Jim Kennedy

Atlantic City Regional Economic Analysis - Jim Kennedy, MBA, JD

[Jim Kennedy @ACEconPolicy]

@evansanchez The property has a overhanging 10 year. Casino restriction.

[Jim Kennedy @ACEconPolicy]

Norcross purchases Trump Plaza

Based on recent tax and property records, the Philadelphi Business Journal….

George Norcross and his partners purchased the 10.7-acre former Trump Plaza Hotel & Casino site in Atlantic City for a total sale price of $5 million.
The breakdown of the purchase costs is as follows:
•Total Cost: $5,000,000
•Cost Per Acre: $467,289

What the Trump plaza shows is he believes boardwalk casinos will generate for the next five years ,parking revenue and after that there is a chance

[Jim Kennedy @ACEconPolicy]

@evansanchez Pretty much sounds like a parking lot and wait for the grandkids

[Jim Kennedy @ACEconPolicy]

The Atlantic City Press reports that the New Jersey Economic Development Authority will not consider a request for a tax break for the Sheraton Atlantic City Convention Center Hotel at its meeting Thursday.

With only one more meeting left before the hotel’s self-imposed Dec. 15 shutdown date if it does not get incentives under the state ASPIRE program.

The NJJEDA ASPIRE program rules are currently under review.
There is no new ASPIRE grant round set.

But, without new rules adopted it’s highly unlikely that new ASPIRE grants are awarded before March.

Sheraton owner Tom Scannapieco said Wednesday the Sheraton days appear numbered.

Without a Plan B the Sheraton days number is Dec.15.

[Jim Kennedy @ACEconPolicy]

“No one really knows how the game is played
The art of the trade
How the sausage gets made
We just assume that it happens
But no one else is in the room where it happens.”

The first draft of the CRDA Act gave the Atlantic County Executive a CRDA board seat. The second draft didn’t include a board seat.

For four decades the Atlantic County Executive s have been excluded from the governing process.

It makes sense to let the Atlantic County Executive have a seat in the room where it happens.

[Jim Kennedy @ACEconPolicy]

Atlantic City was incorporated in 1854. It’s 175 Anniversary is beginning to shake more like a Memorial than a celebration. The cadence must be changed. It cannot continue to be the beat of economic doom. Use three years well.

[Jim Kennedy @ACEconPolicy]

Fitch Ratings has downgraded to negative outlookAtlantic County Improvement Authority general obligation revenue bonds series 2016A and 2021A.

This is not necessarily bad …. but it will surprise most that Atlantic County is part of Stockton University’ fiscal mess.

The ACIA bonds finance the Atlantic City Stockton Campus development.

ACiA bonds present Atlantic County with no default risk.

[Jim Kennedy @ACEconPolicy]

The threat by the owners of the Sheraton Atlantic City Convention Center Hotel to close in December has already cost the city $147 million in lost convention and meetings business,
-Gary Musich, president and CEO of Visit Atlantic City,

The Sheraton developer Tom Scannapieco has engaged in an aggressive course of action which could result in the Sheraton closing and heavy losses to convention center business.

Scannapieco has made a demand for a $100 million state tax credit.

The Sheraton has for the past four decades ben part of Scannapieco’s development portfolio.

In the mid/1980’s Scannapieco was Atlantic City’s wonder kid developer in rapid succession putting together the Sheraton, Bella and a ton of row homes.

Scannapieco has deep AC experience,doesn’t blink and will milk the Sheraton for every dollar.

[Jim Kennedy @ACEconPolicy]

O ah

[Jim Kennedy @ACEconPolicy]

The current Stockton financial crisis stems from a highly publicized real estate debacle in 2014–2015 involving the university. 's former president, Dr. Herman Saatkamp.

In 2014, Stockton University purchased the shuttered Showboat Casino in Atlantic City for $18 million with plans to convert it into a branch campus.

However, a legal entanglement involving conflicting property covenants blocked the university. saddled with a vacant property costing $400,000 per month in maintenance fees. The crisis intensified until Dr. Saatkamp resigned under pressure.

Saatkamp was an expert on the man who wrote:"Those who cannot remember the past are condemned to repeat

But tie the above Santayana quote to describe how the university rushed into a bad deal trying to flip the page property.
Skepticism is the chastity of the intellect, and it is shameful to surrender it too soon or to the first comer. [1]

[Jim Kennedy @ACEconPolicy]

AI Mode Conversation: hard rock memorabilia steel pier

Hard Rock features a massive museum-quality collection of music memorabilia, and it sits on the historic Atlantic City Boardwalk right across from the iconic Steel Pier amusement park.

Hard Rock and Steel Pier

[Jim Kennedy @ACEconPolicy]

New. York City casinos are expected to cost Atlantic City 3,500 casino jobs over the next three year. Atlantic City may be looking at a three casino reduction..

Casino economic models are more art than science. But there seems to be a 3,50 job loss consensus building.

It’s important to note that over 2,000 residents in Atlantic City job loss will be devastating. The 3,500 Atlantic Count job loss may trigger a regional depression.

[Jim Kennedy @ACEconPolicy]

The Sheraton HQ Hotel should not be difficult to fund.
The developer Tom Scannapieco built the Sheraton thirty years ago when financing was hard.

Scannapieco was right when he says much of the Sheraton financial current mess is result of the Convention Center failing to produce an adequate room night count.

The simple plan passed over by the developer would be to refurb about 250 rooms with the additional rooms added as convention room nights are increased.

Convert the 250 room balance into 1 bedroom and 2 bedroom condo units. The condo units are subject to strict blackout rules which mandate availability for conventions.

[Jim Kennedy @ACEconPolicy]

Sheraton Atlantic City Convention Center Hotel cost $78.2 million to construct when it originally opened in 1997. The CRDA in addition contributed land, parking lot and infrastructure costs. The Sheraton total project costs were close to $135.

The AC Convention business peaked a few years later. Sheraton has been in financial difficulties for almost that entire time.

It has $55 million already from the initial deal invested in the what Sheraton has now put on the table.

Sheraton has little real economic value… CRDA is literally a buyer of last resort.

[Jim Kennedy @ACEconPolicy]

The rich get richer and the poor get poorer

Atlantic City. maintains one of the highest poverty rates in the state, standing at 32.3%. In state-wide assessments of economic hardship, Atlantic City consistently ranks at or near the very top, frequently cited as the #1 poorest city overall or holding the #2 highest poverty rate among New Jersey municipalities, trailing closely behind Camden.

The city's financial landscape reflects a deep structural wealth disparity.

NYC Casinos present Atlantic City extreme economic challenge.

[Jim Kennedy @ACEconPolicy]

Catalytic regional tourism uses visitor spending and hospitality investments to trigger a chain reaction, stimulating broader łeconomic growth far beyond the initial tourism investment. Rather than acting as an isolated investment , serves as an engine that boosts secondary businesses, funds civic projects, and elevates local living standards.

Seven Catalytic Tourism projects that could transform the Atlantic City Region.

1. Bader Field Athletic Center HS Championship, Regional Tournaments, Fantasy Camps

2 Gardens Basin/ Lighthouse Sailing Center, Wood Boat Workshop

3. Farm to Table/. Wine Trail. Culinary School, Distillery

4. Aquatic Center Regional Tournaments, HS Championships

5 Caesars Pier/ Boardwalk

6. Steel Pier Music Pavilion

7. Down Beach Arts Restaurant District

Seven Project thatcan redefine Atlantic City as a culinary,sports, music and arts destination.

[Jim Kennedy @ACEconPolicy]

Showboat Atlantic City, Lender Skeptical That Business Is Booming https://t.co/vz8F5154MD #Atlantic City #Casino

[Jim Kennedy @ACEconPolicy]

Stockton University is in deep financial distress

Stockton should determine whether if a sale leaseback is an appropriate financial action given current financial conditions. A sale leaseback allows a higher education institution to sell its land or buildings and immediately leaseback.

This allows the college to monetize some of its real estate.

Sales leaseback can provide a fund to eliminate structural debt

[Jim Kennedy @ACEconPolicy]

Atlantic City Bader Field is a project rapidly advancing from a public embarrassment to public tragedy.

Atlantic City has a. Less then three years to. Become a significant resort destination with casinos.

The fact that the mayor is squandering valuable time on race cars that run in circles, a NYC Ferry that can’t Float is. Grand Tragedy.

[Jim Kennedy @ACEconPolicy]

Steel Pier is on the real estate market. Steel Piers value is its history not development rights. Develop Steel Pier Music Pavilion which centers on a Rolling chair time travel thru 60 years of popular music

Steel Pier captures the history of American Popular music starting with Sousas’ Brass Band and ending with Beatles British Invasion.

Steel Pier history vibrates with Jazz, Swing, Big Band, Rock

Site includes 5 acre Rooftop park.

The connection to Hard Rock creates in one enclosed space hotel, concert halls and entertainment venues.

NJEDA ASPIRE and/or CRDA funding.