It may be the ultimate competitive irony. Just as neighboring states and even Northern New Jersey expand their gaming options to compete with Atlantic City, the home of HBO's award-winning Boardwalk Empire is looking to diversify its economy past its casinos in an effort to revive its longflagging fortunes.

The Casino Reinvestment Development Authority's Feb. 1 approval of a new master plan is the next step in a scheme to rejuvenate Atlantic City's tourism district. In a sense, this plan could be the city's last, best chance to reverse a decades-long decline, exacerbated by the recent recession.

"Frankly, we've been dealing with a rough economy, and then, in the past five years, competition from neighboring states," says John Palmieri, executive director of the CRDA.

While Atlantic City was formerly perceived as competing with the lights of Las Vegas, it's now facing threats from Pennsylvania and New York, as these adjoining states have seen increasing interest in the revenues generated by gaming. Since 2007, four standalone casinos have opened in Pennsylvania: the Mount Airy Casino Resort in Stroudsburg, the Sands Casino Resort Bethlehem, the Rivers Casinoin Pittsburgh and the Sugarhouse Casino in Philadelphia. In addition, several casino licenses have been awarded to horse racing facilities, creating "racinos."

Not to be outdone, a coalition of New York State's nine racetrack casinos last year formed the New York Gaming Association to advocate for their interests. And competition will only increase. New York Gov. Andrew Cuomo proposed a constitutional amendment legalizing casino gambling.

"I believe that amendment will pass in 2013," says Jeffrey Gural, chairman of Newmark Knight Frank and chairman of American Racing and Entertainment, owner of the Tioga Downs and Vernon Downs Racinos in the state. "Once it happens, it will be very hard for Atlantic City."

Some of Atlantic City's competition also is located closer to home, resulting from Gov. Chris Christie's 2011 decision to privatize gaming, including racetracks, as part of a fiscal austerity plan. "When the state ran it, they were losing $10 million to $12 million a year," Gural observes. "The governor made a decision that the state shouldn't run racetracks."

Instead, Gural's New Meadowlands LLC took over the Meadowlands Racetrack facility, with a 30-year lease; the state continues to own the racetrack's land. Plans call for $100 million in construction, including a smaller grandstand and the completion of a downsized off-track wagering facility in Bayonne. Meanwhile, other local talk has included the construction of a casino in Bergen County.

Faced with this growing competition very close to home, the CRDA was given control of the redevelopment of the Atlantic City Tourism District and charged with coming up with a master plan to revitalize the district by Feb. 1. Consisting of approximately 1,700 acres, the Tourism District encompasses some of the city's most valuable land, including the beach, boardwalk, casinos and main retail areas such as the Walk, Marina District and Gardner's Basin.

Shortly after joining the CRDA in October, Palmieri retained the New York City office of Jones Lang LaSalle and San Diego-based architecture and design firm the Jerde Partnership to complete the master plan. (Birdsall Services Group and Hill Wallack LLP also consulted on the plan.) The team quickly set up a survey website, RevitalizeAC.com, to obtain stakeholder approval, including state residents as well as real estate professionals. Paul Mas, the JLL managing director in charge of the project, says he had expected 50 to 75 responses; the site got more than 1,500.

"I've never seen such a commitment," Palmieri says. "We had a terrific outreach."

The plan's goal is to appeal to visitors within a fouror five-hour drive, Palmieri says, a potential audience of 40 million to 50 million people. But all of these people have access to the other gaming alternatives. The city is choosing to compete by emphasizing attributes that do not relate to gambling. "We basically want it to be a resort with gaming as one of its amenities, instead of gaming being the main event," Mas says.

The master plan strategy is organized with initiatives to begin over one-, fiveand 10-year timeframes focused around the idea of an overall resort that integrates the city, beach and casino industry. In a way, the plan is an attempt to recreate Atlantic City's early 20th century heyday.

"You can't go backward to 1910 or 1920," Mas says. "But you can get the essence of a resort town or city in a modern sense, updating the attractions for today. There are certain assets Atlantic City has that the others don't, such as the boardwalk"the top rated one in the country, according to National Geographic magazine.

Three entertainment venues—an openair concert shell, an animated interactive light show and a giant wind-driven sculpture— will be situated on the beach side of the Boardwalk. A group of corporate pavilions, sponsored by entertainment and consumer product companies, will offer an ever-changing series of displays.

The master plan also recommends the development of seasonal events, most of which will occur along the boardwalk and on the beach, to be managed by a consulting group retained by CRDA. A Dave Matthews concert on the boardwalk last summer attracted the younger demographic that JLL is trying to reach. "Our job is to basically identify the items that have to be improved to attract private investment," Mas says.

The near-term development initiatives, which will be underwritten by CRDA and the State of New Jersey, will act as a catalyst to attract further corporate and institutional investment into the City by increasing tourism. The increased business should create an economic climate that is more conducive to development.

The boardwalk, agrees John Simones, partner and design director of Jerde, must be the top priority. "It's why people come," he says. "Recreating that resort town helps to increase the casino revenues. It helps to revitalize the city and the work force. With the casinos, the ocean, the boardwalk, the amusement piers—if you analyze everything, this is a great place to be. That's where our plan has an overall advantage."

Another goal is to assimilate the boardwalk with the rest of the city, Simones says. Plans call for the city side of the boardwalk to be lined with attractive casino frontages and shops, along with several substations of the Atlantic City Police Department to increase security. "We want to reinforce the existing urban fabric and bring it to life again," he says.

If the initiative is successful, it's expected to spur private-sector investment for the midterm, which will include larger projects on the boardwalk and other public areas. These could involve the construction of a new development in the Arcade District that will create a seamless connection between the Downbeach and Downtown Districts, with an internal network of indoor/outdoor glass arcades offering dining, retail and other amenities. Another recommendation is the development and promotion of the fisherman's village and aquarium at Gardner's Basin into an East Coast version of Monterey, CA's Cannery Row.

Redevelopment will extend past the Boardwalk to turn Pacific Avenue, a parallel thoroughfare, into a pedestrian street scene comparable to Bourbon Street in New Orleans. Existing parking lots and casino service areas will be redeveloped into restaurants, nightclubs and shopping, with jitneys and taxis shuttling visitors.

The key, Palmieri says, is to connect the different aspects of Atlantic City into one functioning whole to appeal to residents and visitors year round. In particular, the area's already-successful outlet center, Tanger Outlets' the Walk—which Tanger acquired, along with future development rights, in mid-2011 for $199.3 million— would be expanded to connect the CBD to Pacific Avenue and the boardwalk.

"We're working with the casinos to do façade improvements along the boardwalk," to reverse the feel of fortresses that turn their backs on the city, Palmieri reports. "We also want to get people to do some residential development."

Long-term proposals include redeveloping Bader Field, the former municipal airport, into a mixed-use neighborhood with sustainable residential and civic uses, and expanding the Marina District into a high-end resort destination.

The cooperation from the casino industry is another positive factor. The city's casinos have united to form the Atlantic City Alliance, a nonprofit corporation whose primary mission is to develop and implement a full-scale, broad-based, multi-year marketing program for Atlantic City. The ACA is coordinating efforts with the CRDA, and Palmieri reports positive response from casinos toward the master plan. "The casinos have never played well together," he says. "Now, they are. We're in a very strong position, and we just need a few things to break our way."

And the gaming industry continues to grow. Atlantic City's latest casino entrant, Revel, will have a soft debut on April 2 in preparation for a Memorial Day weekend grand opening. The $2.4-billion, 6.3-million-square-foot Revel, located on the Boardwalk between South Nevada and South Connecticut Avenues, will at completion offer 1,800 guestrooms, 14 restaurants, 46 retail shops, a 28,000-square-foot spa, 150,000-square-foot casino and two theaters.

Yet the most important aspect of the plan has nothing to do with development, both Mas and Palmieri note, but everything to do with the perception of safety. In August 2011, Tom Gilbert, the former chief of staff of the State Police, took charge as the commander of the Tourism District, working with deputy police chiefs. An elaborate camera system, building on the existing privately owned network, as well as updated technology and increased uniformed police presence, are part of the efforts.

Palmieri also hopes to attract more convention center business, despite difficulties in transportation. Atlantic City International Airport serves one million passengers annually, and a $25-million expansion is scheduled for completion in May. But currently, only Spirit Air and charter flights land there. Visitors must fly into Philadelphia or Newark Liberty. "We have a wonderful second-tier convention center," he says. "But transportation issues need to be considered. We'd like to see how we could attract another carrier or two. But that may take a little time."

The question becomes whether these efforts are too little, too late, as AC's competitors increase. "Most people do not think Atlantic City will be revitalized. There's too much competition," Gural says. "But the governor wants to give it a chance."

So, too, does the state legislature. In late January, State Senate President Stephen M. Sweeney said an Assembly proposal to allow casinos in Bergen County was "going nowhere," and that Atlantic City would be given five years to reverse its fortunes.

"Atlantic City has rediscovered itself over and over again," Simones says. Mas points out that gaming alone is a $3-billion industry in Atlantic City, and that Revel's opening is "a game changer."

And those in charge of "saving" Atlantic City are aware of the responsibility, knowing they likely will have a good chance. "The governor and legislature have given us the tools to succeed," Palmieri says. "We need to create a cleaner, safer city with more amenities."

A $30-million marketing campaign, overseen by Atlantic City Alliance and created by the ad agency Euro RSCG New York, will begin promoting Atlantic City in the spring. And television has cooperated, as well, thanks to the popularity of Boardwalk Empire.

"It certainly helps the overall publicity, bringing Atlantic City to the front of people's minds. It creates an intrigue as to what it was," says David Sheldon, Jerde vice president for Americas. "This is an amazing opportunity timing-wise. All the stars have aligned. The opportunity to recreate and reenergize Atlantic City is right now."