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Published:  01 July, 2006

Sharon Harris sees that, while compulsory land acquisition is not always a bad thing, forcing people from their homes for business expansion can amount to bullying - yet still end with a smile.

Time tends to heal most wounds and mellow tough situations. What was once a fire can change into a slight ember with the passage of time. If we could only see into the future…

Eminent domain furore has raged throughout the US for the past few years, even reaching the United States Supreme Court. The term refers to the government’s legal right to seize private property for public use. Or, in some cases that have sparked a public outcry, for private commercial development.

The government, or private developer, must pay the property owner fair market value for the home or business. However, the core issue is the idea of forcing people out for another purpose. Legal battles have erupted throughout the US over the years. Some cases involved casino operators on one side; however, a battle once worth fighting can evolve into a sales transaction worth doing.

In the mid-1990s, a multi-plaintiff lawsuit against the Trump organization and its Trump Plaza casino jolted Atlantic City. The Plaza’s fabulous mid- Boardwalk location is considered prime real estate. The Trump Plaza executives wanted to acquire an adjacent block of land to expand the property. It would require relocating an Italian restaurant, a gold shop and a private home owned by an elderly widow named Vera Coking. The trio decided to fight the takeover, and my husband Norman – a trial lawyer – represented the gold shop. They battled the plan for years. Finally, in the summer of 1998, the court ruled in favor of the three. The judge determined that forcing people out of their homes and livelihoods for a business expansion was unconstitutional and immoral. He also ruled for reimbursement of legal fees for the three. They celebrated, rejoicing like David triumphing over Goliath.

Forward to the present. Times change and so do circumstances. The restaurant’s owners retired and sold their property to the Trump organization for $2.1 million, three times the price they were originally offered. The gold shop sold for $1.7 million on June 16, 10 times the original price offered approximately 10 years ago. That would leave Vera Coking’s house as the sole holdout. The house is in the middle of a casino district as opposed to a residential neighborhood, so the Trump organization is probably their only potential buyer. However, the Coking family has retained their right to do with their property as they see fit. And that’s what home and business ownership is about.

Unless seizing private land is absolutely necessary for the public good of millions, no one has the right to swoop in and force people out. While I believe in expanding the improving gaming, it should not be at the expense of average citizens.

The nine-week bidding war for Aztar Corp. assets ended in late May with one of the later “contenders” sealing the deal with their offer. Columbia Sussex Corp. of Kentucky, a privately owned company with 82 hotels and resorts in the US, Canada and the Caribbean, will pay $2.75 billion, breaking down to $54 per share and an assumption of $676 million in Aztar debt. Columbia also owns eight riverboat and land-based casinos in Nevada, Louisiana and Mississippi, through its Columbia Entertainment affiliate.

The Mississippi casino industry is reporting good news nine months after Hurricane Katrina destroyed almost everything on the Gulf Coast, including 12 casinos. Three casinos have reopened, and seven more may begin operations by year’s end. Two are closed permanently. The Hard Rock Café, whose grand opening was disrupted by Katrina, has no definitive timetable. As for revenues, the news improves. The Mississippi Gaming Commission reports that wagering at the three properties has averaged $20 million each per month, twice the pre-hurricane rate. Experts are unsure of the future revenues as the properties open and construction workers leave. Obviously, fewer locations are enjoying a larger slice of the gaming pie in Mississippi, much of it coming from temporary workers. There are also fewer residents on the Gulf Coast due to displacement, and those remaining are busy rebuilding. However, my late father Stan, who operated amusement equipment for 50 years, believed that both the amusement and slot machine industries came of age during America’s Great Depression. People were “down and out” due to money shortages, and playing was relatively inexpensive entertainment. I suspect the same is happening along the Gulf Coast. The casinos offer a respite from the daily suffering and reality of post-Katrina life. As summer approaches and reconstruction continues, Mississippi tourism will increase. More people will enjoy gaming and other activities along the Gulf Coast. Let’s all hope that these players “bet with their heads, not over it”, as urged by the industry’s responsible gaming groups.


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