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Tennessee Casino Developers Face Obstacles

TENNESSEE – As reported by the Commercial Appeal: "From the beginning, the developers of the Solid Gold casino have faced long odds.

"As envisioned, the casino, which would be the 10th in Tunica, would be the farthest from Memphis, have the smallest gaming floor and the only one with local ownership.

"Adding to the casino's hurdles is a court battle with a Chicago banker whom the casino developers claim reneged on a promise to invest $30 million in the project.

"Robert Carpenter, who has been working on the Solid Gold project with his wife, Patricia Shaw, for a decade, said he relied on the assurances of Tod Miles when Carpenter purchased a barge and boat to use for the casino.

"But the money never materialized and the project is now two years behind schedule, Carpenter said. Carpenter sued Miles, his firm and others for $100 million, based on the revenue he claims the casino has lost by not opening.

"…But Miles's attorney said there was never a formal agreement and that Carpenter and his wife were acting alone when they purchased the boats.

"…Carpenter, however, believes that a July 31, 2002, letter from Miles's Chicago attorney, Jacqueline Criswell, to a ship broker promising a $1 million line of credit toward the purchase of the boat and barge, serves as an agreement to a deal.

"…A trial is scheduled for November, although Miles will again ask for the case to be dismissed, [Bobby Leatherman, who represents Miles in Memphis,] said…"

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