atlantic-city-casino-revel.jpg
A new deal has been struck to sell the Revel Casino Hotel for $82 million. The boardwalk casino cost $2.4 billion to build.
(John O'Boyle/The Star-Ledger)
ATLANTIC CITY -- A Florida developer has struck a deal to buy the former Revel Casino Hotel at a discount price of $82 million.
The agreement between Revel AC and Glenn Straub's company, Polo North Country Club, comes less than a week after a federal bankruptcy court judge in Camden approved a plan to scrap the sale. If the deal goes through, Straub said he aims to have a "large part" of the boardwalk property open by the summer.
"Polo North is working diligently with its team to finalize an operational plan for the property to be successful, not just 'business as normal,' as was done in the past," Straub said in a statement. "These plans include major construction of a $50 million dollar plus expansion of the exterior area of the building and a $50 million dollar plus relocation of items such as a more accessible hotel lobby, a large medical/health spa and facility."
The casino, which cost $2.4 billion to build, went bankrupt twice and shuttered in September. Four casinos closed in Atlantic City last year.
A closing date of March 31 has been set for the Revel sale but a judge must first approve the deal. Revel said in a statement that it "intends to promptly seek approval" by the U.S. Bankruptcy Court of New Jersey for the amended agreement.
The fate of the resort has been up in the air since it closed last fall.
Brookfield US Holdings LLC in October beat out Straub in an auction to buy the casino with a bid of $110 million. But that deal fell apart a month later over a dispute connected to the casino's power plant.
The company then fell back on Straub's second-place bid of $95.4 million. But a deadline to close the sale passed earlier this month as Straub raised concerns about ongoing legal disputes with former Revel tenants.
U.S. Bankruptcy Judge Gloria M. Burns last week approved Revel AC's motion to terminate that agreement and ordered Straub's $10 million deposit to be held in escrow by the debtors. But lawyers for both sides said at the time that negotiations were ongoing and a new deal was possible.
Under the revised agreement, Polo North upped its deposit to the full purchase price of $82 million, which is being held in escrow.
Straub's attorney, Stuart Moskovitz, said his client plans to transform the Revel property into a "far more diverse entertainment center" and if a casino is located there "it certainly won't be the size that was there before."
Erin O'Neill may be reached at eoneill@njadvancemedia.com. Follow her on Twitter @LedgerErin. Find NJ.com on Facebook.