Focus on Atlantic City

Despite competition from other gaming destinations in the region, casino expansion continues at a rapid pace. The casinos generate more than $5 billion in gross gaming revenues annually and provide a stable tax ratable base, job creation and attract major capital investments.

Some 2006 development highlights:

The Pier Shops at Caesars opened in July 2006 on the site of the old Ocean One/Million Doll Pier. The Pier, which cost approximately $175 million, houses premier restaurants, exclusive retail shops and world-class entertainment venues.

The $200 million Borgata Casino Expansion Phase I added 500,000 additional square feet to the existing structure and three new high-end restaurants – Bobby Flay Steak, Wolfgang Puck American Grille and seablue, a Michael Mina Restaurant. Phase I opened in June 2006. Borgata is also adding an 800-room, 43-floor tower that will feature 18,000 square feet of meeting space. Borgata is also joining with NJ Transit, Harrah’s Entertainment and the NJ Casino Reinvestment Development Authority to create direct, one-stop train service from NYC to the Atlantic City Convention Center.

The Cordish Company continued the much-anticipated expansion of "The Walk" an upscale outlet shopping, dining and entertainment complex along Michigan Avenue between the Convention Center and Atlantic Avenue. The expansion adds five blocks along the Atlantic City Expressway corridor into the city.

Harrah’s is building a 47-story, 964-room hotel tower that will make Harrah’s the tallest hotel casino in Atlantic City and will boost the hotel capacity by 60 percent to about 2,600 total rooms.

The Trump Organization broke ground in July 2006 on a $250 million, 45-floor, 786-room tower at the Taj Mahal, and is renovating the Trump Plaza.

While it appears that Atlantic City faces significant challenges on a number of fronts,  especially slot parlors in nearby Pennsylvania combined with state-mandated smoking restrictions, investors appear to be unfazed as billions of dollars continue to be invested in hotel expansion and new casinos.

Looking forward, Revel Entertainment plans to build a megacasino on a 20-acre tract next to Showboat Casino. Pinnacle Entertainment has announced it will replace the Sands, which closed in late 2006, with a $1.5 billion casino. Former Casino Reinvestment Development Authority Executive Director Curtis Bashaw and Wallace Barr, former CEO of Caesars Entertainment Inc., of the Barr-Bashaw Group, bought an 8.23 acre site  next to the Hilton in late 2006 and are expected to build a casino there. It has also been reported that MGM Mirage is plans to build a casino next to the Borgata, which MGM co-owns with Boyd Gaming.

As it has always done, the SJTA will continue to make investments in its core services, the Atlantic City Expressway, the Atlantic City International Airport and shuttle and parking services, to support and augment the growth of the casino industry.