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Rosemont Deal Hits Another Obstacle

ILLINOIS – As reported by the Chicago Sun-Times: "The goal to get a Rosemont casino up and running by May 2005 is in bigger doubt.

"An investigation to clear the air about the Illinois Gaming Board's decision to route a casino to the northwest suburb is on hold once again, this time because the law firm Gov. Blagojevich tapped to do the job has a problem with its proposed contract.

"The probe, the Chicago Sun-Times also has learned, could take as long as six months -- potentially delaying the casino's opening beyond next spring's target date.

"The contract snag marks the second problem with the investigation that the governor has encountered since he picked former U.S. Deputy Attorney General Eric Holder Jr. on March 24 to do a 'full, comprehensive and independent' review of the board's decision to buck its staff's recommendation and name Isle of Capri Casinos the winning bidder for Illinois' only dormant gaming license.

"…Holder and other lawyers from his firm, Covington & Burling in Washington, D.C., were to have started their work by now to determine whether Rosemont is a suitable casino site.

"But it took until April 13 to resolve a legal problem that could have prevented the Covington team from having access to privileged Gaming Board documents, and the firm still hadn't signed its contract as of Friday night. That's because state negotiators are not willing to grant Covington a waiver that would allow the firm to be hired by future clients that might sue or be sued by the state while the casino investigation is ongoing.

"…Without the waiver, Covington might have to turn away potentially lucrative clients during that time.

"Madigan is willing to waive conflicts of interest for two clients that the firm currently is representing in cases opposing the state, but she's not willing to waive them for future clients that can't be known…"

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