In the process, General Foods will become the building's owner in order to take advantage of the tax benefits. GF has agreed to lease the facility back to the NJSEA for 99 years, but the latter will pay no rent and has the right to terminate the arrangement at any time. The key advantage for GF is that it will benefit from declaring an annual tax loss on the property as it depreciates.
"The Authority gets $7.2 million, and General Foods gets ownership for tax purposes," sums up a spokesman for the NJSEA. The latter needs the money -- it has a variety of bond and tax-related expenditures coming due. Besides the Atlantic City Convention Center, the agency also operates the Meadowlands Sports Complex, Monmouth Park racetrack and the New Jersey State Aquarium.
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