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February 9, 2011

With ruling, panel to seek new slots bidders for city

A judge has cleared the way for the state slots commission to seek proposals for companies to build and manage the casino approved for Baltimore.

Baltimore Circuit Court Judge John Phillip Miller ruled that a Canadian developer had no claim on the land off of Russell Street that the city selected as a site for the slots parlor.

The Baltimore City Entertainment Group, led by Toronto developer Michael Moldenhauer, had sought $100 million in damages after the city revoked the group’s right to develop the property. The city, which cut ties with Moldenhauer after the state commission rejected his group’s application for a slots license, had asked the judge to end the deal.

Moldenhauer’s group was the only applicant for a the Baltimore slots license.

While Miller did not grant the city's request to dismiss the group’s lawsuit in its entirety, he granted several of the city's motions, and ruled that “the City is, and remains, the only titleholder to the real property.”

The city is “free and clear from any claims by BCEG under its contracts” and “there exists no cloud upon the title of the property,” Miller wrote in his opinion this week.

The Baltimore City Entertainment Group characterized the ruling as a victory, because Miller is allowing the case to proceed to the discovery process.

“We are very pleased with this ruling,” Moldenhauer said in a statement. “We are confident that our breach of contract suit as it goes forward will show that the city needs to let us build our project.”

City solicitor George Nilson, meanwhile, said the victory is the city’s.

State slots commission chair Donald Fry said he hoped to issue a new request for proposals for the casino within the next two months.

“This certainly moves us another step forward but there other details we need to work out,” Fry said.

Posted by Julie Scharper at 4:36 PM | | Comments (2)
Categories: City Hall, Law and Courts, Slots


judges ruling yesterday

For review

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About the bloggers
Annie Linskey covers state politics and government for The Baltimore Sun. Previously, as a City Hall reporter, she wrote about the corruption trial of Mayor Sheila Dixon and kept a close eye on city spending. Originally from Connecticut, Annie has also lived in Phnom Penh, Cambodia, where she reported on war crimes tribunals and landmines. She lives in Canton.

John Fritze has covered politics and government at the local, state and federal levels for more than a decade and is now The Baltimore Sun’s Washington correspondent. He previously wrote about Congress for USA TODAY, where he led coverage of the health care overhaul debate and the 2010 election. A native of Albany, N.Y., he currently lives in Montgomery County.

Julie Scharper covers City Hall and Baltimore politics. A native of Baltimore County, she graduated from The Johns Hopkins University in 2001 and spent two years teaching in Honduras before joining The Baltimore Sun. She has followed the Amish community of Nickel Mines, Pa., in the year after a schoolhouse massacre, reported on courts and crime in Anne Arundel County, and chronicled the unique personalities and places of Baltimore City and its surrounding counties.
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