Wynn Resorts has been one of the hot topics in the past almost five months providing new happenings every other day. They are surrounding its new casino resorts project in Everett Massachusetts, as well as related to the company’s former CEO Steve Wynn. The latest turn of events brought the news that the casino developer is being sued by a minority owner of the land on which Encore Boston Harbor is being built in relation to the purchase deal.
The casino developer and operator is currently focusing its efforts on the construction work of its long-anticipated new casino resort which is going to be located on the banks of the Mystic River in Everett. As it was recently reported, the entire project is going according to the previously created plan and the integrated resort will be completed for its launch date in June next year. The news came as a reassurance for the investors and the public since the past couple of months brought some questions regarding the future of Encore Boston Harbor.
This is not the first time the purchase deal has been questioned. Now the casino operator is facing another legal feud, this time involving one of the former owners of the land lot on which the integrated resort is rising at the moment. According to the allegations expressed in a lawsuit against the international developer, Wynn Resorts had a previous arrangement when it comes to the ultimate price of the property.
Anthony Gattineri is one of the people who own FBT Realty, the firm that has previously owned the patch of land. In the allegations, it is stated that he was offered a total of $18.7 million in order to accept a lower sales price. Robert DeSalvio who is a Senior Executive at Wynn together with the person who was appointed to manage the Everett casino resorts project made the money offer in order to guarantee that the casino developer is going to receive the land at the price of $35 million.
What should be taken into account here is the fact that the initially negotiated price for the land lot amounted to some $75 million. This means that there was a significant reducing of the price which was negotiated between the two parties involved.
Details Surrounding the Lawsuit Filed
As it is stated in the lawsuit against the major company filed in Federal Court of Boston, what ultimately made the situation inconvenient for Mr. Gattineri was the fact that the arrangement was in no way solidified with the help of a written contract. When Mr. DeSalvio was asked to produce such, the Senior Executive stated that Wynn Resorts relies on an excellent regulation and there is no place for second thoughts. With this spoken arrangement solely the deal was negotiated at the proposed price.
This week saw Mr. Gattineri filing the suit stating that the casino operator and developer never considered the arrangement in their consequent actions, which is the reason why he has opted for taking matters to court. The compensation he demands if the authorities consider Wynn Resorts guilty as charged amounts to some $56 million. In addition to this figure the former owner of the land lot insists on having the attorney fees and interest paid as well, the exact amount of which would be calculated once the legal matters come to an end.
It should be pointed out that the exact circumstances surrounding the alleged arrangement remain unclear and there is no specific evidence in support of Mr. Gattineri’s statement. However, there have been quotes presented in the court filing which lead the authorities to believe that Mr. DeSalvio received the order to do “whatever it takes” in order to find a solution to the said issue involving Mr. Gattineri.
Greg John, spokesperson for Encore Boston Harbor claimed that this is a move which strives to gain an even larger payment from Wynn Resorts in addition to the previously arranged deal. Mr. John stated that this accusation will be defended by the casino developer in order to prove it has been wrongfully accused.
