The Verifiable Truth: Tom Celani

Showing posts with label Tom Celani. Show all posts

Tuesday, October 04, 2011

Detroit Casino Syndicators: Strather, Celani, Malik & Ilitch

Herb Strather, Tom Celani, Michael Malik & Marian Ilitch were among those who pushed for commercial gambling in Detroit in the mid 1990s. They were also chief backers of Detroit’s MotorCity Casino. However, in 1999 Malik and Strather failed to receive gaming licenses from the Michigan Gaming Control Board and were among those forced to divest themselves of any interest in MotorCity Casino before the gambling hall opened its doors to the public.

Herb Strather

Strather
Strather’s original Detroit-based Atwater casino syndication moved on to form AtMashpee LLC and push the Recognition and Cape Cod casino development plans of the Mashpee Wampanoag tribe. Another Strather affiliate Maushop LLC purchased 28 acres of land on Cape Cod. Strather would later reveal that South African casino moguls Sol Kerzner and Len Wolman were the primary investors in the Mashpee venture. And in 2008, further controversy ensued when Mashpee tribal chairman Glenn Marshall admitted to federal investigators that Strather had funneled $4 million to him which was used in an illegal political contributions scheme and to pay personal bills.

In 2005, Ilitch bought out Celani, Mirage Resorts and others who were part of the original MotorCity Casino syndication.

Tom Celani

Celani
Celani, a one-time beer distributor, organized Luna Entertainment. He had been a founder of Sodak Gaming, Inc. which was acquired by International Game Technology. He subsequently was licensed for gaming in Nevada and took over management of the famed Cal-Neva Casino previously owned by Frank Sinatra and frequented by Sinatra's "Rat Pack" entertainment pals.

Among other gaming facilities, Celani has since become licensed to own/operate, the Fortune Valley Hotel and Casino (CO), Red Dolly Casino (CO), Rolling Hills Casino (CA), and the Kiowa Red River Casino (OK). Of those Detroiters behind the original MotorCity Casino syndication and relative to the breadth of his gaming involvement, Celani has been the least controversial and most successful opening or acquiring new casinos outside of Michigan. Celani Profile.

Malik/Ilitch
Despite Malik's 1999 failure to obtain a gaming license in Michigan, Malik and Ilitch have continued as business partners. They have been relentless in their pursuits to develop and manage Indian casinos in partnership with the Bay Mills Indian Community (MI), Los Coyotes Band of Indians (CA), Big Lagoon Rancheria (CA), Shinnecock Indian Nation (NY) spending millions on lobbying, political campaign contributions and legal work.

Similar to Strather’s AtMashpee LLC group, Malik/Ilitch organized Gateway Casino Resorts to bankroll Federal Recognition of the Shinnecock Nation. And like Strather, they believe that investment bought them the rights to develop and manage any future Shinnecock gaming facility. Currently they are banking on approval of plans to develop a Shinnecock casino and hotel at Belmont Racetrack on Long Island (NY).

Although Malik/Ilitch gambling pursuits have been many and they have organized dozens of affiliates to bankroll Native American casino development plans in three states, Malik/Ilitch have failed to successfully open any new gambling facilities since Malik failed to earn a gaming license and they parted company with Celani.

Further, while chasing casino development opportunities with Ilitch, Malik has been involved in numerous controversies including: a federal ponzi scheme case; defaults on both property taxes and a $1 million line of credit; and multiple violations of California political campaign contribution laws.

See also:

Sunday, October 02, 2011

Detroit Casino Syndicator in default on property linked to future casino development

Herb Strather

Detroit Casino syndicator Herb Strather says the Mashpee Wampanoag Tribe of Massachusetts owes him $25 million.

Strather, who has been a controversial character in Detroit for decades, says he bankrolled the tribe’s federal recognition effort. Now he wants a payout from any gaming facility the tribe opens. After all, that is why he organized a syndicate to bankroll the federal recognition campaign.

Among other things, Strather claims that the tribe has reneged on a handshake deal to make mortgage payments for Maushop Farm, a horse stable in Mashpee (MA). Strather affiliate Maushop LLC purchased the property in 2001 with a $682,500 Bank of America mortgage. Strather says he planned to donate Maushop Farms to the Wampanoag once a casino was built. Now, Strather tells the Cap Cod Times he is in default on the mortgage.

Maushop Farms is located at 218 Sampsons Mill Road, Mashpee, MA 02649.

View Larger Map

NOTE: To see the deed and recorded mortgage document signed by Maushop Manager Frederick C. Grosser visit https://72.8.52.132/ALIS/WW400R.PGM. In Public Access (box pg left) click “Free Access.” Then “Click here to Search Public Records.” Then click “Recorded Land by Name.” In the Last/Corp name box type Maushop LLC. Scroll down and click “Search.” Your search results should include the Deed, Mortgage Instrument and several liens.

See CapeCodToday.com:

See also:

Monday, September 05, 2011

Ilitch Family Amasses Debt for Sports, Entertainment & Gambling Affiliates

Debt Part of Ilitch Equation

10.19.2010
Featured originally as a side-bar to a story entitled Ilitch teams with tribe on N.Y. casinos: Long Island plans could top $1 billion

By Bill Shea

As the Ilitch family assesses how it will pay for the Detroit Pistons, Palace Sports & Entertainment Inc. and possibly a new downtown arena, debt remains on the family's past projects.

In January 2009, Marian Ilitch injected $45 million into her MotorCity Casino after lenders -- including Highland Capital Management LP -- threatened to hike interest rates to 18 percent on the $625 million loan her CCM Merger Inc. got in 2005 to finance purchase of the casino and for the later construction of its 300-room hotel.

The lenders reportedly wanted the additional investment because the casino was in jeopardy of violating its loan terms, a situation created when gambling revenue began to fall with the recession.

Deutsche Bank and Merrill Lynch arranged the loan in 2005.

The total financing for MotorCity is believed to be $950 million through a highly leveraged mix of fixed- and variable-rate bank debt and junk bonds, according to Forbes.

Ilitch paid $525 million to buy the majority ownership of the casino in April 2005 from Las Vegas-based MGM Grand/Mirage Casinos' Mandalay Resort Group, the MGM subsidiary that owned MotorCity.

She also paid Detroit entrepreneur Herb Strather $106 million for his Atwater Entertainment Associates LLC's 11.5 percent stake in MotorCity.

Another $85 million to $100 million went to former Ilitch partner Tom Celani for his 10 percent stake.

The Detroit Tigers, owned separately by Mike Ilitch, borrowed $140 million in August 2005 from a syndicate of 11 financial institutions, led by what is now Sumitomo Mitsui Bank, to refinance what had been $115 million remaining in debt from the original $145 million loan to build Comerica Park, industry magazine Sports Business Journal reported at the time.

The team has declined to comment on its current stadium debt.

Public debt on Comerica Park is through the Detroit-Wayne County Stadium Authority.

Monday, April 27, 2009

Detroit casino to benefit from Obama stimulus package

According to blogger Brian Darling at HumanEvents.com; the Obama stimulus package includes:

"$1.5 million to improve the parking garages and roads surrounding the Greektown Casino development in Detroit."

Detroit's Greektown Casino filed for Chapter 11 bankruptcy protection back in May. Greektown Casino, one of three commercially operated casinos in Detroit, is owned primarily by the Sault Ste. Marie Tribe of Chippewa Indians.

Tom Celani, a former founding partner in Detroit's MotorCity Casino along with Marian Ilitch and Michael J. Malik, Sr., tried to buy controlling interest in Greektown Casino back in January, according to a story published in the Detroit News, but that transaction was never consumated.

But now, according to BackRoomNews.com:

"Tom Celani, a Bloomfield Hills businessman and investor, is trying to buy Greektown Casino in downtown Detroit.

Celani, who was an initial investor in Motor City Casino, has partnered with a Connecticut-based hedge fund called Plainfield to bid for Greektown, which is being marketed to buyers through bankruptcy proceedings.

Celani says he expects he is among up to four bidders interested in the casino, which generates $300 million a year in annual revenue. Celani would not disclose the amount of his bid.

'I understand the property very well … I’ve been in the casino business for 20 years. Gaming is what we enjoy,' Celani said. 'I’d love to do it in my hometown.' "

Saturday, March 28, 2009

Former Ilitch partner bids to takeover troubled Detroit Casino

3.27.09

Tom Celani makes bid for Greektown Casino

By Nancy Kaffer

Longtime Detroit casino advocate Tom Celani said he’s making a bid for the troubled Greektown Casino. Celani owns a host of business ventures including Luna Entertainment in Novi, Farmington Hills-based Motor City Harley-Davidson and Napa Valley, Calif.-based Celani Family Vineyards.

He was instrumental in financing a 1996 statewide ballot referendum that approved gaming in Michigan, according to a 2007 Crain’s profile of Celani, and once was a partner in MotorCity Casino L.L.C., selling his share to current owner Marian Ilitch in 2005.

Greektown Casino entered Chapter 11 bankruptcy in 2008, but Celani said he believes the casino can emerge profitably.

“With the right people in place, absolutely,” he said. “But you’ve got to put the right people in place. The best option would be someone like myself that lives here and has a passion for gaming.”

The Greektown offer is a joint venture between Celani and Greenwich, Conn.-based Plainfield Asset Management L.L.C., Celani said, as LPF Holdings. Celani says he is competing against other bidders in the process.

Saturday, January 17, 2009

Then-Rep. Buzz Thomas honored his casino partner with House Resolution

In November 2001, Michigan State Representative "Buzz" Thomas (Samuel Thomas III) authored and introduced House Resolution 0259 honoring the life of Lawrence P. Doss.

Among many other accomplishments, Doss was one of the organizers of Atwater Entertainment Associates LLC, the syndicated entity that bankrolled approvals of gambling in Detroit and started MotorCity Casino. Doss was recognized as Manager/Treasurer of Atwater and was a signator to the Detroit Entertainment LLC Operating Agreement as representative of Atwater. That agreement tied together members of Atwater with a partnership that included Marian Ilitch, Tom Celani and Michael Malik, and Las Vegas-based Circus Circus (Mandalay Resort Group) to form the entity that does business as Detroit's MotorCity Casino.

A list of those who were "investors" indicates that then-Representative Thomas (he's now a State Senator) and Doss were partners in Atwater Entertainment Associates LLC. Mr. Doss's interests in Atwater were transferred to Judith Y. Doss in October 2001.

In 2005, Marian Ilitch initiated a buy-out of her Atwater partners -- presumably including Samual "Buzz" Thomas III and Judith Doss -- which some valued at more than $100 million.

Tuesday, January 06, 2009

Not so favorable report of casino syndicators Strather, Varner, Malik, Slavik et al

Excerpts from a 4.26.99 article published in the Las Vegas Sun:

Circus Detroit partners under scrutiny

Atwater

Detroit News

Herb Strather

Nellie Varner

U.S. Department of Housing and Urban Development

Michael Malik

Thomas Celani

James Blain

J. Ronald Slavik

Janniss Scott Varner

Original Article

Friday, November 21, 2008

2002 Article sheds light on Ilitch involvement with Port Huron Casino bid

An article originally published on 10.23.02 in the Detroit News sheds light on the Ilitch Family's involvement with plans to build a Bay Mills Indian Community Casino in Port Huron, Michigan:

Pizza matriarch takes on casino roles

Marian Ilitch lobbies to legalize gambling in Hawaii, helps Port Huron gaming effort

...Al Sebastian, a spokesman for Ilitch Holdings Inc., parent company of Little Caesar Enterprises Inc. and other family endeavors said, "She has been successful in Detroit, and she's looking to duplicate that success elsewhere."

Some Detroit casino interests are in a lather about the prospect of a Port Huron casino. But Ilitch, 69, has merely played matchmaker between members of the Bay Mills Indian Community -- with whom she has had a relationship for about 10 years -- and federal lawmakers who ultimately will vote on the St. Clair County project, Sebastian said.

"We would do that for any group, whether it concerns proposed casinos, entertainment efforts or sporting events," Sebastian said...

The Port Huron question

Back home, Ilitch assistance, however tangential, with the Port Huron casino proposal and the Bay Mills tribe could raise eyebrows. Some Detroit casino interests think Port Huron is too far away to significantly dent their business, but others like MotorCity investor Tom Celani and Detroit Mayor Kwame Kilpatrick contend the casino would take revenues from Detroit casinos -- and the city of Detroit.

Michigan Gov. John Engler and the Bay Mills tribe reached a settlement by which Bay Mills would drop a land claim in the Upper Peninsula if it were allowed to open a casino in Port Huron.

Sebastian confirmed that Marian and daughter Denise attended an Oct. 10 hearing called to discuss legislation allowing the Port Huron deal to proceed. But he said the main reason for the trip was to show off the Stanley Cup trophy won by the Red Wings to legislators.

"Marian and Denise Ilitch observed the hearings, but did not participate,"

Celani, a 10 percent shareholder in MotorCity, said a study by Detroit casinos showed that a Port Huron rival could cost the city of Detroit up to $20 million a year in tax revenues.

"We're disappointed," said Celani, who also co-owns a Harley-Davidson dealership in Farmington Hills. "Why should anybody in Detroit promote anything within a 150-mile radius? It doesn't make sense."

The city of Detroit could have a say, ultimately. Agreements with each of Detroit's three casinos prevent them from owning a piece of another casino within 150 miles.

Ilitch spokesman Sebastian said Celani's concerns are unfounded. "There is no ownership because there is no casino," Sebastian said of Ilitch's role. "It is not an issue."

But Ilitch believes that a Port Huron casino would help Metro Detroit.

"It's a good proposal that will help the tribe, Port Huron and the state if approved," Sebastian said.

"Members of our organization [Michael J. Malik, Sr.] have had a relationship with Bay Mills for 10 years," Sebastian said. "We had initial discussions about casinos before the Detroit casinos opened." At one time, Bay Mills wanted to build a casino near the Fox Theatre.

Recently "the tribe came to our organization to ask for our assistance to open doors for their proposed casino project in Port Huron," Sebastian said. "We introduced some of their members to a number of public officials in Washington, D.C."

In 2001, 54 percent of city voters approved a proposal to build a Port Huron casino.

Ilitch hasn't leaped at every casino opportunity, though. In 1999, she, along with Celani [and Michael Malik], was part of a group that would manage Little River Casino in Manistee. But Ilitch left the group. Ilitch and Celani are the two biggest local investors in Detroit casinos.

Other Detroiters are watching Port Huron developments.

The head of a group of about 100 Metro Detroiters owning 12 percent of MotorCity Casino has asked Ilitch about Port Huron. Ilitch has assured Vivian Carpenter, president of Atwater Entertainment Associates, that her children have no ownership interest in Port Huron, and that Marian Ilitch isn't violating a pact prohibiting the ownership of another casino within 150 miles...

Ilitch Family casino and development partner Michael J. Malik, Sr., and several entities he's affiliated with (Blue Water Resorts, MJM Enterprises, Blue Water Resorts Manager, Inc) are tied directly to the Bay Mills Indian casino scheme.

Monday, November 10, 2008

Muckety.com maps the Muckety Mucks affiliated with Ilitch Holdings and more

Muckety.com has come up with an interactive Web tool for mapping the social networks of Muckety Mucks (people and organizations). It's a tool that let's you explore the theories represented by "Six Degrees of Separation."

Muckety.com was founded by the same people who started ePodunk -- people who once worked at the Detroit News and Detroit Free Press and who have backgrounds in journalism, technology and online publishing.

And as it turns out, Muckety.com has already established the basic of a social network map for Mucketies affiliated with Ilitch Holdings, Inc. (pictured here).

Muckety.com has also given TVT the tools to embed the Muckety Map of Ilitch affiliates right here on TVT. Find that tool by scrolling down to the bottom of your screen.

click graphic to see map on Muckety.com

or scroll down to use the interactive tool here

Saturday, November 08, 2008

Four Charlotte Beach parcels purchased by Michael Malik or his associates since 2002

Charlotte Beach Subdivision, Barbeau, Michigan

Properties purchased or otherwise acquired by Michael J. Malik, Sr. or his associates during the last decade.

Parcel No:	0023250730000
Owner(s):	CB PROPERTY INVESTMENTS LLC
Site Address:	3915 S 1 COTTAGE RD BARBEAU, MI 49710
Mail Address:	280 W MAPLE RD 31 BIRMINGHAM, MI 48009-3344

Acquired by CB Property Investments, L.L.C. (William Serwer, Michael J. Malik’s business attorney) from Dale E. Bertram and Duane A. Bertram & Rhea Bertram June 12, 2002 for an undisclosed sum through foreclosure (approximately three months before Governor Engler concluded negotiations on a Bay Mills Indian Community land claims settlement agreement over Charlotte Beach lands).

Parcel No:	0023250260000
Owner(s):	CB PROPERTY INVESTMENTS LLC
Site Address:	3915 S 1 COTTAGE RD BARBEAU, MI 49710
Mail Address:	280 W MAPLE RD 310 BIRMINGHAM, MI 48009-3344

Parcel No:	0023200210000
Owner(s):	CASTAGNE EUGENE & CATHERINE
Site Address:	3611 S 1 COTTAGE RD BARBEAU, MI 49710
Mail Address:	15050 HARMONY LN CHEBOYGAN, MI 49721-8433

Originally purchased by James F. Hadley in 1996; acquired by Luna Properties Charlotte Beach LLC (Tom Celani) November 9, 2004 for a value 21.3% greater than Hadley originally paid; sold to Castagnes in 2005 at a value 56.6% greater than Celani acquired the property for from Hadley Estate a year earlier.

Parcel No:	0023200110000
Owner(s):	REED JAMES M & BETH E
Phone:	(918) 446 - 1344 [do not call]
Site Address:	3819 S 1 COTTAGE RD BARBEAU, MI 49710
Mail Address:	4615 OAK LEAF DR TULSA, OK 74132-2127

Originally purchased by James F. Hadley in 1996; acquired by MJM Charlotte Beach, L.L.C. (Michael J. Malik) November 9, 2004 for a value 21.3% greater than Hadley originally paid; sold to Reed in January 2006 for an undisclosed value.

TIMELINE – chain of ownership

If you desire copies of the register and tax documents that TVT has obtained regarding these properties please write allverifiable@gmail.com

NOTE: Originially posted 8.08.07 & updated 11.08.08 to reflect parcels 0023250730000 & 0023250260000 appear to have been obtained by CB Property Investments as part of a foreclosure action.

Wednesday, July 16, 2008

Michigan Indian tribe eyes second casino

7.16.08

Indian tribe plans for 2nd western Michigan casino

An American Indian tribe plans to open its second western Michigan casino at a closed thoroughbred horse racing track in the Muskegon area.

The Little River Band of Ottawa Indians said Wednesday it's buying Great Lakes Downs in Muskegon County's Fruitport Township. The tribe's Little River Casino Resort is near Manistee.

Canada's Magna Entertainment closed the track last fall, saying it lost money there for years.

Tribal Chief Larry Romanelli, a Muskegon businessman, tells The Muskegon Chronicle the casino planned for the track site would bring jobs, businesses and tourism to the area.

Township Supervisor Ronald Cooper tells WOOD-TV in Grand Rapids it's too early to know how the township board will react.

Little River Band of Ottawa Indians: http://www.lrboi.com/

NOTE: Detroit-based gambling men Michael J. Malik, Sr. (aka Mike Malik) (MJM Manistee) and Tom Celani (Manistee Gaming) were behind the original Little River Casino Resort in Manistee. It's also been reported that Mrs. Marian Ilitch -- she now owns Detroit's MotorCity Casino -- was also a financial backer of the original Little River Casino. While Celani continued to manage the Little River Casino until 2004, documents filed with the National Indian Gaming Commission (NIGC) indicate Mike Malik was removed from the management contract by at least 2002.

Wednesday, June 25, 2008

What does Marian Ilitch see in Mike Malik?

What does Marian Ilitch see in Mike Malik (Michael J. Malik, Sr.) other than millions of dollars of her family's money being flushed down the drain?

For more than a decade Malik's found some way to convince Marian Ilitch to invest millions in her family's fortune on his various casino schemes. O.K. so she's now the owner of Detroit's MotorCity Casino -- presumably an opportunity originally brought to her by Malik and his associates -- but Malik has failed in every effort to develop a new casino since then:

Failed to legalize gambling in Hawaii and build a proposed casino resort on Oahu;

Failed multiple times to get state or federal approvals for various schemes to build Indian casinos in Barstow, California;

Failed to make any meaningful progress on a scheme to build an Indian casino in the posh Hamptons resort on New York's Long Island; and today,

Failed for the seventh time in ten years to win congressional approvals for a scheme manufactured for the opportunity to build an off-reservation casino in Port Huron, Michigan.

In fact, the only success Malik has with casino resort projects dates back to the 1990s when he worked with a partner, Tom Celani. On the other hand, Celani has gone on to greatly expand his interests in casino and resort projects across the U.S.

Saturday, March 08, 2008

Tom Celani backs off bid to acquire 22% of Greektown Casino

3.07.08

Celani decides not to invest in Greektown Casino

By Robert Ankeny

Tom Celani, owner of MotorCity Harley Davidson and MotorCity Power Sports, has dropped plans to acquire a stake in Greektown Casino L.L.C.

Under a plan announced in January, Celani was to become president of casino operations and buy a 22 percent stake in the company from the majority owner, the Sault Ste. Marie Tribe of Chippewa Indians.

“The tribe has time sensitive issues, and we needed more time for due diligence,” said Celani, a former investor in MotorCity Casino, “so they’re exploring other possible investors. It’s a great project and we’re still interested.”

Celani’s plan to buy into Greektown was aimed at improving the casino’s management and bolstering its finances, Tom Miller, chair of the Greektown management board, said at the time.

Celani’s involvement with the casino industry goes back more than a dozen years and includes management roles with start-up Indian casinos in Michigan and other states through his companies called Luna Gaming and Luna Entertainment.

“We could not reach an agreement on terms,” said Roger Martin, a principal in Lansing-based Martin Waymire Advocacy Communications who is a spokesman for Greektown.

Ted Gatzaros, one of the founders of Greektown who sold his stake in 2000, is believed to be one of those talking about more investment. He is still owed $60 million from the casino, was recently licensed and acquired a 1 percent stake in the casi

Friday, February 01, 2008

Former partners Mike Malik and Tom Celani tied to tribes pushing off-reservation casino proposals in Congress next week

The House Natural Resouces Committee is reportedly set to hear two bills, H.R. 2176 and H.R. 4115, on February 6th that would allow for off-reservation casinos in the greater Detroit area -- off-reservation Indian casino proposals for Port Huron and Romulus respectively.

H.R. 2176 is regarding the Bay Mills Indian Community and H.R. 4115 the Sault Ste Marie Tribe of Chippewa Indians. The Bay Mills Indian Community already has two casinos on its Brimley, Michigan reservation.. The Sault Ste Marie Tribe of Chippewa Indians is majority owner in Detroit's Greektown commercial casino as well as the five Kewadin casinos.

Both H.R. 2176 and H.R. 4115 are said to bring about land claims settlements that both tribes have alleged to the same 110-acres of

property in the Charlotte Beach subdivision on the St. Marys River east of Barbeau, Michigan on the Upper Peninsula.

Michael J. Malik, Sr. and Tom Celani (official bio) were one-time casino investment partners. They brought the realization of a Little River Band of Ottawa Indians casino resort to Manistee, Michigan; and they were behind the effort to bring commercial gaming to Detroit. Also partnered with the pair was Mrs. Marian Ilitch, now sole proprietor of Detroit's MotorCity Casino. Both Celani and Malik were founders of MotorCity Casino although Malik wasn't licenseable by the Michigan Gaming Control Board (MGCB) and was forced to sell his interest in MotorCity casino before the gambling hall opened its doors. Celani later sold his interest in MotorCity Casino to partner Marian Ilitch when she also bought majority shareholder MGM Mirage/Mandalay Resorts. Celani has gone on to manage casinos in various states across the country including the Cal-Neva Lodge, owned at one-time by Frank Sinatra, and was a major shareholder in SODAK Gaming, Inc.

Both Celani and Malik at one-time purchased land in the Charlotte Beach subdivision.

Now Malik is behind the Bay Mills Indian Community's effort to bring commercial gaming to Port Huron --Marian Ilitch is a staunch supporter of that proposal. Malik has pushed that agenda unsuccesfully for more than a decade. Some believe that Celani was a one-time partner in Malik's efforts with the Bay Mills tribe. And now, as it was announced yesterday, Celani is a partner and president of the Sault Tribe's Greektown Casino in Detroit.

Both tribes have reservations on Michigan's Upper Peninsula which are located more than 350 miles by automobile from their proposed off-reservation casino sites. Both Port Huron and Romulus are in the greater Detroit area.

The Detroit Gaming Syndicators: Marian Ilitch, Michael Malik and Tom Celani

Casino investor Celani to partner with Sault tribe

1.31.08

New investor to be president of Greektown Casino operations

By Daniel Duggan

Former MotorCity Casino investor Tom Celani announced plans to acquire a 22 percent stake in the Greektown Casino.

Upon approval by the Michigan Gaming Control Board, Celani would become president of casino operations.

“I’m excited to be involved in the operations here,” he said during a press conference. “In fact, that’s something that we negotiated. I wanted to be involved, not just sitting on the sidelines.”

The move is aimed at improving management of the casino and bolstering its financial situation, said Tom Miller, chairman of the Greektown Management Board and an elected member of the board of directors for the Sault Ste. Marie Tribe of Chippewa Indians, a majority owner of the casino.

“This is something the tribe has been seeking for a long time,” he said. “Finally, we found someone who is a perfect fit, with expertise and a history in the area.”

With Celani’s 22 percent stake, the tribe now owns 75 percent of the casino operations.

Ted Gatzaros, one of the founders of Greektown who sold his stake in 2000, recently acquired a 1 percent stake in the casino. The remaining shares are owned by Marvin Beatty.

Miller said there are no other investors expected to be involved in the near future.

Celani, 51, of Bloomfield Hills, has significant gaming experience among his many professional endeavors.

In 1995, he partnered with a Michigan tribe to develop Little River Casino Resort in Manistee. He also has developed and managed casinos in California and Oklahoma as well as commercial casinos in Nevada and Colorado.

Celani was an owner of MotorCity Casino from 2000 to 2005 before selling his stake when co-owner Mandalay Bay merged with MGM.

He also owns Farmington Hills-based MotorCity Harley-Davidson and Bloomfield Hills-based MotorCity Power Sports, and is president of Novi-based Luna Entertainment. Celani is also proprietor of TC Vineyards Inc. in Napa Valley, Calif.

A stepped-up marketing effort at the casino is on the agenda for Celani. He also wants the casino to be involved with more corporate partnerships and to be more involved with the effort to expand Cobo Center.

“I’ll get engaged with the politics because the casino needs to play a role in that,” he said.

Asked if the casino should help pay for the project, he said “I’d never close the door on that.”

“The expansion is important to all three casinos and they should be involved,” he said.

Thursday, January 31, 2008

Tom Celani buys stake in Greektown, will become president of casino operations

1.31.08

Detroit businessman buys stake in Greektown Casino

Robert Snell / The Detroit News

DETROIT -- A Bloomfield Township gambling executive who helped bankroll the successful statewide ballot initiative that led to Detroit's three casinos will become a new minority investor in Greektown Casino, according to a press release from the casino.

Tom Celani, a former MotorCity Casino investor, bought a 22-percent stake in the casino, an investment one gaming analyst said would cost approximately $200 million.

The move is expected to be approved by the Michigan Gaming Control Board since Celani already has a gaming license. Celani, who also will be named president of casino operations, is expected to use his local expertise to help Greektown better compete with the other two casinos and oversee an expanded casino and new hotel opening this fall.

"If it is 22 percent, that is a big chunk and will strengthen the financial capability of the casino's owners," said Jake Miklojcik, a gaming expert and president of Lansing-based Michigan Consultants. "And it brings in some additional southeast Michigan moxie and management."

Celani's expertise could be most noticeably felt in the type of amenities offered at the casino and with enhanced advertising, he added.

Celani's involvement comes at a time when Greektown continues to trail the other two casinos in revenue and market share.

Michigan's wagering tax brought in $160 million in 2007, yet Greektown Casino's revenue trailed those of MGM Grand Detroit Casino and MotorCity Casino, according to the Michigan Gaming Control Board.

MGM Grand Detroit Casino extended its market leadership last year with revenues of $513 million compared to $480 million for MotorCity Casino. Greektown Casino's market share fell to 25.6 percent and its revenue dropped 1.1 percent to $345 million.

The city's three state-licensed casinos took in $1.335 billion in 2007 as revenue growth slowed to 2.4 percent, Michigan regulators said.

Greektown is in the midst of a massive expansion.

The casino opened a new 2,900-space parking garage in November and will unveil a 39-story, 400-room luxury hotel this fall.

Celani, 52, is head of Novi-based Luna Entertainment, and oversees a sprawling empire that includes residential and commercial ventures and casino development and management in several states.

A Luna company developed the Little River Casino Resort in Manistee and he also owns Motor City Harley-Davidson in Farmington Hills and is an investor in MJR Theaters.

You can reach Robert Snell at (313) 222-2028 or rsnell@detnews.com.

http://detnews.com/apps/pbcs.dll/article?AID=/20080131/METRO/801310500/1361

Monday, September 24, 2007

Tom Celani: a biographical feature from Crain's Detroit Business

9.24.07

A man of many titles: Tom Celani has so many interests, it's hard to keep them straight

By Robert Ankeny

Tom Celani has to make a decision when you ask him for a business card.

He's either “owner” of Farmington Hills-based MotorCity Harley-Davidson and Bloomfield Hills-based MotorCity Power Sports; or he's “president and CEO” of Novi-based Luna Entertainment; or he's “proprietor” of TC Vineyards Inc., the Celani Family Vineyards in Napa Valley.

He's also an investor in a theater chain, a land developer in Arizona and Colorado, and a casino management consultant.

Celani, 51, of West Bloomfield Township, has grown a successful family wholesale beer company into an empire of businesses.

One source estimates Celani's companies could hit close to $250 million in revenue in 2007. His two dealerships employ about 110 people and had about $50 million in revenue last year, Celani said.

Celani expects to sell about 1,100 motorcycles this year at MotorCity, the top volume Harley-Davidson dealer in the Midwest. He is currently expanding the dealership from 30,000 to 40,000 square feet.

Walls in his upstairs office are decorated with Harley posters, a huge elk head and a large portrait of his wife Vicki and three children: Vinnie, Olivia and Ben.

On the wall near his desk is a striking photo of the Celani Family Vineyards in Napa Valley.

In many ways, Celani's heart is there on the sunny slopes that remind him of Italy, or back to Detroit's east side 40 years ago.

"I guess there always was a seed there, since I was a boy and worked with my grandfather Vincenzo in his basement making wine with grapes we'd buy at Eastern Market.

"He'd make about four barrels just for his own family and friends, and a small barrel of vinegar,” Celani said.

"I began collecting wines about 20 years ago, knew a good distributor, started going to tastings, and about 1987 put a few cases away."

Today, his home wine cellar is stocked with French, Italian and U.S. wines, and includes about 5,000 bottles, he said.

In 2005 he purchased a 20-acre vineyard with house and winery in Napa Valley.

"We're about a quarter-mile down the road from (race driver) Mario Andretti and (former Kmart CEO) Joe Antonini's vineyard," Celani said.

Celani has hired winemaker Mark Herold, who has been astonishing critics with his wines from small vineyards.

Our goal said Celani, is to build "a small, boutique, high-quality winery, and make wines sought after by great restaurants."

He said his wines — labeled "Ardore," meaning passion — will hit store shelves this fall with a limited amount of Chardonnay available in October and about 300 cases of a Cabernet/Merlot blend to be distributed by General Wine & Liquor Co. starting Nov. 1.

Celani's passion for wine-making extends to custom-designed bottles and a custom label. His love for wine has also led him to wine auctions, which in one case resulted in a spot on the board of the College for Creative Studies in Detroit.

CCS President Rick Rogers said the college family got to know Celani through the wine auctions before he became a trustee in 2003.

Celani is a big donor, as well as a major bidder at CCS wine auctions, Rogers said.

"We were already friends. Knowing of his interest in the mission of the institution, and of his level of enthusiasm, we thought he would be an asset to the board and that's worked out," Rogers said.

As a businessman, Celani also has fared well from his investments in the casino industry.

In March 1999, Celani hit a $30 million jackpot when International Game Technology (NYSE: IGT) bought Sodak Gaming Inc., a South Dakota-based slot machine distribution company he had invested in.

"I bought two-thirds of the company for $2 because two partners wanted out ... and then invested $500,000 in it," Celani said.

Sodak became the exclusive slot machine distributor to North American Indian-owned casinos for IGT, the world's largest manufacturer of slot machines.

Celani owned more than 3 million shares, according to the 1998 annual proxy report of the then-publicly traded company, when IGT decided to buy Sodak and do its own distribution to tribal casinos.

He also was working with various start-up tribal casinos in Michigan and elsewhere. That led to a partnership in Detroit's MotorCity Casino.

Celani joined with Detroit entrepreneur Herb Strather and Greektown Casino L.L.C. founders Ted Gatzaros and Jim Papas to push for commercial casinos in Detroit by helping finance a statewide ballot campaign in November 1996.

"Tom was a good partner," Strather said. "We did our deal on a handshake, in July 1995, and signed paperwork a month later."

Celani had been supporting a proposal for an Indian casino complex called FoxTown to be built east of Woodward Avenue by the Bay Mills tribe and Harrah's Casinos of Las Vegas.

But then-Gov. John Engler blocked off-reservation casinos, Strather said.

"My recollections of Tom are that he always kept his word and he had guts. I'm very appreciative to have worked with him," Strather said.

Celani was a partner in MotorCity Casino L.L.C., and sold his share to Marian Ilitch when she gained total control in 2005.

Ilitch paid MGM Grand/Mirage Casinos $525 million for its Mandalay Bay holdings, a 53.5 percent share of MotorCity. She bought an additional 11.5 percent from Strather's group, Atwater Associates L.L.C., for $100 million and 10 percent from Celani for an undisclosed amount estimated at between $85 million and $100 million.

In addition to casinos, Celani is a major figure on Detroit's philanthropic scene.

In 2003, the Celanis donated $1 million worth of Harley-Davidson and Buell motorcycles, personal watercraft and other power sports items to the Central Michigan University College of Business Administration.

"Those were ingenious contributions," said Steve Smith, CMU director of media relations. "Celani's idea was that marketing students could find the best ways to sell the 'boy toys,' with the money from the sale going toward a student investment portfolio, the Tom and Vicki Celani Venture Capital Fund.

"It gave marketing students a chance to figure out how to get the best prices for those items, so the bikes were auctioned on eBay," he said.

Then finance students got to figure out how to invest the money in the stock market. "It gave them real world experience," Smith said.

Celani attended CMU as a freshman in 1974 but left to help run the family business — Action, a Livonia-based Miller beer distributorship — because his mother was dying.

In 2004, CMU awarded Celani an honorary doctorate for his "more than three decades as a business leader and entrepreneur."

And in 2005, the university named a new dorm on the Mt. Pleasant campus the Ben and Marion Celani Residence Hall in memory of Celani's parents.

Since 1982, one of Celani's favorite charitable endeavors has been Hearts of Livonia, founded in 1978 by his father. The nonprofit raises money for advanced life-support equipment at Livonia's St. Mary Mercy Hospital, giving $2.6 million to St. Mary and other charities, including more than 160 college scholarships for Livonia students.

The Celanis also support Rochester-based Sweet Dreams Project, Oakland Child Abuse and Neglect Council, and the Rainbow Make-a-Wish Foundation in Oakland County. They are also benefactors to the Detroit Symphony Orchestra and Michigan Opera Theatre.

"He's such a good community citizen," said David DiChiera, founder and general director of MOT. "You don't meet many people as open to supporting community efforts as he and Vicki."

He said the Celanis opened their home for a fund-raiser for the world premier of "Cyrano," DiChiera's own opera that will be performed Oct. 13-28.

"They do it with such grace, everything very beautifully done, and show so much enjoyment doing it," DiChiera said.

Robert Ankeny: (313) 446-0404, bankeny@crain.com

Sunday, August 26, 2007

American Policy Roundtable tracking Ilitch gambling activity

from an earlier tracking post at The American Policy Roundtable:

Little Caesars' Marian Ilitch and her itch for gambling

"Although Ilitch owns most of her ventures jointly with her husband, the casino is an exception. As owner of the Tigers, Mike Ilitch is prohibited by Major League Baseball rules from owning any gambling interests. Ilitch, who currently owns 25 percent of MotorCity, is paying $525 million for the 53.5 percent stake in the casino owned by Mandalay Resort Group. One of three Detroit casinos, MotorCity is being sold because of the pending merger between MGM Mirage Inc. and Mandalay. MGM already owns Detroit's MGM Grand Casino, and Michigan law prohibits the company from owning more than one casino in the city. Ilitch also is buying an 11.5 percent stake held by Atwater Entertainment, a group of more than 100 local investors, for $106 million, and the remaining 10 percent from another local investor, Tom Celani, for an undisclosed amount"

The mission statement of the American Policy Roundtable and each of its state-based operations remains the same: To restore traditional Judeo-Christian principles to American public policy.

Tuesday, August 14, 2007

How Detroit casino syndicators financed the campaign that brought Las Vegas-style casino gaming to Detroit

In 1996, Detroit casino advocates spent nearly $5 million during the closing days of their winning campaign to bring slot machines, roulette wheels and blackjack tables to Detroit, including $20,000 to radio talk show host Bill Bonds.

In a surprise move, a business enterprise -- Z.R.X., L.L.C. -- formed less than one month prior to the election and later discovered to be controlled by Thomas Celani, members of the Ilitch Family and Michael J. Malik; contributed more than $5 million to fund an 11th Hour advertising blitz credited with giving gambling proponents the push needed to pass Proposal E with a narrow margin of victory.

It was reported by the Detroit News that pro-casino forces (thanks to Celani/Ilitch/Malik) outspent opponents of the ballot initiative by a margin of 10-1, according to campaign finance reports filed. Needless to say, opponents were caught off guard and helpless, unable to respond in the last days of the campaign.

Despite the cash tsunami that advantaged Proposal E proponents, they won their campaign by a much smaller margin: 1,878,542 in favor to 1,768,156 against (difference of 110,386 votes), or 51.5 percent to 48.5 percent (a difference of just 3%).

In return for the funding the campaign, Celani/Ilitch/Malik (Z.R.X.) took 85% control of Atwater Casino Group, L.L.C. and signed a preliminary deal with Las Vegas-based Circus Circus (Mandalay Resort Group) which included, as SEC documents would later reveal, reimbursement of all Proposal E campaign contributions by Atwater Casino Group members.

One must question what "understandings" or "commitments" were in place before Celani/Ilitch/Malik forwarded the $5 million to the campaign pushing passage of Proposal E. Had they planned all along to fund the $5 million at the last minute to avoid disclosures or discovery of the funding sources? Tom Shields the primary public relations counselor/political consultant for the Ilitch Family and Michael Malik had been part of the established campaign team pushing passage of Proposal E early on.

Is This How They Financed 2006 Barstow Campaign Too?
Could a model similar to this be how Michael Malik and Marian Ilitch planned to finance the nearly $150,000 debt their Barstow campaign committee is still carrying forward from the 2006 June Primary election? Are Las Vegas interests going to step in to pay them back for that $200,000 campaign too?

You may want to review this post as well:

Barwest Agent Tom Shields still carrying nearly $150k debt for Barstow Political Committee's June 2006 campaign tsunami

Wednesday, August 08, 2007

Charlotte Beach real estate transactions involving Michael Malik haven't been impacted by any so-called "cloud" over title

Over and over again, Members of Congress and others who’ve testified before Congressional Committees relative to the Bay Mills Indians’ Charlotte Beach land claims have suggested they've been told that "clouded" title over Charlotte Beach property has resulted in across the board hardships for current property owners including loss of property values, inability to secure mortgage financing and an inability to obtain title insurance.

CONGRESSMAN NICK RAHALL
Chairman of the House Natural Resources Committee:

"Currently, some 100 non-Indians reside in this area under a clouded title to the land…"
* * *

CONGRESSMAN BART STUPAK
Author of H.R. 2176 (a bill to grant by Act of Congress approval for the Bay Mills tribe to locate a casino off-reservation in Port Huron, MI):

"With a cloud on their title, the Charlotte Beach property owners have been sued, have had a difficult time trying to secure real estate loans, cannot get title insurance, have experienced lost real estate values as well as significantly lower property values…"

* * *

ATTORNEY LANCE BOLDREY
Former Deputy Legal Counsel for Michigan Governor John Engler and Attorney at Dykema Gossett PLLC:

"Today, the families who own land in the area known as Charlotte Beach have a cloud on their title and are unable to obtain title insurance or mortgages…"

REALLY?

But Property Values Have Increased; Ask Michael Malik

Over the last decade the sale of Charlotte Beach lands involving Bay Mills Casino promoter Michael J. Malik, Sr. would suggest something different than what these other officials have reported. Perhaps Michael J. Malik should set the record straight with these folks and everyone else.

In October 1996, James F. Hadley of Columbus, OH, acquired what would later be resold as two parcels in the Charlotte Beach subdivision for $200,000 total from Linton V. Schopp of Detour, Michigan and members of the Mosher Family.

Eight years later, Mr. Hadley’s estate sold the property in two separate transactions of equal value on the same day (November 9, 2004) to:

(1)

Michael J. Malik

(2)

Tom Celani

total of $242,602.78

The Hadley Estate realized a 21.3% increase in value on its eight year Charlotte Beach property investment.

One year later, Tom Celani sold the property he previously acquired from the Hadley Estate for the sum of $121,309.39 to: John D. Castagne & Lannie K. Castagne, and Eugene G. Castagne & Catherine Castagne of Sault Ste. Marie for the sum of $190,000.

Celani realized a 56.6% increase in value on his one year investment.

In January 2006, Michael J. Malik sold the property he previously acquired form the Hadley Estate for the sum of $121,309.39 to: James M. Reed and Beth E. Reed of Tulsa, OK but he requested that the sales price be kept confidential.

TIMELINE

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Google News: Indian Gaming

NEWS: Bay Mills Indian Community & Casino Proposals

NEWS: Shinnecock Indian Nation (Gateway Casino Resorts) Casino Proposals

NY Times: Shinnecock Indian Nation

NEWS: Los Coyotes Indian Tribe

NEWS: Los Coyotes / Barwest Barstow Casino Proposals

NEWS: Michael J. Malik, Sr.

NEWS: Marian Ilitch

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