THE SCAM: Closing of Revel Casino Deals Another Blow to Atlantic City

TAXPAYER FUNDS and PUBLIC PENSION USED to fund an INSOLVENT CASINO?

Revel had a complex history - the union fought the
taxpayer subsidies. [This was Gov. Christie's baby!]
When Revel opened, it was NON-UNION.

Questions were raised initially about SOLVENCY!
[NJ with Steve Perske as Chairman of the Gaming
Commission approved Trump and Merv Griffin, both
of which were clearly insolvent and the pattern
seems to have continued.]

This should raise questions about Caesars, MGM and
Mohegan Sun and the willingness of the MA Gambling
Commission to rubber stamp these folks.

There are a number of serious issues with Revel,
beyond taxpayer subsidies.

1. Infrastructure was upgraded to support increased
traffic. [Isn't that what will happen in Massachusetts?]

2. Public Pension $$$ was invested.

3. The projections were GROSSLY OVERSTATED.

4. This screwed Atlantic City out of tax revenue.

5. The project was massively underfunded if they
couldn't pay initial construction costs.


There are consistent patterns that are PREDICTABLE!



FYI - there are 66 articles posted on this link.
At the bottom, just click 'OLDER POSTS' or click
and drag the topic.

The most recent articles mostly pertain to the bankruptcies.
http://middlebororemembers.blogspot.com/search/label/Revel


The restructuring will wipe out 82 percent of its debt, leaving it with a manageable $272 million in debt.

http://www.phillyburbs.com/ap/state/nj/revel-bankruptcy-plan-includes-allowing-smoking/article_34131617-74f5-5f19-8a19-27d99c838950.html



Revel owes $12 million in unpaid taxes to Atlantic City

A joint statement issued Friday by the city and Revel said both sides hope to reach an agreement next month on Revel's true tax debt. Atlantic City is issuing $100 million in bonds this year for such refunds; last year's total was an additional $35 million in refunds.

Read more: http://www.vcstar.com/news/2012/nov/30/sweeney-revel-casinos-finances-dire/#ixzz2DqPVRGde
- vcstar.com

Taxpayer Subsidized Revel not paying construction bills
For months, Local 54 has questioned whether Revel meets the “financial stability” requirement that is a key part of a New Jersey casino license. Local 54, Atlantic City’s largest casino union, has repeatedly battled with Revel over attempts to unionize the casino’s work force. Local 54 also has objected to public subsidies given to Revel, including $261 million in state tax breaks over the next 20 years.

http://www.pressofatlanticcity.com/news/breaking/more-than-construction-companies-file-liens-against-revel-claiming-nonpayment/article_08511852-3b59-11e2-a65e-0019bb2963f4.html

Revel had the most to lose in the shutdown. It opened only seven months earlier, is carrying the most debt, and is still trying to develop a clientele. The $2.4 billion mega-casino, built with more than $300 million in state credits and tax rebates, lost five days of business to Sandy, reopening at noon Nov. 3.

http://www.philly.com/philly/business/20121115_Analysts__Ailing_Revel_casino_will_find_it_hard_to_recover_from_Sandy.html#ixzz2CIOwnn7f


Hedge fund's risky ties to Revel casino shine light on N.J.'s investing habits
A hedge fund that manages $200 million in New Jersey public pension money also has a financial stake in Revel, Atlantic City’s newest and sleekest casino hotel, a Star-Ledger review of records from the state Division of Gaming Enforcement and Treasury Department shows. It’s a gamble that has put a share of public workers’ retirement income at risk if the struggling resort fails.

The investment caught the attention of the local casino workers’ union, UNITE HERE Local 54, which has fought Revel, a non-union shop.

"At the time of this deal, we couldn’t understand why any rational investor who relied strictly on financial considerations would put money into Revel," Bob McDevitt, the union president. "Now, as Revel’s revenue numbers disappoint month after month and more interest payments come due, will there be pressure for another bailout?"

The state Attorney General’s Office made it more difficult for the public to learn the identities of the hedge funds by granting a Revel request that they be exempt from public scrutiny on the ground that the funds didn’t hold enough of the casino’s debt. The Star-Ledger learned the identities of the hedge funds through filings with Gaming Enforcement,
http://www.nj.com/news/index.ssf/2012/09/hedge_funds_risky_ties_to_reve.html

Job lag at Anti-Union Revel is one more woe
Revel was supposed to be a job-generating machine - creating 5,500 full-time jobs with benefits as the biggest, most expensive casino ever built in New Jersey.

But to date, Revel has created only 2,780 full-time jobs - half of its original promise, according to figures reported by the casino earlier this month to the New Jersey Casino Control Commission. The number grows to 3,837 total employees if part-timers are included.

....the nonunion Revel received more than $300 million in state assistance to get built - including $2.6 million for employee training - on the premise that it would create thousands of jobs and tax revenue for Atlantic City and the state.

http://www.philly.com/philly/business/20120826_Job_lag_is_one_more_Revel_woe.html?page=2&c=y#ixzz24exeGgN2

The Poster Child for Failed Government Policy
...New Jersey encumbered Taxpayers in this charade, even investing in $42 million in infrastructure improvements [South Inlet Transportation Improvement Project].


"It is appalling that Revel has taken hundreds of millions of dollars in state assistance, and then it turns around and institutes anti-worker policies,"

"Revel's policies of term-limiting service employees and huge use of part-time workers are a direct attack on the labor movement,"


Saturday, March 24, 2012
The future of Suffolk Downs?
The undertaking is the largest in the city since the $330 million Atlantic City Expressway Connector opened in 2001.
State traffic counts have not been updated since May 2007, but figures from then show 27,151 vehicles on average used the Atlantic City Expressway on a given day.

This draws interesting parallels to SUFFOLK DOWNS. If 90% of this traffic takes place during about a 10 hour period during the day, that's 2400 vehicles per hour or 40 per minute. Where are the traffic studies contained in the REPORT Senator Petruccelli refused to provide?

Revel: OSHA for Death of Worker

Saturday, March 26, 2011
Union sues to stop bailout of Revel


Revel has also sought a $56 million municipal bond to help with road improvements around the project, and has applied for a five-year property tax abatement from Atlantic City that would save the company $50 million in local property taxes.

Closing of Revel Casino Deals Another Blow to Atlantic City

More Than 3,100 Jobs to Be Lost When Casino Shuts Its Doors

By Josh Dawsey and Heather Haddon


The mammoth Revel Casino Hotel, with its curving facade, high-end restaurants and pulsating nightclubs, was heralded as a game-changer in Gov. Chris Christie's push to revitalize Atlantic City.

But Revel announced Tuesday it would close next month after two years of operation, possibly carrying away 3,000 jobs from the beleaguered seaside city and dealing a setback to Mr. Christie's vision for its renewal. Revel had already filed for...

http://online.wsj.com/articles/atlantic-city-s-revel-casino-to-close-in-september-1407850347




On the right side of this blog, is a category list. Click on a category to review articles posted about a topic.


REVEL was ANTI-UNION and TAXPAYER SUBSIDIZED!

No Great Aptitude was required to KNOW this project was insolvent.


Who got CHEATED?   Taxpayers and Investors!