ARGOSY GAMING COMPANY AGREES TO RESCIND AGREEMENT OF INDUCEMENT WITH CITY OF LAWRENCEBURG, IND.
ALTON, Ill., Dec. 7 /PRNewswire/ -- Argosy Gaming Company (NASDAQ: ARGY), operators of the Alton Belle Casino II, announced today that the company and its joint venture partner, Centaur, Inc., have voluntarily agreed to rescind the Agreement of Inducement they entered into with the City of Lawrenceburg, Ind., under which Argosy and Centaur had been entitled to the city's exclusive endorsement for a riverboat gaming license in Lawrenceburg. The Argosy/Centaur agreement not to insist on the exclusive endorsement allows the City to evaluate other applications. It will also ensure that the City's recommendation process is consistent with the recently adopted regulations by the Indiana Gaming Commission. These regulations provide that the valuations and endorsements by the local community of applications made before the deadline for filing gaming applications are premature and will receive little, if any, consideration in the committee's evaluation process. Lawrenceburg Mayor Donald B. Combs and Argosy Chief Executive Officer J. Thomas Long noted the April 1993 inducement agreement had been entered in good faith months before the Commission regulation and indeed, before the legislation authorizing riverboat gaming and creating the Commission had been passed. A key purpose of that agreement was for the City to enlist the support of a reputable operating company with experience that could assist in the city's efforts to obtain passage of that legislation and be selected as a "host city" for a riverboat. In return for the City's promise of exclusive endorsement, Argosy and its Indiana investment partner, Centaur, worked toward achieving those two objectives and also confined their own licensing efforts exclusively to Lawrenceburg rather than any other Indiana communities. Now, however, Argosy and Centaur have released the City from its exclusive endorsement obligation and eliminated the chance of future disputes that might interfere with the City's riverboat initiative. Under the recision agreement, which was reviewed and approved by the City's independent legal counsel for the riverboat project, Lawrenceburg can proceed with plans to request and evaluate proposals from other potential operators. At the end of that process, the City has agreed to endorse the Argosy/Centaur project but is also free to endorse other applicants. Mayor Combs emphasized that Argosy and Centaur had lived up to all their obligations under the earlier agreement, providing a crucial boost to the City's riverboat gaming efforts. "Argosy and Centaur worked extremely hard to promote passage of the riverboat gaming law in the General Assembly, and then worked just as hard on the successful referendum in Dearborn County," the Mayor stated. "They also provided funds so the City could hire a much needed full-time employee to work on our riverboat development project, without added cost to our citizens." The Mayor added, "Had we not entered the April agreement, and had Argosy and Centaur not lived up to it, Lawrenceburg would not be where it is today -- on the brink of turning a major economic development project into a reality that will benefit our community for years to come. Given all the time and expense Argosy and Centaur devoted to making this possible, their willingness to give up their exclusive endorsement right under that earlier agreement is typical of the professionalism and good faith they have shown from the beginning. These were a big part of why we entered that agreement with them in the first place." Argosy Chief Executive Officer Long said he remained "absolutely confident" that the Argosy/Centaur project would be "the best for the people of Lawrenceburg, the best for the people of Dearborn County, and the best for the State of Indiana." Long agreed that the earlier agreement had yielded important benefits to Lawrenceburg, and added that Argosy and its partners have agreed to proceed under the newly established regulations of the Indiana Gaming Commission. "We understand and support the approach the Commission has now decided to take, and will have no problem working within the new guidelines. Argosy's approach is to cooperate fully with local and state authorities. That's one reason we've been successful, and why we are confident that we will be equally successful in Lawrenceburg, Ind." -0- 12/7/93 /CONTACT: G. Dan Marshall of Argosy Gaming Company, 618-474-7666/ (ARGY)
CO: Argosy Gaming Company; Centaur, Inc. ST: Illinois, Indiana IN: CNO SU:
GK-JG -- NY052 -- 1292 12/07/93 12:51 EST
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|Date:||Dec 7, 1993|
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