By Brenda Flanagan
Correspondent
“Caesars couldn’t you have picked another day to declare bankruptcy?” asked Atlantic City Mayor Don Guardian.
Guardian cracked a couple quips, but talk about irony, as he previewed his State of the City speech at Caesars Atlantic City. Along with Bally’s — it’s among some 50 properties owned by parent corporation Caesars Entertainment — which filed for Chapter 11 bankruptcy today. Caesars CEO says all its casinos will remain open, events will proceed on schedule, staff will stay employed and guests will remain welcome.
“We want to emphasize as we move through this process, all of our properties are open for business and continue to operate normally,” said Gary Loveman.
In Atlantic City, Caesars closed Showboat last September and revenue’s steadily dropped at both Caesars and Bally’s here. Caesars Entertainment Corp. says it needs to restructure an $18 billion debt load.
“The restructuring plan will significantly reduce the money every year CEOC spends paying down the debt and interest on the debt while assuring significant recoveries for creditors and assuring no interruption of operations across Caesars’ network of properties,” Loveman said.
“Caesars has announced it’s not going to have a direct effect on Atlantic City in terms of jobs, contracts and salaries and I think it’s just a necessary part of doing business. Financial restructuring is the reason General Motors and Macy’s and United are much stronger today than they were,” said Guardian.
Analysts have speculated Caesars might close another Atlantic City property and Guardian says the corporation’s not promising to keep them open.
“No, absolutely not. They didn’t promise me anything. I’m saying what I’m reading from what you guys write,” Guardian said.
When Atlantic City Race Course closes tomorrow, it’ll be another blow to the local economy.
“We have to stay with the times. Racing was great when they built it in 1947. I think we’ve gotta be looking toward the future. I told you it’s millennials we’re all about trying to attract to the city,” said Guardian.
Guardian shared his vision for a renewed Atlantic City with an enthusiastic crowd at the Metropolitan Business and Citizens Association. He admitted losing Showboat, Revel, Trump Plaza and Atlantic Club hurt his town tremendously. But Revel’s got a new owner — multi-billionaire Glenn Straub — with audacious ideas to refashion the sleek casino hotel. And Stockton State College bought Showboat and renamed it the Island Campus with classes starting this summer.
“We will have even more classes in the fall semester as we build up classes there. And students? Yes, we will have students living at the Island Campus this fall,” said Richard Stockton College of NJ Executive Vice President Harvey Kesselman.
From Gardner’s Basin to the Steel Pier, the mayor noted, developers are looking at innovative non-gaming attractions to bring tourists back to Atlantic City. But he says only a package of legislation that stabilizes Atlantic City’s finances will help it survive with the tax base ravaged by casino closings.
“The issue has always been the taxes, the municipal services budget, the board of education, the high cost of doing business. Once you stabilize the tax structure, everything is fine — AC Inc has a reasonable revenue base,” said Lloyd Levenson Institution of Gaming, Hospitality, and Tourism Executive Director Israel Posner, PhD.
The mayor says the city will keep tightening its belt, but with several major infrastructure projects like flood control in the pipeline he’s optimistic.
“2015 will be better than 2014. 2014 sucked,” he said.
With four casinos gone, Taj operating day to day and now two casinos in Chapter 11, you might paraphrase the mayor’s speech — whatever doesn’t kill you makes you stronger.