Revel Casino Project Rescued

The stalled $2 billion Revel Casino project in Atlantic City will reportedly resume construction thanks to New Jersey Gov. Chris Christie’s revitalization package that will supply much-needed financing to complete the job.

Christie held a press conference Feb. 1 at the partially built casino, which broke ground in 2007, to announce the bill that sets up a state-supervised tourism district with better police protection and sanitation and an industry-funded marketing campaign for the resort. The bill also eases some of the regulations for Atlantic City’s 11 casinos.

“We are standing at Revel this morning because beginning at the end of next week, construction will begin again on this site,” the governor told the crowd. “Revel will be completed.”

Revel Entertainment reportedly secured $1.15 billion in private financing for the job. The state will contribute $261 million in tax-increment financing through the Economic Development Authority for infrastructure improvements after the facility opens for business.

In return, Revel will pay the state “success reimbursement payments” in proportion to the state’s financial input. The state will receive 20 percent of Revel’s profits up to $261 million.

The hotel and casino project struggled to stay on schedule once the recession hit and credit markets became nonexistent. The company ran out of money in 2009 and the project’s main backer, Morgan Stanley, decided to pull out of the deal last April. The Revel’s exterior is nearly complete but the interior was left untouched.

The mega-resort is now expected to open in summer 2012.