On Monday, the original date Stockton University and Bart
Blatstein were scheduled to finalize the sale of the Showboat Hotel &
Casino, the school's board of trustees announced several changes to the
agreement including a new purchase price and possible internship opportunities
for students with the Philadelphia developer's hotel operations.
Blatstein's Tower Investments will now acquire the
Atlantic City property for $23 million – $1 million more than the previously
agreed upon sale price.
The university announced Friday, as the Monday deadline
approached, that the buyer and seller postponed the settlement date until
January.
At the time, Stockton University Interim President Harvey
Kesselman said the delay was a "positive occurrence" for both parties
and it provided Tower Investments with "substantial tax benefits" by
closing in the new year.
Aside from the additional $1 million, the benefits to
Stockton include the buyer covering the carrying costs of the property from
Nov. 9 through the new closing date, or $500,000, according to a university
statement.
Blatstein, who agreed to pledge a personal guaranty, will
pay the school the prorated total amount, about $1.1 million, in advance,
Stockton said.
The updated agreement also releases the current escrow
funds, $1.1 million, to Stockton for costs incurred since September, when the
board approved the sale.
Another $1 million will be placed in escrow to be applied
toward the purchase or liquidated damages.
Also noted in the new deal – a proposed affiliation
agreement that will allow Stockton hospitality and tourism management students
to intern at Blatstein's hotel operation and permission for the college to use
the property's entertainment venue for performances.
“We plan to continue working together in ways that will
benefit Stockton and Tower Investments, and contribute to the renaissance of
Atlantic City," Kesselman said on Monday.
Stockton spent $18 million to purchase the casino in
December 2014 and had planned to develop the boardwalk property into student
residences. Land use covenants, however, put the university's plans in a state
of limbo. Soon after the acquisition, the school began working to unload the
property.
Meanwhile, Blatstein has reportedly backed out of buying
a different waterfront property in Atlantic City.
Source: Philadelphia
Business Journal
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