Atlantic City’s closed Revel casino is fighting to keep the resort from collecting million in unpaid taxes through a tax lien sale.
The casino’s owners have appealed a bankruptcy court ruling that would allow the city to hold a tax lien auction. The city—which reached an agreement with Trump Entertainment on that company’s back taxes stemming from the closed Trump Plaza and also the bankrupt Taj Mahal casino—wants to hold the tax sale December 11.
Revel’s appeal comes as it is trying to salvage a $110 million sale of the casino—which cost $2.4 billion to build—to Brookfield Property Partners.
The company announced it was backing out of the deal after winning a bankruptcy auction for the property. The company said it was backing out because it was unable to secure a better utility contract with ACR Energy Partners, which owns the casino’s separate power plant.
A meeting to save the sale was scheduled for early last week, but it is unclear if the meeting even happened. Revel attorneys have said the sale must close by November 28 and Brookfield, so far, has not provided an official notice terminating the deal.
Neither side has commented on the negotiations.
ACR Energy Partners is a venture of DCO Energy and South Jersey Industries, and the hotel casino is ACR’s only customer. Its contract with Revel includes on top of energy costs a $1.7 million monthly fee to allow ACR to recoup construction costs and investment returns.
Those high costs have often been pointed to as a reason for the casino’s unprofitability.
The backup bidder in Revel’s bankruptcy auction, Florida investor Glenn Straub, has also said in court that he also would not accept the terms of Revel’s contract with ACR Energy.
The energy provider said in September that it may have to file for bankruptcy itself if Revel or a new owner does not begin making payments again.
