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 The summit will include both Democratic and Republican state
legislative leaders, as well as Christie administration officials,
county and city officials, organized labor and casino industry
representatives, among others.
Atlantic City has struggled with casino closures as neighboring
states have lured gamblers away. Revel Casino Hotel said on Tuesday
that it would soon shut its doors, making it the fourth casino in
the past year to announce a closure.
The four closures will reduce city employment by about 7,000 and
strip 17 percent, or $1.9 billion, from the city's taxable property
values, Moody's Investors Service said on Wednesday. Moody's cut
Atlantic City's credit rating to junk last month.
Construction on Revel started in 2007, but backer Morgan Stanley
took a $1.2 billion loss in 2010 to pull out after the recession,
delays and costs overruns hurt the project.
New Jersey stepped in with a promise of $261 million of future tax
rebates, helping to lure new lenders and close a financing gap.
The 1,400-room resort opened to great fanfare in 2012 but filed its
second bankruptcy this June. It has been looking for new buyers, and
indefinitely postponed an auction scheduled for Thursday, saying it
has not yet found qualified purchasers. It could liquidate its
assets in bankruptcy court.
Christie and New Jersey Democrats have said Atlantic City's economy,
heavily dependent on casinos, needs to be broadened.
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"Important signs are evident of the progress taking hold in the
non-gaming development and economic activity we are seeing in
(Atlantic City), including businesses opening, attractions being
added, and key non-gaming revenue streams rising," Christie said in
a statement on Wednesday.
If Revel is any indication, that effort has not caught on. It was
supposed to usher in a new era of Las Vegas-style entertainment that
combined gambling with nightclubs, and upscale shopping.
By not focusing enough on its casino, instead of its resort and
convention center, it failed to attract traditional Atlantic City
gamblers, who do not stay overnight, according to its bankruptcy
filings. It also lacked a player's club and affordable food and
drinks, the documents said.
(Reporting by Hilary Russ; Editing by Richard Chang)
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