Reinvestment in Casino Hotel Properties Continues with CRDA Approvals

On Apr 22, 2016

The Board of the New Jersey Casino Reinvestment Development Authority (CRDA) recently approved measures for two expansion and revitalization projects, and a fund reservation for a popular annual summer event.

The Board approved an amendment to Tropicana Atlantic City’s Boardwalk Enhancement and Property Revitalization Project to fund an additional $8 million of investment alternative taxes (IATs) for new non-gaming amenities.  The approval also granted an extension of the substantial completion date to June 30, 2017 and a waiver for the Tropicana to make a donation of IATs in the amount of $7,067,600 to the CRDA.

The additional $8 million in funding will allow the Tropicana to move forward with constructing a new restaurant amenity, enhance and renovate its Pacific Avenue retail space and lobby, and make improvements to its current meeting and conference space.  The $7 million of donated IATs will be used by the CRDA in support of Tourism District projects.

“Tropicana is showing faith in Atlantic City by continuing to reinvestment in its property and having the desire to bringing additional non-gaming amenities to the Tourism District,” said CRDA Executive Director John Palmieri.

The CRDA’s original funding obligation committed $18.8 million towards Tropicana’s creation of new retail space on Pacific Avenue and health club on Brighton Avenue, as well as upgrades/renovations to the Boardwalk facade, as part of Tropicana’s $35 million project to upgrade their hotel and non-gaming amenities.

In other actions, the Board approved an amendment to extend the completion date for the Resorts Casino Hotel Meeting Room Expansion Project to June 30, 2017.  The extension is needed to complete additional upgrades and repairs to hotel rooms.  Resorts is finishing this work within its originally approved budget.

“The CRDA is excited to aid Resorts in its continuing capital investment in meeting space,” said CRDA Acting Chairman Robert Mulcahy.  “This is surely a leading indicator that there is a vibrant future for attracting new business to Atlantic City.”

The Board amended the terms of the Atlantic City Law Enforcement Technology Project, an intra-governmental agreement between the CRDA and the City of Atlantic City.  The City is currently moving into the implementation phase of the project, and the Board agreed to the amendment to facilitate the City’s participation in a Centralized Dispatch and Regional Traffic Center, if that initiative moves forward in the future.

Also, the Board agreed to transfer ownership of projection and lighting equipment to the Atlantic County Improvement Authority (ACIA), which has agreed to take over the CRDA’s 3D Light Show at Historic Boardwalk Hall.  This agreement ensures that the light show, which had been promoted by the Atlantic City Alliance the past three years, will continue to entertain visitors and residents this summer on the Boardwalk.  The Board also approved a supplemental fund reservation in the amount of $50,000 for the 2016 Atlantic City Airshow “Thunder Over the Boardwalk”, which will be held on Wednesday, August 17.

“The 3D Light Show and the Airshow are two exciting annual events that attract visitors to the Boardwalk and we are pleased that they will return this summer,” Palmieri added.

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