DESTINATION ATLANTIC CITY An Unprecedented Market for Developers & Investments

Transcription

1 DESTINATION ATLANTIC CITY An Unprecedented Market for Developers & Investments

2 NOTABLE MENTIONS

3 Atlantic City Strives to Rise as Casinos Fall The remaking of Atlantic City s defining industry is driving a furious effort to reimagine what this beach town can be now that casino gambling has a foothold in neighboring states, and may even be permitted in northern New Jersey. But I do think it woke us all up and said we can be much better. Mayor Donald Guardian FORTUNE Magazine, December 17, 2014 By Charles V. Bagli, July 14, 2014 Blake Shelton draws 60,000 to free A.C. concert With crashing waves beside them and a huge stage ahead, more than 60,000 people got a pictureperfect beach day here Thursday and a free Blake Shelton concert. By Julia Terrruso, August 2, 2014 Atlantic City s Boardwalk meeting up with lights of ol broadway The ACA s most recent market research shows that 75 percent of the people living in Philadelphia, New York and Baltimore who are looking for a getaway now regard Atlantic City as a destination for dining, nightlife and entertainment. By Donald Wittkowski, January 19, 2015 Atlantic City courting gay tourism market Atlantic City is planning a series of events to attract gay tourists, who are becoming an increasingly important part of the resort's growth strategy. By Wayne Parry, June 17, 2014

4 BUSINESS FRIENDLY LEADERSHIP

5 Dear Potential Investor, We have turned over a new leaf and it is toward a brighter, more resilient tomorrow for the people of Atlantic City. In just over one year, our city has made impressive comeback gains since the successive closures of the Atlantic Club, Showboat, Revel, and Trump Plaza. I am proud to announce that due to great leadership, partnerships and teamwork, ALL of these properties with the exception of Trump Plaza; are re-engaged in either a due diligence or competitive process with the intent to conclude an acquisition, or they have already been acquired and are being repurposed in an exciting variety of ways that will certainly transform our resilient City into a world-class destination. My administration remains dedicated to attracting developers, investors, entrepreneurs, millennials, and all communities from all walks of life. We want you to choose Atlantic City as your destination city of choice to visit often, to play, work, live, prosper, and to own a home. Atlantic City welcomes you and commits to doing all it can to make your visits memorable, your businesses thrive, and your decision to choose Atlantic The Honorable Donald A. Guardian City worthwhile. Mayor, City of Atlantic City As you will read in this publication, there is a strong and growing appetite for private development opportunities in Atlantic City. Some of the region's most successful private developers have already committed millions of dollars through acquisition opportunities at very competitive rates. They are also investing even more resources, now, in defining their property s unique destination features. There are more new players than ever before competing in a wide-open commercial real estate marketplace. Atlantic City s promised New Beginning is evidently well under way. There remain innumerable untapped opportunities, and we still have much to do in creating the brightest possible future for our city. We want you to be part of this truly exciting resurgence. Our successes to date have happened because we are a city that is not only business-friendly and people-friendly, but forward-looking, thinking, and acting. We invite you to cement new legacies with us! The City of Atlantic City is ripe for new investments and I pledge my full support to those who join us in making our city great and better for all. Sincerely,

6 MARKETPLACE SNAPSHOT

7 We love Atlantic City "We intend to address business and housing opportunities for the middle market. We see a tremendous opportunity for Atlantic City to become not only a weekend destination, but more of a place where people will live all year long and will also pull from the surrounding suburban markets for shopping and entertainment options." John J. Longacre- President, LPMG Philly.com 11/20/14

8 FINANCIAL INCENTIVES

9 FINANCIAL INCENTIVES FROM THE STATE OF NEW JERSEY In recognition of the need to diversify the economy of Atlantic City, the Economic Opportunity Act of 2014, Part 3, P.L. 2014, c. 63 includes Atlantic City as a Garden State Growth Zone (GSGZ), extending various enhanced benefits and conferring additional benefits exclusively afforded to GSGZs, as follows: o Increased reimbursement of 30% of total project costs plus an additional 10% for total benefit of 40% over 20 years. o o o Use of 85% of the projected annual incremental tax revenues to be pledged towards the incentive grant. Access to $175 million specifically set aside for qualified residential projects in GSGZs in eight southernmost counties. Added benefits are for the Economic Redevelopment Growth(ERG) program and the Grow New Jersey Assistance Program For more information, visit

10 NEW JERSEY ECONOMIC REDEVELOPMENT AND GROWTH (ERG) PROGRAM The ERG Program provides State incentive grants to a developer, or non-profit organization on behalf of a qualified developer, to capture new State incremental taxes derived from a project s development to address a financing gap, with $600 million authorized for qualified residential projects. The award amount is based on up to 75% of annual incremental State tax revenues or 85% in a Garden State Growth Zone (GSGZ) generated by the project over a term of up to 20 years. The maximum amount of any grant is up to 30% of total project cost, except for projects in a GSGZ, which may be up to 40%. For more information, visit

11 NEW JERSEY ERG BONUS AMOUNTS Bonus amounts of up to 10% of total project cost are available if the project is: o o o o o o o o In a distressed municipality which lacks adequate access to nutritious food and will include a supermarket, grocery store or prepared food establishment; In a distressed municipality which lacks adequate access to health care/services and will include a health care and services center; A transit project; A qualified residential project with at least 10% of residential units reserved for moderate income housing; A disaster recovery project; An aviation project; A tourism destination project; A substantial rehabilitation or renovation of an existing structure(s). For more information, visit

12 GROW NEW JERSEY ASSISTANCE PROGRAM: The Grow New Jersey Assistance (Grow NJ) Program was established through the Grow New Jersey Assistance Act. and has been substantially revised through the New Jersey Economic Opportunity Act of 2013, and 2014, to expand geographic boundaries, lower eligibility thresholds, designate Atlantic City as a Garden State Growth Zone (GSGZ) eligible for maximum incentives, and revise other key benefits for the continued success of EDA-administered incentives, including Grow NJ. Grow NJ provides tax credits to eligible businesses which make, acquire or lease a capital investment equal to or greater than certain minimum capital investment amounts at a qualified business facility at which it will employ certain numbers of employees in retained and/or new full-time jobs. The total tax credit amount (except in Camden) equals 100% of the gross amount of tax credits for each new full-time job and 50% for each retained full-time job. For more information, visit

13 GROW NEW JERSEY TAX INCENTIVES o o o Increased base tax credit amount of $5,000 per new/retained full-time job, capped at $15,000 with total benefit capped annually at $35 million over 10 years Calculation of the net positive benefit resultant from the award of tax credits and the retention and creation of full-time jobs based on benefits generated during a period of up to 30 years following completion of the project For each new or retained full-time job, tax credits equaling 100% of gross amount of tax credits The Economic Opportunity Act of 2014, Part 3, P.L. 2014, c. 63, also revised the definition for tourism destination project for the Grow NJ Program to clarify that such projects consist of a non-gaming qualified business facility, including a non-gaming business within an established Tourism District with a significant impact on the economic viability of that District, as determined by EDA, to help attract new economic development and job growth in Atlantic City. For more information, visit

14 GROW NEW JERSEY REWARDS STRUCTURE The total award amount is based on base, gross and maximum amounts of tax credits for each new or retained full-time job as follows: Project Type Base Amount Per Job/Per Year Gross Amount Per Job/Per Year Maximum Amount To be Applied Annually Mega Project $5,000 $15,000 $30 million GSGZ Project $5,000 $15,000 $30 million/$35 million- Camden/Atlantic City UTHTC Municipality $5,000 $12,000 $10 million Distressed Municipality $4,000 $11,000 $8 million Priority Area $3,000 $10,500 $4 million (Not more than 90% of withholdings) Other Eligible Area $500 $6,000 $2.5 million (Not more than 90% of withholdings) Disaster Recovery Project $2,000 $2,000 For more information, visit

15 PROPERTY TAX ABATEMENTS FROM THE CITY OF ATLANTIC CITY The City allows the maximum permitted under State law for the five (5) year tax abatements on any improvements (new construction) to property. In lieu of taxes on full assessed value, the property owner can chose to pay: o 2% of the project cost annually for five (5) years o 15% of the project s gross revenues o 20% increments of the taxes due on the improvement over five (5) years In addition, Urban Renewal Entities can apply for a long term tax abatement for any improvements. For more information, see:

16 ACTIVE DEVELOPMENT PROJECTS

17 TROPICANA BOARDWALK FAÇADE ENHANCEMENTS AND EXPANSION $35 million project o 100, 000 square feet o Under construction o Expected completion date of December, 2015 o 80 new permanent jobs expected

18 THE PIER SHOPS AT CAESARS o Purchased by private developer o Construction plans underway to reinvent 300, 000 square feet of mall space over the beach and the ocean STOCKTON UNIVERSITY s ISLAND CAMPUS After seven attempts to build a campus in Atlantic City since 2003, Stockton University purchased the former Showboat Casino and ancillary properties. The university s vision is to develop a distinctive residential and academic campus that integrates with the campus and incorporates an operating hotel. We expect classes to begin in July 2015 with additional classes and residential living commencing for the Fall 2015 term.

19 BORGATA CASINO, HOTEL & SPA RENOVATIONS $13 million in renovations that include the redesign of Borgata Buffet, Spa Toccare, casino floor, front desk and Borgata suites RESORTS CASINO HOTEL After the success of the 2013 Margaritaville and Landshark restaurants and beach bar, Resort s next project consists of a $9.4 million Conference and Event Center

20 STEEL PIER OBSERVATION WHEEL ATTRACTION o o o Currently in year 3 of a $70 million dollar multi-phase project Includes $4 million Observation Wheel, only one of its kind in New Jersey; open all year long; expected to attract up to 50,000 fun ride seekers a month Special features: climate controlled gondola s soaring up to 200 feet to view Atlantic City s spectacular skyline o Expected completion date: late 2015.

21 BASS PRO SHOPS OUTPOST MEGASTORE $34 million project under construction ; 86, 000 sq. feet; scheduled to open in the Spring of 2015 and act as a destination anchor attracting high levels of new visitorship to Atlantic City. It will create 200 new full time and part time jobs. ATLANTIC CAPE COMMUNITY COLLEGE 22,547 square feet expansion, now open

22 HARRAHS WATERFRONT CONFERENCE CENTER $126 million project; 250,000 square feet; presently under construction with a scheduled completion date of December 2015; potential to add 138,000 incremental hotel rooms and create 1,300 new jobs in five years. For more info:

23 PUBLIC INFRASTRUCTURE PROJECTS

24 INLET BOARDWALK RECONSTRUCTION AND NEW SEAWALL $50 million infrastructure investment project o Partnership with the Army Corps of Engineers, FEMA,NJEDA, NJDEP and NJDCA o Reconstruction of Boardwalk from Oriental Avenue to Gardners Basin o Construction is scheduled to begin Spring 2015

25 BALTIC AVENUE FLOOD GATES Part of the City s aggressive program to be more resilient to storms and flooding. This preemptive measure will protect two thirds of the city, especially waterfront properties. Funded by partnerships with USEDA, FEMA and other State agencies Construction expected to start Spring 2015.

26 STREET PAVING 2014 and 2015 paving projects o $6.3 million Pacific Avenue o $882,000 Maryland Avenue o $675,000 Arctic Avenue (2014) o $200,000 Arctic Avenue (2015) o $210,000 Ventnor Avenue o $187,000 Marmora Avenue

27 QUALITY OF LIFE AND GREEN PROJECTS

28 COMPLETE STREETS: BIKE PATHS/STREETSCAPES/SHARED SPACES

29 SOUTH INLET GREENWAY Consisting of three contiguous blocks starting from the inlet and ending at the historic Absecon Lighthouse, this greenway offers tennis courts, playgrounds, basketball courts, green open spaces, meandering paths, and the opportunity to climb one of the oldest and most historic lighthouses in the country.

30 HAROLD R. BROWN MEMORIAL PARK

31 HAROLD R. BROWN MEMORIAL PARK $1.5 million upgrade funded primarily through federal, state and county open space programs, the improvements include universally accessible playground equipment, an amphitheater, retention of shade trees, and wide open green spaces to serve the surrounding residents and adjacent community college. CHELSEA HEIGHTS RECREATION COMPLEX This $2 million Bayfront park improvements are funded primarily by state and county open space funds and will include turf fields, lighting, new bathrooms and other improvements.

32 URBAN HOUSING and MIXED USE / RETAIL DEVELOPMENTS

33 The Beach at South Inlet $100 million investment that will create 250 residential units and commercial opportunities. o Phase one will create the 250 multifamily residential units o Phase two will create commercial development supporting the local residential community o Ground breaking is scheduled for Spring 2015

34 The Breakers 140 CONDOMINIUMS 12 LUXURY TOWNHOMES. Currently under construction o o A high end residential development project with oceanfront townhomes along the boardwalk The next Breakers phase will include the addition of condominium units

35 BREAKERS INTERIOR RENDERING

36 New York Armory Lofts 32 RENTAL LOFTS Repurposing of the historic 1901 Morris Guard Armory on New York Avenue. Loft apartments will create a unique living space in the heart of the City s downtown. Officially under contract by Philadelphia based development group LPMG Companies. The 30,000 sq. ft. historic and aesthetically stunning building was constructed in 1901 as a home for The Morris Guards, an independent military club based in Atlantic City. LPMG will spend $3 million dollars turning transforming the building into an urban feel, mixed-use apartment building unlike anything that currently exists in Atlantic City.

37 Tennessee Green(RPM) 66 UNITS

38 Meadows 89 UNITS

39 EDUCATION AS DEVELOPMENT

40 THE GATEWAY HEAD START EARLY EDUCATION CENTER o 1433 Bacharach Blvd., Atlantic City, NJ (Block 293/Lot 1) o $21,372,481 development cost o Approximately 44,000-square-feet o For children and families displaced by hurricane Sandy, and with limited access to Head Start Services due to a reduction in Centers from five to two o Ground breaking is scheduled for May, 2015

41 SIGNATURE EVENTS & ENTERTAINMENT

42 TURN THE AC ON (NEW YORK POST) Each summer, Atlantic City experiences a seemingly alchemical transformation that derives from sun plus fun. Rays shine down, a warm surf laps at the shoreline, visitors flock to the gambling, dining, nightlife and a plethora of activities The famed boardwalk comes to life. Michael Kaplan, 13/04/13 o MISS AMERICA PAGEANT o INTERNATIONAL AIR SHOW o FREE BEACH and BOARDWALK CONCERTS o INTERNATIONAL SPORTING COMPETITIONS o GARDEN STATE FILM FESTIVAL o More

43 Contact Us City of Atlantic City Department of Planning & Development Suite 506, City Hall Atlantic City, New Jersey Telephone: (609)