The New Jersey Casino Reinvestment Development Authority gave a preliminary approval to the owner of Trump Plaza casino’s request to be granted $5.6 million from the state’s alternative investment tax to fund the planned demolition of the property.
Members of the authority met on Tuesday to discuss and vote on the matter. The meeting was concluded with the preliminary approval of the request. However, the authority will further examine the matter before making a final decision.
Trump Plaza was launched in the 1980s by now-US President Donald Trump. The casino resort is located on a premium Atlantic City Boardwalk plot of land. It remained operational until September 2014 when its closure was announced. The property was not owned by Mr. Trump at the time. New York billionaire investor Carl Icahn bought the resort’s parent company Trump Entertainment Resorts in 2015 out of bankruptcy. Aside from Trump Plaza, the purchase included the Trump Taj Mahal resort, which was still operational at the time but closed doors in the fall of 2016.
It became known last month that part of the former Trump Plaza resort would be demolished so that a portion of the property is vacated for new development. It is believed that the development opportunities the move will present will attract the attention of multiple investors.
Mr. Icahn’s Request
New Jersey media reported that the billionaire investor has requested that the planned implosion of Trump Plaza be partially financed through the alternative investment tax fund. Atlantic City’s casinos are required to pay a levy of 1.25% on their gambling revenue in addition to the 8% gambling revenue tax they contribute annually to the state’s coffers.
Under New Jersey laws, the proceeds from the 1.25% tax were to be used for different development projects in Atlantic City. However, state lawmakers decided last year that the money collected would be used to help the city pay its huge debt. The money collected before last year’s amendments could still be used for development projects and the Casino Reinvestment Development Authority could actually use proceeds from previous tax collections to fund the Trump Plaza demolition.
The Chairman of the agency said on Tuesday that if they agree to grant the $5.6 million requested by Mr. Icahn, this would help in the creation of room for future development, while an unproductive building is removed from the city’s skyline at the same time.
The potential funding of the demolition had its opponents among the members of the state authority. Atlantic City Mayor Don Guardian, who lost the recent mayoral election to Frank Gilliam, was among those to vote against Mr. Icahn’s request, stating that the businessman was already responsible for the property’s closure and the ensuing consequences from that.
Another hearing will be held by the agency to determine whether Mr. Icahn will be granted the requested amount of $5.6 million for Trump Plaza’s demolition.
