The president of Stockton University, whose plan to transform a shuttered Atlantic City casino into a satellite campus for the suburban college is stuck in legal limbo, said Wednesday he will resign later this year.
The announcement by Herman Saatkamp came as his deal for the university to use the former Showboat casino as a satellite campus remains beset by legal uncertainty.
The 72-year-old Saatkamp said he has been working with the university to plan for his retirement and the transition to a successor for some time now. In a resignation letter dated Wednesday, he cited "past and present health considerations" as part of his decision.
His letter did not say whether legal complications involving the Showboat played a role in his decision, and the university would not say whether that was the case. Saatkamp did allude to the difficult situation, though, leaving open the possibility the university could walk away from the deal to open what it calls its Island Campus.
"I remain optimistic for the success of the Island Campus in spite of the challenges currently faced," he wrote. "Few universities have the prospect of building a large campus at low cost in an urban setting that is in great need of stability and opportunity. Even if we do turn away from the Island Campus, I hope Stockton will continue to support its programs in Atlantic City while serving a diverse population and providing educational opportunities, professional development, and economic stability where it is greatly needed."
Florida developer Glenn Straub bought the Showboat on April 3 for $26 million from Stockton, which bought it for $18 million last December from Caesars Entertainment. Straub plans to let Stockton use it as a campus, but the neighboring Taj Mahal casino is using a 1988 legal covenant to block the move. The legal agreement among the Showboat, the Taj Mahal and Resorts Casino Hotel mandates that the Showboat not be used for anything other than "a first-class casino hotel."
Yet that dictate clashes with a deed restriction that Caesars placed on its sale of the Showboat to Stockton, which specified that the building could not be used as a casino again. Caesars closed the still-profitable Showboat in the name of reducing competition in the Atlantic City market, one of four casinos to go out of business last year.
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Further complicating matters is a plan by Atlantic City to rezone the area and adopt a redevelopment plan designating the Showboat for educational uses, specifically barring a casino from operating there. Unless the parties resolve the matter amicably, the dispute may head to court. Stockton has until July 3 to back out of its deal with Straub.
Trump Entertainment CEO Bob Griffin said Saatkamp's resignation does not change the company's insistence on enforcing the prohibition on the Showboat being used for a college campus. The company fears underage students will try to sneak into the Taj Mahal to gamble and drink, exposing it to costly fines.
Trump Entertainment said Stockton knew about the legal covenant when it bought the Showboat in December; Saatkamp said the college had been led to believe it had been resolved, but the university has not said who provided that assurance.
Saatkamp's resignation will become effective after Aug. 31.
