Wells Fargo, former lender to the shuttered Revel Casino, offered $300,000 to ACR Energy Partners – the company that used to supply the struggling property, so as electricity and heat to be turned on.
Revel Casino was shut down in September 2014 after two years of operation. The luxurious complex cost its former owners the substantial amount of $2.4 billion to build, but never proved to be a profitable one.
On April 7, the 47-story Revel was finally purchased by Florida developer Glenn Straub, but as it seems its issues are far from being solved.
Although Wells Fargo pointed out that it has no business relations with the new owner of the property, the company offered to pay the amount of $300,000 that would be enough for Revel to be supplied with electricity for two weeks.
Thus, more serious incidents would be prevented from occurring in case of fire. The Atlantic City Fire Department had previously warned that without electricity and water, firefighters would not be able to reach Revel’s upper floors, if the property catches fire.
The complex had its electricity cut off, after Mr. Straub’s Polo North Country Club and ACR Energy Partners, which, as mentioned above, used to be Revel’s only supplier of electricity, heat, air conditioning, and water, could not reach an agreement for the future provision of utility service.
Thomas Kreller, an attorney for Wells Fargo, wrote in a Friday letter to the federal bankruptcy court that the company is concerned that the legal battle between Mr. Straub and ACR is putting public safety as well as that of the building into serious danger.
The money Wells Fargo offers will be enough for ACR to provide the property with electricity for two weeks. However, Mr. Straub needs to make sure that the power will be used for re-energizing both Revel’s fire detection and suppression systems. Furthermore, there should be a working warning light at the top of the building as well as perimeter lighting all around the complex.
Timothy Lowry, an attorney for ACR, commented that the utility provider is considering the offer. Mr. Straub, however, could not be reached for comment.
Revel’s new owner pays a daily court-imposed fine of $5,000 for not having operational fire systems at the property.
As previously reported, Mr. Straub hoped that he would be able to open a casino at the complex before the summer. It seems, however, that the electricity issues will prevent this from happening if not solved any time soon.
