When Richard Stockton College of New Jersey announced
plans to purchase the defunct Showboat Casino in Atlantic City, experts agreed
that the move would help the troubled city's economic development. But they are
divisive on its effect on the remaining casinos.
While the college won't divulge its plans for the 28-acre
plot of land and the 1,425,000-square-foot building, experts say using it as a
branch campus would bring much-needed economic prosperity to Atlantic City.
"Many inner cities now are basically supported by
what they would call 'eds and meds," said Paul Jargowsky, professor of
public policy at Rutgers University-Camden. "It diversifies your economic
base to have a university there. And, of course, it provides opportunities for
the residents of the city … access [to] undergraduate and graduate degrees. It
enhances the human capital."
Take the economic impact Temple University has had on
North Philadelphia in the last few years as an example.
"I've been here since 2000, and the difference in
the surrounding neighborhoods is spectacular with the development from private
sector money and bringing for-profit student housing … and growth to Temple's
campus," said Wesley Roehl, professor at Temple University's School of
Tourism and Hospitality Management. "We don't have to look too far to see
that it can have a positive impact."
Roehl also said: "The amount of change [at Temple]
in 15 years is incredible. From that point of view, clearly the investment in
infrastructure and increase in foot traffic means there's a spillover effect
where there's more opportunity for small businesses."
A branch campus would also create job opportunities,
especially since more than 2,000 employees lost their jobs when Showboat
closed.
"If you bring in that many people that will be
living and working [there, it will] help restore what once brought [people] to
Atlantic City and maybe even a little better," said Saverio Scheri, CEO of
WhiteSand Gaming. "Before, employees would come and when they're done with
[work,] they would leave. These people will be staying in dorm rooms — it's long-term."
The economic impact for Atlantic City would be even
greater if Stockton uses the Showboat property to expand its student base —
rather than just moving existing students from the main campus.
"If this is an expansion, it means they're going to
increase the workforce and increase the number of students above what they
currently have — that's growth," Roehl said. "[However,] if this will
just shift the location of people who are already employed at Stockton,
shifting the location from Pomona to Atlantic City, [it will have] much less of
an impact."
Bad news for Resorts?
Although experts are in agreement when it comes to
Atlantic City benefiting from Stockton acquiring Showboat, they're not when it
comes to how it will impact the other casinos. One even said it will be the
catalyst of Resorts' demise.
"My problem is if you look at the results since
Showboat and Revel closed, both Resorts and Trump Taj had a tough time of it.
That end of the boardwalk — losing two casinos — hurts the remaining
properties," said Alan Woinski, CEO of Gaming USA Corp. "Now, if Trump
Taj closes, and then a college [comes], poor Resorts. There's not going to be
reason for anyone to go down there for gambling."
Trump Entertainment Resorts has gotten approval to close
the Taj Mahal on Dec. 12. Meanwhile, Showboat, run by Caesars Entertainment, is
subject to a deed restriction, barring future buyers from running it as a
casino.
Still, others don't see it having an effect on the
boardwalk.
"I think Resorts has shown some tremendous growth
and opportunity. This is probably the first year, based on public records,
they're going to be in the black," said Robert Ambrose, instructor of
Drexel University's Hospitality and Casino Management. "And every property
has their own loyalty program going on, and customers that are faithful to the
property. It's shown tremendous growth with the investment of Mohegan Sun and
Margaritaville and the branding of [its] loyalty program."
Ambrose also said: "Unfortunately, that end of town
is going to suffer. They're in a real estate position where they are next to
several properties that are closed, and that's not good for anyone. It won't
have major impact because [Atlantic City's] marketing program is very viable. I
think they'll be OK."
Source: Philadelphia
Business Journal
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