Stockton College finalizes Showboat purchase for $18 million

Richard Stockton College became a key player in the rebirth of Atlantic City Friday when it purchased the Showboat Casino from Caesars Entertainment Corp. for $18 million, using money from the college’s investment fund.

The purchase almost doubles the square footage of the college, adding 1.4 million square feet of space to the 1.7 million on the main Galloway Township campus.

“This is by far, the best opportunity I have ever seen,” Stockton president Herman Saatkamp said by phone Friday evening. “It meets the mission of the college for students and the community.”

The new 26.28-acre Stockton-Island Campus will operate as both a hotel and a college campus and serve as an impetus to develop a University Park neighborhood in the north end of the city.

There will be no casino, and that space will be converted to academic and retail use.

A statement issued by the college said they hope to have the hotel operational by late spring 2015. Some summer classes may be offered, with a full academic schedule in place for fall 2015.

A thrilled Atlantic City Mayor Don Guardian called the purchase a great gift for the city this holiday season.

“This is certainly going to be something that changes the city,” he said. “I want students to become a part of the fabric of the city, get sand in their shoes, and maybe stay here,” he said.

Plans call for the site to grow to about 4,000 students over the next five to 10 years, with complete degree programs available by 2017. Stockton will offer shuttle service between the campuses as it does now at Stockton Seaview Hotel and Golf Club.

The main campus, located in protected pinelands, is almost at capacity at more than 8,700 students. Saatkamp said the purchase of Showboat is far more economical than building new student housing.

The hotel would be located in Tower 1, with 479 rooms, along with retail and restaurants. The 852 rooms in Towers 2 and 3 will be used for student housing, with dining, parking and recreational facilities. Those rooms could also be available for guests in the summer when fewer students are on campus.

Saatkamp said they would start small, with upperclassmen and maybe graduate students living in the city. He would like to rename one tower the Mayflower Tower to reflect the college’s roots. The first classes at Stockton in 1971 were held at the old Mayflower Hotel in Atlantic City.

“We are going back to our roots,” Saatkamp said.

The hotel, retail and food service sections of the Stockton-Island Campus will pay all state and local taxes. Stockton will negotiate a payment in lieu of taxes to the City of Atlantic City for those portions of the property used for college operations, as it does in Galloway Township with the historic Stockton Seaview Hotel.

Stockton bought the 100-year-old Seaview Resort in 2010 for $20 million, and restored and expanded the facility. Students are housed in one wing during the academic year, and some hospitality courses are offered at the site.

The hotel operation at the new Island Campus may also be operated by Dolce Hotels and Resorts, which operates Stockton Seaview.

Saatkamp said he hopes that the success at Seaview will help people better understand how the new Island Campus will operate as a public/private enterprise.

The Mardi Gras-themed Showboat closed Aug. 31, taking about 2,100 jobs with it. It was the first of three casinos to close this summer. The purchase brings new hope for the north end of the Boardwalk, hit particularly hard by the closures.

Stockton will work with city, state, and county officials, and the Casino Reinvestment Development Authority to develop a University Park neighborhood around the campus to encourage entrepreneurship.

“In urban centers across the nation, including Tampa, Indianapolis, Corpus Christi and Pittsburgh, revitalization has bloomed around institutions of higher learning,” said Saatkamp. “Businesses, from small entrepreneurs to large companies, are attracted to the opportunities to service college communities, benefit from the research and analysis being done, and tap into the educated workforce.”

Saatkamp said the CRDA has allocated about $17 million toward academic renovations at the new campus. He said they are still developing plans for the hotel renovations, but said the good condition of the property was one of the reasons it was so attractive.

"Stockton's acquisition of the Showboat exemplifies the efforts of the governor and legislative leadership to bolster Atlantic City's non-gaming offerings.  The diversification of activities available in A.C. stands to benefit all of the city's stakeholders," said Gary Loveman, Chairman and CEO of Caesars Entertainment. In 2009, Loveman was awarded an Honorary Doctorate of Humane Letters by the college.

Saatkamp said this was his seventh attempt to locate a campus in Atlantic City since he became president in 2003, and by far the best opportunity. The college also owns the Carnegie Library building and had looked into expanding there.

He said the Showboat site is large, and located near such attractions as Gardner’s Basin, the Absecon Lighthouse, and Steel Pier, and he hopes to attract other entertainment venues, and plans also call for a community center.

The next step will be to begin working with faculty to decide which programs will move or expand to the site.

“But first,” he said, “ I am going to get a good night’s sleep. We’ve been working on this nonstop for the last three weeks.”

Source: Press of AtlanticCity.com