Jim Kennedy of @ACEconPolicy says converting 50% of the Sheraton Convention Center HQ Hotel to senior restricted housing is the single worst Atlantic City public policy decision made in the past 25 years.
But it pales in comparison to the action steps required that room conversion will effectively result in the closure of the Sheraton Hotel for a one year period when redevelopment take place.
Dozens of convention contracts are going to have to to be renegotiated to far less desirable hotel sites.
Convention Center expansion of business will be critical to offset the projected loss.of casino business in the next three years.
In year one (2027) there may be zero convention center rooms.
Sheraton operator was awarded PILOT (Payment in Leiu of Taxes) on top of the prior 20 year tax break.
CRDA, Casino Reinvestment Development Authority subsidies built the project.
A decade ago, CRDA subsidies bailed out the project when it didn’t meet expectations.
Developer survived on public subsidies.
@JitneyGuy This may be a clue that the convention business is not enough to keep them afloat.
Atlantic City Regional Economic Analysis – Jim Kennedy, MBA, JD
@ACEconPolicy
Jim Kennedy is a regional economic and policy analyst in New Jersey and the former executive director of the Casino Reinvestment Development Authority (CRDA). Operating online as @ACEconPolicy (Atlantic County Economic Policy), he provides commentary on local taxation, casino PILOT programs, urban development, and regional economic stress.
Posts by ACEconPolicy Atlantic City Regional Economic Analysis – Jim Kennedy, MBA, JD
Is he aware the hotel has been in Forclosure for over 5yrs.. w a debt of over $50M.. what are his solutions ? Having been on board of CRDA he is familiar w pissing away 10’s of millions of Casino taxes on countless ‘Projects’ in the city.. The metal sculpture at foot or the Expressway.. Poseidon Statue..Delilah’s den property.. only a few of tens of millions wasted during his tenure.,
Kennedy was the ED, wasnt on board, had no vote on anything.
That being said, he was the one with ideas for projects, which the board voted on.
His record at crda is spotty at best.
So sad. What other shore towns have this kind of problem? AC is a prime location for a beautiful vacation destination. Lots of land on the black horse Pike to be developed but sits empty for years with motels from the 1940’s that need to be either demolished or higher end hotels developed there. Where are all the legislators who represent Atlantic county on this? Sure they want your vote to sustain a lifetime job but do nothing. So disgusting.
There is a great need for senior housing right now. So what a great idea to convert a building that is in foreclosure into senior housing. There is no reason that conventions can’t still go on there. If only half of it is going to be used for senior housing. Then the other half can be used for what it’s always been used for.