Glenn Straub, the Florida developer who purchased the former Revel Casino earlier this year, revealed on Tuesday that he is to buy ACR Energy Partners, the power plant that supplies the shuttered gambling venue.
Revel Casino opened doors in 2012. However, the $2-billion gambling hall never turned out to be a profitable one and owners had to close it last September. Mr. Straub bought the shuttered property in April with the intention to re-open at least some of its amenities by the summer. However, Revel never opened doors as soon after being purchased by the Florida businessman ACR cut off service. The utility provider said that it could not reach an agreement with Mr. Straub’s Polo North for the future provision of services.
The two parties have been involved in verbal and legal battle since then. However, as it seems, they have eventually made peace and Polo North is to buy the power plant, located just across the street from Revel Casino, for a total of $30 million. ACR is to put up the amount of $15 million in order to pay off its bondholders.
Under the terms of the agreement, Polo North would become the owner of all utility equipment within the power plant as well as the building itself.
Stuart Moskovitz, an attorney for Mr. Straub, told media that the agreement was recorded in a Camden federal court on Tuesday and that it is expected to be signed by December 2. U.S. District Court Judge Jerome Simandle commented that he was surprised and pleased with this turn of events.
He further noted that the deal is to move the shuttered casino one step closer to its rejuvenation. Judge Simandle also said that the step is equally important for Atlantic City as a whole as it may “build some confidence” that the city and its gambling industry are still viable.
Earlier this year, Mr. Straub was imposed serious fines on the grounds that he was creating fire hazard after he had dismissed workers who had been responsible for overseeing Revel’s fire-command center. Back then, Attorney Moskovitz noted that ACR was preventing the casino’s new owner from finding a new power supplier for the closed venue and was thus creating fire risk.
