Revel Tall Dark and empty
I have a feeling that between lawyers and mold Revel has less of a chance of re-opening as each day passes.
If ever there was time for government intervention this is it. Someone or some entity needs to buy this power plant and sell utilities to Revel.
Quote: dave12038457I am beginning to doubt my former belief that Straub would save Revel.
I have a feeling that between lawyers and mold Revel has less of a chance of re-opening as each day passes.
If ever there was time for government intervention this is it. Someone or some entity needs to buy this power plant and sell utilities to Revel.
Revel is dead. Rehab it for beachfront condos.
Quote: Mission146Assisted Living beachfront condos.
Do you really mean Assisted Living for old sick people or did you mean Senior Housing for those 55 years or older?
Quote: BozWells Fargo now offering to pay 2 weeks electric. Surely not out of the kindness of their heart. Something more is up here.
I was thinking the same thing.
Quote: BozWells Fargo now offering to pay 2 weeks electric. Surely not out of the kindness of their heart. Something more is up here.
yep- conspiracy theorists gold mine here (I may join them on this news)
- Is Straub really fronting a big operator?
Quote: BozWells Fargo now offering to pay 2 weeks electric. Surely not out of the kindness of their heart. Something more is up here.
Yes something is most definitely up. Straub has shown no real interest, or ability, in running a casino in the former Revel. So if he has a plan to flip it, or lease the casino operations to an experienced operator that would actually make more sense. Then he could concentrate on his genius school over at showboat. What ever happen to his plan to run a giant extension cord from showboat to Revel? Oh wait, that would be a big project and take months, and requires tons of permits and hearings probably. Oh..I guess that isin't going to work. How about just bringing in some generators. Oh wait, not that simple either....Idiot.
Quote: boobertI don't think anyone has a problem paying the electric bill, even Straub. It's that 15% guaranteed interest rate for those municipal bonds.
Did the muni bonds really survive the bankruptcy without restructuring? That's crazy!
Also, the power bill is WAY more than 15% over market. Even if you apply a huge amortized CIAC to the market price to connect the facility to the grid, you'd still do better than the current power supply arrangement.
Quote: vendman1Well it didn't occur to a property developer that just spent 100 Million, on a building that he would need electricity? I mean he knew about the power issue going in. Yes Revel is overpaying for power, that was one of the issues. He should have priced that into the deal. I've run a business for 20 years, and done dozens of deals. It's not that complicated. At that level he has a team of lawyers and accountants. Why can't somebody figure this out? It's embarrassing to Straub, the city of AC, and the state of NJ, that they can't figure something out.
The bizarre thing to me is, he bought the place for less than 5% of what it cost to build. Did he have NO plan or budgets for overhead costs? Re-start costs? Finishing incomplete floors? Remodeling for whatever future use he intends? Did he not have to demonstrate any additional funds and intent to the court before they found him to be a qualified purchaser? NJ/the courts HAVE to have seen huge issues coming if AC had a derelict monster; did they just cross their fingers and pray before they let this guy buy it?
Quote: beachbumbabsThe bizarre thing to me is, he bought the place for less than 5% of what it cost to build. Did he have NO plan or budgets for overhead costs? Re-start costs? Finishing incomplete floors? Remodeling for whatever future use he intends? Did he not have to demonstrate any additional funds and intent to the court before they found him to be a qualified purchaser? NJ/the courts HAVE to have seen huge issues coming if AC had a derelict monster; did they just cross their fingers and pray before they let this guy buy it?
Yes. We are desperate here in AC and NJ. It's the retard State, sorry if I offended any retarded people with that comment.
Quote: beachbumbabsThe bizarre thing to me is, he bought the place for less than 5% of what it cost to build. Did he have NO plan or budgets for overhead costs? Re-start costs? Finishing incomplete floors? Remodeling for whatever future use he intends? Did he not have to demonstrate any additional funds and intent to the court before they found him to be a qualified purchaser? NJ/the courts HAVE to have seen huge issues coming if AC had a derelict monster; did they just cross their fingers and pray before they let this guy buy it?
Seems like the judge just wanted to wash her hands of it once it was clear he was the only one interested. He is clearly an idiot, yes a rich one, but still an idiot.
I do blame all involved but feel that the government is getting paid off somehow here. How can they not fight for this plce to open for summer? I could see an old maybe rundown property, but not revel. maybe I'm expecting too much, but it just seems that everything that happens in AC is made way harder than it should be.
Quote: pens4821While I agree straub is an idiot, I also think the government is a joke. No wonder why AC has fallen so much. I'm not from the area nor do I follow it in detail, but from what I've seen the government is as much a problem as anything. Why don't they sit down with everyone involved and try to work something fair out for everyone? It seems as if they don't care what happens to the city. No matter what straub does with the property, I would think I would be the best thing for AC to have a new prime resort right on their beachfront.
I do blame all involved but feel that the government is getting paid off somehow here. How can they not fight for this plce to open for summer? I could see an old maybe rundown property, but not revel. maybe I'm expecting too much, but it just seems that everything that happens in AC is made way harder than it should be.
+1
Quote: IntheknowYes. We are desperate here in AC and NJ. It's the retard State,.
I'm sure there are some non retarded people
there. Can't prove it, though..
(as good an idea as anything else, from what I can tell)
Quote: EvenBobI'm sure there are some non retarded people
there. Can't prove it, though..
Nope. Just some less retarded then others, maybe.
You can't see the ocean from the boardwalk, nuff' said.
Quote: pens4821While I agree straub is an idiot, I also think the government is a joke. No wonder why AC has fallen so much. I'm not from the area nor do I follow it in detail, but from what I've seen the government is as much a problem as anything. Why don't they sit down with everyone involved and try to work something fair out for everyone? It seems as if they don't care what happens to the city. No matter what straub does with the property, I would think I would be the best thing for AC to have a new prime resort right on their beachfront.
I do blame all involved but feel that the government is getting paid off somehow here. How can they not fight for this plce to open for summer? I could see an old maybe rundown property, but not revel. maybe I'm expecting too much, but it just seems that everything that happens in AC is made way harder than it should be.
+2
http://newjersey.news12.com/news/judge-new-revel-owner-can-cancel-tenant-leases-1.10308462
The former owners of Atlantic City's Revel casino are acknowledging a long list of mistakes that helped kill the $2.4 billion resort, including an onerous energy contract that strangled the property from the get-go.A proposed disclosure statement for its bankruptcy case filed Monday includes a history of Revel, which shut down last September without ever having turned a profit.The filing puts much of the responsibility on Revel's initial management, led by former CEO Kevin DeSanctis. It lists problems from construction cost overruns, taking on too much debt, the failure to attract day-tripping gamblers, pricey food and beverages, and startup glitches with marketing and technology.But one of the costliest missteps - and one that continues to plague it now, even as a shuttered building - was its contract with its sole utility provider. It has long been known that the power plant was a financial drag on Revel, but the filing details just how bad the terms were for the casino.The contract obligated Revel to pay the firm not only for utility service, but to help pay down debt from its construction, and it also guaranteed the company a 15- to 18-percent return on its investment. Its contract with ACR wound up costing Revel $2 million a month, over and above its actual energy costs...Some of the missteps included in the filing were well-known, like the high price of food and drinks at the casino, its initial lack of a players' club, and its initial disdain for day-trip gamblers, which have long been the bread and butter of Atlantic City's casino industry. But the report also reveals some details, including the price that original owner Morgan Stanley got for Revel when an investment group headed by DeSanctis took over in Feb. 2011: $30 million...The filing also said a general contractor working on the project "made a series of significant budgeting errors that were not disclosed until right before the April 2012 opening," resulting in Revel being at least $100 million over budget when it began operating.
Read more at http://www.philly.com/philly/business/20150421_ap_f742ad6ccfdd4d8a828f0550d4bf3655.html#5lVT2sG0tlOw3RW6.99
Quote: 7star4nowcosting Revel $2 million a month, over and above its actual energy costs...The filing also said a general contractor working on the project "made a series of significant budgeting errors that were not disclosed until right before the April 2012 opening," resulting in Revel being at least $100 million over budget when it began operating.
So they knew they were doomed the
day they opened. Sounds about right..
Add to that no buffet, no smoking, no
players club in the beginning, no buses
running from NYC bringing in players.
A recipe for disaster.
Quote: 7star4nowThe former owners of Atlantic City's Revel casino are acknowledging a long list of mistakes that helped kill the $2.4 billion resort, ...
I'm surprised the "You can't lose" promotion wasn't listed as one of the reasons.
Mobile Generator Article
The plant has large steam boilers that heat Revel. If one is going to the expense of building large boilers and has a need or market for electricity it is good practice to install a steam turbine generator. An efficient plant can produce electricity for as little as 1/2 the cost of buying it from a utility. You can also sell electricity back to the utility.
Steam can also chill water through an absorption chiller. Pipe this chilled water through a building and viola! you have air-conditioning.
Borgota has a power plant on Absecon Blvd. There is another one that supplies Boardwalk Hall and a few casinos. It is on Atlantic Ave behind Bally's and Claridge.
Quote: dave12038457The power plant would save the Revel money in the long run if it hadn't done the screwy finance deal with the company that owns/operates it.
The plant has large steam boilers that heat Revel. If one is going to the expense of building large boilers and has a need or market for electricity it is good practice to install a steam turbine generator. An efficient plant can produce electricity for as little as 1/2 the cost of buying it from a utility. You can also sell electricity back to the utility.
Steam can also chill water through an absorption chiller. Pipe this chilled water through a building and viola! you have air-conditioning.
Borgota has a power plant on Absecon Blvd. There is another one that supplies Boardwalk Hall and a few casinos. It is on Atlantic Ave behind Bally's and Claridge.
I'm not an expert on power plants. But I've heard the general gist of what you are saying from others as well. That the power plant itself would have been a good idea...in the long run. But overburdened with debt as Revel was, the last thing they needed was a bad financial deal with a power plant, that resulted in a power bill of 2 million a month. They had no chance of ever seeing the "long run". Hard to recoup a long term capital investment if you are bankrupt twice in 2 years. Now there is no easy way to separate the bad financial deal of the power plant from the hotel itself. The whole thing is a clusterf**k of mammoth proportions.
hates casinos that designed the Revel?
How come we never hear from her
anymore. Talk about a millstone on
your portfolio..
Quote: 1BBWalked by Revel this morning. One security guard in a golf cart sound asleep.
Good to see some things haven't changed.
Quote: vendman1I'm not an expert on power plants. But I've heard the general gist of what you are saying from others as well. That the power plant itself would have been a good idea...in the long run. But overburdened with debt as Revel was, the last thing they needed was a bad financial deal with a power plant, that resulted in a power bill of 2 million a month. They had no chance of ever seeing the "long run". Hard to recoup a long term capital investment if you are bankrupt twice in 2 years. Now there is no easy way to separate the bad financial deal of the power plant from the hotel itself. The whole thing is a clusterf**k of mammoth proportions.
Now the president of Stockton university, which bought Showboat, has resigned. They stick their toes in atlantic city and look what happens. Unreal. You can't make this stuff up.
Quote: boobertThe power cost is not the problem. It's the 20 year guaranteed interest on the municipal bonds used to build it. That deal survived the first bankruptcy but it's been the major reason for Revel's failure since the beginning.
OK I understand that. But the reason there is 20 years of interest on muni bonds on the power plant, is Revel ran out of money twice during construction. It's a moot point either way. The cost for power for Revel is triple that (at least) of other properties. It's still a financial albatross around the neck of whomever tries to operate the casino. Doesn't matter if the reason for the cost is interest payments, or the power itself, someone still has to pay the bill. Which is the point I was trying to make. They should have factored that in when purchasing the hotel in bankruptcy. But didn't, or didn't seem to.
Quote: IntheknowNow the president of Stockton university, which bought Showboat, has resigned. They stick their toes in atlantic city and look what happens. Unreal. You can't make this stuff up.
Does someone follow these people around AC playing circus music wherever they go? Because it sure seems like it. I wonder if there are clowns too? Wait, I know the answer to that.
Quote: IntheknowNow the president of Stockton university, which bought Showboat, has resigned. They stick their toes in atlantic city and look what happens. Unreal. You can't make this stuff up.
How is it possible for one city to attract (3) most clueless humans, as owners- in such a short period of time?
Glen Straub makes Kevin Descantis look like a visionary marketing genius.
"Saatkamp, who has been president of the school for more than a decade, sent his resignation to Stockton’s board of trustees privately on Tuesday, in a letter in which he explained that he’d primarily stayed in his post this long to oversee the foundation of the so-called Island Campus in Atlantic City. But ever since he spearheaded the purchase of the bankrupt Showboat casino on December 12, 2014, the project -- which could end up costing the public university more than $26 million -- has been beset with so many problems that it's future is uncertain at best. Trustees have resigned.
Students are railing against a plan to sell the building to a man who made racist remarks.The latest complaint comes from the faculty. Despite Saatkamp’s resignation, they’re still considering issuing a nonbinding statement of condemnation for what they consider his rushing into the purchase of the Showboat without enough transparency."
Could Saatkamp have gotten a little "personal" parting retirement gift from CET for pulling off this kamikaze mission ?
Read more at http://www.philly.com/philly/blogs/njspotlight/njspotlight_20150423_Stockton_President_Resigns_Over_Purchase_of_Bankrupt_Showboat_Casino.html#YOA7EXXk7FsewhrD.99
But a 1988 covenant on the site requires that it be operated as a first-class casino hotel. Trump Entertainment, a party in the covenant, notified college officials in March that the company intended to enforce the covenant. Stockton officials had purchased the site knowing about the covenant but believing it would be released."
http://www.pressofatlanticcity.com/education/stockton-university-president-resigns/article_70b588de-e911-11e4-90b1-2f010a25c2ae.html
That last sentence is a real eye opener. He must have been told by someone in authority that the covenant would be released.. but who....the mayor? lawyers for CET? UK?
I personally would never buy a property on the BELIEF of anything unless it was a sure thing and I had it in writing. Shame on you for not doing your due diligence.
"Lawmakers want accounting of money spent on effort to turn Atlantic City casino into campus
The chair of the state Senate’s budget committee on Thursday sent a letter to Stockton University President Herman Saatkamp asking him to appear before the panel next week to answer questions about the rushed purchase of the Showboat hotel and casino.
Stockton spent $18 million on the Mardis Gras-themed Boardwalk property in December and may be on the hook for millions more in carrying costs since a neighboring casino has refused to waive a restrictive covenant that requires the site to remain a casino.
The snag has many questioning whether Saatkamp and the school properly vetted the deal, and the president this week announced he will resign at the end of the summer.
“I had called this proposal bizarre from the beginning, and now that it has collapsed there are a lot of questions,” said Sen. Paul Sarlo, the budget chair. “Clearly what has developed over the last three months is beyond bizarre.”
Sarlo, D-Wood-Ridge, said he wants Saatkamp to explain the rationale for the deal and why the college proceeded with it despite the restriction. He said he also wants to know if Saatkamp was aware that Showboat’s owner, Caesars Entertainment, would declare bankruptcy the month after the deal closed"
http://www.northjersey.com/news/lawmakers-want-accounting-of-money-spent-on-effort-to-turn-atlantic-city-casino-into-campus-1.1316196
That wouldn't really happen- would it?
Tropicana Entertainment picks veteran A.C. exec to be new CFO
"Glebocki most recently worked for Revel Entertainment Group LLC, overseeing development and financial operations and concluding her time with the casino as its senior vice president, chief financial officer and treasurer. The Las Vegas-based company, a subsidiary of Icahn Enterprises L.P., said Theresa “Terry” Glebocki will serve as executive vice president-finance, chief financial officer and treasurer upon receiving the required governmental approvals"
Will this be the next AC Mayor?
http://toronto.ctvnews.ca/rob-ford-s-apparent-crack-tie-sells-for-1-445-1.2337714
Quote: BozI'm still trying to figure out what part UKStages played in all these misadventures. All 3 sound like they have a part of him in them.
Quote: jerrysnjThe AC Press is reporting that Polo North has reached a two week agreement with ACR to supply power while they work out a long term deal. The Polo North should be powered up by Friday.
It's still Revel to me, though Polo North may become a bigger joke than Revel ever was.
