The closed Revel casino could see a 0 million upgrade from its new owners and reopen next year.
James Kehoe, the chairman of the Casino Reinvestment Redevelopment Authority, speaking to the business group the NJ Alliance for Action, said Brookfield Asset Management Inc.—the investment firm trying to buy the property through a bankruptcy auction—hopes to close on the purchase by early December.
“We hope they come to town,” he said, neglecting to mention that Brookfield is currently in a 90-day evaluation period, at the end of which it can terminate the deal.
Revel cost $2.4 billion to build and opened in 2012, but was never able to turn a profit. It was sold in a bankruptcy auction last month for $110 million to Brookfield, which also operates the Hard Rock casino in Las Vegas and the Atlantis Paradise casino in the Bahamas.
The company has said they plan to reopen the property as a casino, but have not released details of their plans.
Kehoe told the meeting that one of the most promising things about the deal is Brookfield’s casino experience.
“One thing they bring is a book of business,” he said.
The sale to Brookfield, however, is being challenged by Florida developer Glenn Straub who was the initial bidder for the property, but lost during the auction. Straub has appealed the bankruptcy auction results saying the auction was not conducted fairly and transparently.
Kehoe, however, was optimistic about the sale and what Brookfield’s plans could do for the struggling resort.
Meanwhile, Bankruptcy Judge Gloria Burns has ruled that Atlantic City can collect millions in unpaid property taxes owed by Revel.
The casino reportedly owes the city $32 million in unpaid real estate taxes and interest, according to court documents.
The city can now collect the taxes provided it does not levy any penalties for delinquency. The city has planned to conduct a tax certificate sale for the unpaid taxes in December.
Burns also ruled that Revel cannot reopen a case to challenge a settlement of its assessed value with the city that set its assessment for 2014 and 2015. Revel officials say they will appeal.
