ATLANTIC CITY — The Steel Pier was thrown a lifeline when the Casino Reinvestment Development Authority agreed to pay up to $1.1 million to the amusement park’s lender, which was fighting in court to seize about half the Pier’s rides.
A resolution approved April 19 by the CRDA’s board of directors says the agency will settle a case brought by Firestone Financial, which sued the Pier in September, claiming the Pier’s owners owe nearly $1.5 million for a string of loan defaults.
Firestone asked a federal judge for permission to take collateral that included some of the venue’s most recognizable attractions, including the Crazy Mouse roller coaster and the Slingshot reverse-bungee ride.
The litigation also jeopardized a 200-foot observation wheel fabricated overseas for the pier and now sitting segmented in storage crates on the mainland. The wheel was not Firestone’s collateral, but a key investor in the Pier considered selling the wheel to an outfit outside Atlantic City, given the uncertainty surrounding the Firestone case.