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ATLANTIC CITY - One of the city's most neglected sections could receive about $150 million in infrastructure and construction improvements in an effort to aid Revel Entertainment Group's future casino business.

The deal, still in its early stages, would use a hefty portion of the city's and county's annual tax revenue from Revel to finance various improvement projects in the resort's Inlet section and other areas that would affect the $2 billion megacasino.

Construction is under way on Oriental Avenue, and officials have said the project will be completed in 2011.

The latest drafts of the proposal include improving a decaying section of the Boardwalk, expanding Lighthouse Park to the Boardwalk, renovating the ailing Garden Pier, installing a long-awaited citywide surveillance program and improving Baltic and Arctic avenues, one-way roads that lead to the casino site and stretch to the center of the city.

"We all agree that in order to get to the next level, money needs to be spent," Revel's chairman and CEO Kevin DeSanctis said Friday. "There is no other funding mechanism that is viable at this time."

How it would work

In order for Revel to obtain funding, the city would have to pass two measures: One would have to approve Revel's application to the state's Economic Redevelopment and Growth grant program, which was established by outgoing Gov. Jon S. Corzine as part of the New Jersey Economic Stimulus Act of 2009. The second would have to establish a local version of the grant program as required by the state program, which helps support costs related to publicly owned infrastructure improvements connected to redevelopment projects.

The Press of Atlantic City obtained a draft of a city ordinance that would approve Revel's application to the program, but the administration stopped short of placing it on the agenda.

"It's still a work in progress," Business Administrator Michael Scott said last week and declined further comment.

If the city does approve both measures, Revel may become eligible for a state-issued bond to fund the $150 million in improvements. However, that bond would be financed through Revel's annual property taxes.

Preliminary documents obtained by The Press of Atlantic City show the resort, the Atlantic City Board of Education and the county would each contribute a portion of the $32.5 million they are expected to generate from Revel's annual property taxes. Normally, that revenue is split in half, with 50 percent for the city and the other half divided evenly between the county and the city school board.

However, under the proposal, the county and school board would not receive their traditional cut. Draft proposals show the arrangement would last for 20 years, but the time frame has not been finalized.

Atlantic County Executive Dennis Levinson said he is aware that the county would receive a smaller percentage of tax revenue, but he threw his support behind the plan Saturday.

"Everything being equal, I would have some difficulty with it," said Levinson, who did not say how much the proposal would cost the county in Revel tax revenue. "But the way things are right now, we have to be creative here. There's too much at stake. I wouldn't do anything to throw a monkey wrench into this."

Officials with the city and Revel declined to discuss the exact amount of city and county revenue that would be dedicated to financing the work, insisting the proposal is still a moving target.

'We've never done this'

Over the past 80 years, the city's Inlet section has changed from a densely populated area to a section with various patches of vacant land and abandoned buildings.

DeSanctis insisted the money would be an investment in the city, not his casino, at one point even saying, "We get nothing out of this."

But others are worry the reduction in tax revenue would hamper efforts to balance the city's ailing budget, which is expected to face at least a $25 million deficit next year.

Planning Director Bill Crane raised concerns about the proposal at a recent closed Planning and Development Committee meeting, according to minutes. Crane predicted taxpayers would ask, "Why would we do this?," and that many would be critical of the immediate costs and question whether the infrastructure improvements are necessary.

Crane is on vacation and could not be reached to elaborate. Assistant Planning Director Regina Armstrong was also out of the office until Monday and could not be reached.

Other members of the administration, including Mayor Lorenzo Langford, also opted not to discuss the plan publicly because the specifics are not finalized.

"We've never done this before," said state Sen. Jim Whelan, D-Atlantic, a former Atlantic City mayor. "We never had this tool before, nor did we need it. Development opportunities in Atlantic City were so strong that we didn't need this type of incentive. Times have changed. Now we need it."

Union opposition

Bob McDevitt, president of Local 54 of UNITE-HERE, criticized the effort Friday without viewing the proposals details. He said it would be irresponsible of the state and the city to finance improvements around Revel since the casino "still hasn't defined what jobs are going to be available."

McDevitt and his labor union have had a rocky relationship with the casino developer, including a lawsuit filed against Revel and the city over its previous attempts to obtain tax-exempt bond financing from private investors through the city. McDevitt has claimed the company and its attorneys have an unethical relationship with some City Council members.

Others have argued McDevitt's criticism is simply a tactic to leverage union negotiations. McDevitt admitted as much in a recent court deposition.

"You can't just keep saying no," DeSanctis said, speaking generally. "Sooner or later they're going to have to give their ideas. It's about time people need to either get in the game and make the city better or sit on the sidelines."

_______________________________________________________

Potential improvements

A draft agreement obtained by The Press of Atlantic City breaks down how the $150 million in infrastructure projects would be allocated. Below are some of the improvements featured in the documents. Officials with Revel and the city have warned that these numbers are likely to be altered.

Boardwalk Reconstruction

Demolition of Boardwalk from Melrose to Caspian avenues

Boardwalk renovation from Rhode Island to North Madison avenues

Price: $36 million

Expansion of Absecon Lighthouse Park

Expand park two blocks to Maine Avenue and the Boardwalk.

Price: $29.5 million

Garden Pier Renovations

Demolish end of pier

Renovate front of pier, Art Center and Historic Museum

Price: $10 million

Road Improvements

Arctic Avenue from Atlantic City Expressway off-ramp to Rhode Island Avenue

Baltic Avenue from Rhode Island Avenue to Atlantic City Expressway off-ramp

Price: $22.7 million

_______________________________________________________

What's next?

City Council is scheduled to vote Tuesday on an ordinance to create a local Economic Redevelopment and Growth Grant program, a technicality required to move the effort to obtain the infrastructure funding forward.

Contact Michael Clark:

609-272-7204

Michael.Clark@pressofac.com

31 comments:

• jabe0312 (2) posts 12:41 pm

  leave it to the Unions to stick in their 2 cents. I guess they aren't going to condone anything until their pockets are lined. Anyway, want to make improvements? Level everything 2 blocks and more west of the boardwalk and build golf courses and family amusement parks. THEN it will become a destination resort.

• acchelsea (0) posts 10:03 am

  I just hope that any and all plans are available to the public! No backroom deals! Make it as transparent as possible!

• JGadFly (2) posts 10:15 am

  Since these road improvements are specific and necessary for the support of the Revel site. Then should not Revel and their varied collaborators bear* the cost of this off-site improvement, since this improvement of egress would primarily benefit this project; specifically. And, should it not be the financial responsibility of the developer and the adjoining property site owner(s); which would also include the cost of indirect off-site improvements, which would increase and-or otherwise benefit the appraisable and market value of the aforementioned development and or adjoining properties. --- Road Improvements Arctic Avenue from Atlantic City Expressway off-ramp to Rhode Island Avenue Baltic Avenue from Rhode Island Avenue to Atlantic City Expressway off-ramp Price: $22.7 million --- *bear (as in "take") v. : take on as one's own the expenses or debts of another person

• B4real (267) posts 11:42 pm

  Usually I wouldn't condone the money being steered to benefit Revel but in this case, and in the case of Atlantic City in general, I think this should be done. Lets face it, otherwise city hall will just squander the money with nothing to show for it as usual. The school board would just be wasting the money on useless English as a second language PC programs and ebonics 101 remediation. So, again, just give Revel the money. For that matter, why doesn't DeSanctis just run for Mayor, bring in the management team from Borgota, demolish all the section 8 and public housing and have a real world market economy, like most beach resorts, where if you want to live at the beach, you have to work and pay for it (without being subsidized). This would solve everything as it would get rid of all the ghetto losers and their underachieving kids.

• Lew Carroll (122) posts 5:42 pm

  In Africa they still eat their enemies. Be thankful you only have a seaside dump to contend with. There's little if anything you can do to stop the decline. A.C. will become a brightly-lit version of Germantown and Mt. Airy and Willingboro, while its population darkens. A word to the wise is sufficient: SELL.

• Bobstake (224) posts 12:02 pm

  This is an interesting idea. In these times we need to encourage casinos & big business to locate & develop here. But, It is a slippery slope diverting tax revenue. If we could only have faith in the city government to study the issue and make a wise decision. What am I saying Langford can't even make a decision on the K-9 Unit!

• cfs3526 (1) posts 9:55 am

  "Expand park two blocks to Maine Avenue and the Boardwalk."? What is the meaning of this? It will wipe out the current jitney station towards the flagship direction, or does it mean go towards the boardwalk where Revel is?

• timmyk (3) posts 8:46 pm

  Agreed....AC is doomed until you get residents who care. The place is a total disgrace. The casinos look great and I'm sure the Revel will too, but god forbid you walk one block away from the bwalk. It's DISGUSTING!!! The city residents have ZERO pride in the city or themselves (please do not write back and say your a resident and care, you know what I'm saying)!!

• dave202 (53) posts 8:29 pm

  Great idea, but you know it's going to be shot down by the morons on city council who do their best to destroy every good idea the casinos have.

• Justathought (28) posts 7:10 pm

  Give a black man a bar of gold and he'll find a way to turn it into lead. AC will continue to spiral downward with the current population and city leaders, it's inevitable. If you don't believe me look at Newark, Camden, Chester, Loisiana...... Good luck Revel, start a revolution.

• lighthouse (17) posts 5:57 pm

  If it's DeSanctis' proposal versus Langford and his minions self serving, lunatic machinations I'd take DeSanctis in a NY second. The last Mayor who got anything done was Whelan but the demographics are so changed that a Whelan could never get elected again. The city as is is so screwed it's pathetic. Maybe DeSanctis can make a difference if allowed to do so before it's too late...which it may already be.

• American_Gaming_Guru (128) posts 5:37 pm

  Bravo Mr DeSanctis. It is about time someone gave a dam!

• SouthJersey636 (5) posts 5:02 pm

  It's honestly about time that someone like DeSanctis spoke the truth about Atlantic City. AC is need a cleanup and he's not afraid to tell anyone what is on his mind.

• weisenthal (261) posts 3:57 pm

  This is an outrageous, preposterous idea, to have the taxpayers pay for these improvments, have taxes rise to continue funding the no-work jobs of Langford and Marsh, and their hangers-on, while the casino project uses the tax money to complete their project.------Yet, I say do it, help this thing get done, use the devil's money to fix up this area and let this project open, even though it will do no more than take business away from the other casinos. Just do something. The publicity of the opening, the improvements and the new jobs will be some help. So what if it's a crazy communist scheme? Do it, and let the chips fall where they may.

• IzzyStone- (51) posts 1:44 pm

  Let me explain who the "real" Tin Lizzy is. Tin Lizzy used to go by the name todfiat here on the forums. After being ridiculed by his racist comments, todfiat changed his name here, but his warped message remains the same. You see Tin Lizzy(or whatever stupid name he selects) has the same racist message, day in and day out. Tin Lizzy is a failure at life, by his own admission. He failed at his marriage, failed on the job, and failed at managing his finances. To avoid his failures, Tin Lizzy took off for the west coast to try to get away from his misery. The thing is, Tin Lizzy didn't change his racist views that he learned from his parents. Even after struggling with cancer, Tin Lizzy didn't take the chance to change his ways after being given a second chance at life. No, Tin Lizzy went the other way, and blames the entire world for his problems, and the fact that he is a failure. Like everything else, Tin Lizzy tries to run from his problems. He ran out west to try to get away, and now Tin Lizzy has become an angry, lonely middle-aged man. Oh sure, he feels he is the brightest person on the entire internet. A brave man hiding behind the comforts of his keyboard, when in fact he is a wimp and a cancer of society. A know-it-all who knows nothing but hatred. It's an obvious sign that Tin Lizzy is crying for attention. Look at me, look at me, listen to my hateful words. It's a cry from a person who is a failure, and in person, nobody pays attention to. He wouldn't dare say these racist things in person, because Tin Lizzy is afraid of his own shadow. After being picked on his entire life, Tin Lizzy talks tough in the comfort of his home. You aren't fooling anyone Tin Lizzy, your a coward. A coward and a failure. Keep posting Tin Lizzy, it just highlights what a cowardly fool you really are. Better yet, time to pop another pill, have another drink, so you can keep running from your miserable life's problems. Boo, there goes the coward Tin Lizzy, the former todfiat, toe-tapping back to his closet.

• BernieSchwartz (464) posts 1:36 pm

  I wish someone, anyone would do SOMETHING! ANYTHING! Talk, talk, talk and absolutly nothing is getting done with my tax dollars. We are on the fast track to Camdenitis.

• Novemberrain81 (17) posts 12:53 pm

  I live on Rhode Island Ave. The traffic is going to drive me crazy.

• Tin Lizzy (56) posts 12:34 pm

  "In fact, Atlantic City residence [sic] shouldn't be paying any property tax. Business in this area is making enough money to pay for schools, infrastructure and security, all of which business benefits from." -- Wittingly or un, this comment reveals the mentality that let A.C. become a seaside dump: 1) Keep property taxes stagnant b) have no penalty but a lien for non-payment, and c) keep your hand out and crying poormouth to Trenton and Casino Row. While the town circled the drain for 20 years. Heck, when Fireboy Evans became Mayor, he had liens on two of his properties! The Mayor! The town's full of stumblebums and always has been. It shows.

• Tin Lizzy (56) posts 12:25 pm

  "Over the past 80 years, the city's Inlet section has changed from a densely populated area to a section with various patches of vacant land and abandoned buildings." -- the more things change, the more they stay the same. Where's Pauline Hill of Pauline's Prairie fame today?? She and DeSanctis - or Robert Moses - would get along real well. No matter what transpires here, it will be FUBAR in the best A.C. tradition - snakebit. My advice: SELL.

• Alfie7 (2) posts 12:04 pm

  SO FAR NO ONE HAS PUT FORWARD A VIABLE SOLUTION TO A.C'S TERRIBLE CRISIS, BUT MR. DESANCTIS. NOW ALL OF THESE HYPOCRITES COME OUT OF THE WOODWORK. OF COURSE MR. DESANCTIS STANDS TO BENEFIT FROM THIS RENOVATION PLAN, BUT SO DOES THE CITY. MR. LANGFORD, THE CITY IS LITERALLY ON IT'S "DEATH BED", THANKS TO THE LIKES OF MR. TRUMP. PLEASE WORK WITH THE REVEL TEAM TO REJUVENATE THIS CITY. IN FACT, LETS ALL PUT ASIDE OUR DIFFERENCES AND MR. MCDEVITT, AND MAKE A MOVE THAT WE MAY NEVER GET ANOTHER CHANCE TO MAKE. OHIO JUST APPROVED A CASINO INDUSTRY. WE MUST MAKE OUR CITY AND ATTACTION BETTER. AS FAR AS THE LOCAL 54 CASINO WORKERS. FIND NEW LEADERSHIP, AND COMMUNICATE WITH MR. DESANCTIS. HE NEEDS YOU AND YOU NEED HIM! CPMGRATULATIONS ON "THE WALK", ATLANTIC CITY'S NEW BEGINNING.

• JIMFROMPA (8) posts 11:46 am

  Fix the Boardwalk and fix the roads. Lighthouse Park can wait and you`ll be saving 29.5 million. Or put the 29.5 mil. and the 10 mil. into the pier. Or sell the pier to Revel and let them fix it. The city can use that money to cover there budget deficit. The ciy has been wasting your money for years and they will keep on wasting it. I agree with Bernie. If wait for the city to fix this part of town, it won`t happened. the Boardwalk has been decaying for a long time before Revel came into the city.

• MichaelGFromAC (7) posts 10:59 am

  The hell with DeSanctis idea. It's a stupid idea. Casinos should be paying their taxes just like each and everyone of us in this city has to. In fact, Atlantic City residence shouldn't be paying any property tax. Business in this area is making enough money to pay for schools, infrastructure and security, all of which business benefits from. Anyway, in this same issue of the Press you have an article about the increasing poverty level in our city due to the lowest overall wages paid to employees who work in the gaming/hospitality industry. Can you please answer me this question: Why in the hell should I, as a tax payer, make an investment in a business that will ultimately give me low wages, hire foreign students, increase the poverty rate, and only use my money to fix up what benefits their bottom line, not mine? And, how in the heck can this city, who, according to this article, has a 25 Mill deficit, give anyone money? Ahahahaha :-)- that's funny. This is (((CRAZY)))!!! And, if these politicians go along with it, they are really unethical, immoral and looking out for themselves, not the public who they were hired to work for. But what can you expect? This has been the history of this City since its inception.

• executioner1 (168) posts 10:39 am

  At last a casino exec. with vision.

• localboy (14) posts 10:36 am

  ahhhhh,one of the princes of greed and stupidity is now begging for the taxpayers to bail him out.as to the question 'are they still working?',yes,but at a snail's pace,dragging out the last bit of glass and the cap.much of what they're doing is going into storage mode,filling the lots they leased with equipment in hopes that they get that elusive billion they need to finish the interior.the same lots that have turned the area into a constant sandstorm of toxic waste.now they want millions of tax dollars to fix what they broke,just to make it look like the project is ongoing.oriental avenue was destroyed by them,as were most of the surrounding streets.the boardwalk down there,already in bad shape was ruined by their constant traffic of dune buggys and trucks using those boards as a shortcut.that china deal did not give them any $,only giving china 51% ownership(with the chinese not actually giving one red cent) in hopes that that would spur some idiots to give them another billion.EPIC FAIL!!now for those who say the city needs this,blah blah,realize that if revel opens all it would do is cannibalize the rest of the casinos,putting three minimum out of business.so,desanctis made a very bad bet by starting a $2 billion project with only $1 billion,now he teeters on the edge of failure so he begs taxpayers to prop him up.another article in the news today is how langford has enough cronys on council to complete his agenda.how many of these clowns got envelopes of cash from revel?

• Nikynewark (75) posts 8:35 am

  So if everyone demanded that their property taxes be used only for improvements that increase their property values who pays for services? Sounds like a real communist plan. But hey, the is the Peoples Republic of New Jersey.

• BernieSchwartz (464) posts 8:24 am

  He should have said "we have no faith in the local government to spend our tax money responsibly". I have to agree, by-pass the corruption and get the most bang for your buck.

• pineypower (44) posts 6:49 am

  All these future plans but what's happening right now at Revel? Is anyone still working over there? Seems very quiet. Is the Chinese deal real or do we need to read the fortune cookies to find out what happens down the road.

• CrystalBeach (12) posts 6:26 am

  Hmmmmmm...interesting that in this plan Baltic and Arctic avenues are to be rehabed for a 13 block stretch each for $22 mil but last year's Revel Voodoo plan called for rehabbing 5 blocks of Connecticut and 2 blocks of Massachusetts Aves for a cool $86 mil. Once again things don't quite add up with DeSanctis' fuzzy math but one thing is for sure: success benefits Revel, failure will be paid for by us already overtaxed, under serviced taxpayers!

• RandomX856 (59) posts 2:57 am

  Go Revel! If the gov't cant run the city, maybe you can!

• rvb313 (16) posts 1:53 am

  If its going to improve the image of Atlantic City than go with it, these are key area of improvements that need to be done and it is about time that someone has stepped up to the plate and wants to take care of these problems.

• gjc4343 (15) posts 1:43 am

  Bravo Revel, but i can't wait to see how this clear, specific and absolutely beneficial plan gets railroaded by the clowns in office. Cue the circus music...

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