Casino draws $240 million bid

Rick Callahan

Wednesday, April 13, 2005 | 9:23 a.m.

FRENCH LICK, Ind. -- Two Indiana companies announced Tuesday they will seek the casino license dropped by Donald Trump's company as part of a $240 million plan to return Orange County to its glory days as a posh destination resort.

"This is a mission of the heart," Cook Group Chairman Steve Ferguson told about 200 people gathered at the historic French Lick Springs Resort and Spa. "I don't know any other way to say it."

The Bloomington-based Cook Group Inc., one of the world's largest makers of medical devices, and Lauth Property Group Inc. of Indianapolis have proposed renovating the French Lick hotel and another historic hotel in nearby West Baden Springs and building a two-story casino and parking garage on a lagoon outside the French Lick property.

Cook founder William Cook already has spent millions to partially restore the West Baden landmark, which the Historic Landmarks Foundation of Indiana has tried unsuccessfully to sell.

Cook had said for years the company wasn't interested in bankrolling a casino.

"Mother always told me you'd eat every word you say, and she was right," Ferguson said.

Ferguson and Bob Lauth of the real estate firm said the 10-year project is contingent on being awarded the license to operate the casino. Today is the deadline to submit bids, and the Indiana Gaming Commission has said it hopes to award the license by June.

The companies are interviewing three gaming company operators and hope to decide who would run the gaming operation before submitting the application today, Ferguson said.

He would not confirm or deny rumors that Trump's operation was one of those being considered, but said it "would make sense" to talk with Trump because of the company's casino experience.

The proposed casino would direct one-half of its profits to charitable and philanthropic purposes within the state, Ferguson and Lauth said.

The developers estimate it will cost about $30 million to finish restoring the West Baden Springs Hotel, and up to $80 million for the French Lick Springs Resort and Spa.

The French Lick project will include restoration of a golf course designed by Scottish golf course architect Donald Ross that hosted the 1924 PGA Championships.

Illegal gambling in the early 20th century reputedly drew gangsters and celebrities to the then-resort area some 40 miles south of Bloomington.

Ferguson said the developers hope to link the hotel renovations and the casino to develop the area into a destination resort, casino and conference facility for the Midwest.

CFC Inc., the Cook affiliate that aided the partial restoration at West Baden Springs, plans to buy the French Lick hotel and donate it to the joint venture. That deal is set to close today.

Texas-based Benchmark Hospitality International has been selected to manage the French Lick Springs Resort and Spa, the companies said.

The Indiana Gaming Commission reopened the bid process for the casino contract in an effort to replace Trump Hotels and Casino Resorts, which was awarded the contract last year but dropped its plans last month after filing bankruptcy.

Indianapolis-based Lauth previously was a partner with Merit Gaming of Chicago in a casino bid called Lost River Development, but Lauth spokeswoman Myra Borshoff Cook said Monday that venture had been dropped.

Nevada Gold & Casinos Inc. of Houston owns a 75 percent stake in the only other remaining bid for the casino, which Orange County officials hope will help redevelop the economically struggling region.

Residents of the county, which consistently posts one of the state's highest unemployment rates, hailed the proposal, saying it was a relief after the disappointment when Trump's plan was scuttled.

"We've got to get moving on this," said retiree Charles Hammond, 65. "We can't just be sitting back and waiting. There are jobs at stake."