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A New Jersey state agency has cleared the way to begin the long-anticipated bidding process for Bader Field, the 142-acre parcel of undeveloped land that sits a half-mile from the Boardwalk.
Bader Field is an airport owned by the city of Atlantic City that was closed in 2006. The 142 acre site is surrounded on three sides by water and is considered one of the most valuable pieces of open land on the East Coast. Bader Field is for sale. A process has been set up to facilitate competitive bidding for the site. The property is expected to fetch about $1 billion for the city.
The coveted 6.2-million-square-foot Bader Field has attracted the attention of several casino companies and developers, including gambling titan Steve Wynn, who has expressed interest in developing a casino resort there. Penn National Gaming Inc., of Wyomissing, Pa., made a failed $800 million offer earlier this year for the land. Other potential uses for the parcel include hotels or condominiums.
City officials said the land would be leased, not sold, to one or more developers, with a “substantial” percentage of the lease payment to be handed over to the city upfront. The city intends to select a developer — or more than one — by the end of March 2009. Interested developers have 90 days to submit a proposal for the site, a 30-day extension from what was originally projected. The deadline for offers is 5 p.m. Jan. 14.
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Fearing a “fire sale” price would leave nothing left for it after debts are paid, the former owner of the Tropicana Casino and Resort says it will sue to block the proposed sale of the casino to Corsish Co., the Baltimore Developer that was a leading bidder for the casino.
Tropicana Entertainment said that the proposed $700 million sale to The Cordish Company is less than the property is worth. A state-appointed trustee tapped Cordish on Tuesday as a potential purchaser of the Tropicana in a bankruptcy court auction. Other parties can still submit higher bids for the property, which was stripped of its casino license last December after problems with cleanliness, service, and compliance with state gambling rules, a decision which necessitated the sale.
Current economic conditions, coupled with a continuing downturn in the casino industry in New Jersey, and a mid-October deadline for selling the Tropicana, are producing “unreasonably low” offers for the property, said Scott Butera, the CEO of Tropicana Entertainment, which also seeks to reacquire the hotel casino.
Butera appealed the sale of the property in Indiana for $200 million on the same grounds, and the courts sided in his favor, and the sale was rebid. Add to the mix that values up to $1 billion are being bandied about for the Tropicana’s value. Butera said the company still intends to press on with its effort to regain control of the Atlantic City casino, and noted a slew of management changes Tropicana Entertainment has made so far this year, including barring Yung from having any control over it.
The trouble is the process drags on for too long, the longer it takes the more problems in operating stability.Tropicana has been a landmark in Atlantic City and continues to be profitable and attracts thousands of visitors every day. We hope that the bidding ends soon and that the casino stablizes quickly.
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