Wednesday, September 16, 2015

Officials consider $30M loan for AC apartment project



A 250-unit apartment project, backed by developer Wasseem Boraie and former NBA star Shaquille O'Neal, is seeking a $30 million loan from the Casino Reinvestment Development Authority, according to a Press of Atlantic City report.


The $61 million development, called The Beach at South Inlet, would go up in an empty site in the South Inlet.

    In March 2014, the CRDA’s board agreed to loan up to $30 million to the project. Then three casinos — two bordering the South Inlet — closed. Stockton University’s plan to open its Island Campus near the neighborhood collapsed. And legislation was proposed (and is pending) to divert the CRDA’s lifeblood — the 1.25 percent Investment Alternative Tax on casino revenue — away from the agency to repay Atlantic City’s debt. That all prompted board members to reconsider the offer.

The CRDA must first vote if the project is "feasible and reasonable to fund in light of the changed economic conditions," before approving the loan proposal, which expires Sept. 30, according to the Press of AC.

Despite the economic challenges Atlantic City poses, Bart Blatstein, the well-known Philadelphia developer, has reportedly taken steps to purchase the Showboat Casino from Stockton University– an acquisition the college would welcome after becoming stuck in ownership limbo for the past nine months.

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