Bill to lift Showboat site restrictions advances

Bart Blatstein may be able to do more with the Showboat than attract gamblers. The New Jersey Senate overwhelmingly voted Monday to approve a bill that would eliminate the current deed restrictions on the site, according to the Press of Atlantic City.

Set to finalize the $23 million purchase in January, Blatstein has previously said he is considering non-gaming uses for the site. Stockton University, which bought the vacant casino for $18 million in December 2014, was handcuffed by the land-use covenants.

The bill, which passed the state Senate with a 32-3 vote, must be approved by the Assembly before the legislative session ends in January, or else it will have to be reintroduced, the Press of AC reports.

The bill states that any real property agreement within the Atlantic City Tourism Zone may only be enforced among the original parties in the agreement, and must not run with the land. If a public entity owns the property, any restrictions would be void and unenforceable as against public policy. Anyone who bought the site from the public entity would also not be bound by the restrictions. The bill also includes a provision that land owned by a public entity within the Tourism District would not be subject to taxation as long as it is used for a public use or sold within 18 months. A private buyer would be required to pay all taxes are required by law.

Despite the covenants, Blatstein made arrangements to acquire the Atlantic City property in September and the two parties agreed to an even higher sale price about two months later.

The Philadelphia developer, who already made a push into Atlantic City with the Pier Shops at Caesars, has said he is considering reopening the Showboat as a casino and is also interested in weighing other options, like time shares and office space, for the property.

Caesars Entertainment Corp., which is the parent company of Showboat, called the bill unconstitutional over the summer. Trump Entertainment Resorts, a partner in the 1988 covenant restricting the site to be used as a casino, has also said it will not release the covenant.

Source: Philadelphia Business Journal