The owners of the future Hard Rock Hotel & Casino
Atlantic City are planning to put nearly $400 million into the empty Boardwalk
property — an investment they say will transform the financially battered Shore
resort from a "one-and-a-half night town" to an entertainment
destination.
Telling a crowd that counted Gov. Chris Christie, N.J. Senate President Steve Sweeney and Atlantic City Mayor Don Guardian as members, Hard Rock International
CEO Jim Allen said the purchase of the vacant Taj
Mahal casino from previous owner Carl Icahn has closed and financing is in place
to begin a $375 million overhaul of the property.
"We're going to be closer to a $400 million
investment here," he said during a Wednesday press conference. Allen
explained how the group of investors led by the Hard Rock, and the Morris and
Jingoli families are committed to one key mantra with the buy: "Do it right."
"Do it right doesn't mean just some new carpet, it
doesn't mean just some new memorabilia," Allen said. "It means a
complete renovation of all the guest rooms. ... literally taking the bathrooms
out and redoing them. It means all new furniture, it means a complete redesign
of the casino floor."
Hard Rock wants "to create a true entertainment
destination, not just a gambling destination," he said.
Improvements to the Mark G. Ettes Arena, adjustments to the casino
floor that rid it of obstructions and make it less narrow, and the addition of
new restaurants are part of the plan.
Hard Rock Café Atlantic City will also move to a new
400-seat venue that includes beach access.
The millions in spending will also bring jobs back to the
Taj Mahal, which put several thousand out of work when it closed in October
2016.
Allen said the owners are committed to hiring more than
1,000 construction workers for the redevelopment and another 3,000 to work in
the building once complete. Twenty-three employees are already on the payroll,
Hard Rock said.
The massive overhaul is expected to be complete for a
summer 2018 opening.
Gov. Chris Christie applauded the new owners' plans,
and he touted the significance to the rest of the city and its future
development of a "brand like this saying Atlantic City is worth coming
into, Atlantic City is worth working with."
"There is great potential here for the rebirth of
this city," Christie said.
The governor, who has faced criticism about his
priorities during his final year in office, restated his own commitment to
bettering Atlantic City in the final months of his term.
"We have some important things we have to finish
here ... that I intend to finish here in the next nine months," he said,
before alluding to the state takeover as a reason the buyers were attracted to
the vacant Taj.
"Whatever we need to do to get the previous
governmental obstacles out of the way, we will do. We’ve proven that over
time," he said. "Hard Rock will be a very prominent — but not the
only — new member of the Atlantic City family."
Jack Morris, who represents the Morris family, said New
Jersey's takeover did contribute to the buyers' decision to scoop up the Taj.
"It gave the financial world a much more comfortable feeling for Atlantic
City, once [it] had the backing of the state of New Jersey," he explained.
The new owners see the investment as helping their own
property, but bring about a rising of the tide for all boats anchored to the
gambling industry and Atlantic City.
"Our marketing plan is not — just take the customer
from the existing properties," Allen said. "It is our goal to work
with them to market Atlantic City as one destination, not just the Hard
Rock."
Making it clear that the Hard Rock will maintain its
reputation as a premier spot for live music lovers, Allen said the aim, like at
the company's 175 other cafes and nearly a dozen other casinos, is to offer
entertainment every night of the week.
"We are not a company that is of the mindset that
you only do entertainment on Saturday night," he said. "But Atlantic
City has turned into a one-and-a-half night town."
Along with "world-renowned music events," the
future Hard Rock will have 2,400 slot machines and 130 table games.
The Pacific Avenue entrance to the casino will be
completely redone (as seen in the above photo), meeting spaces will be updated,
and the lobby lounge and check-in area will undergo renovations.
The memorabilia throughout the property — a design
associated with the Hard Rock — will feature musicians and other artists with
ties to New Jersey.
As for naysayers that argue the city's economy has
finally found a balance with the number of casinos, Allen says maintaining the
plateau the remaining casinos have reached or even growing beyond it are a
matter of investment.
Now owners are putting money back into their properties,
he said. It's a strategy that helped Las Vegas' gambling industry weather the
recession better than its East Coast competitor, Allen suggested.
Other developers are already following that tack in
Atlantic City.
The vacant Atlantic Club, one of several casinos to
shutter beginning in 2014, recently
sold and a family-friendly indoor water park and entertainment center is set to
go in its place. The Jose Garces-led restaurants at the Tropicana
Atlantic City opened last
month. The developer of what was once known as the Pizza at
Schmidt's in Northern Liberties, Bart Blatstein, is buying up
more land, and his reopening of
the Showboat Hotel is set for this July.
In a plea to the renewed sense of interest in Atlantic
City, Christie said, "The new master plan under consideration by the
Casino Reinvestment Development Authority will replace some of the outdated
regulations in the tourist district."
With state and local leaders turning their eye to the
future, Hard Rock leaders said they are ready to do the same – for the sake of
their own entity and the entire city.
"Atlantic City is living its most successful years,
not years of the past," Allen said. "Nobody in the world has the
beach, the boardwalk, and the natural amenities that are here in Atlantic City.
Source: Philadelphia
Business Journal
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