atlantic-city-revel
The former Revel Casino Hotel sold today for $82 million. The bankrupt resort cost $2.4 billion to build.
(Don Emmert/AFP/Getty Images)
The shuttered Revel Casino Hotel sold on Tuesday morning for $82 million, ending months of uncertainty about who would gain control of the Atlantic City boardwalk property that cost $2.4 billion to build.
Florida real estate developer Glenn Straub's Polo North Country Club purchased the casino, which opened three years ago and shut down last September after twice filing for bankruptcy.
"We're going to open up when everything comes together the right way," Straub said in a telephone interview on Tuesday afternoon as he gave visitors a tour through his new acquisition. That may be as early as this summer, he said.
"You'll see $150 million being spent on this building," he said.
Straub said he planned to operate a casino and mentioned the construction of a water park. He also said he has plans to build a second tower that will hold a university where "we're going to cure a few world problems."
The purchase of the Revel is just one part of a larger plan to spend a half-billion dollars on projects in the Atlantic City area, according to Straub, who said his plans for the city will spark others to invest their money in the oceanfront town.
"I think everybody else will see what we're going to spend here and they are going to spend five times more than what we're going to spend," Straub said. "We can't do it alone; $500 million is not enough."
Four casinos closed down in Atlantic City last year, leading to thousands of layoffs and fueling further financial woes in the already-struggling city.
The future of Revel, which was once touted as a game-changer for Atlantic City, has been playing out in court since it closed last fall. A federal bankruptcy court judge on Monday formally approved the sale to Polo North for $82 million, despite objections from former tenants of the property and the casino's utility provider and interest from other potential buyers.
The sale order states that the deal does not divest the rights of former tenants to stay in the property once it reopens, a point Straub previously contested. On Tuesday, however, Straub said the issues with the tenants were "all wrapped up."
A call to the office of Warren Martin, an attorney who represented former tenants of the casino, was directed to Robert Keddie of Garces Group. Keddie could not be reached for comment.
Craig Galle, an attorney for Straub, said in the near term they plan to focus on resolving issues with the casino's power supplier, ACR Energy Partners, and obtaining a gaming license.
Kerry Langan, a spokeswoman for the New Jersey Division of Gaming Enforcement, said Straub had submitted information to the state for a license but that his application was not yet complete.
A $110 million deal reached last October with Toronto-based Brookfield Management fell apart over to a financial dispute with the power company.
Stuart Brown, an attorney for ACR, said on Tuesday morning that "we remain in discussions." The company had previously threatened to cut power to the building over unpaid bills. Brown would not comment on that possibility on Tuesday.
Straub said "we have our own back up sources" for power, includes connecting to the grid through neighboring Showboat. Stockton University bought the shuttered casino for $18 million in December with the idea of opening a campus there but those plans began to fall apart when Trump Entertainment said it would enforce a 1988 agreement requiring the property be used only as a casino.
Polo North plans to buy the Showboat property from Stockton for $26 million if the college can't resolve that problem.
A joint release announcing those plans last week also outlined Straub's plans to invest $500 million in Atlantic City as part of the "Phoenix Project." The project includes the redevelopment of Bader Field and the construction of an extreme sports complex, two marinas capable of hosting "super yachts," an equestrian facility, waterparks and two universities, as well as high-speed ferries and helicopters between Atlantic City and Manhattan. The project also includes a medical complex, independent living facilities and an entertainment hub.
Atlantic City Mayor Don Guardian told The Associated Press that Straub "sees the great potential we have as a city and he believes, as I do, that Atlantic City's best days are still ahead of us."
Erin O'Neill may be reached at eoneill@njadvancemedia.com. Follow her on Twitter @LedgerErin. Find NJ.com on Facebook.