Stockton/Showboat $539k legal bills+400k/mo
Quote: 7star4nowhttp://www.northjersey.com/news/stockton-university-facing-539-000-in-legal-bills-tied-to-atlantic-city-casino-purchase-1.1329003
Stockton University rushed a $18 million deal to buy the Showboat casino from Caesars Entertainment, even tho showboat was going to declare bankruptcy the next month.
Why not wait till after bankruptcy and buy it cheaper?
The university subsequently reached an agreement to sell the property to the Florida developer Glenn Straub for $26 million.
$8M flip?!
why would Straub pay $8M more when he knows the University is desperate to get rid of it because they cant turn it into a school like they wanted because of the Taj?
and it's costing them $400k/month in utils and $200k/month in skeleton crew employees.
1) Straub lowballed Revel. Why didn't he do the same here?
2) how is the Taj involved in this?! why do they have a covenant on the Showboat?
Did Trump own it before selling it to Caesars?
3) WTF $400k/month utils for an unused property?
4a) why did the University hire back 35 Showboat employees?
b) and at an avg compensation of $70k/yr?! (why so high instead of, say, a little above minimum wage?)
then Straub steps in and makes it look like a genius investment by the University.
Strawman purchase?
Quote: 100xOddsStockton University rushed a $18 million deal to buy the Showboat casino from Caesars Entertainment, even tho showboat was going to declare bankruptcy the next month.
Why not wait till after bankruptcy and buy it cheaper?
The university subsequently reached an agreement to sell the property to the Florida developer Glenn Straub for $26 million.
$8M flip?!
why would Straub pay $8M more when he knows the University is desperate to get rid of it because they cant turn it into a school like they wanted because of the Taj?
and it's costing them $400k/month in utils and $200k/month in skeleton crew employees.
1) Straub lowballed Revel. Why didn't he do the same here?
2) how is the Taj involved in this?! why do they have a covenant on the Showboat?
Did Trump own it before selling it to Caesars?
3) WTF $400k/month utils for an unused property?
4a) why did the University hire back 35 Showboat employees?
b) and at an avg compensation of $70k/yr?! (why so high instead of, say, a little above minimum wage?)
The only one I can correctly answer is 2) because I read the answer in a gambling mag a month ago - the article was about the situation with the Taj's interjection in the Stockton deal.
Back in mid 90's when Taj was being built the three lower boardwalk properties, Showboat, Resorts and Taj signed a compact to never allow those buildings to be used for anything other than a casino. The purpose was to obtain some sweetheart deals from the state which was trying desperately to draw business to the lower end of the boardwalk because the multitude of the crowds were naturally going to the upper end where Bally's, caesars, Sands, Claridge, Tropworld, Hilton and Trump Plaza were all situated in a small clump of footprint.
Caesars expected this decades old compact to be relatively ignored by Taj especially since Caesars operating plan has been to eliminate casino competition (they insisted Claridge and AC Club both be converted into non-casinos after purchasing them just to eliminate competition). Unfortunately, Taj didn't share their marketing goals and felt a college of underage drinkers and non-gamblers was bad for their security (sudden jump in under-agers attempting to get on their property for under-age gambling was cited) and also their adult patrons would be disturbed by loud teenagers across the street (those old Animal House fraternity parties). So, Taj blocked the deal legally by citing and insisting on the veracity of the old but still legally binding covenant.
Read this in a print newspaper and can't remember which one but that was the gist of it all.
Quote: coilmanMy brother in law worked construction his whole life...most of it building the casinos of Atlantic City. Word from him was REVEL bought SHOWBOAT so they could use it to feed REVEL the electricity it needs.
how?
and wouldn't $26M buy Straub a few lines directly to the electric grid?
Quote: 100xOddshow?
and wouldn't $26M buy Straub a few lines directly to the electric grid?
Does SHOWBOAT have its own private powerhouse to heat the building using gas boilers? Steam turns turbines to generate electricity which may or may not be used at both properties? Plus a few steamlines to REVEL to get them the heat they will need ? Plus you always need a system feeder line to supply you incase the gas generators are not online ...and when they are you can sell back the excess to the power suppliers..( this is just my thinking...after reading about the costs to have showboat to the University )
http://www.pressofatlanticcity.com/communities/galloway/stockton-pays-per-month-to-maintain-showboat/article_e0a0c338-f510-11e4-a03e-cf0b2854608c.html
Read more at http://www.philly.com/philly/blogs/downashore/Revel-Energy-Company-Tries-to-Explain-Itself-.html#11L2vwg6VEb2WWqa.99
http://www.philly.com/philly/blogs/downashore/Revel-Energy-Company-Tries-to-Explain-Itself-.html
the big part is this here....but if STRAUB owns showboat he would no longer be selling electricity to a THIRD PARTY
Myth: Polo North can obtain energy from the Showboat power plant under a contract with Stockton.
Fact: There are at least three problems with that statement. First, under New Jersey law Stockton is prohibited from selling electricity acquired from a utility (Atlantic City Electric) at a profit to a third party (Polo North) as currently outlined under the purported contract. Second, the Showboat property is not adjacent to Polo North and any attempt to sell electricity from one property to another would infringe upon Atlantic Electric's franchise rights in the city. Three, there is a deed restriction on the Showboat property that requires it to be operated as a "first class casino hotel", not an energy plant.
Read more at http://www.philly.com/philly/blogs/downashore/Revel-Energy-Company-Tries-to-Explain-Itself-.html#11L2vwg6VEb2WWqa.99
You couldn't make this stuff up, even if you tried.
http://www.timesunion.com/news/article/Straub-sues-Stockton-University-over-Showboat-6361292.php
Quote: MrsHeartRNMore problems for the Stockton College/Straub/what was once known as Showboat debacle.
You couldn't make this stuff up, even if you tried.
http://www.timesunion.com/news/article/Straub-sues-Stockton-University-over-Showboat-6361292.php
i think nj elected officials are thanking god that straub got involved.
imagine the mess the atlantic city (and NJ) would have to deal with if straub didn't buy revel and sign the contract for Showboat?
Straub has done zero in the way of doing anything positive for AC to date. Hopes and dreams don't put bread on the table.
Quote: IntheknowThe contract has been voided. Stockton is seeking a buyer.
Straub has done zero in the way of doing anything positive for AC to date. Hopes and dreams don't put bread on the table.
has straub done more harm than if he never got involved in either showboat or revel?
if so, how?
Quote: 100xOddshas straub done more harm than if he never got involved in either showboat or revel?
if so, how?
I think it's very possible he's done more harm than good all ready. Two ways at least. One, he's delayed any meaningful or useful redevelopment (as a casino or otherwise) for those properties. They've sat vacant now for coming up on a year and we are no closer to anything actually happening to reopen the doors.
Two, his clown car act of goofy ideas and pie in the sky dreams, makes the whole thing such a circus it has to scare away some potential developers who might otherwise be interested in working with him or AC.
So basically Glen sits in his glass tower in the sky and fiddles while AC burns slowly to death.
