
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