Throughout the summer and months leading up to the grand opening of Revel, Atlantic City has been under a microscope of sorts. Casinos and city leaders have been feeling the pressure to revitalize the city — pressures that haven’t subsided after the height of the summer season.
‘Well the summer is not quite over and it’s still warm and we still expect to do a brisk business for the next month or two,” said John Palmieri, executive director of the Casino Reinvestment Development Authority. “You know we’re focusing on the non-gaming activities.”
Palmieri says although gaming is key to the economic vitality of the city and region, identifying other attractions is fundamental to Atlantic City’s growth. A Jimmy Buffett’s Margaritaville complex at the Resorts Casino Hotel is one the first big projects. Ground could break as early as this month on the $40 million addition.
“We expect to enjoy visitation that might exceed 500,000 new visitors a year with Margaritaville,” Palmieri said.
The Golden Nugget’s Executive Vice President and General Manager Tom Pohlman says the city’s history of years of declining revenue requires all casinos to examine a shift in strategy.
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“I think properties are still making money. Are they making as much money as they were? No. And that’s the problem. There are some properties losing money,” Pohlman said. “But I think it forces every property to really focus on what’s important.”
Despite the city’s new resort, Revel and other expansions the gaming town is still plagued with crime and homelessness, problems that some critics say will continue to drive tourist away.
“We’ve begun to focus on what we can do to create a better management system,” Palmieri said. “There are not going to be any immediate answers. This is a larger, national problem, but we can do our part to create some efficiencies and to help the not-for-profit that runs it do a better job.”
Palmieri says the CRDA has been working with the shelter, the county executive and state officials and within the next two to three months he expects announcements will be made on plans designed to improve the city’s homelessness.
Palmeiri says the CRDA has gotten calls from big investors and developers who have expressed interest in non-gaming initiatives. He wouldn’t reveal who’s reached out to the Development Authority just yet, but Palmieri says as the economy improves and the new marketing campaign — DO AC — gains traction, Atlantic City will attract developers willing to invest.
Lauren Wanko reports from Atlantic City.