Atlantic City’s newest casino project towers over one of the city’s most blighted neighborhoods. A new master plan developed by the Revel Entertainment Group provides a vision for improving the South Inlet and Northeast Inlet sections of the city.
By MICHAEL CLARK Press of A.C. Staff Writer | Posted: Saturday, May 8, 2010
ATLANTIC CITY — A potential state tax incentive worth $300 million for Revel Entertainment Group could soon be used to revitalize the neglected area around the casino project. But Revel officials say the improvements may only start there.
Revel CEO Kevin DeSanctis this week shared with The Press of Atlantic City his master plan for the city’s Inlet section, a blueprint that will guide Revel’s proposal for spending what could amount to as much as $300 million in state sales tax breaks. The state’s Economic Development Authority must ultimately approve the proposal.
“You’re not that far from this, believe it or not,” DeSanctis said Thursday, pointing to an artist’s rendering of a built-out and bustling Inlet.
Click the following links to view the plan: part 1, part 2, part 3
Revel officials agreed recently to withdraw their original proposal for the tax incentive, which would provide a rebate of between $268 million and $300 million in taxes over 20 years. The company intends to reapply once it establishes new financing, with the condition that its projected tax savings would be used to improve the battered Inlet. That funding, DeSanctis said, would be the springboard to more improvement and development in a section rife with vacant lots and dilapidated buildings.
Some of the improvements rely on proposals Revel made previously when seeking a separate city tax-break plan. That plan initially would have redirected $150 million back into the area. But DeSanctis later said Revel would back out after the plan was reduced to a tax break of less than $50 million. Proposed projects included Boardwalk reconstruction and demolition, renovations to Garden Pier and road improvements on Arctic and Baltic avenues.
Those basic ideas came from DeSanctis’s master plan and will likely be funded by the $300 million tax plan, if approved. But the full plan goes deeper and relies on larger concepts — and on other developers to chip in.
“This whole thing is to aid people in understanding what you would like to see happen,” he said. “At the end of the day, this is only what you can do. It doesn’t mean it’s what you would do.”
The plan envisions dividing the area into four districts: casino, resort, workforce and waterfront. The Absecon Lighthouse is identified as the center of those sub-districts, surrounded by park space that stretches to the ocean. Improvements around the lighthouse were part of the original $150 million city tax initiative and would likely be included in the $300 million improvement plan.
After hearing of Revel’s plans for the lighthouse, its executive director, Jean Muchanic, said, “Wait, I have to clutch my heart for a second.”
“I’m thrilled to hear that they consider us one of the focal points of the Inlet,” she said. “There’s been talk for (decades) about improving this area and we’re finally seeing it with Revel. Our future is directly tied to the completion of their project.”
The first three phases of the plan would include the construction of more than 800 residential units in three separate districts, part of a plan ultimately to build 6,500 new housing units, 200,000 gross square feet of retail space and 15,000 parking spaces. The plan also projects the construction of a boutique hotel next door to the casino and behind an entertainment section that runs to the Boardwalk. One conceptual drawing imagines an amphitheater there.
The Boardwalk would also see some adjustments beyond simply restructuring, including building a parallel bike path and replenishing the area’s beaches.
DeSanctis has shown some government officials the plan, but never released it publicly.
“The wonderful thing about it is it’s not just putting up needed housing, or a new hotel,” said Thomas Carver, executive director of the Casino Reinvestment Development Authority. “It’s a complete view of what a city should look.”
James Kehoe, chairman of the CRDA, said the plan is the first of its kind.
“I think it may very well be the first time in Atlantic City that a prospective casino operator has come up with something to reach out to the neighborhood and raise the standards of the neighborhood,” Kehoe said. “It really helps start the thought process. These plans should be a requirement for every casino developer coming to town.”
Revel is not projecting to do the development itself, but DeSanctis believes the potential tax-break plan could entice other developers to invest in the area.
“This is something that could replicate itself throughout Atlantic City,” he said.
The plan is dated, however. Developed in 2007, there are plenty of aspects to the plan that were expected to be completed already. No. 1 on the list: the Revel project itself. Renderings of the city’s skyline projected Revel to be fully built by this year — both towers. Currently, only the exterior of one tower stands. Plans for the second tower are on indefinite hold.
DeSanctis’ own business dealings recently would seem to make it a tough time to be optimistic about repairing the city section, let alone his own project.
His company is still recovering from the fallout of Morgan Stanley’s decision to sell its $1.2 billion stake in Revel, citing $932 million in losses. The development weakened his ability to finance construction on the second half of the casino project, once believed to be a done deal with a powerful China-based bank.
DeSanctis is still optimistic about both his casino project and the revitalization of the neighborhood.
“I can give you 50 reasons why this won’t happen,” he said of the improvements to the Inlet. “But you’ve got to focus on the one reason it can get done, or else you’ll never get anything done.”
Has there been any update to this, whats the timeline for the work thats supposed to be done in the inlet, specifically the land between the revel and 101 boardwalk?
Jerry, Lots of things are planned but nothing is concrete. Possibly condos or other hotel properties.