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Casino Loan to Hammond, Indiana, Raises Eyebrows24 June 2002HAMMOND, Ind. -- For the second time in as many years, the city is borrowing millions of dollars from a riverboat casino to help pay for an environmental reclamation project. "The financial relationship between the city and the Horseshoe Casino has some local officials concerned. " It bothers me that Horseshoe is acting as a bank for the city,' Carlotta King, a member of the Hammond Redevelopment Commission, said. "…The Redevelopment Commission voted 3-2 last week to borrow nearly $3 million from the casino, over the strong objections of King and Commissioner Louis Karubas. "Karubas said he fears the debt will give the casino enough leverage to `be the boss of the whole lakefront.' "…The city had previously borrowed $6 million, some of it at zero interest, commission attorney Carol Green said. "The current loan must be repaid within six years at 5 percent interest. The city already has repaid a similar amount it borrowed from the casino last year. "…Jennifer Arnold, a spokeswoman for the Indiana Gaming Commission, said that if the city and Horseshoe were comfortable with the arrangement, it was fine in the eyes of the IGC…" |