Lynn bet boat goes broke

LYNN – With an unpaid tab of $15,000 owed to the city, and several other companies hot on their trail, Horizon’s Edge Casino Cruise LLC filed bankruptcy Monday to liquidate its assets.The Lynn- based gambling cruise stated its assets are valued at less than $50,000 and its liabilities are between $500,001 and $1 million.James Cowdell, executive director of the Economic Development & Industrial Corporation (EDIC), said the city bent over backwards for the cruise ship and was left empty-handed.”I wish I could say that I’m surprised, but I’m not,” he said. “I will say that we will do everything within our legal powers to collect the money they owe. And there are other people that they owe money to as well.”The ship recently set sail from its port off of Marine Boulevard owing $15,000 in three months back rent, and did so without notifying its landlord, EDIC.Horizon’s Edge is represented by attorney Jeffrey A. Kitaeff of North Andover, who said LLC members David Zion and Thomas Groom have been very cooperative in the complex bankruptcy filing process.Zion is employed by Patriot Properties at 330 Lynnway and has been a general partner with the casino boat since its inception in 2000.”I imagine running an operation like this is not as profitable as one may think,” he said. “Sometimes people go into ventures for a profit, and from what I gather, it wasn’t profitable.”Kitaeff wouldn’t comment on whether the city would receive its back rent.That uncertainty has sparked the beginnings of a lawsuit by the city against the company.”They haven’t responded to the city’s overtures to pay, so we stopped the clock at three months back rent as a sign of a broken lease,” Cowdell said. “I wonder if they’ll take down the 45-foot sign (for the business) on the Lynnway now.”The Las Vegas-style casino cruise, the only one of its kind in the Boston area, featured cards, poker, craps, roulette, over 225 slot machines, a buffet and live entertainment.The city placed a lien on the cruise ship in March for $65,644.47.Aside from owing the city $15,000 and counting, the owners of the casino boat also owe Lynn Water & Sewer $2,383.61 for the last six months of usage.Kitaeff previously offered a ticket booth in exchange for the back rent, which only infuriated city officials.Cowdell said he is in talks with several companies to replace the cruise ship, but said the industry is facing uncertainty with the gambling industry.”It’s causing some hesitation because if you agree to do a casino boat and gambling gets legalized, then it could be a problem,” he said. “But there are other types of ships that we can and will target.”