During the yesterday’s court hearing, the Judge in charge of making decisions related to the fate of the shuttered Revel Casino, Gloria Burns, ruled that Glenn Straub has the legal right to terminate the leases of the tenants.
As previously reported, Mr. Straub, who acquired the property after multiple setbacks, is free to decide if he would let them operate within the premises or terminate the existing contracts.
Given the complicated situation, the Florida investor can either sign a new leasing agreement with the current tenants or seek new ones that meet his requirements. Although it was expected the disagreements between Straub and the tenants to be solved outside the court, this is not likely to happen and the state court will have the final say on the matter.
Stuart Moskovitz, the lawyer who played a key role in dealing with the issues concerning Revel’s purchase, said that Mr. Straub is not likely to lease the restaurants and night clubs to new tenants but he is seeking some amendments in the existing leasing contracts to be made.
At the beginning of the month, Glenn Straub acquired Revel Casino for $82 million and soon after, he faced another major setback apart from tenants’ issue. ACR Energy Partners – the only source of electricity for Revel, disconnected the casino from the grid as no agreement was reached with the new owner of the property.
Three days ago, Wells Fargo, the lender of Revel, offered the amount of $300,000 so as the electricity to be restored for two weeks but Mr. Straub representatives are yet to release information on the matter.
Meanwhile, the state of New Jersey has imposed a solid fine estimated to cost Straub $5,000 daily because he violates the fire safety regulations.
In order to remedy the situation, the Florida developer proposed an effective solution. He suggested Revel to be provided with electricity from the casino next door – the Showboat, through portable generators. However, it became clear that basically, such kind of activities are illegal, unless a specific license is obtained.
Revel was expected to open doors for visitors within the next few months. Its new owner had several suggestions for projects aimed at making Revel an appealing place for tourists and locals alike. However, the latest delays will most probably postpone the grand opening of the property.
