TRENTON, N.J. — New Jersey lawmakers say a venture capitalist
wants to build a $4.6 billion casino in Jersey City, a move that would be
possible only if the state would make a major policy change and allow casinos
outside of Atlantic City.
State Sen. Raymond Lesniak, who said he was briefed on the
plan about a month ago, says the plan calls for a more than 90-story hotel and
residential tower, the world’s largest Ferris wheel and a car-racing stadium
that could seat more than 100,000 fans.
The plan was first reported by The Star-Ledger.
The investor behind the push, he said, is Reebok founder
Paul Fireman. Fineman, who is based in Boston, did not immediately return a
call to The Associated Press.
“This Paul Fireman guy is the real deal,” Lesniak said.
“This is a solid proposal and he’s willing to put the money up for it.”
For years, Lesniak has been calling to allow casinos outside
of Atlantic City and then use part of the revenue to boost that resort city,
which has been struggling for years largely because of increased competition in
nearby states. Online gambling through the state’s casinos, which became legal
last year, has failed so far to be the savior its proponents were hoping for.
One casino — The Atlantic Club — closed in January and two others — Revel and
Showboat — have warned that they could, too.
It would take a state constitutional amendment to allow
casino gambling outside of Atlantic City. Lesniak would like to see lawmakers
take quick action to put it to a public vote on this November’s ballot, but a
public vote is unlikely until at least next year.
Since Fireman’s group has begun briefing politicians, Gov.
Chris Christie and state Senate President Steve Sweeney have both talked about
the possibility of allowing casinos elsewhere in the state.
Lesniak said the Jersey City proposal near Liberty State
Park would be comparable only to casinos in Macau, the Chinese city that has
become a gambling destination. He said something that impressive is needed to
be an attraction with a pull large enough that it won’t simply cut into
Atlantic City’s existing business.
“This will compete with Macau and exceed it,” said Lesniak,
a Democrat from Elizabeth. “What Macau doesn’t have is the metropolitan area
and the New York skyline.”
Assemblyman Ralph Caputo, a former casino executive and the
chairman of the Assembly’s tourism and gaming committee, noted that the plans
are preliminary.
He said the tax rate on any northern New Jersey casino’s
revenues should be at least 50 percent — far higher than the 8 percent Atlantic
City casinos pay. And he said that unlike the Atlantic City’s newest casino,
Revel, there would be no tax incentives to help fund construction.
Caputo said that despite Atlantic City’s problems, casinos
are still a powerful means for the state to generate revenue year after year.
Source: Review
Journal
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