It was announced that three mobile generators arrived on Tuesday at the former Revel Casino, which was shuttered back in 2014. The property had its electricity cut off last Thursday.
Glenn Straub, who purchased the struggling venue for the amount of $82 million, explained that the two main generators and a backup one will be installed within the next two days and will be enough to supply the entire property. He pointed out that the HQ nightclub will now be ready to resume operations.
Mr. Straub also said he is considering to power the resort with electricity from the neighboring Showboat. It has recently been reported that the Florida developer purchased one of Atlantic City’s emblematic casinos from its former owner – the Stockton University, on April 3.
The 47-story, 710-feet-tall Revel Casino was built back in 2012. Former owners invested about $2.4 billion in its construction. Last year, they filed for Chapter 11 bankruptcy protection, as the property did not prove to be a profitable one.
As mentioned above, Florida developer Glenn Straub bought the venue for $82 million last Tuesday. Only two days later, ACR Energy Partners, the company that was Revel’s only source of natural gas and electricity, cut its utility service off after multiple warnings.
The supplier explained its move with the fact that it could not reach an agreement with Mr. Straub’s Polo North Country Club Inc. on the future provision of its services.
This, in turn, resulted in city officials imposing fines on the casino’s new owners totaling $5,000 per day, as Revel’s systems for both fire prevention and suppression were no longer fully operational.
The Atlantic City Fire Department warned that without water and electricity, firefighters would not be able to deal with emergency situations.
Mr. Straub brought the matter to court only a day after the property had its utility services cut off. Yet, the judge did not rule in his favor and power was not turned back on.
Earlier this week, the Florida developer promised that he would evict ACR Energy, as their plant is located on land that is now owned by Mr. Straub.
The legal dispute between the utility supplier and Revel’s new owner has been moved to federal court at the request of Timothy Lowry, an attorney for ACR Energy. Mr. Lowry pointed out that plant owners decided to disconnect the casino, as Mr. Straub said he would only pay for maintenance and operations, but not for electricity and natural gas.
