Glenn Straub announced a major “power play” on Tuesday, one that will finally resolve the ongoing litigation between Polo North and ACR Energy Partners.
Straub revealed on Tuesday that he was buying Revel’s former power plant, effectively ending a standoff between the companies. He will then use a separate provider to power the former Revel.
This news comes at the exact right time for the former casino as the Atlantic City Council President may be planning to move forward with a measure to condemn the Revel.
Deal will cost Straub $30 million
According to the Press of Atlantic City, Straub and ACR Energy Partners will repay the bondholders and then divide assets. Straub is putting up $30 million and will receive ownership of the plant. ACR Energy Partners will put up $15 million and retain certain equipment within the facility.
The $45 million will be used to repay bondholders and resolve the three-way dispute that has drug on since Straub purchased the facility. ACR Energy Partners will retain their power generation equipment, meaning that Straub will have to power the building through another source.
According to the NJ Herald, Straub will pay Atlantic City Electric and South Jersey Gas to power and heat the building. Reuben Kramer of the Press of Atlantic City tweeted that Straub will sue Stockton University for $30 million, the damages incurred when the University failed to provide power to Revel.
The deal is expected to close in 7 to 10 days.
Council President may try to condemn Revel
Clearly fed up with the delays in redeveloping the Revel, AC Council President Frank Gilliam Jr announced on Tuesday that he plans to introduce a measure that would allow the city to “take a much more aggressive stance” in forcing Straub to redevelop the Revel.
The Press of Atlantic City reports that the measure would name M&J at Melrose LLC at the official redeveloper of the South Inlet section, the area where the Revel is located. A redeveloper can partner with the city to condemn a property if needed.
According to Gilliam, the measure “stirs the pot in terms of development going on around him (Straub), and because there’s areas in and around Revel that need attention, that then will allow the city to approach Mr. Straub in a much more meaningful manner.”
Straub is not happy with the proposed resolution, saying that “The City Council is really playing with fire. The concept is flawed. The process is flawed.”
Straub claims to be looking to hire a casino operator to reopen a gambling operation within the Revel but other plans, including a water park, are still in the works. Revel does not have any plans to operate a NJ online gambling site such as those powered by competitors Resorts and Caesars.
Straub has made many claims to the future of the Revel in the last year and a half. The only thing that seems consistent is that a portion of the casino will reopen for gambling but it will be just part of the property.