In a release, the CRDA says the program, which targets derelict structures in an area bordered by the Boardwalk and Delaware, Maine and Melrose avenues, is a pilot for possible future demolition projects in Atlantic City. Revel is donating funds to the program as a pre-payment against the locally based developer's Atlantic City Housing Investment Alternative Tax obligations.
"The South Inlet Demolition Program is consistent with some of the suggestions heard in the meetings held by Mayor Lorenzo Langford," says Thomas Carver, CRDA's executive director, in a release. "Many of the community and business leaders said that the perception of Atlantic City needed to be improved. This is a good first step."
The demolition of derelict buildings was one of the themes sounded when business and community leaders met in Langford's office this past November for a summit on Atlantic City's future. "We have to make Atlantic City a resort destination," Carver told the Press of Atlantic City before the summit. "The time is long past when we could strictly depend on the beaches and Boardwalk to draw tourists. We can't compete anymore on that basis alone."
Carver added that clearing out abandoned buildings was necessary to help residents and visitors alike believe that "it's a safe city to be in." Targeting the South Inlet section near the site of the $2-billion Revel casino was cited specifically at that summit, and according to the Press, Carver also cited other areas in need of beautification, including sections of Atlantic Avenue. He said he'd like to see the Walk, Atlantic City's entertainment and shopping district, extended to Atlantic Avenue.
According to the Press, Langford called the summit at City Hall in response to a warning from Revel CEO Kevin DeSanctis that the city's future looks grim unless a plan is developed for saving it. "All I know is that we don't have a plan, and any plan is better than no plan," DeSanctis told the Atlantic City Hospitality Trade Show on Oct. 22.
CRDA says in the release that it has negotiated with representatives of the City of Atlantic City and Revel to structure the investment and the program criteria. Under the plan approved by CRDA, the $500,000 funds will be provided to the city via an intra-governmental agreement, with the funding provided in two installements of $250,000 each. The second installment will be issued by CRDA once the fund depletes to $50,000.
Among other things, the South Inlet Demolition Program calls for dedicated city staff for the program, start-up within 30 days from an agreement being reached with all parties, mutually agreed demolition priorities and monthly status meetings between CRDA and city program staff. All work will be competitively bid and awarded to qualified contractors. A spokesman for CRDA did not respond by deadline to GlobeSt.com's inquiries for further details.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
