Generators were delivered to Revel Casino as the latest power move by distressed real estate developer Glenn Straub. The utility contract between ACR and Revel Casino has been the major point of contention throughout the bankruptcy of Revel Casino. Several potential bidders have balked at the outrageous price tag to power the building. ACR’s only customer is Revel Casino. It was built through a mix of investments from South Jersey Industries and the municipal bond market. ACR teeters itself on the brink of bankruptcy as its only customer is Revel Casino.
Possible Solutions for Revel’s Power Crisis
New Revel OwnerGlenn Straub
Currently Straub has has two possible strategies to get power to the recently purchased casino.
Get the Power from Showboat Casino
Recent documents have shown that Glenn Straub has struck a deal with Stockton University to purchase excess power from the former Showboat. The site was recently purchased by Stockton University with plans to open an Island Campus this fall. Those plans have recently become encumbered by a past covenant between Taj Mahal and Caesars Entertainment. Which calls for Showboat to remain a first class casino.
Glenn Straub Can Play the Waiting Game, and Buy ACR Out of Bankruptcy Court
ACR will undoubtedly be forced to file for bankruptcy in the near future, as it will lose its only customer. Glenn Straub has proven to be a force to be reckoned with, as he made good on his promises to have generators delivered. The options are limited for ACR and perhaps they overplayed their hand by shutting down the power at Revel. It seems as if winning is the only concern for Glenn Straub.
What Does This Power Outage Mean For Revel?
Glenn Straub has threatened to pull out of the project all together. Leaving the property to sit vacant if bureaucrats continue to stand in his way. He has been welcomed to the city by a slew of fines and permitting issues. These fines have been slowing the growth of Atlantic City for decades. Everyone wants to justify their jobs. So they tie up development with yards of red tape seeking kickbacks and favors. It is this mentality that has held back Atlantic City from fulfilling its true potential.
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