The New Jersey Casino Reinvestment Development Authority has ruled that Carl Icahn’s Tropicana Entertainment is eligible for $5.6 million in casino reinvestment funding to demolish part of the former Trump Plaza casino In Atlantic City.
The entire demolition project is set to cost $13.2 million. Lawyers for Icahn said one of two hotel towers at the site will be demolished.
Though casino reinvestment taxes were redirected to help pay down Atlantic City’s municipal debt by law last year, funds collected before the change are still eligible to finance local development projects.
City officials see the re-opening of the Trump Plaza property—which sits on the Boardwalk at the end of the Atlantic City Expressway, the main entrance to the city—as vital to re-development in the city.
Robert Mulcahy III, authority chairman said the demolition could help attract new development at a prime location in the resort.
“We all feel the demolition of this tower is in the best interest of Atlantic City,” he said. “It’s part of the gateway into the city. That land could be very valuable.”
Outgoing Atlantic City Mayor Don Guardian—who sits on the CRDA board—voted against the measure and wondered why Icahn would need assistance to demolish the site.
“I agree this project needs to come down,” said the mayor, who leaves office in January. “But why are they asking us for $5.6 million? You’re already responsible for the project closing and the loss of jobs and the suffering the city has gone through.”
Trump Plaza closed in September 2014 and was later acquired by Icahn out of bankruptcy.
In another matter, the authority has approved a $10 million renovation of the city’s Boardwalk Hall lobby.
The funding comes from a $253 million bond issued in 2014. The bond set aside more than $100 million for upgrades to Boardwalk Hall and the Atlantic City Convention Center, according to the Press of Atlantic City.
“The lobby is outdated,” CRDA Executive Director Chris Howard said. “It’s 33 years old and looks every bit of it. It’s the first thing that people see, and it’s not welcoming. It doesn’t look world class.
“There is a ton of space that is unused,” Howard said. “We hope to have a space that will be able to host events like holiday parties, pre- and post-show parties, after it’s completed. Right now, no one wants to do that with the current lobby.”
