Stockton: Planned Showboat campus at 'stalemate'

ATLANTIC CITY – Stockton University said Tuesday its plans for an Atlantic City campus are at a "stalemate" and could be dropped if it can't resolve a dispute with a neighboring casino.

Stockton purchased the former Showboat Atlantic City in December for $18 million, vowing to transform the casino-hotel into an "island campus" with more than 800 rooms for student housing. The Galloway-based school had said the expansion would take place by fall 2015.

But Stockton President Herman Saatkamp said the Trump Taj Mahal is seeking to enforce a deed covenant that says the Showboat site can only be used as a casino-hotel.

Saatkamp made the announcement "with immense sadness" but also with obvious displeasure.

"Stockton tried to establish a full campus in Atlantic City six times during my tenure as president and got kicked in the teeth each time," Saatkamp said. "This time, we were stabbed in the heart."

He asserted Caesars Entertainment, former owner of the Showboat, was supposed to resolve the covenant issue "and we were led to believe that had happened."

"However, it did not, and Trump Taj Mahal does not want a university campus near its property," Saatkamp said.

A Trump Taj Mahal representative could not be reached.

Stockton believes it would prevail in a court fight over the deed, but the resulting delay "may be far too costly," Saatkamp said. Among other problems, he said, "gamesmanship" over the deed will prevent Stockton from reaching contracts to renovate the building for educational use and holding summer and fall classes this year.

"Simply stated, we would be saddled with an all-cash outlay with no revenues in return," said Saatkamp. "It would be unconscionable to submit Stockton University's financial stability to this risk and delay."

If the issue is not resolved, said Saatkamp, "we are making plans to sell the property and hope that we will be able to close reasonably soon."

If the building can't be sold soon, Stockton will close as much of the site as possible "and reduce the number of employees on our payroll that we hired to tend to the Island Campus," he added.

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