Revel Development to Proceed After Straub's Power Plant Purchase

Ever since investor Glenn Straub’s Polo North purchased Atlantic City’s $2.4 billion bankrupt Revel casino for $82 million in April, he has been locked in an ongoing power dispute with the property’s electricity provider. Glenn Straub rejected the high energy costs Revel would have been forced to pay by the nearby power plant owned by ACR Energy Partner, a situation that thus led to all developments on the property being put on hold over the past few months.
This week, however, the deadlock has finally been broken after a meeting took place between Straub and ACR Energy Partner, that was presided over by a federal judge. Under the agreement, which needs to be signed by December 2nd, Straub has agreed to buy the power plant for $30 million, of which ACR will use $15 million to pay off bondholders. After months of wrangling, news of the agreement came as a pleasant surprise to all interested parties, with U.S. District Court Judge Jerome Simandle expressing his satisfaction with the deal, and stating that:
“This represents a great step forward for this property and its rejuvenation. It’s an important step for Atlantic City. It may build some confidence that Atlantic City remains viable.”
Glenn Straub said he now intends to have at least a part of Revel up and running by summer 2016, including possibly an indoor-outdoor water park, and as he explains:
“It’s not going to be the old Revel. But now we can talk to casino operators and tell them we’re interested in a 30-year lease. No one would want to sign a lease under the old circumstances when the future of the property was so uncertain. It won’t be 7,000 parking spaces, but we’ll have something open.”
Meanwhile, the president of Atlantic City Council, Frank Gilliam, has since indicated he intends to introduce a resolution naming a redeveloper for the area which also includes the land where Revel is located. The move is apparently designed to incentivize Glenn Straub to get Revel operational as soon as possible, as well as spur further development in the neighborhood.