As we all know the situation in Atlantic City has been a struggle to pull the moribund entertainment metropolis out of its coma. There have been several attempts to resuscitate the once thriving gambling seaside town, and they have all been rickety. The main strategy has risen to be the revival of the prematurely shutdown Revel Hotel and Casino. The Revel seems to be the saving grace of Atlantic City. Recently an auction took place to spur prospective buyers towards action, but now the normal flow of actions has been broken and the companies are breaking out their lawyers.
Brookfield Asset Management, a company based out of Toronto, won the auction not too long ago, yet, because of a dispute over the debt the casino has accrued due to its costly power plant, the company back out of its $110 million winning bid. Now the legal tug-of-war begins.
Florida real estate developer Glenn Straub has pulled out his lawyers and is demanding a lower price on the Revel Casino, which he plans to use to build a university for “geniuses.” The lawyers for Straub said in a court filing, according to NJ.com online New Jersey local online periodical, that the building complex should be sold for $87 million instead of settling on the runner-up bid that was called at $95.4 million put in by his legal entity Polo North Country Club Inc.
As stated by NJ.com, Straub says in the filing that he believes the auction was unfair because his side wasn’t fully notified of the other bidder. He said he wouldn’t have bid more than his original $90 million “stalking horse” bid that set the floor price for the auction if he knew about what he described as “significant and numerous improprieties” in the bidding process.
In addition to the $8 million discount, Straub is asking for a federal judge to deduct a $3 million breakup fee he was originally promised because Revel is keeping Brookfield’s $11 million deposit.
The filing states that the Revel Hotel and Casino should be put up for auction a second time and he should get his deposit back if the judge finds that “the auction process was deficient to the extent the auction significantly and adversely affected” Revel’s ability to receive the highest bid. The issue of Revel’s plans to sell the casino to Straub is scheduled to be reviewed by the judge on January 5th.
Glenn Straub has proposed a series of ideas to revamp the Revel, including his most divulged idea of turning the enormous casino complex into a university “for geniuses.” There the world’s top minds would set to work on trying to solve the world’s problems.
The $2.4 billion Revel opened in April 2012, and the city was counting on it to help turn around Atlantic City’s struggling casino market. Unfortunately, it never turned a profit, and they filed for bankruptcy twice until they finally closed on Sept. 2.
Let’s just hope this whole ordeal turns out for the best.