LEVINE, STALLER, SKLAR, CHAN, BROWN & DONNELLY, P.A. Counselors at Law 3030 Atlantic Avenue Atlantic City, New Jersey 08401

Exhibit 10.1

LEVINE, STALLER, SKLAR, CHAN, BROWN & DONNELLY, P.A.

Counselors at Law

3030 Atlantic Avenue

Atlantic City, New Jersey 08401

(609) 348-1300

Attorneys for Plaintiffs

 

TRUMP TAJ MAHAL ASSOCIATES, LLC,

 

Plaintiff,

 

v.

 

CITY OF ATLANTIC CITY,

 

Defendant.

  

TAX COURT OF NEW JERSEY

 

DOCKET NOS.: 3789-06 and 6009-07

  
 

TRUMP PLAZA ASSOCIATES, LLC,

 

Plaintiff,

 

v.

 

CITY OF ATLANTIC CITY,

 

Defendant.

  

TAX COURT OF NEW JERSEY

 

DOCKET NOS.: 3384-04; 3577-05; 4196-06 and 6031-07

  
 

TRUMP MARINA ASSOCIATES, LLC,

 

Plaintiff,

 

v.

 

CITY OF ATLANTIC CITY,

 

Defendant.

  

TAX COURT OF NEW JERSEY

 

DOCKET NOS.: 3479-04; 3481-04; 3326-05; 3335-05; 3524-06; 3527-06; 6278-07 and 6275-07

  


TRUMP PLAZA ASSOCIATES, LLC,

 

Plaintiff,

 

v.

 

CITY OF ATLANTIC CITY,

 

Defendant.

  

TAX COURT OF NEW JERSEY

 

DOCKET NOS.: 5889-97; 5027-98; 2968-99; 3671-00; 449-01; 3393-02; 2201-03; 1088-04; 5532-04 (consolidated); 2971-05 and 4991-05

 

STIPULATION OF SETTLEMENT

  

1. It is hereby stipulated and agreed that all demands for relief with regard to the various blocks and lots encompassed within the Complaints and Counterclaims in the above captioned matters are hereby withdrawn except that the assessments of the properties set forth in Schedule A (“Properties”) shall be adjusted and judgments shall be entered in accordance therewith and, it is further

2. Stipulated and agreed that the statutory interest pursuant to N.J.S.A. 54:3-27.2, having been waived by Trump Taj Mahal Associates, LLC (“Taj”), Trump Plaza Associates, LLC and Trump Marina Associates, LLC (hereafter individually “Taxpayer” and collectively, “Taxpayers”), shall not be paid and that Taxpayers also waive interest due on any judgment entered on the Properties above so long as the terms of this Stipulation of Settlement are not breached by the City of Atlantic City (hereafter “City” or “taxing district”) and, it is further

3. Stipulated and agreed that the provisions of N.J.S.A. 54:51A-8 (“Freeze Act”) shall not apply to the disposition of this matter and, it is further

4. Stipulated and agreed that the undersigned have made such examination of the value and proper assessment of the properties and have obtained such appraisals, analysis and information with respect to the valuation and assessment of the properties as they deem necessary and appropriate for the purpose of enabling them to enter into this Stipulation of

 

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Settlement and that the assessor of the taxing district has been consulted by the attorney for the taxing district with respect to this Stipulation of Settlement and has concurred with the same and, it is further

5. Stipulated and agreed that it is the intent of the parties that the reductions in assessments shown in Schedule A shall result in a collective refund/credit to the Taxpayers of taxes previously paid in the exact aggregate amount of thirty-four million ($34,000,000) dollars (“Refund/Credit”) and that the Refund/Credit obligation of the City to the Taxpayers shall be equal to the aforesaid exact amount. To effectuate this Refund/Credit, the taxing district shall refund and deliver, within 30 days, time being of the essence, of the execution of this Stipulation of Settlement, the sum of Twelve Million ($12,000,000) Dollars in immediately available U.S. funds, payable to the order of “Trump Entertainment Resorts Holdings, L.P.” (“TERH”) which shall be delivered within said 30 days, time being of the essence, to Trump Entertainment Resorts Holdings, L.P., Attn: Robert M. Pickus, Esquire, 15 South Pennsylvania Avenue, Atlantic City, New Jersey 08401 as a partial refund due on account of the aforesaid reductions in assessed values as set forth in Schedule A and in partial satisfaction of the Refund/Credit. The balance of the Refund/Credit, Twenty-Two Million ($22,000,000) Dollars, shall be applied as credits against future tax payments due on the subject properties in such amounts as set forth on Schedule B attached hereto and as directed by TERH provided (1) the amounts and dates of the application of such credits shall remain unchanged and (2) any such credits must be applied on account of real property taxes due from any of the Taxpayers.

6. Based upon the foregoing, the undersigned represent to the Court that the above settlement will result in assessments at the fair assessable value of the Properties consistent with assessing practices generally applicable in the taxing district as required by law.

 

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7. Each of the parties represents to the other that all requisite action has been duly taken by such party to authorize the execution, delivery and performance of the foregoing settlement.

8. The parties hereto further stipulate and agree that The Tax Court of New Jersey may immediately enter judgment incorporating the terms of this Stipulation of Settlement and, to the extent necessary, impose the terms herein.

City of Atlantic City

 

By:   

/s/ William H. Marsh

    

11/7/07

 
   The Honorable William H. Marsh      Date  
   Mayor of Atlantic City       
By:   

/s/ Anthony A. Swan

    

11/7/07

 
  

Anthony A. Swan

     Date  
  

Acting City Solicitor, City of Atlantic City

      
Levine, Staller, Sklar, Chan,       
Brown & Donnelly, P.A.       
By:   

/s/ Michael D. Sklar

    

11/7/07

 
   Michael D. Sklar, Esq.      Date  
   Attorneys for Trump Plaza Associates, LLC,       
   Trump Taj Mahal Associates, LLC and       
   Trump Marina Associates, LLC       

 

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TRUMP TAX APPEALS SETTLEMENT

SCHEDULE A

 

     Original
Assessment
   County Board
Judgment
   Requested Tax
Court Judgment
   Relief    Tax Rate  
          (Direct Appeals)                 

Trump World's Fair

              

Tax Year: 1997

               2.949 %

Block/Lot: 43/157

              

Land:

   $ 8,530,000    N/A    $ 8,530,000      

Improvements:

     181,470,000    N/A      29,000,000      
                      

Total:

   $ 190,000,000    N/A    $ 37,530,000    4,496,340   

Block/Lot: 44/177

              

Land:

   $ 10,398,700    N/A    $ 10,398,700      

Improvements:

     19,001,000    N/A      5,000,000      
                      

Total:

   $ 29,399,700    N/A    $ 15,398,700    412,889   

Tax Year: 1998

               2.878 %

Block/Lot: 43/157

              

Land:

   $ 8,530,000    N/A    $ 8,530,000      

Improvements:

     181,470,000    N/A      29,000,000      
                      

Total:

   $ 190,000,000    N/A    $ 37,530,000    4,388,087   

Block/Lot: 44/177

              

Land:

   $ 10,398,700    N/A    $ 10,398,700      

Improvements:

     19,001,000    N/A      5,000,000      
                      

Total:

   $ 29,399,700    N/A    $ 15,398,700    402,949   

Tax Year: 1999

               2.957 %

Block/Lot: 38/2

              

Land:

   $ 8,530,000    N/A    $ 8,530,000      

Improvements:

     181,470,000    N/A      29,000,000      
                      

Total:

   $ 190,000,000    N/A    $ 37,530,000    4,508,538   

Block/Lot: 37/22

              

Land:

   $ 10,398,700    N/A    $ 10,398,700      

Improvements:

     18,275,200    N/A      4,900,350      
                      

Total:

   $ 28,673,900    N/A    $ 15,299,050    395,494   

Tax Year: 2000

               3.090 %

Block/Lot: 38/2

              

Land:

   $ 8,530,000    N/A    $ 8,530,000      

Improvements:

     37,460,600    N/A      0      
                      

Total:

   $ 45,990,600    N/A    $ 8,530,000    1,157,533   

Block/Lot: 37/22

              

Land:

   $ 10,398,700    N/A    $ 10,398,700      

Improvements:

     5,619,000    N/A      0      
                      

Total:

   $ 16,017,700    N/A    $ 10,398,700    173,627   

 

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TRUMP TAX APPEALS SETTLEMENT

SCHEDULE A

 

     Original
Assessment
   County Board
Judgment
   Requested Tax
Court Judgment
   Relief    Tax Rate  

Tax Year: 2001

               3.095 %

Block/Lot: 38/2

              

Land:

   $ 8,530,000    N/A    $ 8,530,000      

Improvements:

     5,595,800    N/A      0      
                      

Total:

   $ 14,125,800    N/A    $ 8,530,000    173,190   
            16,108,647   
                

Trump Marina

              

Tax Year: 2004

               3.421 %

Block/Lot: 571/1

              

Land:

   $ 31,918,500    N/A    $ 31,918,500      

Improvements:

     271,300,500    N/A      250,000,000      
                      

Total:

   $ 303,219,000    N/A    $ 281,918,500    728,690   

Tax Year: 2005

               3.502 %

Block/Lot: 571/1

              

Land:

   $ 31,918,500    N/A    $ 31,918,500      

Improvements:

     271,300,500    N/A      250,000,000      
                      

Total:

   $ 303,219,000    N/A    $ 281,918,500    745,944   

Tax Year: 2006

               3.696 %

Block/Lot: 571/1

              

Land:

   $ 31,918,500    N/A    $ 31,918,500      

Improvements:

     271,300,500    N/A      250,000,000      
                      

Total:

   $ 303,219,000    N/A    $ 281,918,500    787,266   

Tax Year: 2007

               3.726 %

Block/Lot: 571/1

              

Land:

   $ 31,918,500    N/A    $ 31,918,500      

Improvements:

     271,300,500    N/A      250,000,000      
                      

Total:

   $ 303,219,000    N/A    $ 281,918,500    793,657   
            3,055,557   
                

Trump Plaza

              

Tax Year: 2004

               3.421 %

Block/Lot: 39/2

              

Land:

   $ 8,510,500    N/A    $ 8,510,500      

Improvements:

     71,228,800    N/A      49,000,000      
                      

Total:

   $ 79,739,300    N/A    $ 57,510,500    760,447   
      34361106.65         

 

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TRUMP TAX APPEALS SETTLEMENT

SCHEDULE A

 

     Original
Assessment
   County Board
Judgment
   Requested Tax
Court Judgment
   Relief    Tax Rate  

Block/Lot: 39/3

              

Land:

   $ 6,990,700    N/A    $ 6,990,700      

Improvements:

     57,950,800    N/A      40,000,000      
                      

Total:

   $ 64,941,500    N/A    $ 46,990,700    614,097   

Block/Lot: 39/4

              

Land:

   $ 8,603,900    N/A    $ 8,603,900      

Improvements:

     113,727,000    N/A      80,000,000      
                      

Total:

   $ 122,330,900    N/A    $ 88,603,900    1,153,801   

Tax Year: 2005

               3.502 %

Block/Lot: 39/2

              

Land:

   $ 8,510,500    N/A    $ 8,510,500      

Improvements:

     71,228,800    N/A      49,000,000      
                      

Total:

   $ 79,739,300    N/A    $ 57,510,500    778,453   

Block/Lot: 39/3

              

Land:

   $ 6,990,700    N/A    $ 6,990,700      

Improvements:

     57,950,800    N/A      40,000,000      
                      

Total:

   $ 64,941,500    N/A    $ 46,990,700    628,637   

Block/Lot: 39/4

              

Land:

   $ 8,603,900    N/A    $ 8,603,900      

Improvements:

     113,727,000    N/A      80,000,000      
                      

Total:

   $ 122,330,900    N/A    $ 88,603,900    1,181,120   

Tax Year: 2006

               3.696 %

Block/Lot: 39/2

              

Land:

   $ 8,510,500    N/A    $ 8,510,500      

Improvements:

     71,228,800    N/A      49,000,000      
                      

Total:

   $ 79,739,300    N/A    $ 57,510,500    821,576   

Block/Lot: 39/3

              

Land:

   $ 6,990,700    N/A    $ 6,990,700      

Improvements:

     57,950,800    N/A      40,000,000      
                      

Total:

   $ 64,941,500    N/A    $ 46,990,700    663,462   

Block/Lot: 39/4

              

Land:

   $ 8,603,900    N/A    $ 8,603,900      

Improvements:

     113,727,000    N/A      80,000,000      
                      

Total:

   $ 122,330,900    N/A    $ 88,603,900    1,246,550   

Tax Year: 2007

               3.726 %

Block/Lot: 39/2

              

Land:

   $ 8,510,500    N/A    $ 8,510,500      

Improvements:

     71,228,800    N/A      49,000,000      
                      

Total:

   $ 79,739,300    N/A    $ 57,510,500    828,245   

 

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TRUMP TAX APPEALS SETTLEMENT

SCHEDULE A

 

     Original
Assessment
   County Board
Judgment
   Requested Tax
Court Judgment
   Relief    Tax Rate  

Block/Lot: 39/3

              

Land:

   $ 6,990,700    N/A    $ 6,990,700      

Improvements:

     57,950,800    N/A      40,000,000      
                      

Total:

   $ 64,941,500    N/A    $ 46,990,700    668,847   

Block/Lot: 39/4

              

Land:

   $ 8,603,900    N/A    $ 8,603,900      

Improvements:

     113,727,000    N/A      80,000,000      
                      

Total:

   $ 122,330,900    N/A    $ 88,603,900    1,256,668   
            10,601,902   
                

Trump Taj Mahal

              

Tax Year: 2006

               3.696 %

Block/Lot: 61/5

              

Land:

   $ 61,268,300    N/A    $ 61,268,300      

Improvements:

     156,745,900    N/A      126,050,000      
                      

Total:

   $ 218,014,200    N/A    $ 187,318,300    1,134,520   

Block/Lot: 61/7

              

Land:

   $ 49,821,000    N/A    $ 49,821,000      

Improvements:

     251,349,300    N/A      225,000,000      
                      

Total:

   $ 301,170,300    N/A    $ 274,821,000    973,870   

Tax Year: 2007

               3.726 %

Block/Lot: 61/5

              

Land:

   $ 61,268,300    N/A    $ 61,268,300      

Improvements:

     156,745,900    N/A      126,050,000      
                      

Total:

   $ 218,014,200    N/A    $ 187,318,300    1,143,729   

Block/Lot: 61/7

              

Land:

   $ 49,821,000    N/A    $ 49,821,000      

Improvements:

     251,349,300    N/A      225,000,000      
                      

Total:

   $ 301,170,300    N/A    $ 274,821,000    981,775   
            4,233,895   
                
              
                
            34,000,000   
                

 

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TRUMP TAX APPEALS SETTLEMENT

SCHEDULE A

 

    

Original

Assessment

  

Requested

Assessment

  

Assessment

Reduction

  

Tax

Relief

WF

           

1997

   221,131,800    54,660,800    166,471,000    4,909,230

1998

   221,131,800    54,660,800    166,471,000    4,791,035

1999

   221,131,800    55,286,950    165,844,850    4,904,032

2000

   66,528,200    23,448,600    43,079,600    1,331,160

2001

   28,239,900    22,644,100    5,595,800    173,190
             
            16,108,647

Marina

           

2004

   308,138,000    286,837,500    21,300,500    728,690

2005

   308,138,000    286,837,500    21,300,500    745,944

2006

   308,138,000    286,837,500    21,300,500    787,266

2007

   308,138,000    286,837,500    21,300,500    793,657
             
            3,055,557

Plaza

           

2004

   385,728,400    311,821,800    73,906,600    2,528,345

2005

   385,728,400    311,821,800    73,906,600    2,588,209

2006

   385,728,400    311,821,800    73,906,600    2,731,588

2007

   385,728,400    311,821,800    73,906,600    2,753,760
             
            10,601,902

Taj

           

2006

   660,826,800    603,781,600    57,045,200    2,108,391

2007

   660,826,800    603,781,600    57,045,200    2,125,504
             
            4,233,895

Total

            34,000,000
             

 

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SCHEDULE B

 

     Amount of Credits

2009

   $ 4,000,000

2010

   $ 4,000,000

2011

   $ 4,000,000

2012

   $ 5,000,000

2013

   $ 5,000,000
      
   $ 22,000,000

Such credits shall be applied in each year beginning with the first quarter tax installment until such credit is exhausted for such year.

 

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