Trump Plaza casino would stay closed for 10 years or more under plan

Trump Entertainment Resorts filed a deed restriction for the casino, which closed in September, preventing it from being used again as a casino for at least a decade. It could be used for another purpose.

The move was done to avoid potentially higher taxes under a bill Gov. Chris Christie could sign soon allowing casinos to make payments in lieu of taxes for 15 years as part of an Atlantic City rescue plan. The bill applies to any property that was licensed to operate as a casino in 2014 and that does not have a deed restriction. Trump Plaza operated for 8 1⁄2 months during 2014, and the company feared it might be included in the alternative tax program.

“The Plaza could be required to make mandatory payments under the PILOT program notwithstanding the fact that it generates no revenue and its hotel rooms are closed,” the company wrote in its filing with a Delaware bankruptcy court in which the existence of the deed restriction was revealed. “The PILOT program applies to casino gaming properties that are ‘not subject to recorded covenants prohibiting casino gaming.' ”

Trump Entertainment filed the deed Friday with Atlantic County officials. Trump Plaza closed Sept. 16.