EAST CHICAGO, Ind. (AP) — Casino revenues that have been paid to an East Chicago development company since 1997 will be paid directly to the city under a proposed settlement.

East Chicago Mayor George Pabey announced the proposed settlement with Second Century Inc. on Thursday. Second Century attorney J. Lee McNeely confirmed the deal, which needs City Council approval.

The Indiana attorney general’s office and the city sued Second Century in 2005, claiming its owners pocketed more than $16 million in casino receipts they had agreed to use for development projects within the city.

McNeely wouldn’t say whether the agreement would affect pre-existing revenues. The attorney general’s office says its portion of the lawsuit seeking an accounting of the money by Second Century remains active.

Posted 2/19/2010