Tropicana, Showboat Expansions Move Forward

In the case of the Tropicana, the $225 million expansion will include a 500-room hotel tower, a 200,000-sf themed shopping and restaurant complex called The Quarter and a 2,500-car parking garage. The project has been in the works for over a year and has just gotten good news in the form of a Superior Court decision tossing out a suit to block it.

By dismissing the suit brought by a group of residents: the Brighton Towers Condominium Association, Judge Daryl F. Todd, Sr. backed a zoning board decision permitting the massive expansion. He also dismissed challenges by the residents group of city council ordinances that gave owner Aztar Corp. variances on building height and density. The expansion site is 3.5 acres.

While giving the Phoenix-based Aztar a pat on the back for dropping the height of the parking garage by one level and proposing to make a number of aesthetic improvements, association attorney Glenn Zeitz indicated to reporters that the group would appeal the latest decision based on traffic and safety issues. The group is also said to be seeking monetary compensation in the neighborhood of $2 million.

The Showboat Casino-Hotel, meanwhile, has scheduled a May 1 groundbreaking for its own $90 million hotel tower expansion, slated to add almost 550 rooms to its existing 800-key package. Altogether, owner Harrah's Inc. is spending $140 million to upgrade the property, including construction of a new restaurant complex and expanded gaming facilities.

The Showboat has been struggling for years, but a recent upswing to 95% room occupancy and the increasing turn-away of potential overnight guests was the signal that it was time for the new hotel tower to move forward, according to Harrah's officials. Also cited is the fact that Showboat's casino revenues have grown at a faster rate than the citywide average in 10 of the past 12 months, according to Thomas O'Donnell, general manager of the property.

"There are a number of exciting dynamics taking place in the Atlantic City market," according to Tim Wilmott, Harrah's Eastern Division president. "This expansion allows us to address the current and future demand from our guests."

Harrah's, incidentally, is also spending close to $200 million to expand the hotel capacity and casino at its Harrah's Atlantic City property.