Well, showboat is sold to Stockton. No way they demo Revel. Too new and valuable. I think the big question is Trump Plaza...centered Boardwalk and not a newer building.

Wow so Caesars basically screwed Stockton and told them that old legal agreement had been taken care of? Pretty low... It's not some corporation, it's a local college.

Stockton has a huge hospitality program which I assume is why this interested them. They run the Sea View resort and golf course in nearby Galloway, with a lot of student involvement from what I understand.

I think Stockton's lawyers dropped the ball on this too. They shouldn't have just taken Caesars' word for it. Good luck trying to unload the property now Stockton, now that everyone knows of the covenant.

It may be a good idea for the college. I'm just not sure it's good for the city. A college campus isn't likely to bring many tourists to the Boardwalk the way family attractions, shopping, restaurants, amusement rides, or a water park would.

water park lol. no one is going to AC for w water park. that was just a ploy the dude used to get revel on the cheap. water park lol such a dumb idea

You don't have kids do you? People would absolutely come to a well done water park. People regularly drive to the middle of nowhere I this country fir such things.

find it hard to believe people would actually come for a water park. also the water park would be open for what 3 months out of the year? great

Aren't the Boardwalk amusement rides open only in the summer? They seem to do alright. Besides, there are indoor water parks that do good business year round. Water parks are a popular family attraction. Look, maybe a water park would work there, maybe it wouldn't. I 'm not an expert on such things and I haven't done the market research needed to determine that. I just included it as one idea in a list of possible options. My main point was that I think that replacing the casinos with a) another casino, or b) some other attraction or use one typically associates with a boardwalk and summer fun would be a better idea and would attract more tourists than replacing it with a college campus. I'm not against Stockton. I'm all in favor of the city helping them find a good place. I just don't think the Boardwalk is the right fit.

Hey, if you're a college student and your campus is on the Boardwalk, on the beach, surrounded by casinos and nightclubs... where do you go for spring break?

you go somewhere where there is actually people on the boardwalk, on the beach, and in nightclubs

Yeh, someplace warmer than it is right now in AC.

A serious question now- If a court sides with the Taj that only a casino can be built on that site Stockton is going to have a hard time unloading the property. What happens if they hold on to the property until the Taj closes? does the covenant then become null and void? I would think so.

depends on the covenant. some covenants "run with the land" and the new owners of the taj property would inherit it. but without knowing the terms it's impossible to say

Is this water park outdoors? I ask because we have two in my midwest city that are indoor only. I mean it's a big building. Why not use it?

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I think it was like half outdoor half indoor. because the building is a beautiful hotel and that's why it's worth so much (cost billions to build and now selling for pennies). it wouldn't make sense to gut it for a water park

It was one idea that I saw mentioned for Revel. I doubt it ever got past the idea stage. Because I saw it mentioned I brought it up as one of many possible ideas for the site. Nothing, as far as I know, has been planned or designed. I don't think we should dwell to long on the water park idea, as it's quite likely that that the sites in question will end up being used for something else entirely. But I have seen indoor year-round water parks, much smaller than the outdoor kind you see at Six Flags or other amusement parks

Without getting too deep in the legal weeds, the covenant has been described as requiring the three uptown properties in existence in 1988 to maintain a "first-class casino." Considering the changed market conditions, it is hard to imagine it is enforceable against a subsequent owner. Caesars even included a covenant in the new deed that NO casino operate on the property (a dubious covenant). Plus, there are a boatload of arguments against the Taj's position. In an $18M deal, all the parties were fully aware of the details and made a decision to proceed. The best result would be to offer Trump some cash to go away.

Interesting first post!

I recall reading a Taj spokesman say that they had directly told both Caesars and Stockton that they were not going to waive the covenant, so it is a little unclear how underhanded Caesars was vs how optimistic Stockton was.

To me I think you hit the nail on the head, and this is basically Taj holding out for a modest payday. It's hard to say for sure, but the idea that they'd prefer not to have a Stockton branch there given underage gambling concerns strikes me as off. Yes, they'd need to make sure their security guards, dealers, bartenders and cocktail waitresses were all trained to watch for underage kids... just like they all are right now. Yes they may have an increased likelihood of running into some of those issues, but they also now have a vibrant next door neighbor including lots of 21+ aged Jrs and Srs, as well as visiting parents, faculty + staff, etc. I'd be surprised if that isn't really viewed as a net positive. My guess is they just think they can force Stockton's hand into X thousand dollars as well.

"Maintain a 'first class casino'"? The Taj broke that covenant years ago.

So there is one contract that says the land can ONLY be used for a casino. There is a second contract that says it can be used for anything EXCEPT a casino.

Yeah, that makes total sense.

Stockton needs to either sue Caesar's or sue their own lawyers.

From the quotes of Stockton principals, they do not want to get into an extended litigation battle about anything. They have stated these issues either disappear or they do. So, for the Taj, there is settlement value, but it must not be overstated.

The whole "first class casino" idea is pretty interesting. Basically, I guess each party had to maintain at Resorts-level of amenities, circa 1988. So, no sawdust or marketing to skinheads. A seventy year old hotel with a motel annex (the old North Tower); some first class joint there. And, apparently, the clause would not limit anyone from closing down, and could not require a new owner to reopen as a casino. So, they have a pretty subjective standard for the covenant and no particular way to enforce it. I call Next Case.

It does look kind of opportunistic on the part of the Taj owners that they waited til this point to mention it instead of bringing it up before the sale was final. "Let's sit here and watch Stockton sign the papers and begin their redevelopment before telling them we're going to oppose them."

Here is the 30 page land covenant signed by Trump and Showboat in 1988:

http://www.pressofatlanticcity.com/s...7d0572843.html

The promise in question is Section 3.1.

Most of this agreement dealt with the fact that Resorts owned the development rights for the Uptown Urban Renewal District, better known as Pauline's Prairie. Showboat leased some of the land from them, Resorts began development of the Taj and actually topped out the tower when they ran out of money. Resorts chief James Crosby died, and eventually Trump ended up with the Taj property and the Showboat lease, Merv Griffin ended up with Resorts. This Agreement sorted out some of this.

FWIW, I just pwned the $20 trick at Resorts. It was a free room I won on a radio contest - 94.1 WIP. $20 trick got me a two room, two bath suite in the 53rd floor. Jacuzzi. Huge walkin shower. Dining table. I'll post pics later.

Said pics...

Cha-Ching! Nice room.


What was the "trick"?

Search "$20 trick." There's a thread on it or at least several stories of it. When the front desk asked for my CC and license, I sandwiched a $20 bill in between and asked if they had any upgrades. The dude didn't miss a beat!