Trump to assume operations of Flamingo

The Associated Press

KANSAS CITY, Mo. -- Donald Trump wasn't there, but a team of the tycoon's top executives said Wednesday they can assume operations of Hilton Hotels Corp.'s troubled Flamingo Casino within 90 days.

Trump's ownership of the boat -- a near-lock barring unforeseen trouble during Missouri's regulatory background checks -- figures to intensify the already hotly contested Kansas City gambling market. Trump Hotels & Casinos Resorts is expected to buy the Flamingo for about $15 million -- a bargain considering Hilton had invested about $100 million to develop the facility along the Missouri River before writing the boat's full value off its books. "He's buying a splendid property at extraordinarily friendly prices," said analyst Marvin Roffman, president of Philadelphia- based Roffman Miller Associates. "That particular property offers a lot of opportunity for growth. It wouldn't surprise me if he decided he might want to have some hotels right next to it or close by." The Flamingo is in last place among Kansas City boats in terms of total revenues, taking in $32.6 million so far this fiscal year, which began July 1. The boat has picked up steam in recent months after adding more entertainment and food options and stronger customer appeal on its gambling floor. But other problems threaten Hilton in Kansas City. Last summer, Hilton agreed to pay the federal government more than $500,000 to avoid criminal charges that it provided financial rewards to former Kansas City Port Authority Chairman Elbert Anderson in exchange for his political support of the casino. Last month former Hilton Senior Vice President Markland Rousseau was indicted in Jackson County on three counts of felony perjury related to the Anderson affair. Rousseau, now an Atlanta businessman, has pleaded innocent and is awaiting trial. Without directly addressing Hilton's legal troubles, Trump executive vice president Robert Pickus told commissioners Wednesday that his company looked forward to competing in Kansas City. "We believe Kansas City presents an extraordinary growth opportunity for us," Pickus said. The feeling, at least among members of Missouri Gaming Commission, appeared mutual. "We're very anxious to have you and very excited about your operation," said commissioner Julian Seeherman.

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