Developer Glenn Straub is suing Stockton University over the stalled deal to convert Atlantic City’s former Showboat casino into a college campus.
Straub, who also owns the former Revel casino next door, has a $26 million contract to buy the Showboat from Stockton, but the deal must close by Thursday.
In a lawsuit filed Wednesday afternoon, Straub asks a judge to declare the contract void and prevent Stockton from unilaterally cancelling it. He also wants to extend the closing date while conflicting legal restrictions on the property’s future use are hammered out in bankruptcy court.
Former owner Caesars Entertainment placed a deed restriction on the Showboat before selling it to Stockton, preventing it from ever being used as a casino again.
But a 1988 covenant requires that it always be used as a casino.